HANDBOOK 


UNITED  STATES 
DEPARTMENT  OF 
COMMERCE 


THE  UNIVERSITY 
OF  ILLINOIS 
LIBRARY 

330.951 

U.n32.c- 

cop.  2. 


DEPARTMENT  OF  COMMERCE 

/(.  .  BUREAU  OF  FOREIGN  AND  DOMESTIC  COMMERCE 

*'  JULIUS  KLEIN,  Director 


TRADE  PROMOTION  SERIES— No.  38 


CHINA 

A  COMMERCIAL  AND  INDUSTRIAL 

HANDBOOK 

BY 

JULEAN  ARNOLD 

Commercial  Attache 

AMERICAN  CONSULAR  OFFICERS,  and 
OTHER  CONTRIBUTORS 


Supersede*  Commercial  Handbook  of  China,  Miscellaneous  Series  No.  84, 
printed  in  2  volumes  in  1919-20 


PRICE  $1.75  PER  COPY 

Sold  by  the  Superintendent  of  Documents,  Government  Printing  Office 

Washington,  D.  C. 


WASHINGTON 

GOVERNMENT  PRINTING  OFFICE 
1926 


- 


: 


/ov  If  rf.A-S 


350. 

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(in  l 

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Cc.b, 

7,  ' 

CONTENTS 


Letter  of  submittal. 


Page 

XV 


Part  I 


Brief  geographic  description -  1 

Area  and  population -  1 

Climate _  2 

Distances  from  Shanghai -  2 

Statistics  relating  to  Provinces -  3 

Anhwei -  3 

Chekiang _  4 

Chihli _  4 

Fukien _  5 

Honan _  5 

Hunan _  6 

Hupeh _  6 

Kansu _  7 

Kiangsi _  7 

Kiangsu _  8 

Kwangsi _  8 

Kwangtung -  9 

Kweichow _  9 

Shansi _  10 

Shantung _  10 

Shensi _  11 

Szechwan _  11 

Yunnan _  12 

Manchuria  (three  eastern  Prov¬ 
inces  :  Shengking ;  Kirin; 

Heilungkiang) -  13 

Chinese  dependencies  (Mon¬ 
golia ;  Sinkiang;  Tibet) _  14 

Sketch  of  Chinese  history _  17 

Earliest  period _ _ _  *  17 

Chow  dynasty -  18 

Tsin  dynasty _  18 

Han  dynasty _  19 

The  Three  Kingdoms -  19 

Tang  dynasty -  20 

Sung  dynasty _ 20 

Mongol  dynasty _  20 

Ming  dynasty -  21 

Manchu  dynasty _  22 

Modern  period _  22 

C  Resume  of  the  trade  of  China _  26 

Value  of  total  trade -  26 

Development  of  foreign  trade _  28 

Leading  articles  of  import -  30 

Leading  articles  of  export _  34 

Import  and  export  trade  in  1923 

and  1924 _  36 

General  trade  notes -  41 

Trade  with  specific  countries -  42 

Trade  with  the  United  States —  42 

Direct  trade  with  foreign  coun¬ 
tries -  44 


Resume  of  the  trade  of  China — Con.  Page 


Trading  ports _  45 

Carrying  trade -  48 

Shipping - 50 

Import  trade  of  China _  52 

Relative  position  of  countries _  52 

Financing  of  imports _  54 

Authority  to  purchase _  54 

Confirmed  credits _  55 

Handling  shipping  documents _  56 

Chemicals _  57 

Utilization  in  industry _  58 

Indigo,  dyes,  and  colors _  60 

Foodstuffs _  66 

Wheat  and  flour _  68 

Cigarettes  and  tobacco _  71 

Cotton  goods _  76  . 

Raw  cotton  and  cotton  yarn _  80 

Woolen  goods _  84 

Petroleum  products _  85 

Kerosene _  85 

Fuel  oil _  89 

Gasoline _  90 

Lubricating  oil _  91 

Paraffin  wax _  92 

Hardware _  93 

Market  features _  93 

General  import  methods _  94 

Competition _  94 

Classes  imported _  95 

Machinery  and  machine  tools _  97 

Machine  tools _  99 

Agricultural  machinery _  101 

Flour  milling  machinery _  101 

Textile  machinery _  102 

Knitting  and  sewing  machines.  104 
Electrical  machinery  and  appli¬ 
ances  _  105 

Automotive  equipment _  109 

Passenger  cars -  110 

Motor  trucks _  112 

Metals  and  minerals _  114 

Value  of  imports _  114 

Application  in  industry _  116 

Leading  ports  in  mineral  trade.  117 

Lumber _  118 

Varieties  imported -  118 

Terms  to  dealers _  120 

Details  of  trade _  120 

Paper _  121 

Manufacture  in  China _  121 

Types  imported -  121 

Distribution  methods _  124 

Miscellaneous  imports _  124 

Sporting  arms  and  ammunition.  124 

Machine  belting _  125 

Books  and  music _  125 


in 


697649 


IV 


CONTENTS 


Import  trade  of  China — Con.  Page 

Miscellaneous  imports — Con. 

Building  materials _  125 

China  and  earthenware -  125 

Wearing  apparel _  125 

Clocks  and  watches _  126 

Musical  instruments _  126 

India  rubber  and  gutta-percha 

manufactures _  127 

Leather _  127 

Artificial  leather  and  oilcloth _  127 

Photographic  materials _  127 

Stationery _  127 

Postal  parcels  and  other  items-  128 

Market  development -  129 

Opening  a  house  in  China _  130 

Importance  of  personnel -  130 

Salesmanship _  131 

Selling  service  with  goods -  132 

Representatives _  132 

Keeping  the  agent  informed _  135 

Shipping  in  accord  with  instruc¬ 
tions -  135 

Advertising _  136 

Silver  exchange  and  prices -  137 

Trade-marks _  137 

Serious  effort  necessary _  138 

Incorporation  of  American  firms  in 

China _  139 

American  enterprises  in  China _  139 

American  corporations _  141 

Courses  open  to  American  inter¬ 
ests _  142 

Incorporation  under  State  laws-  143 
Incorporation  under  Alaskan 

code - 143 

Incorporation  under  Hongkong 

companies  ordinances -  144 

The  China  trade  act -  145 

Unincorporated  companies -  148 

Consular  registration -  148 

Currency,  exchange,  and  banking _  151 

Currency -  151 

Varieties  in  use -  151 

Copper  coins -  152 

Silver _  153 

Paper -  157 

Gold _  160 

Currency  reform _  160 

Foreign  exchange _  161 

Exchange  quotations -  162 

Bar  silver -  166 

Gold  bars -  170 

Banking -  172 

Foreign  banks -  172 

Chinese  banks -  173 

Business  of  Chinese  native 

banks _  178 

Financing  through  banks  in 

China -  179 

Credit  conditions -  185 

Export  credits -  186 

Import  credits -  187 

The  comprador -  188 

Exchange  problems -  189 


Page 


Advertising  and  merchandising _  191 

Package  goods _  191 

Brand  names _  192 

Distribution _  193 

Advertising  methods  and  mediums-  194 

Campaigns _  195 

Mediums -  196 

Advancing  trade  through  motion  pic¬ 
tures _  201 

The  film  an  effective  medium _  201 

Method  of  presenting  subject _  202 

Human  interest _  203 

Explanatory  matter -  203 

Exhibition  and  distribution  of 

films _  204 

Bringing  America  to  China _  204 

China's  export  products _  206 

Handling  bills  of  exchange _  207 

Financing  through  confirmed 

credits _  208 

Basis  of  negotiations -  208 

Domicile  of  bills _  209 

Exchange  quotations -  209 

Mineral  products _  209 

Alum _  210 

Antimony -  211 

Arsenic _ _ _ _ _  211 

Asbestos - 211 

Coal _ 211 

Copper _ 212 

Gypsum -  213 

Iron -  213 

Kaolin _ w _  214 

Lead  and  zinc -  215 

Magnesite  and  talc -  215 

Mercury _ ^ -  215 

Petroleum _ 215 

Saltpeter _  216 

Silver _  216 

Soda _  216 

Sulphur  and  phosphate -  216 

Tin _ _ _  216 

Tungsten,  molybdenum,  and 

manganese -  217 

Animal  products -  217 

Bristles -  218 

Cattle _  218 

Eggs _  219 

Feathers _ i _  220 

Game _  220 

Hides,  skins,  and  furs -  221 

Livestock,  other  than  cattle.  _  222 

Musk*. _  224 

Sausage  casings -  225 

Silk _  225 

Wool _ _ _  227 

Vegetable  products -  228 

Beans  and  bean  products -  229 

Camphor _  230 

Cotton _ 231 

Hemp _ _ _  232 

Kaoliang  and  millet -  233 

Lacquer  varnish -  233 

Licorice  root -  234 


CONTENT^ 


V 


‘China’s  export  products^— Con,  Page 

Vegetable  products1 — Con. 

Linseed _  234 

Nutgalls -  235 

Peanuts  and  peanut  oil -  235 

Ramie  and  grass  cloth -  237 

Rhubarb _  238 

Rice _  238 

Sesame  and  rapeseed -  239 

Tea _ 240 

Tobacco _  242 

Tung  oil -  243 

Vegetable  tallow _  245 

Walnuts _ v -  246 

Wheat,  flour,  and  bran -  247 

Miscellaneous _  250 

Native  manufactured  products -  252 

Carpets  and  rugs _  253 

Chinaware  and  porcelain -  253 

Embroideries _  254 

Firecrackers _  254 

Furniture  of  rattan,  reed,  and 

sea  grass _  254 

Hair  nets _  255 

Hats _ ' _  256 

Lace _  256 

Mah-jongg  sets _  257 

Mats  and  matting -  258 

Paper _  258 

Pongees _  259 

Straw  braid -  259 

Umbrellas _  260 

Vermicelli -  260 

Modern  Chinese  industries -  262 

Conditions  essential  to  industrial 

development _  263 

Corporate  industry _  264 

Encouragement  by  Government _  265 

Japanese  interests _  265 

Cotton  manufacturing _  267 

Flour  mills _  267 

Modern  power  plants _  267 

Metallurgical  industries _  268 

Other  industries -  269 

Wages  and  living  conditions _  269 

Increase  in  private  wealth _  270 

Chinese  students  in  America _  270 

China’s  economic  structure _  272 

Need  of  modern  transportation _  272 

Individualistic  development _  275 

Influence  of  western  ideas _  276 

Chinese  Government  finance _  280 

Efforts  to  centralize  control  of 

revenues _  282 

Debts - ! _  283 

Income _  286 

Debt  consolidation  plans _  288 

Available  sources  of  revenue _  288 

Customs  surplus _  288 

Salt  surplus -  290 

Other  revenues _  291 

Total  available  revenue  for  re¬ 
habilitation _  292 

Government  expenditure _  292 

Situation  of  the  railways _  293 

The  old  consortium _  297 


Chinese  Government  finance — Con.  Page 

The  new  consortium _  297 

The  native  consortium _ _  298 

Conclusion _  299 

Problems  of  foreign  capital  in  China.  300 

Railways  in  China _  309 

Historical  survey _  310 

Developments  since  1900 _  313 

Changes  brought  by  the  war _  315 

Progress  during  period  of  the 

Republic _  315 

Statistics  of  principal  lines _  316 

Management  of  Chinese  railways.  318 

Chinese  Eastern  Railway _  318 

South  Manchuria  Railway -  319 

Chinese  Government  lines _  319 

Relative  importance  of  lines _  321 

Property  and  equipment _  322 

Bridges - 322 

Ballast _ 322 

Purchasing  of  materials _  322 

Operating  methods  and  organiza¬ 
tion  _  324 

Transportation  methods _ . _  324 

Pilferage _  325 

Rates _ , _  325 

Chinese  postal  service _  328 

Domestic  services _  328 

Sino-American  postal  arrange¬ 
ments _ 329 

Customs  treatment  of  parcels _  330 

Money-order  service _ _ _  330 

Tariffs  and  internal  taxes _  331 

Customs  administration _  332 

Customs  function _  332 

Customs  valuations _  333 

Export  tariff _ I _  334 

Frontier  customs  tariff -  334 

Future  customs  revision _  334 

Chinese  customs  procedure _  334 

Units  of  currency,  weight,  and 

measure -  334 

Ascertaining  values -  335 

Filing  protests  against  assess¬ 
ments _ - _  335 

Invoices _  336 

Duty-free  articles _  336 

Prohibited  articles _  336 

Foreign  goods  imported  from 

Chinese  port _ 336 

Foreign  goods  reexported  to 

foreign  country -  337 

Foreign  goods  sent  to  Chinese 

port — , - - - * -  337 

Foreign  goods  sent  inland _  337 

Duty  on  native  goods  exported.  337 
Chinese  goods  imported  from 

-  Chinese  port _  337 

Chinese  goods  reexported _  338 

Bonded  cargo - 338 

Tonnage  dues  and  certificate _  338 

Chinese  factory  products  ex¬ 
emption — _ _  338 

Tientsin  trade  with  Manchuria.  338 


VI 


CONTENTS 


Tariffs  and  internal  taxes — Con.  Page 

Internal  taxes _ _  339 

Varieties -  339 

Summary _  341 

Trade-marks,  copyrights,  and  pat¬ 
ents  _  343 

Trade-marks -  343 

Copyrights _  346 

Patents _  347 

Treaties  regarding  reciprocal  pro¬ 
tection _  347 

Trade-marks,  copyrights,  and  pat¬ 
ents  in  Hongkong -  348 

Official  aid _  348 

Americans  in  China -  350 

American  population  in  China _  350 

Rights  of  American  citizens _  352 

Treaty  of  1844  _  353 

Treaty  of  1858 _  355 

Treaty  of  1880 _  355 

Commercial  treaty  of  1903 -  356 

American  courts  in  China -  357 

Organization _  358 

Jurisprudence  and  legislation _  362 

Judicial  procedure  in  China _  366 

American  consular  officers  in  re¬ 
lation  to  American  claims _  366 

Claims  against  Chinese  citizens-  367 

Claims  against  foreigners _  368 

United  States  Court  for  China -  368 

Other  extraterritorial  courts _  368 

Infringement  of  trade-marks,  pat¬ 
ents,  and  copyrights -  369 

Trade  organizations _  370 

Chinese  guilds  and  chambers  of 

commerce _  370 

Guilds _ _ _  370 

Chinese  chambers  of  commerce-  376 

Foreign  chambers  of  commerce _  378 

National  organizations _  381 

The  comprador _  384 

Changes  in  trade  methods _  384 

Position  of  the  comprador _  384 

The  bank  comprador _  386 

Agreement  for  services _  388 

Form  of  agreement _  388 

Chinese  social  customs  and  eti¬ 
quette -  392 

Respect  for  ancestors _  392 

Social  customs _  393 

Amusements _  394 

Dress -  395 

Etiquette -  395 

Chinese  names _  397 

Persistence  of  traditions _  398 

Keeping  well  in  China _  399 

Point  of  view _  399 

Health  inspection _  400 

Immunization _  400 

The  gastrointestinal  tract _  401 

Flushing -  403 

Clothing _  404 

Insect  bites _  404 

Protection  from  sun _  404 

Mental  attitude _  404 


Part  II  Pag# 

Canton  consular  district _  407 

Location  and  area -  407 

Population _  407 

Cities _  407 

Agriculture _  408 

Manufacturing  aud  industrial  de¬ 
velopment  _  409 

Home  industries _  409 

Manufacture  of  matches _  410 

Rubber-sole  factories _  410 

Tanneries _  410 

Copper  mills _  410 

Brick  kilns _  411 

Cement  plant _  411 

Marine  engines _  411 

Ice-making  plants _  411 

Minerals  and  mining _  412 

Labor  conditions _  414 

Transportation  and  communica¬ 
tion -  414 

Waterways -  414 

Railways _  416 

Roads _  417 

Summary  of  methods  of  trans¬ 
portation _  417 

Telegraphs,  cables,  and  wireless-  417 

Postal  facilities _  418 

Shipping  and  warehousing  facili¬ 
ties -  418 

Cargo-handling  facilities _  419 

Warehouse  and  storage  facili¬ 
ties -  419 

Public  works  and  utilities _  420 

Electric-light  plants _  420 

Waterworks -  420 

Tramways _  420 

Conservancy  and  reclamation 

works -  420  » 

Import  and  export  trade -  421 

Import  trade _  421 

Export  trade _  423 

Banking  facilities _  426 

Local  currency  situation _  426 

Advertising  and  merchandising _  427 

Travel  facilities _  427 

Trade  organizations _  428 

Property  values  and  rents _  429 

Taxes  and  other  assessments -  429 

Living  costs _  430 

Changes  in  trade  conditions _  430 

Hankow  consular  district _  432 

Location  and  area _  432 

Population -  432 

Cities -  433 

Physical  features -  433 

Agriculture _  434 

Minerals  and  mining -  436 

Manufacturing  and  industrial  de¬ 
velopment _  437 

Labor  conditions -  438 

Transportation  and  communica¬ 
tion _  438 

Waterways _  438 

Railways _  439 


CONTENTS 


VII 


Hankow  consular  district — Con.  Page 

Transportation  and  communica¬ 
tion — Con. 

Roads -  441 

Average  costs  of  transportation.  441 

Telegraphs -  442 

Telephones _  442 

Postal  service -  442 

Shipping  and  warehousing  facili¬ 
ties _  442 

Harbor  facilities -  442 

Warehousing  and  storage  fa¬ 
cilities  _  443 

Public  utilities _  443 

Electric-light  plants -  443 

Waterworks _  444 

Tramways _  444 

Conservancy  and  reclamation 

works _  445 

Import  and  export  trade _  445 

Money,  banking,  and  credit -  449 

Advertising _  449 

Travel  facilities _  449 

Trade  organizations -  450 

Property  values  and  rents _  450 

Taxes  and  other  assessments _  451 

Living  costs -  451 

Changes  in  trade  conditions _  452 

Hongkong  consular  district _  453 

Location  and  population _  453 

Manufacturing  interests _  453 

Labor  conditions _  454 

Transportation  and  communica¬ 
tion -  454 

Railways _  454 

Roads _  455 

Telegraphs,  cables,  and  wireless 

service _  455 

Telephones _  456 

Postal  facilities _  456 

Shipping  and  warehousing  facili¬ 
ties -  457 

Harbor  facilities _  457 

Dock  accommodations _  457 

Cargo-handling  facilities _  458 

Warehousing  and  storage  facili¬ 
ties -  458 

Public  works  and  utilities _  459 

Electric-light  companies _  459 

Waterworks _  459 

Tramways _  459 

Reclamation  projects _  460 

Import  and  export  trade _  460 

Changes  in  trade  of  Hongkong 

during  past  decade — 1 _  461 

Money,  banking,  and  credit _  462 

Banks _  462 

Financing  of  exports  from  United 

States  to  Hongkong _  463 

Powers  of  attorney _  464 

Currency  and  coinage _  464 

Advertising  and  merchandising _  465 

Trade  organizations _  466 

Property  values  and  rents _  466 

Taxes  and  assessments _  466 

Living  costs -  467 


•  ° 

Mukden  consular  district _  468 

Location  and  area _  468 

Population _  468 

Cities _  468 

Agricultural  and  animal  products.  469 

Minerals  and  mining _  470 

Manufacturing  and  industrial  de¬ 
velopment _  473 

Labor  conditions _  475 

Transportation  and  communica¬ 
tion  -  475 

Waterways _  475 

Railways -  476 

Roads _  478 

Telegraphs,  cables,  and  wireless 

service _  479 

Telephones _  479 

Postal  facilities _  480 

Shipping  and  warehousing  facili¬ 
ties -  480 

Harbor  facilities _  480 

Warehouse  and  storage  facilities  481 

Public  utilities _  481 

Electric-light  plants _  481 

Waterworks _  482 

Tramways _ _ _  482 

Conservancy  and  reclamation 

works -  482 

Import  and  export  trade _  483 

Internal  taxes _  488 

Money,  banking,  and  credit _  488 

Banks _ _ _  488 

Local  currency _  489 

Credits _  489 

Trade  organizations _  490 

Property  values  and  rents _  490 

Living  costs -  491 

Shanghai  consular  district _  492 

Location  and  area _ 492 

Population -  492 

Cities -  492 

Agriculture  and  fishing _  493 

Minerals  and  mining _  493 

Manufacturing -  493 

Cotton  manufacture _  493 

Silk  manufacture _  495 

Flour  milling _  495 

Shipbuilding  and  engineering 

works -  495 

Cigarettes -  495 

Oil  mills _  495 

Electric  light  and  power  plants.  496 

Match  factories _  496 

Cement  and  brick  works _  496 

Egg  products -  496 

Tanneries _  496 

Iron  and  steel _  497 

Aerated  water _ 497 

Electrical  equipment _  497 

Yeast -  497 

Breweries _  497 

Labor  conditions _  497 

Transportation  and  communica¬ 
tion -  498 

Waterways -  498 


VIII 


CONTENTS 


Shangai  consular  district — Con. 
Transportation  and  communica¬ 
tion — Con.  Page 

Railways -  499 

Roads -  500 

Methods  of  transportation  in 

Shanghai _  500 

Average  cost  of  transport _  500 

Telegraphs,  cables,  and  wireless 

service _  501 

Telephones _  501 

Postal  facilities _  502 

Shipping  and  warehousing  facili¬ 
ties _  502 

Ocean  steamship  services _  502 

Harbor  control _  503 

Port  accommodations _  503 

Public  frontage _  505 

Harbor  communications _  505 

Bonded  warehouses _  505 

Wharfage  and  storage  charges-  506 

Railway  connections _  500 

Public  works  and  utilities _  507 

Electric-light  plants -  507 

Waterworks _  507 

Conservancy  and  reclamation 

works _  507 

Tramways _  507 

Bus  lines _  508 

Motor  cars  and  trucks _  508 

Import  and  export  trade _  508 

Money,  banking,  and  credit _  509 

Banks _  509 

Currency _  510 

Exchange  brokers _  511 

Credits _  511 

Powers  of  attorney _  512 

Advertising  methods  and  facili¬ 
ties _  513 

Travel  facilities _  513 

Trade  organizations _  514 

Living  costs _  514 

Recreation _  515 

American  community  organiza¬ 
tions  in  Shanghai _  515 

Changes  in  trade  conditions  in 

past  decade _  516 

Land  procedure  in  Shanghai -  517 

Right  of  land  tenure _  517 

Method  of  acquiring  land _  517 

Transfers _  519 

Land  values  and  development  in 

Shanghai _  519 

Tientsin  consular  district _  522 

Location  and  area _  522 

Population _  522 

Cities _  522 

Agriculture _  524 

Minerals  and  mining _  524 

Coal  mines -  525 

Iron _  527 

Manufacturing  and  industrial  de¬ 
velopment  _  527 

Cotton  spinning _  527 

Flour  mills _  627 

Cement  works _  528 

Carpet  industry _  528 

Match  factories _  528 


Tietsin  consular  district — Con. 
Manufacturing  and  industrial  de¬ 
velopment — Con.  Page 

Glass  factories _  528 

Other  industries _  528 

Labor  conditions _  528 

Transportation  and  communica¬ 
tion  -  529 

Waterways _  529 

Railways _  530 

Roads _  532 

Costs  of  transport _  533 

Telegraphs,  cables,  and  wireless 

service -  533 

Telephones _ * _  533 

Postal  facilities _  534 

Shipping  and  warehousing  facili¬ 
ties -  534 

Public  works _  535 

Electric-light  plants _  535 

Waterworks _  536 

Tramways -  536 

Conservancy  works _  536 

Import  and  export  trade _  537 

Imports -  537 

Exports _  540 

Chinwangtao  trade _  542 

Money,  banking,  and  credit _  543 

Banks _  543 

Credits _  543 

Local  currency  situation _  545 

Advertising _  545 

Merchandising  methods _  546 

Travel  facilities _  546 

Trade  organizations _  547 

Property  values  and  rents _  547 

Taxes  and  other  assessments _  548 

Location  of  business  establish¬ 
ments _  548 

Living  costs _  549 

Educational  facilities _  551 

Significant  commercial  and  eco¬ 
nomic  changes _  551 

Amoy  consular  district _  552 

Location  and  area _  552 

Population _ 552 

Cities _  552 

Education _  553 

Agriculture _  554 

Fisheries _  554 

Manufacturing _  554 

Labor  conditions _  555 

Minerals  and  mining _  555 

Transportation  and  communica¬ 
tion _  556 

Waterways -  556 

Railways -  556 

Roads _  556 

Telegraphs  and  cables -  556 

Telephones _  556 

Postal  facilities -  557 

Shipping  and  warehousing  facili¬ 
ties -  557 

Amoy  harbor -  557 

Port  charges _  558 

Cargo-handling  facilities -  558 

Storage  facilities -  558 


CONTENTS 


IX 


Amoy  consular  district — Con.  Page 

Public  works _ —  558 

Electric-light  plants _  558 

Waterworks -  559 

Import  and  export  trade -  559 

Exports _  560 

Imports _  561 

Money,  banking,  and  credit _  563 

Banks _  563 

Local  currency -  563 

Credit _  563 

Merchandising  methods _  563 

Advertising _  564 

Trade  organizations -  564 

American  interests -  565 

Living  costs -  565 

Changes  in  trade  conditions  in 

recent  years _  565 

Antung  consular  district -  566 

Location  and  area -  566 

Population _  566 

Cities _ : -  566 

Agriculture _  567 

Sericulture - i —  568 

Forestry  and  lumbering -  568 

Minerals  and  mining -  568 

Trapping  and  fur  trade -  569 

Manufacturing  and  industrial  de¬ 
velopment _  569 

Labor  cml-^zis -  570 

Trans  11: and  communica- 

tic  _  571 

Wat(  . :  571 

Raih  '7  - _  572 

Roadi _  572 

Telegiaphs -  572 

Telephones -  573 

Postal  facilities -  573 

Public  utilities -  573 

Electric-light  plants -  573 

Waterworks -  573 

Tramways _  574 

Conservancy  and  reclamation 

works _  574 

Export  and  import  trade -  574 

Exports _  574 

Imports _  575 

Money,  banking,  and  credit -  577 

Banks _  577 

Local  currency -  577 

Credits - *  577 

Advertising _  578 

Travel  facilities -  578 

Trade  organizations _  579 

Property  values  and  rents -  579 

Living  costs _  579 

Changes  in  trade  conditions  in 

recent  years -  580 

Changsha  consular  district -  581 

Location  and  area _  581 

Population -  581 

Cities _  581 

Agriculture _ _  582 

Minerals  and  mining _  582 

Antimony _  582 

Lead  and  zinc _  583 

Tin _  583 


Changsha  consular  district — Con.  Page 

Minerals  and  mining — Con. 

Tungsten  and  bismuth _  584 

Iron  and  manganese _  584 

Arsenic -  585 

Quicksilver  _  585 

Gold  and  silver _  585 

Coal  and  coke _  585 

Other  minerals _  586 

Trade  in  minerals _  586 

Manufacturing  and  industrial  de¬ 
velopment  _  587 

Labor  conditions _  588 

Transportation  and  communica¬ 
tion -  589 

Waterways  _  589 

Railways  -  589 

Roads -  589 

Telegraphs _  590 

Telephones _  590 

Postal  facilities _  590 

Public  utilities _  590 

Electric-light  plants _  590 

Waterworks _  591 

Shipping  and  warehousing  facili¬ 
ties -  591 

Harbor  facilities _  591 

Cargo-handling  facilities _  591 

Warehousing _ _ _  591 

Export  and  import  trade _  591 

Exports _ _ _ . _  592 

Imports _  593 

Money,  banking,  and  credit _  596 

Banks _  596 

Local  currency _  596 

Credits -  597 

Advertising _  597 

Trade  organizations _  597- 

Travel  facilities _  597 

Property  values  and  rents _  598 

Living  costs _  598 

Changes  in  trade  conditions _  598 

Chefoo  consular  district _  599 

Location  and  area _  599 

Physical  features _  599 

Population _  599 

Cities _  600 

Agriculture -  601 

Crops  and  yields _  601 

Peanuts _  602 

Trade  in  agricultural  products-  602 

Grape  culture _  602 

Livestock _  602 

Agricultural  methods _  603 

Minerals  and  mining _  603 

Manufacturing  and  industrial  de¬ 
velopment  _  603 

Hair  nets _  603 

Bobbin  lace _ 604 

Silk _  604 

Peanut  oil _  605 

Bean  cake  and  oil _  606 

Vermicelli _  606 

Wine _  606 

Deep-sea  fishing _  607 

Labor  conditions _  607 


X 


CONTENTS 


Chefoo  consular  district — Con. 

Transportation  and  communica-  Page 


tion -  607 

Transportation _  607 

Telegraphs,  cables,  and  wireless 

service _  608 

Telephones _  609 

Postal  facilities _  609 

Shipping  and  warehousing  facili¬ 
ties -  609 

Harbor  facilities _  609 

Storage  facilities _  610 

Public  works  and  utilities _  610 

Electric-light  plants -  610 

Waterworks _  610 

Harbor  improvement _  610 

Export  and  import  trade _  611 

Exports  from  Chefoo _  612 

Exports  from  Lungkow -  613 

Imports  through  Chefoo -  613 

Imports  through  Lungkow -  615 

Money,  banking,  and  credit -  616 

Banks -  616 

Local  currency _  616 

Credits _ 616 

Merchandising  methods _  617 

Advertising -  617 

Trade  organizations _  617 

Travel  facilities -  618 

Hotels _  618 

Living  costs _  618 

Property  values  and  rents -  618 

Chungking  consular  district _  620 

Location  and  area -  620 

Climate _  620 

Population _  620 

Cities _  620 

Agriculture -  621 

Minerals  and  mining -  622 

Coal _  623 

Iron _  623 

Salt  and  petroleum _  623 

Mining  methods _  623 

Manufacturing  and  industrial  de¬ 
velopment  _  623 

Silk _  624 

Wood  oil _  624 

Other  industries _ 624 

Arsenal  and  mint -  625 

Summary _  625 

Labor  conditions _  625 

Transportation  and  communica¬ 
tion -  626 

Waterways -  626 

Railway  projects _  627 

Roads -  627 

Telegraphs,  cables,  and  wireless 

service -  628 

Telephones _  629 

Postal  facilities _  629 

Shipping  and  warehousing  facili¬ 
ties -  629 

Harbor  facilities _  629 

Warehousing  and  storage _  630 

Public  works  and  utilities _  630 

Electric-light  plants _  630 


Chungking  consular  district — Con. 

Public  works  and  utilities — Con.  Page 

Conservancy  works _  631 

Irrigation  works _  631 

Export  and  import  trade _  631 

Exports -  632 

Imports _  634 

Money  and  banking _  636 

Banks _  636 

Local  currency _  636 

Advertising _  637 

Trade  organizations _  637 

Travel  facilities _  637 

Living  costs _  638 

Trade  of  Tibet _  638 

Dairen  consular  district -  640 

Location  and  area _  640 

Population _  640 

Agriculture -  640 

Minerals  and  mining -  641 

Manufacturing  and  industrial  de¬ 
velopment _  641 

Labor  conditions _  642 

Transportation  and  communica¬ 
tion _  642 

Railways - - -  642 

Roads _  643 

Telegraphs,  cables,  and  wireless 

service - — -  643 

Telephones _  -  644 

Shipping  and  warehou  -  - 

ties -  644 

Tort  accommodatioi  -  644 

Cargo-handling  faci  .  —  —  645 

Storage  facilities -  —  645 

Public  works  and  utiliuoj -  -  647 

Electric-light  plants -  647 

Waterworks -  647 

Tramways -  647 

Conservancy  and  reclamation 

works _  648 

Export  and  import  trade -  648 

Exports -  649 

Imports -  649 

Recent  developments  in  foreign 

trade -  650 

Money,  banking,  and  credit -  650 

Banks _  650 

Local  currency _  651 

Quotations  and  credits -  651 

Merchandising  methods -  651 

Advertising _  652 

Trade  organizations _  652 

Travel  facilities _  652 

Property  values  and  rents _  653 

Taxes  and  other  assessments _  653 

Living  conditions _  654 

Changes  in  trade  conditions _  654 

Foochow  consular  district _  655 

Location  and  area _  655 

Population _  655 

Cities _  655 

Agriculture _  656 

‘Rice _ _  656 

Tea _  656 

Fruits _  656 

Other  products _  657 


CONTENTS 


XI 


Foochow  consular  district — Con.  Page 

Timber  cutting -  657 

Minerals  and  mining -  657 

Manufacturing  and  industrial  de¬ 
velopment  _  658 

Transportation  and  communica¬ 
tion _  659 

Waterways _  659 

Roads _  660 

Telegraphs,  cables,  and  wireless 

service _  660 

Telephones _  660 

Postal  facilities: _  660 

Shipping  and  warehousing  facili¬ 
ties -  660 

Cargo-handling  facilities -  661 

Public  works  and  utilities -  661 

Electric-light  plants -  661 

Conservancy  works -  661 

Export  and  import  trade _  662 

Exports -  662 

Imports _  663 

Money,  banking,  and  credit -  665 

Banks -  665 

Local  currency _  665 

Credits _  665 

Merchandising  methods _  666 

Advertising -  666 

Trade  organizations -  -  666 

Travel  facilities -  666 

Hotels _  667 

Property  values  and  rents _  667 

Living  costs _  667 

Changes  in  trade  conditions  in  re¬ 
cent  years _  667 

Harbin  consular  district -  669 

Location  and  area -  669 

Population _  669 

Cities _  669 

Agriculture -  670 

Stock  raising -  670 

Forests _  670 

Minerals  and  mining _  670 

Manufacturing _  671 

Labor  conditions _  672 

Transportaion  and  communica¬ 
tion -  672 

Waterways -  672 

Railways -  673 

Roads -  673 

Telegraphs,  cables,  and  wireless 

service _  674 

Telephones _  674 

Postal  facilities _  675 

Shipping  and  warehousing  facil¬ 
ities  -  675 

Port  accommodations _  675 

Cargo-handling  facilities _  676 

Warehousing  and  storage _  676 

Public  utilities -  676 

Electric-light  plants _  676 

Motor-bus  service _  677 

Export  and  import  trade _  677 

Exports -  677 

Imports -  677 


Harbin  consular  district — Con.  Page 

Money,  banking,  and  credit _  678 

Banks _  678 

Local  currency -  678 

Credits _  679 

Powers  of  attorney -  680 

Advertising  and  merchandising _  681 

Trade  organizations _  682 

Travel  facilities  and  hotels _  682 

Property  values  and  rents _  682 

Taxes  and  other  assessments _  683 

Changes  in  Harbin  trade  condi¬ 
tions  in  recent  years _  683 

'Currency _  683 

Chinese  Eastern  Railway _  684 

Kalgan  consular  district _  686 

Location  and  area -  686 

Lakes  and  rivers _  686 

Climate - - -  687 

Population _  687 

Cities -  688 

Agriculture -  689 

Livestock -  689 

Horses -  689 

Camels -  690 

Cattle -  690 

Sheep -  691 

Minerals  and  mining _  691 

Coal -  691 

Iron -  692 

Gold _  693 

Copper -  693 

Other  minerals _  693 

Mines _  694 

Manufacturing _  694 

Labor  conditions _  695 

Transportation  and  communica¬ 
tion -  695 

Waterways -  695 

Railways -  696 

Roads -  697 

Telegraphs  and  wireless  service-  698 

Telephones _  699 

Postal  facilities _  699 

Warehousing  and  storage  facili¬ 
ties -  700 

Public  works  and  utilities _  700 

Electric-light  plants -  700 

Export  and  import  trade _  701 

Exports' - w _  701 

Imports -  702 

Money,  banking,  and  credit _  703 

Banks -  703 

Local  currency _  703 

Credits _  703 

Advertising _  704 

Trade  organizations -  704 

Travel  facilities - - -  704 

Hotels -  704 

Property  values  and  rents -  705 

Living  conditions _  705 

Nanking  consular  district -  706 

Location  and  area _  706 


xn 


CONTENTS 


Nanking  consular  district — Con.  Page 

Population _  706 

Cities _  706 

Agriculture _  707 

Minerals  and  mining _  709 

Iron _  709 

Coal _  710 

Manufacturing  and  industrial  de¬ 
velopment  _  711 

Labor  conditions _  712 

Transportation  and  communica¬ 
tion -  712 

Waterways _  712 

Railways _  713 

Roads _  713 

Telegraphs,  cables,  and  wire¬ 
less  service _  *  715 

Telephones _  715 

Postal  facilities _  715 

Shipping  and  warehousing  facili¬ 
ties -  715 

Harbor  facilities _  715 

Warehouse  and  storage  facili¬ 
ties _  717 

Public  works  and  utilities _  717 

Electric-light  plants _  717 

Waterworks _  71 7 

Tramways -  718 

Conservancy  and  reclamation 

works _  718 

Export  and  import  trade _  718 

Exports _  718 

Imports -  719 

Money  and  banking _  720 

Banking  facilities _  720 

Local  currency _  720 

Advertising _  721 

Travel  facilities  and  hotels _  721 

Trade  organizations _  721 

Property  values  and  rents _  722 

Living  costs -  722 

Changes  in  trade  conditions  in  re¬ 
cent  years _  723 

Swatow  consular  district _  724 

Location,  area,  and  climate _  724 

Population _  724 

Cities _  724 

Agriculture _  724 

Minerals  and  mining _  725 

Manufacturing  and  industrial  de¬ 
velopment  _  725 

Labor  conditions _  725 

Transportation  and  communica¬ 
tion -  726 

Waterways _  726 

Railways _  726 

Roads _  726 

Telegraphs,  cables,  and  wire¬ 
less  service _  726 

Telephones -  726 

Postal  facilities _  726 

Shipping  and  warehousing  facili¬ 
ties - -  127 

Public  works  and  utilities _  127 

Electric-light  plants _  127 

Waterworks _  127 

Other  public  works _  728 


Swatow  consular  district — Con.  Page 

Export  and  import  trade _  728 

Money,  banking,  and  credit _  730 

Banking  facilities _  730 

Local  currency _  730 

Credits _  731 

Advertising -  731 

Trade  organizations _  732 

Travel  facilities  and  hotels _  732 

Property  values,  rents,  and  taxes.  732 

Living  costs -  732 

Tsinan  consular  district _  733 

Location  and  area _  733 

Climate _  733 

Population -  733 

Cities _  734 

Agriculture  and  livestock -  735 

Grains _  735 

Cotton _  735 

Peanuts _  736 

Tobacco _  736 

Beans -  736 

Other  crops _  736 

Stock  raising -  737 

Agricultural  methods -  737 

Minerals  and  mining -  737 

Mining _  738 

Manufacturing  and  industrial  de¬ 
velopment  -  740 

Labor  conditions -  741 

Transportation  and  communica¬ 
tion -  .741 

Waterways -  741 

Railways -  741 

Roads -  742 

Summary  of  transportation -  743 

Telegraphs,  cables,  and  wireless 

service _  744 

Telephones _  744 

•  Postal  facilities -  744 

Public  works  and  utilities -  744 

Electric-light  plants -  744 

Waterworks  and  tramways -  745 

Export  and  import  trade _  745 

Exports _  745 

Imports _  746 

Money,  banking,  and  credit _  747 

Banks _  747 

Local  currency _  747 

Credits _  748 

Advertising  and  merchandising _  748 

Advertising _ _  748 

Merchandising  methods _  748; 

Trade  organizations _  748 

Property  values  and  rent _  749 

Taxes  and  other  assessments _  749 

Living  costs -  749 

Changes  in  trade  conditions  during 

recent  years _  749 

Tsingtao  consular  district -  750 

Location  and  area _  750 

Population -  750 

Cities -  750 

Agriculture -  751 

Forestry _  751 

Manufacturing  and  industrial  de¬ 
velopment -  752 

Minerals  and  mining _  754 


CONTENTS 


XIII 


Tsingtao  consular  district — Con.  Page 

Transportation  and  communica¬ 
tion _  754 

Waterways  , -  754 

Railways — _ -  754 

Roads _  756 

Telegraphs,  cables,  and  wire¬ 
less  service -  757 

Telephones -  757 

Postal  facilities _  757 

Shipping  and  warehousing  facili¬ 
ties -  758 

Harbor  facilities _  758 

Cargo-handling  equipment _  759 

Warehousing _  759 

Shipping,  practice  at  Tsingtao —  760 

Public  works  and  utilities -  761 

Electric-light  plants -  761 

Waterworks -  762 

Export  and  import  trade -  762 

Exports _  763 

Imports _ , _  764 

Money,  banking,  and  credit -  765 

Banks -  765 

Local  currencies -  765 

Credits _  766 

Powers  of  attorney -  767 

Advertising _  768 

Trade  organizations _  768 

Hotels _  769 

Property  values  and  rents _  769 

Taxes  and  other  assessments _  770 

Living  costs _  770 

Changes  in  trade  conditions  in 

past  decade _ * -  771 

Yunnan  consular  district _  772 

Location  and  area -  772 


Yunnan  consular  district — Con.  Page 

Population -  772 

Cities -  772 

Agriculture _  773 

Minerals  and  mining -  773 

Manufacturing  and  industrial  de¬ 
velopment  _ • -  775 

Labor  conditions -  775 

Transportation  and  communica¬ 
tion _ _ _  775 

Waterways -  775 

Railways _  776 

Roads _  776 

Telegraphs,  cables,  and  wireless 

service _  776 

Telephones _  777 

Postal  facilities -  777 

Shipping  and  warehousing  facili¬ 
ties -  777 

Public  utilities _  777 

Electric  light  plants _  777 

Waterworks _  777 

Foreign  trade _  778 

Exports _  778 

Imports -  779 

Banking  and  currency _  780 

Banks _  780 

Local  currency _  780 

Advertising  and  merchandising _  780 

Travel  facilities  and  hotels _  781 

Trade  organizations _  781 

Property  values  and  rents _  781 

Changes  in  trade  conditions  in 

recent  years _  781 

Appendix -  783 

China  trade  act _  783 

Chinese  weights  and  measures _  792 


ILLUSTRATIONS 


Page 


1.  Steamship  President  Jefferson  leaving  Shanghai -  16 

2a.  China’s  foreign  trade,  1864  to  1924  (logarithmic  scale) -  28 

2b.  Same  (arithmetic  scale) -  29 

3.  Transporting  petroleum  products  to  interior _  86 

4.  Truck  with  chassis  built  in  Tientsin _  113 

5.  Hongkong  and  Shanghai  Banking  Corporation’s  building  in  Shanghai _  158 

6.  Interior  of  Chinese  banking  institution,  Shanghai -  176 

7.  Native  bank  order -  181 

8.  Advertising  American  cigarettes _  198 

9.  Modern  Chinese  flour  mill _  249 

10.  Native  cart  on  primitive  road -  273 

11.  Automobile  on  new  type  motor  road _  277 

12.  Railway  map - facing _  317 

13.  International  Banking  Corporation’s  building  in  Peking _ ; _  387 

14.  Order  of  seating  at  Chinese  dinner _  396 

15.  Pearl  River  Harbor,  Canton _  415 

16.  American  consulate  general,  Canton _  .428 

17.  Grocery  department,  Shanghai  department  store -  494 

18.  Robert  Dollar  Building _  504 

19.  Entrance  to  Robert  Dollar  Building _ 518 

20.  Campus,  Tsing  Hua  College _  523 

21.  Part  of  plant  of  Yenching  University _  550 

22.  Reinforced  concrete  warehouse _  646 

23.  Bridge  of  Ten  Thousand  Ages,  Foochow _  659 

24.  Family  gristmill  of  country  people _  708 

25.  Coolies  constructing  road _  714 


General  map 


Inside  back  cover. 


: 


* 

. 


■ 


* 


' 


' 


■ 


' 


LETTER  OF  SUBMITTAL 


Department  of  Commerce, 

Bureau  of  Foreign  and  Domestic  Commerce, 

W ashingt on,  October  J,  1926. 

Sir:  There  is  submitted  herewith  a  Commercial  Hankbook  of 
China,  prepared  under  the  supervision  of  Julean  Arnold,  United 
States  commercial  attache  at  Peking.  This  book  is  designed  to 
supersede  the  current  handbook  on  China,  which  was  prepared  by 
Mr.  Arnold  and  issued  by  the  Bureau  of  Foreign  and  Domestic 
Commerce  in  1919. 

Publication  of  the  present  work  is  in  answer  to  a  large  and  wide¬ 
spread  demand.  Interest  in  China  in  this  day  has  become  world¬ 
wide,  not  so  much  because  of  the  political  movements  which  have 
drawn  public  attention  to  that  country  as  because  of  a  general  recog¬ 
nition  of  China’s  growing  importance  in  the  commercial  and  eco¬ 
nomic  development  of  the  trading  nations  throughout  the  world. 
Competition  for  China’s  trade  has  grown  keener  with  every  year 
since  the  World  War.  In  1914  China’s  total  foreign  trade  was 
valued  at  $604,600,000;  in  1920,  the  peak  year  in  valuation,  because 
of  the  high  price  of  silver,  its  gold  value  exceeded  $1,616,000,000; 
and  in  1924  it  amounted  to  $1,450,000,000,  an  increase  of  nearly  150 
per  cent  in  10  years. 

Americans  are  especially  interested  in  China’s  development,  not 
alone  because  of  the  friendly  relations  that  have  uniformly  existed 
between  the  two  peoples  from  their  earliest  contact,  but  because  their 
commercial  intercourse  in  the  last  10  years  has  developed  almost 
unprecedentedly,  and  the  future  seems  to  promise  an  even  greater 
measure  of  economic  relations  between  them.  Our  trade  with  China 
totaled  a  value  of  but  $64,000,000  in  1914;  in  1920  it  reached  $338,- 
500,000;  and  in  1925,  in  spite  of  seriously  detrimental  conditions,  it 
still  exceeded  a  value  of  $263,000,000.  China,  next  to  Japan,  is  our 
best  Asiatic  customer,  and  one  of  our  foremost  sources  of  those  raw 
materials  which  we  have  been  unable  to  produce  for  ourselves,  such 
as  raw  silk,  tea,  and  wood  oil. 

It  has  been  recognized  as  of  first  importance,  then,  that  American 
merchants  and  manufacturers  should  have  at  hand  and  in  convenient 
form  as  comprehensive  and  recent  information  about  China  as  could 
be  compiled.  This  book  is  an  earnest  effort  to  supply  that  need.  In 


XV 


XVI 


COMMERCIAL  HANDBOOK  OF  CHINA 


its  preparation  Mr.  Arnold,  in  addition  to  his  own  more  than  20 
3rears  of  experience  in  China,  has  had  the  hearty  cooperation  of  all 
our  consular  officers  in  China  and  of  the  several  authorities  whose 
names  head  many  of  the  special  articles  it  contains.  The  valuable 
assistance  of  each  of  them  is  hereby  gratefully  acknowledged. 

Much  of  the  general  information  contained  in  the  two  volumes 
of  the  earlier  handbook  has  been  retained  in  the  present  work,  which 
has  been  condensed  into  one  volume.  In  addition  there  are  a  num¬ 
ber  of  new  subjects,  as  of  more  recent  significance,  considered  in  de¬ 
tail,  notably  that  of  the  incorporation  of  American  firms  in  China, 
with  special  reference  to  the  China  Trade  Act. 

In  each  instance  the  information  given  is  believed  to  be  of  real 
practical  value,  and  it  is  the  earnest  hope  of  the  Bureau  that  this 
handbook  will  afford  to  the  exporters  of  the  United  States  a  back¬ 
ground  for  their  study  of  the  basic  trade  potentialities  of  the  impor¬ 
tant  and  ever-interesting  Republic  of  China. 

The  colored  map  at  the  end  of  the  volume  has  been  revised  and 
corrected  by  the  publishers  in  cooperation  with  the  Bureau  of  For¬ 
eign  and  Domestic  Commerce. 

Respectfully, 

Julius  Klein, 

Director  of  Bureau . 

To  Hon.  Herbert  Hoover, 

Secretary  of  C ommerce. 


COMMERCIAL  HANDBOOK  OF  CHINA 


PART  I 

BRIEF  GEOGRAPHICAL  DESCRIPTION 


By  Commercial  Attache  Julean  Arnold 


The  distance  from  the  coast  of  China  to  the  coast  of  California 
is  about  twice  the  distance  from  San  Francisco  to  New  York.  The 
northern  latitude  of  China’s  territory  corresponds  with  a  line  run¬ 
ning  through  southern  Canada,  and  the  southern  latitude  with  a 
line  traversing  southern  Mexico.  From  east  to  west  China  extends 
over  a  distance  similar  to  that  between  the  Atlantic  and  Pacific 
coasts  of  the  United  States. 

AREA  AND  POPULATION 

Since  China  has  not  yet  carried  out  a  proper  land  survey  or 
census,  the  area  and  population  of  its  territory  can  be  given  only  as 
estimates,  as  in  the  following  table  (figures  for  certain  other  coun¬ 
tries  are  added  for  purposes  of  comparison)  : 


Regions 


China  proper,  including  the  three  Manchurian  Provinces 

Mongolia - - - - 

Chinese  Turkestan _ _ _ _ _ _ 

Tibet . . . - - - - - 


Total,  Chinese  territory _ 

South  America _ 

United  States,  exclusive  of  dependencies 

Japanese  Empire _ _ _ 

France  (continental) _ _ 


Population 


Area  in 
square 
miles 

Total 

Density 
per  square 
mile 

1, 897,  000 

436, 000, 000 

238 

1, 370,  000 

2, 500, 000 

'  2 

550,  000 

1,  200,  000 

2 

465,  000 

6,  500,  000 

14 

4,  282,  000 

446,  200,  000 

104 

6,  850,  000 

60,  000,  000 

8 

3,  620,  000 

110,000,  000 

30 

260,  000 

80,  000,  000 

307 

207,  000 

40,  000,  000 

150 

The  population  of  the  great  Yangtze  Basin  is  estimated  at  200,- 
000,000.  The  Yangtze  Delta,  comprising  an  area  of  50,000  square 
miles,  or  about  that  of  the  State  of  Illinois,  has  an  estimated  popula¬ 
tion  of  40,000,000.  Two-thirds  of  China’s  population  is  concen¬ 
trated  in  one-third  of  its  area,  being  densest  along  rivers  and  in 
coastal  regions.  Mongolia,  Turkestan,  and  the  three  Manchurian 
Provinces  offer  vast  areas  of  fertile  lands  for  settlement  and  mineral 
wealth  for  development,  but  lack  of  adequate  means  of  transporta- 

l 


100020°— 26 - 2 


2 


COMMERCIAL  HANDBOOK  OF  CHINA 


tion  and  protection  against  brigandage  have  discouraged  settlement 
of  these  sections. 

With  the  exception  of  the  area  comprising  the  great  central  plain 
formed  by  the  valleys  of  the  Yellow  and  Yangtze  Rivers,  China 
proper  is  mountainous  or  hilly. 

China  is  probably  one  of  the  best  watered  countries  on  the  globe. 
The  Yangtze  River,  about  3,200  miles  long,  and  the  Yellow  River, 
about  2,600  miles,  rise  in  Tibet  and  central  Asia  and  flow  eastward 
across  Central  and  North  China,  emptying  into  the  Pacific.  The 
West  River,  about  1,200  miles  long,  rises  in  Yunnan  Plateau  in 
southeastern  China  and  flows  through  South  China  into  the  Pacific. 
In  addition  to  these,  there  are  numerous  smaller  streams  and  canals, 
especially  in  the  south. 

CLIMATE 

Climatically,  China  enjoys  two  distinct  seasons,  summer  and 
winter,  with  short  autumn  and  spring  seasons.  At  Tientsin  or 
Peking,  which  are  in  the  same  latitude  as  Washington,  D.  C.,  the 
thermometer  falls  to  4°  F.  and  rises  in  summer  to  100°  F.,  with  com¬ 
paratively  little  humidity.  At  Shanghai,  which  lies  in  a  latitude 
between  that  of  San  Diego  and  New  Orleans,  the  winter  temperature 
reaches  15°  F.  and  the  summer  temperature  98°  F.,  but  with  con¬ 
siderable  humidity.  At  Canton,  which  lies  in  the  same  latitude  as 
Habana,  Cuba,  the  temperature  rarely  falls  in  the  winter  below  32° 
F.  and  rises  in  the  summer  to  a  maximum  of  about  98°  F.,  with 
much  humidity. 

Generally  speaking,  considerable  rain  falls  in  China  during  the 
spring  and  summer  months.  The  winters  in  the  north  are  dry  and 
cold,  often  with  no  rainfall  between  the  months  of  October  and 
April.  The  winters  of  the  central  or  Yangtze  River  region  are  cold 
and  damp,  while  those  of  the  south  are  comparatively  dry  and  mild. 
The  autumn  season  is  generally  pleasant  throughout  China.  In  the 
north  dust  storms  are  common  during  the  spring  months. 

The  average  annual  rainfall  in  the  north  is  25  inches,  in  the 
Yangtze  region  45  inches,  and  in  Kwangtung  in  the  south  80  inches. 

DISTANCES  FROM  SHANGHAI 


Following  is  a  table  of  distances  from  Shanghai  (by  rail  to  Pe¬ 
king,  to  all  other  points  by  steamer),  the  commercial  metropolis  of 
China,  to  nine  important  cities : 


Shanghai  to — 

Traveling  time 

Miles 

Corresponding  dis¬ 
tance  in  United 
States:  New  York 
to — 

Days 

Hours 

Peking _ _  .  _  _ _ 

36 

830 
900 
600 
1,425 
410 
1,000 
750 
1, 100 
9,  920 

Indianapolis. 

Chicago. 

Cleveland. 

Omaha. 

Augusta,  Me. 
Milwaukee. 

Cincinnati. 

Tampa,  Fla. 

Hongkong  _  _  _  _ _  _  . _ 

2^-3 

3 

14 

Hankow  .  _  _  .  . . . . 

Chungking.  __  _  -  . . . 

Nagasaki  .  _ _ _ 

30 

Vladivostok . _  _ . .  . . . . 

4 

2 

5 

20-27 

Kobe  . . . - . 

Yokohama _ _ _ 

New  York.  .  . . . . . 

BRIEF  GEOGRAPHICAL  DESCRIPTION 


3 


STATISTICS  RELATING  TO  PROVINCES 

The  following  table  gives  certain  essential  data  concerning  the 
Provinces  of  China : 


Province 

Area  in 
square 
miles 

Population 
according  to 
Chinese  Post 
Office  esti¬ 
mate,  1922 

Popula¬ 
tion  per 
square 
mile 

Capital  of  Province 

Anhwei  ...  _ _ _ _ _ _ 

54, 826 

19,  850,  000 

362 

Anking. 

Chekiang  ..  _  .  .  ...  .  _ 

36, 680 

22,  000,  000 

601 

Hangchow. 

Chihli _ _ _ _ 

115, 830 
46, 332 

34,  200,  000 

295 

Paotingfu. 

Fukien...  _  ...  ...  . 

13,  200,  000 

284 

Foochow. 

Honan.  ...  .  _  _  ..  ...  . . 

67,  954 

30,  850,  000 

454 

Kaifeng. 

Hunan _  ...  ..  .  ...  . . . 

83,  398 

28,  450,  000 

341 

Changsha. 

Hupeh.  _  ...  ........  .  ...  . 

71,  428 

27, 150,  000 

380 

Wuchang. 

Kansu _ _ _ _ _ _ _ 

125,  483 

6,  000,  000 

47 

Lanchowfu. 

Kiangsi  . . . . . . . 

69, 498 

24,  500,  000 

352 

Nanchang. 

Kiangsu .  . . . 

38,  610 

33,  800,  000 

875 

Nanking. 

Kwangsi . . .  . .  . . 

77,  220 

12,  250,  000 

159 

Kweilin. 

Kwangtung  . . . . . . 

100,  000 

37, 150,  000 
11, 100,  000 

372 

Canton. 

Kweichow _ _ _ _ _ 

67, 182 

167 

Kweiyang. 

Shansi . . . . 

81, 853 

11,  000,  000 

134 

Taiyuanfu. 

Shantung.. . .  . . . . . . 

55,  984 

30,  800,  000 

552 

Tsinan. 

Shensi _ _ _ _ _ ...  . 

75,  290 

9,  450,  000 

125 

Sianfu. 

Szechwan...  .  _ _ _  .  .  .  .. 

218,  533 

49,  800,  000 

228 

Chengtu. 

Yunnan..  _ _  ..  _ _ _  .  .. 

Shengking  (Manchuria) _ 

146,  714 

9,  850,  000 

67 

Yunnanfu. 

(Mukden. 

Kirin  (Manchuria) _  _ _ _ 

Heilungkiang  (Manchuria) . . . 

j  363, 700 

22, 100,  000 

61 

•{Kirin. 

(Tsitsihar. 

Total . . . . 

1,  896,  515 

433,  500,  000 

238 

Sinkiang _  ...  ..  _ _ _  _  ..  . 

550,  000 

2,  500,  000 

2 

Mongolia . .  . . . . 

1,  370,  000 

2,  500,  000 

2 

Urga. 

Tibet  (Chinese  estimate) _ _ 

465,  000 

6,  500,  000 

14 

Lhasa. 

Grand  total _ _ _ 

4,  282, 000 

445,  000,  000 

104 

The  figures  pertaining  to  area  and  population  as  given  in  the  fore¬ 
going  table  are  taken  from  the  Chinese  Post  Office  estimates  of  1922. 
Where  these  figures  conflict  with  estimates  given  elsewhere  in  this 
book,  the  reader  is  at  liberty  to  make  his  own  choice — for  China  has 
as  yet  take  no  official  census. 

The  sections  below  give  brief  summaries  of  general  features  in  all 
the  Provinces  and  dependencies  of  China.  More  detailed  descrip¬ 
tions  will  be  found  in  other  parts  of  this  book  in  the  chapters  de¬ 
voted  to  the  American  consular  districts. 

PROVINCE  OF  ANHWEI 

Area. — 55,000  square  miles  (about  equal  to  the  State  of  Iowa). 

Latitude. — Corresponds  to  that  of  Mississippi. 

Population. — 20,000,000  ;  360  per  square  mile ;  densest  in  north. 

Topography. — South  of  Yangtze,  mountainous ;  central  section,  fertile,  well- 
watered  plain ;  north  of  Hwai  River  plains  are  subject  to  droughts  and  inunda¬ 
tions. 

Agriculture. — Rice,  cotton,  wheat,  and  tea  are  raised.  The  central  section 
exports  large  quantities  of  rice;  the  north  exports  wheat,  beans,  sorghum, 
tobacco,  and  millet ;  the  south  exports  tea  and  silk  exclusively. 

Minerals. — Coal  is  widely  distributed  but  is  of  low  quality.  Iron  deposits 
are  large  and  of  good  quality. 

Industries. — Anhwei  supplies  a  large  proportion  of  China’s  native  ink.  Na¬ 
tive  paper  is  produced  abundantly  in  the  south.  Wuhu  has  several  modern 
rice  and  flour  mills  and  is  destined  to  become  an  important  industrial  city. 

Communications. — Rivers:  Yangtze  (ocean-going  steamers),  Hwai,  and  trib¬ 
utaries.  Railways :  Tientsin-Pukow  line  through  northeastern  sections ;  pro- 


4 


COMMERCIAL  HANDBOOK  OF  CHINA 


jected  line  from  Wuhu  southwest  to  Nanchang  in  Kiangsi.  Post  offices,  123. 
Telegraph  stations,  36. 

Cities. — Of  more  than  100,000  population:  Anking  (capital),  Wuhu,  Pochow. 
Other  important  cities :  Pengpu,  Tatung,  Hweichow,  and  Luchowfu. 

Treaty  ports. — Wuhu ;  Pengpu. 

Language  and  characteristics  of  natives. — Mandarin  is  spoken.  The  na¬ 
tives  are  simple,  hardworking,  and  peaceable. 

American  interests. — Under  jurisdiction  of  Nanking  consulate. 

PROVINCE  OF  CHEKIANG 

Area. — 37,000  square  miles  (about  the  size  of  the  State  of  Indiana). 

Latitude. — Corresponds  to  that  of  the  southern  half  of  Texas. 

Population. — 22,000,000;  600  per  square  mile;  densest  in  north  and  northeast. 

Topography. — South  and  west  mountainous;  large  fertile  plains  in  the  north; 
rich  agriculturally. 

Agriculture. — Rice,  tea,  silk,  cotton,  wheat,  hemp,  indigo,  sugar,  and  fruits 
are  produced.  Rice  is  the  principal  crop.  Tea  is  grown  in  the  hills.  Silk, 
for  which  the  Province  is  noted,  produces  two  crops.  Cotton  is  increasing  in 
importance,  the  districts  between  Shaohing  and  Ningpo  producing  an  excellent  * 
quality  in  abundance. 

Minerals. — There  are  coal,  iron,  alum,  and  soapstone  deposits,  but  they  are 
little  developed. 

Industries. — Silk  culture  and  manufacture  comprise  the  leading  industry. 
Huchowfu  produces  the  best  raw  silk  and  Hangchow  the  best  silk  cloth.  There 
are  in  Ningpo  three  cotton  mills  with  55,000  spindles  for  the  manufacture  of 
cotton  yarn,  and  275  looms  for  weaving  cotton  cloth.  Kasliing  is  noted  for 
its  brass  and  copper  ware.  Fans  umbrellas,  joss  paper,  and  Chinese  pens 
(brushes)  are  made  in  large  quantities  in  Hangchow.  Shaohing  produces 
China’s  best  sarnshu  (rice  wine),  of  which  it  shipped  6,000  tons  in  1916.  The 
soapstone  ware  of  Wenchow  is  famous. 

Communications. — Waterways :  The  Province  is  a  network  of  rivers,  canals, 
and  creeks,  navigable  by  native  craft.  There  is  a  steamer  service  between 
Shanghai,  Ningpo,  and  Wenchow.  Railways :  Shanghai-Hangchow-Ningpo ; 
projected,  Hangchow-Wuhu  and  Ningpo- Wenchow.  Post  offices :  107.  Tele¬ 
graph  stations,  42. 

Cities. — Hangchow  (capital)  600,000  population.  More  than  100,000;  Shao¬ 
hing,  Ningpo,  Ilucliow.  Other  important  cities:  Lanchi,  Hashing,  Chuchow, 
Kinliwafu. 

Treaty  ports. — Hangchow,  Ningpo,  Wenchow. 

Language  and  characteristics  of  natives. — A  form  of  Mandarin  is  spoken. 
The  natives  are  enterprising ;  they  are  splendid  seamen. 

American  interests. — Under  the  jurisdiction  of  the  Shanghai  consulate 
general. 

PROVINCE  OF  CHIHLI 

Area. — 116,000  square  miles  (about  the  size  of  Arizona). 

Latitude. — Corresponds  to  that  of  Illinois. 

Population. — 34,200,000;  300  per  square  mile;  densest  in  plain  toward  the 
southwest. 

Topography  and  climate. — Mountainous  in  north  and  west ;  great  eastern 
plain  is  hot  and  very  productive  in  summer  owing  to  timely  rains,  but  cold  and 
subject  to  dust  storms  in  winter,  with  streams  frozen. 

Agriculture. — Sorghum,  millet,  wheat,  Indian  corn,  beans,  cotton,  hemp,  pea¬ 
nuts,  walnuts,  and  fruits  constitute  the  main  crops.  Wheat  is  sown  in  the  late 
fall  and  harvested  in  early  summer,  after  which  the  other  crops  are  planted, 
corn  and  beans  being  planted  in  the  same  fields.  The  cotton  is  grown  on  the 
higher  land,  is  short  staple,  and  finds  a  ready  market  in  America  for  the 
manufacture  of  blankets. 

Minerals. — There  are  deposits  of  coal  (anthracite  and  bituminous),  lime¬ 
stone,  and  salt.  The  Province  is  particularly  rich  in  high-grade  coal,  with  the 
largest  mines  in  China  worked  by  modern  machinery  and  methods. 

Industries. — Tientsin  is  a  very  important  export  and  import  center.  There 
are  wool-cleaning  works,  besides  hydraulic  presses  for  wool,  jute,  skins,  rugs, 
and  hides,  in  preparation  for  export ;  these  are  under  foreign  management. 
Coal  mines,  flour  mills,  cotton  spinning  and  weaving  mills,  cement  works, 
railway  shops,  and  cigarette,  match,  woolen  carpet,  and  tile  factories  are 
among  the  modern  industries  of  North  China. 


BRIEF  GEOGRAPHICAL  DESCRIPTION 


5 


Communications. — Waterways :  Pei  River  and  Grand  Canal,  navigable  for 
small  boats.  Railways :  Peking-Mukden,  Tientsin-Pnkow,  Peking-Kalgan, 
Peking-Hankow,  and  Peking-Mentowkow.  Post  Offices,  191.  Telegraph  sta¬ 
tions,  82. 

Cities. — Tientsin,  1,300,000;  Peking  (national  capital)  800,000;  Paotingfu, 

100,000. 

Treaty  ports. — Tientsin,  Kalgan,  Kweihwacheng,  Hulutao,  Chihfeng,  Dolon 
nor,  and  Cliinwangtao. 

Language  and  characteristics  of  natives. — Northern  Mandarin  is  spoken.  The 
natives  include  Chinese,  Mongols,  and  Manchus  with  predominance  of  Tartar 
blood. 

American  interests. — Under  jurisdiction  of  Tientsin  consulate  general.  The 
American  Legation  at  Peking  has  jurisdiction  over  whole  of  China. 

PROVINCE  OF  FUKIEN 

Area. — 46,000  square  miles  (about  the  size  of  the  State  of  Mississippi). 

Latitude. — Corresponds  to  that  of  southern  half  of  Lower  California. 

Population. — 13,000,000;  280  per  square  mile;  densest  along  coast  and  in 
Min  River  Valley. 

Topography  and  climate. — The  Province  is  mountainous,  the  mountains  run¬ 
ning  parallel  with  the  coast.  The  coast  is  broken  with  many  bays  and  three 
good  harbors — Santuao,  Foochow,  and  Amoy.  The  climate  is  semitropical. 

Agriculture. — In  order  of  their  importance,  the  principal  products  are  rice, 
timber,  tea.  fruits — of  which  oranges,  olives,  lungngans,  litchis,  and  plums  are 
the  most  important — bamboo  shoots,  sugar  cane,  wheat,  and  sweet  potatoes. 

Minerals. — The  principal  minerals  now  being  worked  are  coal,  talc,  porce¬ 
lain  clay  (kaolin),  limestone,  and  iron.  There  are  known  deposits  of 
molybdenum,  gold,  lead,  silver,  copper,  and  graphite  not  being  worked. 

Industries. — Next  after  agriculture,  the  principal  industries  are  the  milling 
and  exporting  of  lumber ;  the  manufacture  of  paper  from  bamboo  pulp ;  the 
export  of  tea ;  the  making  of  tinfoil,  paper  umbrellas,  matches,  and  soap ;  fish¬ 
ing;  and  boat  building.  In  the  way  of  modern-type  factories  there  are  in 
Foochow  a  combined  tannery  and  liquor  distillery,  a  few  camphor  refineries, 
two  small  knitting  mills  making  socks  and  towels,  and  a  rubber  factory  which 
makes  rubber  soles  for  shoes.  In  Amoy  there  are  two  fruit  canneries.  From 
Amoy  there  is  a  large  emigration  of  labor  to  the  South  Seas  and  to  Singapore. 

Communications. — Waterways :  Coastwise  trade,  Amoy,  Hinghwa,  Foochow, 
and  Santuao  connected  with  Shanghai  and  Hongkong ;  foreign,  Amoy  and 
Foochow  connected  with  Formosa  and  the  Philippines.  Min  River  is  navigable 
to  Foochow  by  small  steamers,  beyond  Foochow  to  Shuikow  by  launches ; 
beyond  Shuikow  by  small  boats.  Railways :  Amoy-Changchow.  Approxi¬ 
mately  40  per  cent  of  transportation  is  carried  on  by  human  carriers,  40  per 
cent  by  nonpower  boats,  and  20  per  cent  by  steamboats  and  railway.  Post 
offices  (first,  second,  and  third  class),  40.  Telegraph  stations,  20. 

Cities. — Of  more  than  500,000:  Foochow  (capital).  More  than  100,000:  Amoy. 
Other  large  cities :  Changchow  and  Chuanchowfu.  There  are  22  other  cities, 
each  with  population  of  more  than  20,000. 

Treaty  ports. — Amoy,  Foochow,  and  Santuao. 

Language  and  local  characteristics. — The  Amoy,  Foochow,  and  Southern 
Mandarin  are  the  principal  dialects.  The  natives  of  the  southern  part  of  the 
Province  differ  from  the  rest  in  being  more  adventurous.  The  natives  of 
northern  Fukien  greatly  dislike  to  leave  their  own  local  habitat. 

American  interests. — Under  jurisdiction  of  Foochow  consulate  for  north 
Fukien  (approximately  three-fifths  of  the  Province)  and  of  Amoy  consulate 
(approximately  two-fifths)  for  south  Fukien. 

PROVINCE  OF  HONAN 

Area. — 68,000  square  miles  (about  the  size  of  the  State  of  Washington). 

Latitude. — Compares  with  South  Carolina. 

Population. — 30,850,000 ;  450  per  square  mile ;  slightly  denser  in  north. 

.  Topography  and  climate. — Hilly  on  western  boundary,  with  plains  elsewhere ; 
floods  of  Yellow  River  a  constant  menace.  Soil  fertile.  Climate :  Summer  hot, 
with  considerable  rainfall ;  winters  cold  and  dry. 

Agriculture. — Wheat,  sorghum,  beans,  millet,  sesame,  Indian  corn,  rice,  cotton, 
and  peanuts  are  the  principal  products.  Honan  is  becoming  important  for  its 
cotton  production. 


6 


COMMERCIAL  HANDBOOK  OF  CHINA 


Minerals. — Coal  and  iron  are  the  principal  minerals.  The  Peking  Syndicate 
operates  extensive  coal-mining  properties  in  Honan. 

Industries. — Coal  mining,  brick  making,  and  cotton  manufacture  constitute 
the  main  industries ;  otherwise  mainly  agricultural. 

Communications. — Waterways  :  Of  the  three  rivers — Yellow,  Hwai,  and  Wei — 
only  the  Yellow  is  navigable,  and  that  one  only  in  sections.  Railways :  Peking- 
Hankow,  and  the  Lung-Hai,  extending  east  and  west.  Extensive  cart  traffic  is 
carried  on  over  poor  country  roads.  Post  offices,  149.  Telegraph  stations,  51. 

Cities. — Of  more  than  100,000  population:  Kaifeng  (capital)  ;  Chengchow  is 
rapidly  becoming  a  city  of  importance  in  trade  and  industry  and  will  soon  be 
opened  to  foreign  trade  and  residence ;  there  are  12  cities  with  population 
exceeding  20,000. 

Treaty  ports. — It  is  anticipated  that  Chengchow  will  soon  become  a  treaty 
port. 

Language  and  characteristics  of  natives. — Mandarin  is  spoken.  There  are 
few  immigrants  from  other  Provinces  and  few  native  tribes. 

American  interests. — Under  jurisdiction  of  Tientsin  consulate  general  for 
region  north  of  Yellow  River  and  Hankow  consulate  general  for  territory  south 
of  river. 

PROVINCE  OF  HUNAN 

Area. — 83,000  square  miles  (about  that  of  Minnesota). 

Latitude. — Corresponds  to  that  of  Florida. 

Population. — 29,000,000;  350  per  square  mile;  densest  in  river  valleys  and 
around  Tungting  Lake. 

Topography. — Mountainous,  especially  in  -west  and  south;  Tungting  Lake 
(75  by  60  miles)  in  northeast  receives  waters  of  four  rivers.  Plains  lie  south 
of  Changsha. 

Agriculture. — Probably  no  Province  surpasses  Hunan  in  agricultural  wealth. 
Rice  is  the  main  crop.  Tea,  beans,  ramie,  sesame,  bamboo,  wood  oil,  vegetable 
tallow,  cotton,  tobacco,  melons,  fruits,  and  wheat  are  among  its  products.  It 
also  produces  excellent  pork. 

Minerals. — There  is  abundant  mineral  wealth.  Antimony,  lead,  zinc,  coal, 
iron,  manganese,  tin,  and  quicksilver  are  the  principal  minerals.  Hunan  pro¬ 
duces  a  large  proportion  of  the  world’s  supply  of  antimony. 

Industries. — Mining  is  the  main  industry.  Native  paper  from  bamboo  pulp, 
grass  cloth,  silk  embroideries,  and  cotton  nankeens  are  extensively  manu- 
.  factured.  Hunan  hams  are  shipped  all  over  China.  Bamboo  manufactures 
are  noted.  Changsha  is  developing  into  an  industrial  center. 

Communications. — Waterways:  Steamer  traffic  on  lake  and  between  Chang¬ 
sha  and  Hankow.  Siang,  Lei,  and  Yuen  Rivers  are  navigable,  except  during 
low-water  season  in  winter.  Railways :  Changsha  is  connected  by  rail  with 
Hankow  and  will  be  connected  later  with  Canton.  Hunan  is  connected  by 
roads  with  neighboring  Provinces.  Post  offices,  78,  Telegraph  stations,  51. 

Cities. — Of  more  than  100,000  population:  Changsha  (capital),  Changteh, 
and  Sinangtan. 

Treaty  ports. — Changsha  and  Yochow. 

Language  and  characteristics  of  natives. — The  local  Mandarin  dialect  is 
spoken.  The  natives  are  progressive,  but  distinctly  provincial. 

American  interests. — Under  jurisdiction  of  Changsha  consulate. 

PROVINCE  OF  HUPEH 

Area. — 71,000  square  miles  (about  the  size  of  Oklahoma). 

Latitude. — Corresponds  to  that  of  the  State  of  Louisiana. 

Population. — 27,100,000 ;  380  per  square  mile ;  densest  on  the  plain. 

Topography— It  is  said  of  Hupeh  that  it  is  three  parts  hills,  six  parts  water, 
and  one  part  habitable  land.  The  Yangtze  and  Han  Rivers  intersect  the 
Province,  and  there  are  numerous  lakes  and  canals. 

Agriculture. — Rice,  cotton,  tea,  and  beans  form  the  principal  crops.  Sesame, 
tobacco,  wheat,  ramie,  and  silk  are  also  important  products.  Eggs  and  egg 
products,  nutgalls,  and  vegetable  and  animal  tallows  figure  in  the  export 
trade  of  Hupeh. 

Minerals. — Iron  and  coal  are  the  main  minerals.  The  Tayeh  iron  mines  of 
Hupeh  are  the  largest  in  China. 

Industries. — Iron  and  steel  production  is  very  important.  Hankow  is  called 
the  “  Chicago  of  China.”  It  is  a  great  collection  and  distribution  center. 


BRIEF  GEOGRAPHICAL  DESCRIPTION 


7 


Cotton  mills,  flour  mills,  cigarette  factories,  oil  mills,  iron  works,  egg-products 
plants,  ore  refineries,  and  cement  plants  are  among  its  industries.  The  Prov¬ 
ince  produces  large  quantities  of  fish.  Hankow  is  the  center  of  the  tea  in¬ 
dustry  in  China.  It  is  an  important  export  center  for  cotton,  wood  oil,  sesame, 
tobacco,  hides  and  skins,  tea,  pig  iron,  raw  silk,  bristles,  ramie,  egg  products, 
hemp,  and  nutgalls,  listed  in  order  of  importance. 

Communications. — Waterways:  Ocean-going  steamers  to  Hankow  eight 
months  in  the  year ;  river  traffic  between  Hankow  and  upper  Yangtze ;  Han¬ 
kow  and  Changsha;  and  Hankow  and  Laohokow  (on  Han  River).  Railways: 
Peking-Hankow ;  Wuchang-Changsha  (to  be  completed  later  to  Canton)  ;  line 
projected  from  Hankow  into  Szechwan  via  Ichang  (part  of  Hukuang  system). 
A  modern  motor  highway  extending  from  Shasi  to  Siangyang,  a  distance  of 
160  miles,  was  completed  in  1924.  Provincial  roads  are  numerous,  but  in  poor 
condition.  Post  offices,  143.  Telegraph  stations,  49. 

Cities. — Hankow,  Wuchang,  and  Hanyang,  the  “Wuhan  cities,”  have  a 
combined  population  of  1,500,000.  Hupeh  has  six  other  cities  with  more  than 
25,000  population. 

Treaty  ports. — Hankow,  Ichang,  Shasi. 

Language  of  natives. — Mandarin  is  spoken.  There  are  but  few  immigrants 
in  the  Province. 

American  interests. — Under  jurisdiction  of  Hankow  consulate  general. 

PROVINCE  OF  KANSU 

Area. — 125,000  square  miles  (about  that  of  New  Mexico). 

Latitude. — Corresponds  to  that  of  California. 

Population. — 6.000,000 ;  48  per  square  mile ;  most  sparsely  populated  Province. 

Topography  and  climate. — Mountains  across  Kansu  northwest  to  southwest; 
south  very  mountainous ;  east  and  northeast  a  large,  fertile,  loess  plateau ; 
north  wild  and  uninhabitable.  Climate  dry,  with  cold,  dry  winters. 

Agriculture. — Wheat,  millet,  cotton,  tobacco,  fruits,  and  peanuts  are  the 
principal  products.  The  Province  is  pastoral  rather  than  agricultural;  sheep 
and  cattle  are  raised  in  large  numbers. 

Minerals. — Little  is  known  regarding  the  mineral  wealth. 

Industries. — Sheep  and  cattle  raising,  and  production  of  wool  and  hides  con¬ 
stitute  the  main  industries. 

Communications. — Waterways:  Tributaries  of  Yellow  River  navigable  dur¬ 
ing  summer  season  for  short  distances  for  small  boats ;  in  winter  by  ice  rafts. 
No  railways.  Country  roads  adapted  to  cart  traffic.  Post  offices,  48.  Tele¬ 
graph  stations,  21. 

Cities. — Lanchowfu  (capital),  population  500,000.  Other  important  cities: 
Tsinchow,  Siningfu,  Liangchowfu. 

Treaty  ports. — None. 

Language  and  characteristics  of  natives. — Western  Mandarin  is  spoken.  A 
large  number  of  Mohammedans.  There  are  some  Mongols  in  the  north. 

American  interests. — Under  jurisdiction  of  Plankow  consulate  general. 

PROVINCE  OF  KIANGSI 

Area. — 68,000  square  miles  (about  the  size  of  the  State  of  Missouri). 

Latitude. — Corresponds  to  that  of  Florida. 

Population. — 24,500,000 ;  360  per  square  mile ;  densest  around  Poyang  Lake 
and  in  Kan  Valley. 

Topography  and  climate. — Mountainous,  except  Poyang  Lake  Basin;  country 
around  lake,  marshy;  Kan  River  drains  larger  part  of  Province.  Climate 
humid. 

Agriculture. — Rice,  tea,  tobacco,  bamboo,  peanuts,  fruits,  indigo,  and  grains 
are  the  main  products.  Camphor  trees  are  found  in  many  places,  but  in  an 
isolated  way.  Ramie  is  quite  extensively  grown. 

Minerals. — There  are  deposits  of  coal  and  kaolin  (China  clay).  The  Ping- 
siang  coal  mines  have  an  annual  output  of  about  a  million  tons. 

Industries. — Coal  mining  and  the  manufacture  of  coke  and  briquets  constitute 
a  great  industry  at  Pingsiang,  where  modern  machinery  and  methods  are  em¬ 
ployed.  The  porcelain  industry  of  Kiangsi  is  ancient  and  far  famed ;  with 
reorganization  along  modern  lines,  it  could  be  made  one  of  the  very  important 


8 


COMMERCIAL  HANDBOOK  OF  CHINA 


and  profitable  industries  of  China.  About  one-lialf  of  China's  production  of 
grass  cloth  is  made  in  Kiangsi. 

Communications. — Waterways:  Steamers  through  Poyang  Lake  and  Kan 
River  to  Nanchang;  Kan  River  and  tributaries  navigable  for  native  boats. 
Railways :  Kiukiang-Nanchang,  Pingsiang-Chuchow ;  line  projected  from  Nan¬ 
chang  to  Santuao  or  Swatow.  The  country  roads  are  poor,  and,  most  of  the 
traffic  being  by  water,  70  or  80  walled  cities  can  be  reached  by  boat  the  greater 
part  of  the  year.  Post  offices,  96.  Telegraphs  stations,  36. 

Cities. — Of  more  than  100,000  population;  Nanchang  (capital),  Kanchow, 
Kianfu,  and  Kingtehchen.  Six  other  cities  have  population  of  more  than 
25,000. 

Treaty  port. — Kiukiang. 

Language  of  natives. — Mandarin,  except  in  the  east,  where  a  dialect  of 
Fukienese  is  spoken. 

American  interests. — Under  the  jurisdiction  of  the  Hankow  consulate  gen¬ 
eral. 

PROVINCE  OF  KIANGSU 

Area. — 38,600  square  miles  (about  the  same  as  that  of  Kentucky). 

Latitude. — Corresponds  to  that  of  Mississippi. 

Population. — 33,800,000 ;  880  per  square  mile ;  densest  on  Kaimen  Promontory 
and  Tsungming  Island. 

Topography. — Great  alluvial  plain,  south  comprising  portion  of  Yangtze  Delta, 
120  by  60  miles.  Land  low  lying,  abounding  in  swamps  and  lagoons,  but  noted 
for  fertility. 

Agriculture. — Silk,  cotton,  rice,  beans,  peanuts,  wheat,  bamboo,  vegetables, 
and  fruits  are  the  main  products.  Wusih  enjoys  the  reputation  of  producing 
the  finest  silk  in  the  world.  Cotton  is  being  produced  in  larger  quantities 
each  year. 

Minerals. — The  Province  is  poor  in  minerals. 

Industries. — The  greatest  development  has  been  in  the  cotton  industry.  There 
are  72  cotton-spinning  mills  with  a  total  of  2,300,000  spindles  and  15,000  looms 
operating  at  Shanghai  and  immediate  vicinity.  Flour  mills,  electric  light  and 
power  plants,  oil  mills,  egg-products  plants,  match  factories,  paper  mills,  elec¬ 
tric-lamp  factories,  chemical  works,  shipbuilding  and  engineering  works,  soap 
and  candle  factories,  cigarette  factories,  sawmills,  printing  and  publishing 
houses,  cement  plants,  spinning  mills,  breweries,  brush  factories,  sugar  refin¬ 
eries,  aerated-water  factories,  tanneries,  and  canning  factories  are  among  the 
industries  that  make  Shanghai  the  leading  manufacturing  center  of  China. 
Kiangsu’s  leading  industry  is  silk.  Wusih,  Nanking,  and  Soochow  are  the 
principal  centers  for  the  manufacture  of  silk  cloth. 

Communications. — Waterways :  All  the  rivers  are  navigable,  and  the  Province 
is  interlaced  with  canals.  Railways  :  Shanghai-Nanking  ;  Shanghai-Hangchow- 
Ningpo ;  Shanghai-Woosung.  Country  roads  are  poor  and  few  in  number,  as 
water  transportation  makes  them  unnecessary.  Post  offices,  144.  Telegraph 
stations,  69.  Cable  companies,  3. 

Cities. — Shanghai,  population  of  1,750.000;  Soochow,  600,000.  More  than 
100,000:  Nanking  (capital),  Wusih,  Chinkiang,  Yangchow. 

Treaty  ports. — Shanghai,  Chinkiang,  Nanking,  Soochow,  Woosung. 

Language  of  natives. — Throughout  the  Province,  Soochow  or  Shanghai  dialect 
and  Mandarin ;  in  Shanghai,  besides  Shanghai  dialect,  also  Ningpo  and 
Cantonese. 

American  interests. — In  eastern  section  of  Province,  under  Shanghai  con¬ 
sulate  general ;  in  western  half,  under  Nanking  consulate. 

PROVINCE  OF  KWANGSI 

Area. — 77,000  square  miles  (about  the  size  of  Nebraska). 

Latitude—  Corresponds  to  that  of  central  Mexico. 

Population. — 12,250,000 ;  160  per  square  mile ;  south  and  southeast  most 
populous. 

Topography  and  climate. — Mountainous,  ranges  running  southwest  to  north¬ 
east;  West  River  and  tributaries  have  fertile  valleys.  Climate  tropical  in 
south. 

Agriculture. — Rice,  sugar,  fruits,  grains,  bamboo,  cassia,  and  aniseed  are  the 
main  products.  Kwangsi  produces  the  world’s  supply  of  star  anise. 


BRIEF  GEOGRAPHICAL  DESCRIPTION 


9 


Minerals. — Antimony,  coal,  tin,  iron,  asbestos,  and  galena  are  known  to 
exist,  but  are  not  developed. 

Industries. — Lack  of  railways  prevent  much  development.  Firecrackers  and 
leather  are  made  at  Nanning.  Wuchow  has  a  hosiery  factory,  a  silk  filature, 
and  a  glass  factory.  Fishing  lines  made  from  the  intestines  of  a  species  of 
silk  worm  which  feeds  on  the  camphor  tree  form  a  specialty  peculiar  to  this 
Province. 

Communications. — Waterways :  Steamer  traffic  on  West  River ;  launch  serv¬ 
ice  to  Lungchow ;  motor  boats  ascend  Fu  tributary  to  Kweilin.  There  are  no 
railways.  Country  roads  are  poor  and  in  bad  condition.  Post  offices,  279. 
Telegraph  stations,  71. 

Cities. — Of  more  than  75,000  population :  Nanning,  Wuchow,  and  Kweilin 
(capital). 

PROVINCE  OF  KWANGTUNG 

Area. — 100,000  square  miles  (roughly,  the  size  of  Oregon). 

Latitude. — Corresponds  to  that  of  south-central  Mexico. 

Population. — 37,200,000;  370  per  square  mile;  densest  in  West  River  Delta 
and  along  the  coast. 

Topography  and  climate. — Mountainous,  except  in  valleys  of  West  River ; 
mountains  extend  southwest  to  northeast;  valleys  and  delta  regions  very  fer¬ 
tile,  giving  three  crops  a  year ;  well-indented  coast  line,  with  good  harbors ; 
climate,  tropical. 

Agriculture. — Silk,  rice,  sugar  cane,  tobacco,  cassia,  fruits,  vegetables,  bam¬ 
boo,  tea,  ginger,  reed  for  matting,  and  hemp  are  the  main  products.  Rice  is 
the  principal  crop,  in  some  places  three  crops  being  produced  in  a  year.  A 
very  superior  hemp  is  grown.  The  silk  differs  from  Kiangsu  or  Chekiang 
silk  in  being  soft  and  spongy  and  producing  as  many  as  seven  and  eight  crops 
a  year,  compared  with  two  in  Chekiang.  The  oranges,  litchis,  pomeloes,  and 
ginger  of  Kwangtung  are  far-famed. 

Minerals. — Iron  and  coal  of  good  quality  are  known  to  abound.  Tungsten, 
manganese,  molybdenum,  and  antimony  also  contribute  to  the  mineral  wealth 
of  Kwangtung,  but  there  is  very  little  development  of  these  mineral  resources, 
owing  partly  to  lack  of  economic  transportation  and  partly  to  unfavorable  con¬ 
ditions  otherwise. 

Industries. — Silk  filatures,  silk  weaving  mills,  rice  mills,  matting  factories, 
knitting  mills,  the  carving  of  ivory,  the  making  of  lacquer,  jade  ornaments, 
embroideries,  chinaware,  firecrackers,  hardwood  furniture,  medicines  and 
drugs,  and  the  preserving  of  fruits,  ginger,  etc.,  are  among  the  manifold  indus¬ 
tries  of  the  Cantonese,  noted  for  their  progressiveness  and  industrious  habits. 
Kwangtung  is  considered  the  wealthiest  Province  in  China.  Under  ordinary 
circumstances  it  produces  $60,000,000  (silver)  in  tax  revenues. 

Communications. — Waterways:  Steamer  service  with  all  coast  ports;  splen¬ 
did  launch  service  in  the  delta  region ;  water  connections  with  adjacent  Prov¬ 
inces  ;  country  roads  are  few,  though  stone-paved  and  narrow  and  con¬ 
necting  market  towns  beyond  reach  of  waterways.  Railways :  Canton- 
Samshui,  Canton-Shiuchow,  Canton-Kowloon  (Hongkong),  Kongmoon-Taishan, 
Swatow-Chaochowfu ;  under  construction,  Canton-Hankow.  Post  offices,  1,178. 
Telegraph  stations,  71. 

Cities. — Canton’s  estimated  population  is  1.500,000.  Between  100,000  and 
500,000 :  Fatshan,  Chaochowfu,  Hongkong,  Sheklung,  Shekki,  Samshui,  Siulam, 
and  Kongmoon.  More  than  25,000 :  Swatow,  Macao,  Hokshan,  and  Shaping. 

Treaty  ports. — Canton,  Swatow,  Kongmoon,  Kowloon,  Lappa,  Pakhoi,  Sam¬ 
shui,  Hongkong  (ceded  to  Great  Britain),  Macao  (ceded  to  Portugal),  and 
Kwangchow  (leased  to  France). 

Language  and  characteristics  of  natives. — Cantonese  and  tribal  dialects  are 
spoken.  There  are  aborigines  in  the  west  and  Hakkas  in  the  northeast.  With 
the  exception  of  the  student  class,  practically  all  of  the  Chinese  who  emi¬ 
grated  to  America  were  Cantonese. 

American  interests. — In  northern  section,  under  jurisdiction  of  Swatow  con¬ 
sulate ;  in  central  and  southern  section,  of  Canton  consulate  general. 

PROVINCE  OF  KWEICHOW 

Area. — 67,000  square  miles  (about  the  size  of  the  State  of  Missouri). 

Latitude. — Corresponds  to  that  of  Florida. 

Population. — 11,000,000 ;  180  per  square  mile ;  densest  in  south  and  southeast. 


10 


COMMERCIAL  HANDBOOK  OF  CHINA 


Topography. — Seven-tenths  mountainous;  a  great  table-land  with  mean  alti¬ 
tude  over  4,000  feet;  valleys  of  Yuan  and  Wu  Rivers  deep  and  narrow. 

Agriculture. — Rice,  tobacco,  bamboo,  wood  oil,  fruits,  opium,  and  wheat  are 
the  principal  products,  though  the  Province  has  the  reputation  of  being  the 
most  unproductive  in  China. 

Minerals. — Coal,  nitrate  of  potash,  iron,  zinc,  and  quicksilver  are  said  to 
abound,  but  resources  in  minerals  are  unexplored. 

Industries. — Mining  seems  to  lend  the  greatest  promise  for  the  industrial 
future  of  this  Province. 

Communications. — Waterways:  Yuan  and  Wu  both  navigable  for  very  small 
vessels.  Four  chief  roads,  all  very  narrow,  radiate  from  Kweiyang,  connecting 
with  Yunnan,  Szechwan,  Hunan,  and  Kwangsi.  There  are  no  railways.  Post 
offices,  48.  Telegraph  stations,  26. 

Cities. — Kweiyang  (capital),  100,000;  Anshunfu,  50,000;  Tsunyi,  40,000. 

Treaty  ports. — None. 

Language  and  characteristics  of  natives. — Mandarin  is  spoken  among  the 
Chinese,  and  there  are  also  many  tribal  dialects.  One-third  of  the  people  are 
Chinese  and  the  remainder  aborigines. 

American  interests . — Under  the  jurisdiction  of  Changsha  consulate. 

PROVINCE  OF  SHANSI 

Area. — 82,000  square  miles  (about  that  of  Kansas). 

Latitude. — corresponds  to  that  of  central  California. 

Population. — 11,000,000;  135  per  square  mile;  densest  in  fertile  depressions. 

Topography  and  climate. — A  great  loess  plateau  from  2,000  to  4,000  feet 
in  elevation,  with  irregular  mountain  ranges  running  east  and  west ;  several 
large  depressions,  formerly  lakes,  form  the  fertile  and  populous  sections  of 
the  Province.  Winters  are  cold  and  summers  hot ;  there  are  rains  in  spring 
and  summer. 

Agriculture. — The  loess  soil  is  very  fertile.  Wheat,  millet,  sorghum,  maize, 
cotton,  tobacco,  walnuts,  peanuts,  rapeseed,  and  grapes  and  other  fruits,  are 
the  principal  products. 

Minerals. — Shansi  is  reputed  to  be  the  richest  Province  in  China  in  anthra¬ 
cite  coal  deposits.  The  Province  is  also  rich  in  iron. 

Industries. — Agriculture  and  coal  mining  form  the  principal  industries. 
Shansi  is  noted  for  its  numerous  native  iron  furnaces,  but  there  is  very  little 
evidence  of  the  development  of  modern  industry.  The  Province  needs  rail¬ 
ways  and  irrigation  works. 

Communications. — Waterways:  The  Fen  River  is  navigable  for  flat-bottomed 
boats  for  40  miles  during  a  short  season  of  the  year.  Cart  roads  traverse  the 
fertile  plains.  These  roads  have  often  been  worn  so  far  below  the  surface  of  the 
surrounding  country  that  they  form  veritable  canyons.  During  the  past  few 
years  800  miles  of  graded  dirt  motor  roads  have  been  constructed.  Railways : 
Taiyuanfu,  the  capital,  is  connected  with  the  Peking-Hankow  Railway  by  a  nar¬ 
row-gauge  line.  The  Peking-Kalgan  line  passes  through  northern  Shansi. 

Cities. — Between  50,000  and  700,000:  Taiyuanfu  (capital)  and  Kweihwating. 
There  are  a  dozen  cities  with  populations  of  more  than  20,000. 

Treaty  ports. — None. 

Language  of  natives. — Mandarin. 

American  interests. — Under  jurisdiction  of  Tientsin  consulate  general. 

PROVINCE  OF  SHANTUNG 

Area. — 56,000  square  miles  (about  the  size  of  Illinois). 

Latitude. — Corresponds  with  that  of  southern  California. 

Population. — 31,000,000 ;  550  per  square  mile ;  one  of  the  most  densely  popu¬ 
lated  Provinces ;  densest  in  west. 

Topography. — Mountainous  in  eastern  and  southern  sections ;  western  Shan¬ 
tung  a  great  plain.  Yellow  River,  which  is  not  navigable,  flows  in  northeasterly 
direction  through  Province,  with  frequent  floods ;  soil  rich.  Good  harbor  at 
Tsingtao  and  one  at  Chefoo. 

Agriculture. — Shantung  is  a  rich  agricultural  Province ;  wheat,  cotton,  millet, 
sorghum,  peanuts,  tobacco,  maize,  silk,  fruits,  hemp,  walnuts,  and  vegetables 
are  the  principal  products,  in  order  listed.  About  250,000  tons  of  peanuts  are 
produced  mostly  for  export.  A  fine  quality  of  tobacco  from  American  seeds  is 
grown. 


BRIEF  GEOGRAPHICAL  DESCRIPTION 


11 


Minerals. — Coal  and  iron  are  the  principal  minerals.  These  are  worked 
with  modern  methods  and  modern  machinery  .and  have  developed  into  im¬ 
portant  industries. 

Industries. — Some  of  the  products  that  contribute,  along  with  coal  and  iron, 
to  Shantung’s  activities  are  straw  braids ;  vermicelli,  from  beans,  wheat,  and 
sometimes  sweet  potatoes ;  pongee  silk,  from  cocoons  fed  on  oak  leaves ;  pig 
bristles ;  egg  albumen  and  yolk ;  cattle ;  peanut  and  bean  oils ;  and  hair  nets. 
Within  recent  years,  modern  flour  mills  and  cotton  spinning  mills  have  de¬ 
veloped  into  important  industries  in  Shantung. 

Communications. — Waterways :  Grand  Canal,  principal  waterway  of  commerce ; 
Yellow  River  navigable  through  Shantung  by  small  native  craft  only.  Rail¬ 
ways  :  Tientsin-Pukow,  Kiaochow-Tsinan,  with  branch  to  Poshan.  Country 
roads  used  extensively  throughout  Province  for  carts,  wTheelbarrows,  and  pack 
animals,  with  about  500  miles  of  roads  used  for  motor  transportation.  Post 
offices,  148.  Telegraph  stations,  76. 

Cities. — Tsinan  (capital),  300,000.  Population  of  more  than  75,000;  Chefoo, 
Tsining,  Tsingtao,  Weihsien,  and  Taianfu. 

Treaty  ports. — Chefoo,  Tsingtao,  Tsinan  (voluntarily  opened  port),  Lung- 
kow,  and  Weihaiwei. 

Language  and  characteristics  of  natives. — Northern  Mandarin  is  spoken. 
The  natives  are  hardy  and  peaceable,  and  constitute  the  bulk  of  the  millions 
of  immigrants  into  Manchuria. 

American  interests. — In  Shantung  promontory,  under  jurisdiction  of  Chefoo 
consulate ;  in  central  and  southern  Shantung,  under  Tsinan  consulate ;  in 
Kiaochow,  under  Tsingtao  consulate. 

PROVINCE  OF  SHENSI 

Area. — 75,200  square  miles  (about  equal  to  that  of  Nebraska). 

Latitude. — Corresponds  to  that  of  Arizona. 

Population. — 9,450,000;  125  per  square  mile;  densest  in  Han  and  Wei  River 
Valleys. 

Topography. — High  mountain  ranges  extend  across  northern  and  southern 
ends  ofxProvince;  north  of  Wei  River  country  is  a  great,  fertile,  low  table¬ 
land  ;  Wei  Basin  is  called  “  cradle  of  China  ” ;  Province  was  once  noted  for 
forests,  but  now  hills  are  denuded  of  trees. 

Agriculture. — The  valleys  of  the  Wei  and  Han  Rivers  are  particularly  pro¬ 
ductive.  The  Wei  Basin  produces  the  finest  quality  of  cotton  grown  in  China. 
Wheat,  corn,  tobacco,  Irish  potatoes,  alfalfa,  beans,  oats,  barley,  millet,  peanuts, 
silk,  persimmons,  and  rapeseed  are  also  produced,  the  staple  crop  being  wTheat. 

Minerals. — Shensi’s  mineral  wealth  remains  to  be  exploited.  It  is  sup¬ 
posedly  rich  in  coal  and  petroleum.  Lack  of  railways  and  good  roads  have 
prevented  development. 

Industries. — Native  flour  mills  operated  by  water  wheels  are  numerous. 
Mules,  cattle,  and  sheep  are  raised  in  large  numbers. 

Communications. — Waterways;  The  Han  River  is  navigable  as  far  up  as 
Hanchungfu ;  the  Province  is  poor  in  navigable  waterways.  Railways ;  None ; 
but  a  projected  line  crosses  Central  China  through  the  Wei  Basin  into  Kansu. 
There  is  an  old  road  crossing  from  Shansi  over  the  Wei  Basin  into  central 
Asia,  over  which  the  traffic,  by  carts  and  pack  animals,  is  very  heavy.  A  road 
also  passes  through  this  basin  from  Peking  to  Chengtu  in  Szechwan,  follow¬ 
ing  also  the  Han  River  Valley  but  crossing  over  mountain  passes  8,000  feet 
high.  Coolies  and  pack  animals  by  the  thousands  may  be  seen  on  this  great 
highway.  Post  offices,  57.  Telegraph  stations,  19. 

Cities. — Sianfu  (capital),  population  200,000. 

Treaty  ports. — None. 

Language  of  natives. — Mandarin. 

American  interests. — Under  jurisdiction  of  Hankow  consulate  general. 

PROVINCE  OF  SZECHWAN 

Area. — 220,000  square  miles  (about  80  per  cent  of  the  size  of  Texas.) 

Latitude. — Corresponds  with  that  of  Texas. 

Population. — 50,000,000  ;  230  per  square  mile;  Chengtu  plain,  45  by  90  miles, 
has  densest  population,  estimated  at  more  than  2,000  per  square  mile. 

Topography  and  climate. — Three-fourths  of  Province  is  high  plateau  wTith 
mountains  extending  to  an  altitude  of  18,000  feet ;  this  plateau,  of  red  sand- 


12 


COMMERCIAL  HANDBOOK  OF  CHINA 


stone,  slopes  toward  east  and  southeast ;  Chengtu  plain  remarkably  pro¬ 
ductive;  southern  part  of  Szechwan  semitropical. 

Agriculture. — Szechwan  claims  to  produce  everything  raised  elsewhere  in 
China.  Silk,  wheat,  sugar,  tobacco,  fibers,  rhubarb,  bamboo,  tea,  herbs,  and 
wood  oil  figure  among  the  important  products.  The  Chengtu  plain  is  perfectly 
irrigated  by  an  artificial  system  2,000  years  old,  and  is  probably  the  most 
fertile  spot  for  its  size  in  China. 

Minerals. — No  proper  investigation  (or  at  least  none  whose  results  have 
been  made  public  or  otherwise  accessible)  has  been  made  of  the  supposedly 
great  mineral  wealth  of  Szechwan,  including  iron,  coal,  copper,  gold,  quick¬ 
silver,  and  petroleum,  all  of  which  are  reported  as  being  present  in  quantity. 
The  salt  wells  bored  to  a  depth  of  3,000  feet  have  disclosed  the  presence  of 
petroleum  and  gas  in  considerable  quantity. 

Industries. — Szechwan  has  but  one  outlet  that  can  be  advantageously  used — 
the  Yangtze  River.  As  navigation  on  the  dangerous  upper  Yangtze  has  up 
to  recent  times  been  confined  to  junks,  the  Province  has  always  been  self- 
supporting.  During  the  past  few  years,  however,  steam  navigation  has  rap¬ 
idly  developed  and  it  is  believed  that  this  will  gradually  affect  the  industrial 
situation.  The  silk  industry  is  probably  the  leading  industry  in  Szechwan. 
Wood  oil,  salt,  brown  sugar,  vegetable  tallow,  insect  wax,  medicines,  hides, 
bristles,  tobacco,  wool,  musk,  and  paper  enter  into  the  industries  of  the 
Province.  The  Szechwan  salt  wells  are  famous,  some  of  them  being  3,000 
feet  deep,  bored  by  drills  dropped  down  with  bamboo  ribbons,  and  requiring 
generations  to  reach  this  depth. 

Communications. — Waterways:  Steam  navigation  has  developed  rapidly  dur¬ 
ing  the  past  few  years,  and  especially  during  the  last  three  years,  until  there 
are  now  more  than  30  steamers  plying  above  Ichang  during  the  summer 
and  one-third  of  this  number  in  the  winter.  There  is  steam  traffic  on  the 
Yangtze  as  far  as  Suifu,  and  in  the  summer  as  far  as  Iviatingfu  on  the  Min 
River.  The  three  main  branches  of  the  Yangtze  in  Szechwan  carry  a  heavy 
junk  traffic,  but  steamers  are  rapidly  displacing  junks  on  the  Yangtze  below 
Chungking.  Railways :  None,  though  several  have  been  projected  and  a 
concession  has  been  granted  to  an  American  concern.  There  are  practically 
no  cart  roads.  Travel  is  by  foot,  on  horseback,  or  by  chair.  There  are  no 
automobiles  in  the  Province.  Goods  are  carried  on  backs  of  animals  or  men. 
Post  offices,  183.  Telegraph  stations,  49. 

Cities. — Chungking,  800,000;  Chengtu  (capital),  400,000.  More  than  100,000: 
Kiatingfu,  Fowchow,  Wanhsien,  Tzeliutsing.  Between  25,000  and  100,000; 
Chungpa,  Batang,  Ningyuanfu,  Fengtuhsien,  Kweichowfu,  Suifu,  and  Yachowfu. 

Treaty  port. — Chungking. 

Language  and  characteristics  of  natives. — Western  Mandarin  and  tribal  dia¬ 
lects.  Chinese  and  aboriginal  tribes. 

American  interests. — Under  the  jurisdiction  of  the  Chungking  consulate. 

PROVINCE  OF  YUNNAN 

Area. — 146,700  square  miles  (almost  exactly  that  of  Montana). 

Latitude. — Corresponds  to  that  of  Cuba  and  southern  Florida. 

Population. — 10,000,000 ;  70  per  square  mile ;  densest  on  table-land. 

Topography  and  climate. — Mountainous  throughout ;  high  and  narrow  moun¬ 
tain  ranges  on  west ;  high  table-land  on  east.  Yunnanfu,  the  capital,  lies 
at  elevation  of  6,200  feet.  Climate  in  higher  altitudes  good.  Along  low- 
lying  river  beds,  usually  damp,  foggy,  and  unhealthful.  Greatest  rainfall 
in  summer  months. 

Agriculture. — Rice,  principal  crop.  Beans,  wheat,  and  maize  extensively 
cultivated. 

Minerals. — Wide  variety  of  minerals,  but  commercially  only  tin  is  important. 
Production  of  tin  is  10.000  short  tons. 

Industries. — Agriculture  and  mining  form  basis  of  industries,  which  are 
still  crude  and  primitive,  cotton  weaving  being  most  important. 

Communications. — Haifong-Yunnanfu  Railway  (French)  534  miles.  Nar¬ 
row-gauge  railway  connects  Cochin  tin  mines  with  regular  line.  Regular 
steamship  service  between  Hongkong  and  Haifong.  Transportation  otherwise 
by  pack  animals.  Post  offices,  54.  Telegraph  stations,  35. 

Cities. — Yunnanfu  (capital)  with  population  of  170,000,  (200  foreigners), 
is  chief  commercial  center ;  although  not  a  treaty  port,  foreign  firms  are 
located  there. 


BRIEF  GEOGRAPHICAL  DESCRIPTION 


13 


Treaty  ports. — Mengtsz  and  Hokow  in  east ;  Szemao  and  Tengyueh  in  south 
and  west  respectively. 

Language  and  characteristics  of  natives. — Western  Mandarin  is  spoken. 
There  are  many  aboriginal  tribes  speaking  tribal  dialects. 

American  interests. — Under  jurisdiction  of  Yunnanfu  consulate. 

MANCHURIA  (THREE  EASTERN  PROVINCES:  SHENGKING,  KIRIN,  HEILUNGKIANG) 

Area. — 365,000  square  miles  (about  the  size  of  California,  Oregon,  Washing¬ 
ton,  and  Ohio  combined). 

Latitude. — Corresponds  to  that  of  northern  United  States  and  southern 
Canada. 

Population. — 22,000,000 ;  60  per  square  mile ;  densest  in  Liao  Plain. 

Topograph  and  climate. — Three  Provinces,  Shengking  (Fengtien),  Kirin,  and 
Heilungkiang ;  northern  region  larger  and  better  wooded,  sloping  toward  Amur 
River;  southern,  more  fertile,  more  thickly  inhabited,  sloping  toward  Gulf  of 
Liaotung ;  Sungari  Plain  in  north  and  Liao  Plain  in  south  have  fertile  soil  and 
splendid  crops ;  large  areas  still  uncultivated ;  on  rich  plateau  lands,  grass 
sometimes  grows  6  feet  high.  Climate  is  healthful,  though  winters  are  long  and 
very  severe. 

Agriculture. — Manchuria  contains  some  of  the  finest  agricultural  land  in  the 
world.  Lack  of  adequate  transportation  and  presence  of  brigands  have  caused 
this  virgin  country — so  sparsely  inhabited,  so  rich  in  possibilities,  and  in  such 
close  proximity  to  densely  populated  areas — to  remain  all  these  centuries 
without  having  been  effectively  colonized.  The  principal  crop  of  Manchuria 
now  is  beans,  an  article  whose  value  has  only  recently  come  to  be  appreciated 
by  the  outside  world.  Wheat  ranks  second  in  importance.  Other  cereals,  such 
as  millet,  sorghum,  and  maize,  are  raised  in  large  quantities.  Silk  (from  worms 
fed  on  oak  leaves),  indigo,  vegetable  oils,  fruits,  and  livestock  add  to  Man¬ 
churia’s  agricultural  wrealth. 

Minerals. — Practically  the  whole  of  South  Manchuria  is  one  vast  coal  field. 
Iron  and  gold  are  also  found.  Japanese  capital  is  developing  the  coal  and 
iron  properties  in  a  large  way.  Gold,  silver,  copper,  iron,  and  soda  are  found 
in  North  Manchuria.  Of  these  only  gold,  coal,  and  soda  are  produced,  gold 
chiefly  in  the  northern  part  of  Heilungkiang,  on  the  tributaries  of  the  Amur 
River,  and  coal  at  Manchuria  Station,  Chalainor,  Machiaohe  (near  Suifenho), 
and  at  other  places.  The  Chinese  Eastern  Railway  and  Russian  and  Chinese 
private  capital  are  interested  in  developing  coal  mines. 

Industries. — Manufacturing  of  bean  products,  flour  milling,  lumbering,  and 
cattle  raising  constitute  great  industries  in  Manchuria.  Raw  silk,  tobacco, 
furs  and  skins,  and  iron  and  coal  are  becoming  the  bases  of  profitable  indus¬ 
tries,  employing  in  some  cases  enormous  capital.  The  South  Manchuria  Rail¬ 
way,  with  its  ramifications  of  industry,  including  coal,  iron,  and  steel  indus¬ 
tries,  is  the  biggest  institution  in  South  Manchuria.  The  Chinese  Eastern 
Railway  is  the  largest  enterprise  in  North  Manchuria.  These  railways  have 
directly  and  indirectly  developed  industries,  populated  the  country,  and 
brought  prosperity  to  the  settlers. 

Communications. — Waterways :  The  Amur  River  is  navigable  for  the  largest 
river  steamers  from  Nikolaevsk,  near  its  mouth,  to  Blagoveshchensk ;  and 
smaller  steamers  go  on  to  Stretyinsk,  more  than  1,500  miles  from  its  mouth. 
Owing  to  a  series  of  sand  bars  across  the  mouth  of  the  river,  large  ocean 
steamers  are  not  able  to  go  up  to  Nikolaevsk,  but  the  dredging  operations  that 
have  been  undertaken  will,  when  completed,  enable  ocean  vessels  to  go  up  the 
river  at  least  as  far  as  Khabarovsk. 

The  Sungari  is  navigable  to  Kirin,  the  Nonni  to  Tsitsihar,  the  Liao  to 
Tungkiantze,  and  the  Yalu  for  its  entire  course.  Railways :  Mukden  is  con¬ 
nected  on  the  south  with  Tientsin  and  Peking,  on  the  north  with  Harbin  and 
Tsitsihar,  on  the  southeast  with  Port  Arthur  and  Dairen,  and  on  the  east 
with  Antung ;  through  rail  service  from  Peking  to  Yokohama,  via  Manchuria 
and  Korea,  is  established,  and  also  in  peace  times  from  Peking  to  Petrograd 
via  Manchuria.  Through  the  Chinese  Eastern  Railway,  Harbin  is  connected 
on  the  south  with  Changchun  (which  is  the  northern  terminus  of  the  South 
Manchuria  Railway,  leading  to  Mukden  and  Dairen),  on  the  west  with  Man- 
chouli,  the  terminus  of  the  Chita  Railway,  which  connects  with  the  Trans- 
Siberian  trunk  line  leading  to  Europe,  and,  on  the  east,  with  Nikolsk.  the  ter¬ 
minus  of  the  Ussuri  Railway,  which  leads  to  Vladivostok  and  the  Pacific  Ocean. 
The  express  trains  of  the  Chinese  Eastern  Railway  are  ranked  among  the  best 


14 


COMMERCIAL  HANDBOOK  OF  CHINA 


in  the  world.  Motor  traffic  is  being  rapidly  developed  in  Harbin  and  other 
places  in  North  Manchuria ;  in  the  winter  a  motor  car  can  travel  anywhere 
across  the  country.  Post  offices,  203.  Telegraph  stations,  132. 

Cities. — Harbin,  100,000  foreigners,  mostly  Russians  (larger  white  population 
than  any  other  city  in  Asia),  and  200,000  Chinese;  Dairen,  186,000;  Mukden, 
200,000  Chinese ;  Kirin,  100,000.  Changchun,  Aigun,  and  Newchwang  are  other 
important  cities. 

Treaty  ports. — Aigun,  Antung,  Dairen  (Japanese  leased  territory),  Manchouli, 
Newchwang,  Sansing,  Suifenho,  Harbin,  Mukden,  Fakumen,  Fenghwangcheng, 
Hsmmintun,  Tieliling,  Tungkiangtze,  Yingkow,  Liaoyang,  Changchun,  Kirin, 
Ninguta,  Chientao,  Tsitsihar,  Hailar. 

Language  of  natives. — Northern  Mandarin  is  most  common.  Russian,  how¬ 
ever,  is  the  commercial  language  of  North  Manchuria,  although  both  Chinese 
and  Japanese  are  employed  in  dealing  with  the  many  important  firms  of  those 
two  nationalities. 

American  interests. — In  North  Manchuria,  under  jurisdiction  of  Harbin  con¬ 
sulate  ;  in  southeast,  of  Antung  consulate ;  in  Dairen  and  leased  territory,  of 
Dairen  consulate ;  in  South  Manchuria,  of  Mukden  consulate  general. 

CHINESE  DEPENDENCIES 

MONGOLIA 

Area. — 1,370,000  square  miles  (about  one  and  one-lialf  times  the  area  of  that 
portion  of  the  United  States  lying  east  of  the  Mississippi). 

Latitude. — Corresponds  with  Northern  United  States  and  Southern  Canada. 

Population. — 2,500,000;  2  per  square  mile;  densest  in  east  and  in  river  valleys. 

Topography  and  climate. — A  vast  basin-like  plateau  of  3,000  to  4,000  feet 
elevation,  surrounded  by  mountain  ranges  and  undulating  steppes ;  near  center 
is  Gobi  Desert,  of  more  than  260,000  square  miles ;  frequent  sandstorms ;  atmos¬ 
phere  dry,  winters  extremely  cold.  For  purposes  of  administration  country  is 
divided  into  two  sections — northern  or  Outer  Mongolia,  and  southern  or  Inner 
Mongolia. 

Agriculture. — The  country  is  pastoral  and  the  people  nomadic.  Cattle  raising 
and  sheep  raising  are  carried  on,  with  agriculture  in  certain  favored  regions. 
The  average  annual  rainfall  is  between  8  and  10  inches  a  year.  The  principal 
crops  are  grass,  wheat,  and  millet. 

Minerals. — Gold  has  been  mined  for  years.  The  mineral  wealth  is  subject  to 
investigation,  but  the  region  is  reputed  to  be  rich  in  coal,  iron,  copper,  gold, 
silver,  lead,  and  zinc. 

Industries. — Cattle  and  sheep  raising,  hides,  wool  (sheep  and  camel),  licorice, 
and  drugs  seem  to  constitute  the  leading  items  of  production. 

Communications. — Waterways :  Canals  and  rivers  are  little  used,  as  they  are 
off  the  trade  routes.  Railways:  None;  one  projected  to  connect  Urga,  the 
capital,  with  the  Peking-Kalgan  line..  Ten  or  twelve  foreign  and  Chinese  com¬ 
panies  are  engaged  in  motor-car  transportation  service  between  Kalgan  and 
Urga,  making  the  trip  in  four  days  and  using,  in  the  main,  American  cars. 
Roads  are  poor  and  not  well  marked.  Main  highway  leads  from  Kalgan  to 
Kiakhta  via  Urga.  Caravan  routes  lead  to  Siberia,  with  camel  and  bullock 
wagon  trains. 

Cities. — Urga  (capital),  38,000;  the  only  important  city. 

Treaty  ports. — Urga  and  Kiakhta,  but  present  status  difficult  of  determina¬ 
tion,  owing  to  dominance  of  Soviet  Russia’s  political  interests. 

Language  and  characteristics  of  natives. — Mongolian  is  spoken.  The  people 
of  the  west  are  Turkish,  those  of  the  south  are  Chinese,  while  the  Mongols 
inhabit  Mongolia  proper. 

American  interests. — Under  jurisdiction  of  Kalgan  consulate. 

SINKIANG  (INCLUDING  NEW  PROVINCE  AND  CHINESE  TURKESTAN) 

Area. — 550,000  square  miles. 

Population. — 2,500,000 ;  4  per  square  mile ;  densest  in  eastern  section. 

Topography. — For  the  most  part  Chinese  Turkestan  is  an  immense  desert, 
surrounded  by  mountains  of  great  height.  Fertile  spots  occur  only  here  and 
there. 

Agriculture. — Where  irrigation  is  possible,  splendid  crops  are  produced. 
The  famous  oasis  of  Hami  is  exceptionally  fertile,  producing  barley,  oats, 


BRIEF  GEOGRAPHICAL  DESCRIPTION 


15 


millet,  and  wheat.  Its  melons  are  famous  throughout  China,  for  in  former 
years  many  were  sent  to  the  Peking  court. 

Minerals. — Chinese  Turkestan  produces  a  fine  quality  of  jade.  Its  mineral 
resources  are  as  yet  unknown. 

Industries. — Horses,  camels,  donkeys,  sheep,  and  goats  are  raised.  Carpets, 
jade,  furs,  skins,  and  silk  fabrics  are  among  the  articles  produced. 

Communications. — S'everal  ancient  roads,  of  great  historical  interest  but 
in  bad  condition,  are  used  as  trade  routes. 

Cities. — Kashgar,  60,000  ;  Yarkand,  50,000 ;  Khotan,  30,000  ;  Turfan,  20,000 ; 
TJrumtsi,  30,000. 

American  interests. — Under  the  jurisdiction  of  Hankow  consulate  general. 

TIBET 

Area. — 465,000  square  miles. 

Population. — 6,000,000;  12  per  square  mile. 

Topography. — The  greater  part  of  Tibet  is  desert,  but  valleys  in  the  south 
and  west  are  fertile  and  vegetation  is  luxuriant.  The  valley  of  the  Chumbi 
River  is  reported  to  be  the  most  fertile  portion.  The  country  as  a  whole  has 
the  greatest  average  elevation  of  any  similar  area  in  the  world.  On  account 
of  its  marginal  mountain  ranges  it  is  almost  inaccessible. 

Agriculture. — In  the  fertile  valleys  are  grown  fruits  and  vegetables,  as 
well  as  corn  and  barley.  Tibet  furnishes  excellent  pasture  lands.  The 
domestic  animals — the  tame  yaks,  asses,  goats,  sheep,  and  horses — are  sources 
of  wealth  to  the  natives. 

Minerals. — Little  is  known  of  the  mineral  wealth,  though  all  writers  speak 
of  gold  abounding  in  free  form.  There  is  a  superstition  against  mining,  there¬ 
fore  it  is  discouraged.  Tibet  is,  however,  regarded  as  rich  in  minerals. 

Industries. — Yak  hides,  lambskins,  musk,  gold  dust,  wool,  saddle  rugs,  car¬ 
pets,  and  medicines  are  some  of  the  products  exchanged  for  Chinese  wares 
and  products.  The  Tibetans  generally  lack  enterprise,  though  they  are  highly 
spoken  of  in  various  other  respects. 

Communications. — Roads  are  few  and  bad.  Rope  bridges  are  used  in  cross¬ 
ing  rivers  and  torrents.  Sometimes  the  yak  skin  is  used  in  making  a  sort 
of  light  ferryboat.  Government  couriers,  traveling  day  and  night,  with 
relays  of  horses,  have  been  known  to  reach  Peking  from  Lassa  within  a  month. 

Cities. — Towns  are  all  small,  generally  with  a  maximum  of  a  few  hundred 
inhabitants.  Lhasa,  the  capital,  has  40,000,  more  than  half  of  whom  are  priests. 
This  number  is  augmented  considerably  from  time  to  time  by  pilgrims. 

Treaty  port. — Yatung,  a  small  town  with  only  a  few  score  inhabitants. 

Language  and  characteristics  of  natives. — The  language  of  the  natives  is 
polysyllabic  and  highly  developed.  They  are  credited  with  being  among  the 
more  highly  endowed  peoples  of  the  world.  They  are  fond  of  music  and 
dancing  and  are  complimented  by  travelers  for  their  kindly  bearing,  cheer¬ 
fulness,  and  frankness. 

American  interests. — Under  the  jurisdiction  of  the  Chungking  consulate. 


16 


COMMERCIAL  HANDBOOK  OF  CHINA 


F  '  ' 

>  '4 

l;f 

* 

i-  i 

I 

Fig.  1. — Steamship  President  J'cfferson  leaving  Shanghai.  Among  passengers  ate  upwards  of  100  students  bound  for  colleges  in  United  States 


SKETCH  OF  CHINESE  HISTORY 


Dr.  F.  L.  Hawks  Pott,  President,  St.  John’s  University,  Shanghai 

Connected  with  the  story  of  China  there  are  three  remarkable 
features.  Firstly,  antiquity,  for  whereas  many  ancient  nations  men¬ 
tioned  by  Herodotus  as  its  contemporaries  have  passed  away, 
China  still  exists;  secondly,  the  development  of  a  unique  civiliza¬ 
tion,  reaching  its  climax  some  3,000  years  ago;  and  thirdly,  isola¬ 
tion,  owing  to  the  fact  that  for  a  long  stretch  of  time  there  was 
little  intercommunication  or  cross-fertilization  with  other  peoples. 

EARLIEST  PERIOD 

The  origin  of  the  Chinese  race  remains  one  of  the  unsolved  prob¬ 
lems  of  history,  and  all  that  we  can  say  with  certainty  is  that  it 
came  from  somewhere  in  western  Asia.  Ethnologically  the  Chinese 
differ  from  other  races  of  western  Asia,  as  is  seen  by  the  structure 
of  the  hair  and  the  formation  of  the  eyes.  In  the  south  there  has 
probably  been  considerable  admixture  of  Malaysian  blood. 

Originally  a  nomadic  people,  the  Chinese  found  their  way  through 
the  pass  between  the  Tienshan  and  Altai  Mountains,  and  settled  near 
the  banks  of  the  Yellow  River  in  what  is  now  the  Province  of 
Shensi. 

Here  they  rapidly  developed  into  an  agricultural  people,  and, 
as  in  the  case  of  the  Euphrates  and  Nile,  we  find  the  growth  of 
a  civilization  connected  with  a  great  river  valley. 

It  goes  without  saying  that  the  Chinese  were  not  the  first  inhab¬ 
itants  of  the  country  in  which  they  settled.  They  were  brought  into 
conflict  with  aborginal  tribes,  much  as  the  European  settlers  in  North 
America  were  with  the  Indians.  Remnants  of  these  ancient  tribes, 
called  the  Lolos,  the  Shans,  and  the  Miaotse,  are  found  in  the  islands 
of  Formosa  and  Hainan  and  in  Kweichow,  Sczechwan,  Yunnan, 
Kwangtung,  and  Kwangsi  Provinces,  in  South  and  West  China. 

The  geographical  situation  of  China  helps  to  account  for  its 
long-time  isolation  from  the  rest  of  the  world.  On  the  west,  the 
northeast,  and  the  southwest  there  are  great  mountain  ranges,  and 
on  the  east  the  waters  of  the  Pacific.  The  chief  access  in  ancient 
times  was  over  a  long  stretch  of  desert  by  the  caravan  route,  which 
entered  from  the  northwest  through  the  pass  we  have  referred  to 
between  the  Tienshan  and  Altai  Mountains.  In  this  way  there 
was  some  commercial  relation  with  central  and  western  Asia  and 
with  the  .Mediterranean  world,  but  China  was  not  brought  into  close 
commercial  relationship  with  the  European  world  until  the  sea  route 
around  the  Cape  of  Good  Hope  was  discovered  at  the  close  of  the 
fifteenth  century. 

In  a  brief  sketch  like  this,  there  is  no  space  to  refer  to  the  myth¬ 
ical  and  legendary  period.  Chinese  historians  begin  their  story 
with  the  Age  of  the  Five  Rulers,  B.  C.  2852.  One  historic  event 
stands  out,  and  that  was  the  great  flood,  B.  C.  2297,  caused  prob¬ 
ably  by  the  overflow  of  the  Yellow  River.  We  have  a  graphic  account 
of  the  disaster  and  the  way  the  celebrated  Yii,  styled  the  “  Engineer 

17 


100020°—  26 - 3 


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COMMERCIAL  HANDBOOK  OF  CHINA 


Emperor,’'  coped  with  the  calamity,  and  it  is  interesting  owing  to 
the  fact  that  there  have  been  periodical  disasters  of  the  same  char¬ 
acter,  the  consequences  of  which  have  led  foreigners  to  refer  to 
this  river  as  “  China’s  Sorrow.” 

During  this  period  there  was  a  more  or  less  continuous  struggle 
with  the  aborigines,  known  as  the  outlying  barbarians,  and  they 
were  pushed  southward  and  westward. 

At  first  the  part  of  China  controlled  by  the  Chinese  was  small 
and  comprised  the  modern  Provinces  of  Shensi,  Shansi,  and  Chihli. 
The  government  was  patriarchal  and  the  rules  were  great  tribal 
chieftains.  Society  was  organized  on  the  clan  system,  which  accounts 
for  the  paucity  of  recognized  surnames  in  China. 

The  clan  spirit  endures  in  China.  In  various  parts  of  the  country, 
and  in  the  south  especially,  we  still  find  clan  fights.  To  understand 
modern  China  one  has  to  bear  in  mind  the  strength  of  clan  spirit. 
The  family  is  the  social  unit,  but  each  family  is  a  member  of  a  larger 
aggregation — the  clan. 

The  early  religion  of  the  Chinese  may  be  summarized  as  follows: 
There  was  the  worship  of  Shang-ti  (the  supreme  ruler),  the  powers 
of  nature,  and  the  ancestors.  Divination  was  practiced.  There  were 
two  classes  of  spirits,  the  beneficent  and  the  evil,  a  distinction  indi¬ 
cated  by  the  Shen  and  the  Kwei. 

CHOW  DYNASTY 

The  first  historic  dynasty  in  Chinese  history  was  the  Chow.  It 
was  established  B.  C.  1122  and  lasted  for  nine  centuries.  We  are 
indebted  for  our  account  of  it  to  the  writings  of  Confucius.  It  may 
be  called  the  feudal  period  of  Chinese  history.  Owing  to  the 
struggle  with  the  aboriginal  tribes,  military  chieftains  became  pow¬ 
erful,  and  just  as  at  a  later  period  in  European  history,  so  in  the 
East  the  successful  warriors  were  rewarded  by  grants  of  land  or  by 
being  given  the  control  over  small  principalities.  In  this  way  a 
military  aristocracy  was  developed  and  there  was  a  division  into 
orders,  corresponding  to  dukes,  marquises,  counts,  earls,  and  barons. 
China  became  a  loose  federation  of  States  ruled  by  these  feudal 
chieftains,  who  paid  uncertain  allegiance  to  the  Emperor  as  their 
suzerain.  Its  political  condition  was  not  unlike  that  of  the  German 
confederation  in  the  eighteenth  century. 

During  this  period  lived  the  trio  of  famous  teachers,  Confucius, 
Mencius,  and  Laotze.  Confucius,  the  greatest  of  Chinese  sages,  was 
born  B.  C.  551.  Shortly  after  his  death  he  came  to  be  regarded  with 
a  feeling  of  religious  veneration,  and  for  over  2,000  years  his  teach¬ 
ings  have  exerted  great  moral  and  intellectual  influence  on  his  coun¬ 
trymen.  Inasmuch  as  his  purpose  was  to  preserve  the  beliefs  and 
customs  of  antiquity,  his  teachings  have  fostered  conservatism.  This 
is  especially  the  case  in  regard  to  the  emphasis  placed  on  ancestor 
worship.  His  influence  in  China  may  be  compared  to  the  influence 
of  Aristotle  in  Europe  during  the  Middle  Ages.  Anything  contrary 
to  his  doctrine  was  regarded  as  heretical. 

TSIN  DYNASTY 

At  the  close  of  the  Chow  dynasty  we  come  to  a  period  of  greater 
centralization.  This  was  brought  about  by  the  founder  of  the  Tsin 
dynasty,  the  Emperior  Shih  Huang-ti  (B.  C.  221-200). 


SKETCH  OF  CHINESE  HISTORY 


19 


The  evils  of  the  feudal  system  had  become  so  apparent  that  the 
Emperor  took  steps  to  increase  the  power  of  the  central  government 
by  abolishing  the  small  principalities  or  kingdoms  and  dividing  the 
country  into  36  Provinces,  the  rulers  of  which  were  to  be  directly 
responsible  to  himself. 

Two  well-known  events  took  place  during  his  reign.  The  first  was 
the  attempted  destruction  of  the  ancient  literature,  so  that  the  con¬ 
servative  influence  which  it  exercised  over  the  minds  of  the  people 
might  be  weakened.  The  second  was  the  completion  of  the  Great 
Wall  along  the  northern  frontier  to  prevent  the  inroads  of  the  north¬ 
ern  barbarians.  It  extends  for  1,500  miles  across  mountains,  hills, 
valleys,  and  plains,  and  is  one  of  the  most  remarkable  structures 
built  by  human  toil. 

HAN  DYNASTY 

During  the  Han  dynasty  (B.  C.  206-A.  D.  251),  which  followed 
the  Tsin,  the  imperial  form  of  government  was  further  developed, 
and  the  boundaries  of  the  Empire  were  extended. 

As  to  social  organization  the  people  were  divided  into  the  follow¬ 
ing  classes:  (1)  The  literati,  whose  education  consisted  in  the  ac¬ 
quirement  of  the  six  accomplishments — archery,  horsemanship,  rites, 
music,  history,  and  mathematics;  (2)  the  cultivators  of  the  land;  (3) 
the  artisans;  (4)  the  merchants. 

No  caste  system  has  ever  been  developed  in  China,  but  there  has 
been  an  intellectual  aristocracy,  a  high  prestige  being  enjoyed  by 
the  literati  or  educated  class.  Owing  to  the  difficulty  in  acquiring  a 
knowledge  of  the  written  character,  education  could  not  be  widely 
extended  and  was  confined  to  a  privileged  class.  We  have  already 
referred  to  the  influence  of  Confucius  as  making  for  conservatism. 
The  other  great  conservative  influence  was  that  of  Chinese  education. 
It  produced  a  class  limited  in  numbers,  bent  on  the  preservation  of 
classicism,-  and  the  turning  away  from  the  study  of  nature.  Hence 
the  backwardness  in  the  development  of  science. 

The  farmers  occupy  the  second  place  of  honor.  This  points  to  the 
fact  that  China  is  essentially  an  agricultural  country.  Probably  300,- 
000,000  out  of  the  400,000,000  inhabitants  at  the  present  day  are 
engaged  in  tilling  the  soil.  The  land  has  become  divided  into  small 
holdings,  and  peasant  ownership  has  remained  one  of  the  marked 
economic  features.  This  helps  us  to  understand  the  difficulty  in  the 
introduction  of  farming  machinery  into  this  country,  and  of  making 
any  radical  change  in  the  methods  of  cultivation. 

It  may  seem  strange  that  the  mercantile  class  is  the  last  on  the 
list.  This  is  probably  due  to  the  fact  that  the  merchants  were  re¬ 
garded  as  the  distributers  and  not  as  the  creators  of  wealth.  Com¬ 
merce  for  the  most  part  was  conducted  on  a  small  scale.  At  an  early 
period  it  was  organized  into  guilds,  regulating  prices  and  terms  of 
apprenticeship.  Joint-stock  companies  were  unknown  until  recent 
years,  and  the  failure  of  many  such  enterprises  may  be  partly 
accounted  for  by  lack  of  experience. 

THE  THREE  KINGDOMS 

At  the  close  of  the  Han  dynasty  there  was  one  of  the  constantly 
recurring  periods  of  civil  war  (owing  to  the  fact  that  China  has 
never  developed  a  strongly  centralized  government),  and  the  coun- 


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COMMERCIAL  HANDBOOK  OF  CHINA 


try  was  divided  for  a  time  into  the  Three  Kingdoms — Wu  (in  the 
east),  Shu  (in  the  west) 5  and  Wei  (in  the  north). 

The  weakness  caused  by  internal  dissension  gave  the  northern 
nomad  tribes  outside  the  Great  Wall  the  opportunity  for  which  they 
were  seeking,  and  henceforth  they  became  a  constant  menace  to 
China.  These  nomad  tribes  came  first  from  Mongolia  and  later 
from  Manchuria. 

The  first  tribe  to  make  an  attack  on  China  was  that  known  as  the 
Hiung-nu  from  Mongolia.  From  them  descended  the  Huns,  who 
later  drove  the  Germanic  tribes  toward  the  west,  and  under  the 
leadership  of  Attila  (A.  D.  445)  attacked  the  Roman  Empire. 

TANG  DYNASTY 

In  the  Tang  dynasty  (A.  D.  018-907)  the  Empire  was  once  more 
united.  When  peace  had  been  established,  the  country  entered  on 
a  period  of  great  prosperity. 

The  civil  examination  system  took  on  the  form  which  lasted  until 
the  overthrow  of  the  Manchus,  and  officialdom  was  recruited  from 
the  successful  candidates.  Remains  of  the  ancient  examination  halls 
may  still  be  seen  by  travelers  in  the  city  of  Nanking.  The  Hanlin 
Academy,  consisting  of  the  greatest  scholars  of  the  land,  was  estab¬ 
lished  in  Peking. 

The  use  of  gunpowder,  the  compass,  and  printing  from  carved 
blocks  date  back  to  this  period.  The  Empire  was  still  further  en¬ 
larged  and  the  extent  of  China  proper  became  approximately  what 
it  is  at  the  present  day. 

During  the  reign  of  the  great  Emperor  Tai-tsung  (A.  D.  627-650) 
Christian  missionaries  of  the  Nestorian  Church  came  to  China.  They 
were  permitted  to  propagate  their  religion,  and  at  first  met  with 
considerable  success.  The  Nestorian  Tablet  near  Sianfu,  Shensi, 
stands  as  a  permanent  memorial  to  this  first  Christian  missionary 
enterprise. 

At  the  close  of  the  Tang  dynasty,  A.  D.  907,  came  another 
period  of  internal  disorder,  with  the  inevitable  consequence  that  the 
nomad  tribes  from  the  north  made  fresh  incursions  into  the  country. 

SUNG  DYNASTY 

Thus  we  find  the  Sung  dynasty  (A.  D.  906-1280)  dividing  the 
country  with  the  tribe  known  as  the  “  Golden  Horde  ”  or  the 
Kins.  The  Kins  occupied  the  north,  and  the  Sung  Emperors  ruled 
over  the  south.  Incessant  warfare  was  carried  on,  and  the  famous 
Chinese  general,  Yoh-fei,  whose  tomb  may  be  seen  at  Hangchow, 
struggled  to  drive  out  the  Kins. 

During  the  Sung  dynasty,  there  lived  a  well-known  social  re¬ 
former,  Wang  An-shih  (1068).  He  made  radical  proposals  on  the 
lines  of  state  socialism  in  regard  to  the  nationalization  of  commerce, 
government  loans  to  farmers,  income  tax,  and  compulsory  enrollment 
of  militia.  The  unpopularity  and  failure  of  his  plan  are  an  evidence 
of  the  deep-rooted  conservatism  of  China  at  that  time. 

MONGOL  DYNASTY 

After  the  Kins,  another  Tartar  tribe,  the  Mongols,  obtained  the 
ascendancy.  Under  their  great  leader  Genghis  Khan  (A.  D.  1162) 


SKETCH  OF  CHINESE  HISTORY 


21 


they  invaded  the  north  of  China.  It  is  said  that  the  great  Khan 
himself  marched  in  triumph  to  the  Shantung  Peninsula,  and  from 
the  hills  near  the  modern  Weihaiwei  looked  out  over  the  sea. 

The  Mongols  invaded  western  Asia  and,  penetrating  as  far  as 
eastern  Europe,  overran  Russia. 

The  conquest  of  China  was  made  by  Kublai  Khan,  the  grandson 
of  Genghis  Khan.  The  Sung  dynasty  was  overthrown,  and  a  new 
dynasty  established  known  as  the  Yuan  or  Mongol  dynasty  (A.  D. 
1280-1368). 

Owing  to  the  invasion  of  Russia,  Hungary,  and  Poland  by  the 
Mongols,  the  people  of  Europe  had  their  attention  directed  to  eastern 
Asia,  and  travelers  and  merchants  undertook  journeys  to  these 
unknown  regions.  The  Christian  Church  realized  that  there  was  a 
vast  territory  for  missionary  enterprise.  Among  the  earliest  visitors 
of  whom  we  have  authentic  records  were  the  Polos,  especially  Marco 
Polo  (1274). 

In  company  with  his  father  and  uncle  he  came  to  China  when  he 
was  16  years  of  age.  The  travelers  carried  letters  from  Pope  Greg¬ 
ory  X,  who  was  desirous  of  propagating  Christianity  in  the  Empire. 
Marco  Polo  gained  favor  at  the  Mongol  court  and  was  permitted  to 
travel  freely.  Altogether  he  spent  21  years  in  the  country,  and  at  one 
time  was  prefect  at  Yangchow.  In  some  of  the  Buddhist  temples  in 
the  large  cities  in  China,  among  the  images  of  the  500  Lohans,  that 
of  Marco  Polo  is  pointed  out  to  travelers. 

After  his  return  to  Europe,  about  1300  A.  D.,  he  dictated  an  ac¬ 
count  of  his  travels  in  the  East,  and  gave  to  Europe  a  description 
of  what  up  to  that  time  had  been  comparatively  an  unknown  land. 

During  this  dynasty  the  reconstruction  of  the  Grand  Canal,  ex¬ 
tending  for  a  thousand  miles  between  Hangchow,  near  Shanghai, 
and  Tungchow,  14  miles  east  of  Peking,  was  carried  out. 

The  Mongols  added  little  to  the  civilization  of  China,  but  yielded 
to  the  superior  civilization  of  those  whom  they  had  conquered,  for, 
as  has  been  well  said,  China  is  like  a  sea  that  makes  all  the  water 
that  runs  into  it  salt. 

MING  DYNASTY 

After  less  than  a  century,  the  Mongol  dynasty  disappeared  in  a 
welter  of  disorder,  and  China  again  came  under  the  rule  of  a  native 
dynasty.  This  was  the  Ming  (A.  D.  1368-1644). 

As  was  natural,  an  earnest  attempt  was  made  to  restore  every¬ 
thing  that  belonged  to  the  old  regime.  The  civil-service  examina¬ 
tions  were  reorganized  and  the  Government  of  China  assumed  the 
form  it  held  up  to  the  time  of  the  revolution. 

The  Emperor  ruled  by  divine  right,  and  was  regarded  as  the 
Son  of  Heaven.  He  had  the  appointment  of  the  Six  Boards  of 
Administration,  and  of  the  viceroys  and  governors  of  the  Provinces. 
A  Province  may  be  compared  to  a  territory  in  the  United  States 
Government.  All  officials  in  the  Provinces  down  to  the  district 
magistrate  were  appointed  by  the  central  Government,  but  no  one 
was  allowed  to  hold  an  official  position  in  his  native  Province.  The 
Provinces  were  like  satrapies  and  were  free  to  administer  their  local 
affairs  in  detail,  provided  that  they  paid  the  necessary  tribute  and 
followed  the  general  policy  of  the  central  administration.  They 


22 


COMMERCIAL  HANDBOOK  OR  CHINA 


had  local  autonomy  for  the  levy  of  taxes  and  the  administration  of 
the  law. 

In  the  village  communities,  however,  the  village  elder  or  u  Tipao  ” 
was  appointed  “  with  and  by  the  advice  and  consent  ”  of  the  vil¬ 
lagers,  represented  them  in  all  official  and  governmental  affairs,  and 
was  the  channel  of  communication  between  the  officials  and  the 
villagers. 

From  this  brief  account  it  will  be  seen  that  the  Government  of 
China  has  always  been  loosely  federated.  If  we  bear  this  in  mind 
we  can  understand  the  frequent  breaking  away  of  Provinces  from 
the  central  Government  and  the  declaration  of  their  independence. 
The  centrifugal  force  has  always  tended  to  become  stronger  than 
the  centripetal. 

As  peace  prevailed  for  a  long  time,  the  population  of  the  18 
Provinces  into  which  the  country  was  divided  increased  rapidly. 

During  the  Ming  dynasty,  A.  D.  1368-1644,  adventurers  and  mer¬ 
chants  from  Europe  began  to  come  by  the  new  sea  route  recently 
discovered,  and  not,  as  formerly,  by  the  overland  routes. 

The  first  to  make  their  appearance  were  the  Portuguese.  In  1577 
they  obtained  a  lease  of  Macao,  88  miles  from  Canton,  and  there 
made  a  settlement  which  has  continued  to  the  present  day. 

In  1573  the  Spaniards  came  upon  the  scene  and  took  possession 
of  the  Philippine  Islands,  which  they  retained  until  the  Spanish- 
American  War. 

In  1622  the  Dutch  arrived,  settling  first  on  the  Pescadores  Islands, 
and  then  erecting  trading  forts  at  the  north  and  south  ends  of  the 
island  of  Formosa,  where  they  remained  until  1659. 

MANCHU  DYNASTY 

The  Ming  dynasty  lasted  for  nearly  300  years,  and  then,  owing 
to  a  rebellion  in  China  caused  by  internal  dissension,  fell  before  the 
inroads  of  the  Manchus,  who  captured  Peking  and  established  the 
Tsing  dynasty.  The  wearing  of  the  queue  imposed-  by  the  con¬ 
querors  as  a  badge  of  submission  to  the  Manchus  dates  from  that 
time. 

MODERN  PERIOD 

This  brings  us  to  the  modern  period — most  difficult  to  condense 
in  a  brief  sketch.  One  of  the  chief  features  is  the  conflict  between 
China  and  western  nations,  which  resulted  in  opening  up  China 
to  foreign  commerce  and  to  modern  industrial  methods.  The  indus¬ 
trial  revolution  in  Europe  led  to  the  search  for  new  markets  for 
machinemade  goods,  and  thus  an  economic  factor  had  a  good  deal 
to  do  with  forcing  China  to  enter  into  closer  commercial  relations. 
China’s  attitude  was  one  of  reluctance.  China  prided  itself  upon 
what  it  considered  its  superior  civilization,  and  did  not  welcome 
foreign  trade.  In  fact  it  considered  that  by  the  purchase  of  for¬ 
eign  commodities  money  would  flow  out  of  the  country,  leading  to 
its  impoverishment. 

Russia  and  Holland  in  succession  sent  commercial  missions  to 
China,  but  were  unsuccessful  in  removing  the  barrier  of  restriction 
on  foreign  trade. 

In  the  reign  of  Kien-lung  (1793)  while  George  III  was  King  of 
England,  Lord  Macartney  was  sent  on  a  commercial  mission  to 


SKETCH  OF  CHINESE  HISTORY 


23 


Peking,  and  consent  was  obtained  for  carrying  on  trade  at  Canton 
by  British  merchants,  provided  that  they  submitted  to  the  regula¬ 
tions  imposed  by  the  provincial  officials.  As  a  result  there  was  con¬ 
stant  friction,  leading  finally  to  war. 

The  first  war  between  China  and  Great  Britain,  known  as  the 
“  Opium  War,”  occurred  in  1841-42.  The  war  was  disastrous  for 
China  and  was  brought  to  a  close  by  the  signing  of  the  treaty  of 
Nanking  (1842).  According  to  the  terms  of  this  treaty,  Canton, 
Amoy,  Foochow,  Ningpo,  and  Shanghai  were  opened  as  treaty  ports, 
where  foreigners  could  reside  and  carry  on  trade,  and  Hongkong 
was  ceded  to  Great  Britain. 

The  first  treaty  between  the  United  States  and  China  was  signed 
by  Caleb  Cushing  on  July  3,  1844,  although  the  first  American 
vessel  visited  China  as  early  as  1783  with  a  supercargo,  Major  Shaw, 
commissioned  by  the  Continental  Congress  as  consul  to  Canton. 

A  second  war  occurred  in  1856-1860,  in  which  France  joined  with 
Great  Britain  in  order  to  compel  China  to  yield  to  the  demand  of 
the  western  nations  for  larger  commercial  privileges  and  the  open¬ 
ing  up  of  diplomatic  relations.  The  result  was  the  treaty  of  Peking 
(1860),  by  which  Kowloon,  opposite  Hongkong,  was  ceded  to  Great 
Britain,  and  Tientsin  was  opened  as  a  treaty  port.  The  right  of  the 
residence  of  foreign  ambassadors  was  granted.  Other  nations  se¬ 
cured  the  same  commercial  privileges  and  entered  into  treaties  with 
China. 

In  the  meantime  China  was  ravaged  by  the  Taiping  rebellion 
(1850-1864),  in  which  over  20,000,000  lives  were  lost  and  many  of 
the  fairest  districts  of  the  Empire  were  devastated. 

China  yielded  to  the  demands  of  the  foreign  nations  from  com¬ 
pulsion,  and  her  submission  incited  a  strong  feeling  of  hostility 
among  the  people. 

The  antiforeign  spirit  manifested  itself  in  the  Tientsin  massacre 
of  1870,  when  the  Eoman  Catholic  orphanage  and  cathedral  were 
destroyed,  and  in  the  assassination  of  Mr.  A.  R.  Margary,  of  the 
British  consular  service,  on  the  borders  of  Yunnan  in  1876. 

As  a  result  of  the  latter  act  of  violence  a  convention  was  held  at 
Chefoo,  and  China  was  forced  to  agree  to  the  opening  of  four  new 
treaty  ports — Ichang,  Wuhu,  Wenchow,  and  Pakhoi — and  six  ports 
of  call  on  the  Yangtze  for  the  landing  of  foreign  goods. 

In  1884  a  war  broke  out  with  France  over  a  dispute  in  regard  to 
Tonkin,  in  which  China  was  further  humiliated. 

As  an  evidence  of  the  strong  antiforeign  feeling  among  the  people, 
riots  broke  out  along  the  Yangtze  River  in  1891.  It  did  not  yet 
occur  to  China  that  internal  reform  and  the  adoption  of  a  progressive 
policy  were  the  only  means  by  which  the  country  might  be  saved 
from  foreign  aggression. 

The  war  with  Japan  (1894-95)  was  a  turning  point.  China 
learned  its  own  weakness  and  the  strength  that  Japan  had  acquired 
by  adopting  western  education  and  military  science. 

As  a  consequence  of  this  war  China  was  obliged  to  recognize  the 
independence  of  Korea  (since  then  annexed  by  Japan),  to  give  up 
Formosa  and  the  Pescadores  Islands,  and  to  open  as  treaty  ports 
Shasi,  Chungking,  Soochow,  and  Hangchow. 

The  effects  of  this  war  did  not  end  here.  Realizing  China’s 
weakness,  a  policy  of  further  aggression  was  pursued  by  western 


24 


COMMERCIAL  HANDBOOK  OF  CHINA 


nations.  In  1897  Germany  seized  Kiaochow.  Russia  forced  the 
Chinese  Government  to  lease  Port  Arthur  (a  very  strong  naval 
base),  Great  Britain  obtained  the  lease  of  Weihaiwei  and  France 
that  of  Kwangchow.  Italy  put  in  a  demand  (not  granted)  for 
Sanmen  Bay  in  Chekiang  in  1898.  It  began  to  look  as  if  the  parti¬ 
tion  of  China  were  inevitable. 

Alarmed  by  the  dangers  to  which  the  country  was  exposed,  a  band 
of  ardent  reformers  persuaded  the  Emperor  Kwangshu  to  adopt  a 
more  enlightened  policy.  In  1898  the  famous  reform  edicts  were 
issued,  and  for  a  brief  period  it  seemed  as  if  China  was  about  to 
modernize  its  government.  But  the  Empress  Dowager  by  a  coup 
d’etat  seized  the  government,  put  the  reformers  to  flight,  instituted  a 
reign  of  terror,  and  restored  the  conservative  regime. 

The  Boxer  outbreak  in  1900  was  the  last  desperate  attempt  on  the 
part  of  the  ultraconservative  element  to  stem  the  tide  of  European 
encroachment.  The  complete  failure  of  this  uprising  and  the  suc¬ 
cess  of  Japan  a  few  years  later  in  the  Russo-Japanese  War  were 
convincing  evidence  that  China’s  only  hope  of  salvation  was  in  fol¬ 
lowing  the  example  of  Japan,  especially  in  regard  to  education  and 
military  science. 

Even  the  Empress  Dowager  appeared  to  be  converted,  and  in  1905 
the  old  civil-service  examination  system,  instituted  in  A.  D.  630,  was 
abolished,  and  the  new  education  was  introduced  into  the  schools. 
Promises  were  made  in  regard  to  the  granting  of  a  constitution,  and 
the  country  was  exhorted  to  prepare  itself  for  this  important  change. 

Owing  to  growing  discontent  with  the  corruption  of  the  Manchu 
Government  and  its  insincerity  in  regard  to  redeeming  its  promise 
of  a  grant  of  a  constitution,  a  revolution  broke  out  in  Wuchang  in 
1911,  resulting  in  the  expulsion  of  the  Manchus  and  the  establish¬ 
ment  of  the  Republic.  Dr.  Sun  Yat-sen,  who  for  a  long  time  had 
been  raising  funds  in  foreign  countries  for  fomenting  a  revolution, 
returned  to  China  and  was  proclaimed  provisional  President  in  Nan¬ 
king  on  January  1,  1912.  In  order  to  bring  over  the  north  to  the 
side  of  the  Republic,  Dr.  Sun  Yat-sen  retired  in  favor  of  Yuan 
Shih-kai,  who  was  elected  President  by  the  National  Assembly. 

The  revolutionists  were  soon  dissatisfied  with  Yuan,  and  an  at¬ 
tempt  at  a  second  revolution  took  place  in  1913.  This  was  suppressed 
and  President  Yuan  undertook  to  govern  the  country  as  a  military 
dictator,  appointing  his  generals  as  military  governors  or  tuchuns 
over  the  Provinces.  In  1916  he  attempted  to  restore  the  Empire 
and  to  make  himself  Emperor,  but  owing  to  a  threatened  rebellion 
he  was  forced  to  relinquish  his  ambitious  design.  Upon  his  death, 
which  occurred  shortly  afterwards,  the  country  drifted  into  a  help¬ 
less  condition  politically,  owing  to  the  struggle  among  the  military 
governors  for  supremacy. 

During  the  Great  War  Japan  ranged  itself  on  the  side  of  the 
allied  nations,  and  participated  by  sending  an  expedition  for  the 
capture  of  Tsingtao,  the  port  of  Kiaochow,  from  the  Germans. 
After  its  fall  Japan  seized  the  opportunity  of  making  21  demands 
upon  China,  in  an  endeavor  to  obtain  a  measure  of  political  and 
economic  control  over  China’s  development.  China  was  compelled 
to  jdeld,  but  declined  assent  to  Group  V,  which  contained  the  most 
objectionable  demands. 


SKETCH  OF  CHINESE  HISTORY 


25 


In  1917  China  broke  off  diplomatic  relations  with  Germany,  and 
the  question  as  to  whether  it  should  declare  war  or  not  aroused  a 
great  controversy.  Parliament  was  opposed  and  in  consequence  was 
dissolved.  After  the  dissolution  of  Parliament  those  in  favor  of 
war,  the  military  party,  dominated  the  Government  and  war  was 
declared. 

One  consequence  of  the  dissolution  of  Parliament  was  the  revolt 
of  Dr.  Sun  Yat-sen,  who  came  forward  as  the  champion  of  the  Con¬ 
stitutionalists  and  set  up  an  independent  government  in  Canton. 

By  declaring  war  against  Germany,  China  hoped  to  avail  itself  of 
the  friendship  of  the  Allies  and  to  obtain  redress  of  its  grievances, 
in  the  terms  of  peace  at  the  close  of  the  war.  At  the  Versailles  Con¬ 
ference,  however,  China  met  with  a  disappointment.  Unable  to 
obtain  the  possession  of  the  territory  it  had  been  compelled  to  relin¬ 
quish — as  China  believed,  unjustly — a  strong  anti- Japanese  feeling 
broke  out  in  the  country,  and  China’s  representatives  refused  to  sign 
the  terms  of  the  Versailles  treaty. 

At  the  present  time,  politically,  China  is  in  a  difficult  situation. 
The  finances  of  the  central  Government  are  in  a  distressed  condition. 
The  struggle  for  power  continues  between  the  rival  tuchuns  in  the 
north.  The  country  is  rent  with  civil  dissension,  and,  in  consequence, 
commerce,  industry,  and  education  are  making  little  progress. 

The  three  great  needs  of  China  are  (1)  a  stable  government,  (2) 
improved  economic  conditions,  and  (3)  the  spread  of  education. 
But,  amidst  so  much  that  is  dark,  there  are  hopeful  features.  There 
is  a  rapid  growth  of  national  consciousness;  there  is  a  strong  desire 
for  peace;  and  there  is  a  general  discontent  with  the  militaristic 
regime.  The  merchants  of  China  are  beginning  to  assert  themselves 
and  to  demand  a  government  that  will  put  an  end  to  disorder  so  that 
commerce  and  industry  may  be  further  developed.  There  is  also  in 
process  a  great  intellectual  revolution  and  a  rapid  dissemination  of 
new  ideas.  All  these  forces  must  in  time  produce  far-reaching 
results  and  bring  about  a  new  era  in  China. 


BIBLIOGRAPHY 

Boulger,  D.  C.  History  of  China.  3  vols.  London,  1881,  1884. 

Cordier,  Henri.  Histoire  Generale  de  la  Chine.  4  vols.  By  many  considered 
the  best  history  of  China  published  in  an  occidental  language. 

Encyclopedia  Britannica. 

Foster,  J.  W.  American  Diplomacy  in  the  Orient.  This  gives  an  excellent 
account  of  the  early  relations  with  China. 

Gowen,  H.  H.  Outline  History  of  China. 

Hirth,  F.  The  Ancient  History  of  China.  New  York,  1908.  Considered  a  very 
authoritative  work. 

Latourette,  K.  S.  Development  of  China.  275  pp.  New  York,  Houghton,  Mif¬ 
flin  Co.,  1917. 

Li  Ung  Bing.  Outlines  of  Chinese  History.  664  pp.  Shanghai,  1914. 

Morse,  H.  B.  The  International  Relations  of  the  Chinese  Empire.  3  vols. 
(1834-1911.)  Shanghai,  Kelly  and  Walsh. 

Parker,  E.  H.  Ancient  China  Simplified.  London,  1908. 

Pott,  F.  L.  H.  A  Sketch  of  Chinese  History.  Shanghai,  1915. 

Williams,  E.  T.  China,  Yesterday  and  To-day.  1923.  An  excellent  review  for 
the  American  desirous  of  securing  a  good  perspective  of  China. 

Williams,  S.  Wells.  The  Middle  Kingdom.  2  vols.  1882.  This  is  one  of  the 
^  best  and  most  reliable  reference  books  on  Chinese  institutions. 

Yule,  H.  The  Book  of  Ser  Marco  Polo.  New  edition  by  H.  Cordier.  London, 
1915.  A  most  interesting  edition  of  the  travels  of  the  famous  Venetian. 


resume:  of  the  trade  of  china 


By  Commercial  Attache  Julean  Arnold 

Although  the  Portuguese  as  early  as  1516  inaugurated  direct  trade 
with  China,  followed  by  Spanish,  Dutch,  and  British  traders,  and 
although  American  clipper  ships  were  predominant  in  South  China 
waters  during  the  early  decades  of  the  nineteenth  century,  yet  it  was 
not  until  the  middle  of  the  nineteenth  century  that  China  was  actu¬ 
ally  opened  to  the  trade  of  the  Western  world.  The  self-sufficing 
nature  of  Chinese  society  is  demonstrated  by  the  difficulties  foreign 
traders  experienced  in  introducing  their  products  into  China.  Up 
to  the  latter  half  of  the  nineteenth  century,  the  profits  in  trade  with 
China,  with  the  exception  of  the  trade  in  opium,  were  derived  from 
the  sales  of  China's  products  in  Western  markets  rather  than  from 
exports  to  China. 

Roughly  speaking,  the  year  1890  marks  the  beginning  of  modern 
China,  for  it  wTas  not  until  then  that  the  Chinese  people  gave  sub¬ 
stantial  evidence  of  a  receptive  attitude  toward  the  ideas  and  com¬ 
modities  of  the  West. 

VALUE  OF  TOTAL  TRADE 

Considering  the  belated  nature  of  China’s  industrial  awakening, 
the  inertia  of  an  old  and  long-established  civilization,  and  the  politi¬ 
cal  disturbances  attendant  upon  the  transition  from  the  old  to  the 
new  order,  the  growth  of  trade  and  industry  along  modern  lines  dur¬ 
ing  the  past  30  years  in  China  is  most  remarkable.  The  following 
graph  and  table  showing  China’s  foreign  trade  from  1864  to  1924 
indicate  clearly  the  vastly  greater  strides  made  during  the  last  30 
years  as  compared  with  the  first  half  of  this  period. 


1864.. 
1865  2 

1866.. 

1867.. 

1868. . 
1869  3 

1870. . 

1871.. 

1872.. 

1873. . 

1874.. 

1875.. 

1876.. 

1877.. 

1878. . 


Net  imports  1 

Exports 

Total  trade 

Exchange  rates  for 
haikwan  tael  in 
U.  S.  gold  and 
sterling 

Haikwan  taels 

Haikwan  taels 

Haikwan  taels 

s. 

d. 

51,  293,  578 

54, 006,  509 

105,  300, 087 

6 

8 

61, 844,  158 

60,  054,  634 

121,  898  792 

6 

8 

74,  563,  674 

56, 161,  807 

130,  725,  481 

6 

3 

69,  329,  741 

57,  895,  713 

127,  226,  454 

6 

3 

71,121,213 

69, 114,  733 

140,  235,  946 

6 

5 

74, 923,  201 

67, 143,  988 

142,  067,  189 

6 

754 

69,  290,  722 

61,  682, 121 

130,  972,  843 

6 

6  34 

70, 103,  077 

66,  853,  161 

136,  956,  238 

6 

634 

67,  317,  049 

75,  288,  125 

142,  605, 174 

6 

754 

66,  637,  209 

69, 451,  277 

136,  088,  486 

6 

5  54 

64,  360,  864 

66,  712,  868 

131,  073,  732 

6 

4*4 

67,  803,  247 

68,912,  929 

136,  716, 176 

6 

234 

70,  269,  574 

80,850,512 

151, 120,  086 

5  1154 

73,  233,  896 

67,  445,  022 

140,  678,  918 

6 

054 

70,  804,  027 

67, 172, 179 

137,  976,  206 

5  1154 

1  Net  imports,  i.  e.,  the  value  of  the  foreign  goods  imported  direct  from  foreign  countries,  less  the  value 
of  the  foreign  goods  reexported  to  foreign  countries  during  the  year. 

2  Taiping  Rebellion  raged  from  1852  to  1865. 

3  Suez  Canal  opened,  shortening  the  route  to  China, 


26 


27 


RESUME  OP  THE  TRADE  OF  CHINA 


Year 

Net  imports 

Exports 

Total  trade 

Exchange  rates  for 
haikwan  tael  in 
U.  S.  gold  and 
sterling 

1879  -  _ 

Haikwan  taels 
82,  227,  424 
79,  293,  452 
91,910,  877 
77,  715,  228 
73,  567,  702 
72,  760,  758 
88,  200,  018 
87,  479,  323 
102,  263,  669 

Haikwan  taels 
72,  281,  262 

Haikwan  taels 
154,  508,  686 

s.  d. 

5  7 3A 

1880  -  ----  ---  - 

77,  883,  587 
71,  452,  974 

157, 177,  039 

5  9  H 
5  6  H 

5  m 

5  7)4 

1881  -  _  -  _  --  --- 

163,  363,  851 

1882  _ _ 

67,  336,  846 
70,  197,  693 

145,  052,  074 

1883  _ 

143,  765,  395 

1884  _ 

67,  147,  680 
65,  005,  711 
77,  206,  568 
85,  860,  208 

139,  908,  438 
153,  205,  729 

5  i'A 
5  3  y2 

1885  _ 

1886  _ 

164,  685,  891 
188,  123,  877 

5  OH 

1887 _ 

$1.  20 

4  10M 

1888  _ 

124,  782,  893 
110, 884,  355 
127, 093,  481 
134,  003,  863 
135, 101,  198 

92,  401,  067 
96,  947,  832 
87,  144, 480 
100,  947,  849 
102,  583,  525 

217, 183,  960 
207,  832, 187 
214,  237,  961 
234,  951,  712 
237,  684,  723 

4  m 

4  m 

5  214 
4 11 

1889  -  _ 

1890  _  _ _ 

1891  _ _ _ _ 

1892 _ 

1.07 

4  4^4 

1893  -  _ 

151, 362,  819 
162, 102,911 
171,  696,  715 
202,  589,  994 
202,  828,  625 

116,  632,311 
128,  104,  522 
143,  293,  211 
131,081,421 
163,  501,  358 

267,  995, 130 
290,  207, 433 
314, 989, 926 
333,  671,  415 
366,  320, 983 

3  11H 

3  2VS 
3  3A 
3  4 

1894  4 _ _ _ 

1895  5  -  _ 

1896  -  _ 

1897 _ 

.72 

2  llH 

1898  _ 

209,  579,  334 
264,  748,  456 
211,070,  422 
268,  302,  918 
315,  363,  905 

159,  037, 149 
195,  784,  832 
158,  996,  752 
169,  656,  757 
214, 181,  584 
214,  352,  467 

368,  616, 483 
460,  533,  288 
370,  067, 174 
437, 959,  675 
529,  545, 489 

2  10  H 

3  OH 
3  VA 
2  1114 
2  7  yb 

1899  6  _ 

1900  7 _ _ _ 

1901  _ 

1902 _ 

.63 

1903 _ 

326,  739,  133 

541,  091,  600 

.64 

2  TH 

1904  8  _ •_ _ 

344,  060,  608 
447, 100,  791 
410,  270,  082 
416,  401,369 

239,  486,  683 
227,  888, 197 
236,  456,  739 
264,  380,  697 

583,  547,  291 
674,  988,  988 
646,  726,  821 
680,  782,  066 

2  \0% 
3  OiV 

1905 _ 

1906  _ 

3  3j4 
3  3 

1907 _ 

.79 

1908  _ 

394,  505,  478 
418, 158,  067 
462, 964,  894 

276,  660,  403 
338,  992,  814 
380,  833,  328 

671,  165, 881 
757, 150,  881 
843,  798,  222 

2  3 

1909 _ 

2  7^ 
2  8^ 

1910 _ 

.66 

1911 9 _ 

471,  503,  943 

377,  338, 166 
370,  520,  403 

848,  842, 109 

.65 

2  8M 

1912 _ 

473,  097,  031 

843,  617, 434 

.  74 

3  OH 

1913  10 _ 

570, 162,  557 

403,  305,  546 

973,  468, 103 

.73 

3  0M 

1914  ii _ 

569,  241,  382 

356,  226,  629 

925,  468,  011 

.67 

2  SH 

1915 _ 

454,  475,  719 

418,  861, 164 

873,  336,  883 

.62 

2  7M 

1916  I2 _ 

516,  406,  995 

481,  797,  366 

998,  204,  361 

.79 

3  3H 

1917 _ 

549,  518,  774 

462,  931,  630 

1,  012,  450,  404 
1,040,  776,113 

1.03 

4  3M 

1918 _ 

554,  893,  082 

485,  883,  031 

1.  26 

5  3xV 

1919 _ 

646, 997,  681 

630,  809,411 

1,  277,  807, 002 

1.39 

6  4 

1920 _ 

762,  210,  230 

541,  631,  300 

1,  303,  881,  530 

1.  24 

6  9)4 

1921 _ 

906, 122,  439 

601,  255,  531 

1,  507,  377,  976 

.76 

3  ll^r 

1922 _ 

945,  049,  650 

654,  891,  933 

1,  599,  941,  583 

.83 

3  9 

1923 _ 

923,  402,  881 

752,917,416 
771,  784,  468 

1,  676,  320,  303 

.80 

3  5H 

1924 _ 

1,  018,  210,  677 

1,  789,  995, 145 

.81 

3  7M 

44  Sino-Japanese  War,  1894-95. 

5  1895-1899  period  of  foreign  aggression — territorial  “leases,”  “spheres  of  influence,”  “scramble”  for 
railway  and  mining  concessions,  and  the  beginning  of  China’s  foreign  indebtedness. 

6  Influence  of  railways  felt. 

7  Boxer  outbreak. 

8  Russo-Japanese  War,  1904-5. 

9  Revolution  in  October. 

10  Rebellion  in  summer. 

11  European  War  from  August. 

12  Internal  disorders,  1916-17. 

China’s  imports  for  the  year  1880,  valued  at  79,300,000  haikwan 
taels  (the  average  value  of  the  tael  for  1880  was  5  shillings  9y2 
pence),  w^ere  as  follows:  Opium,  32,350,000  taels,  or  40  per  cent  of 
the  total ;  cotton  piece  goods,  23,400,000  taels,  or  30  per  cent  of  the 
total;  metals,  4,100,000  taels,  or  5  per  cent  of  the  total;  sundries, 
19,450,000  taels,  or  25  per  cent  of  the  total.  Sundries  comprised 
coal,  raw  cotton,  agar-agar,  timber,  kerosene,  needles,  sugar,  betel 
nuts,  rice,  paints,  window7  glass,  etc.,  no  one  item  of  which  amounted 
to  as  much  as  a  million  taels.  Kerosene,  which  made  its  first  appear¬ 
ance  in  the  customs  in  18G3,  had  by  1880  increased  to  3,500,000 
gallons.  Paints  amounted  to  about  100,000  taels  and  window  glass 
had  reached  56,000  boxes.  Timber  imports  aggregated  590,000  taels. 
The  customs  reports  relate  the  use  of  matches  as  confined  to  that 


28 


COMMERCIAL  HANDBOOK  OF  CHINA 


portion  of  the  population  living  at  or  near  the  treaty  ports,  of  which 
there  were  but  20  in  1880.  Twenty-eight  per  cent  of  the  space  used 
in  the  description  of  China’s  import  trade  for  1880  is  devoted  to 
opium.  In  1867  opium  accounted  for  46  per  cent  of  China’s  total 
imports.  In  the  early  years  of  the  trade  of  the  United  States  with 
China,  which  had  its  inception  with  the  birth  of  our  Republic, 
ginseng  constituted  the  main  and  for  a  time  the  sole  article  of 
American  export  to  China.  By  1880  the  United  States  figures  promi¬ 
nently  in  the  cotton  piece  goods  trade — American  drills,  sheetings, 
and  jeans  being  particularly  popular. 

Of  the  exports  for  1880,  aggregating  78,000,000  taels,  tea  accounts 
for  40,000,000  taels,  or  about  50  per  cent,  and  silk  for  30,000,000 
taels,  or  about  40  per  cent.  Sundries  consisted  of  sugar,  valued  at 
3,300,000  taels,  straw  braid,  mats  and  matting,  chinaware,  fire¬ 
crackers,  hides,  musk,  nutgalls,  rhubarb,  medicines,  tobacco,  beans 


e 

CO 


e 

CO 


o 

00 

oo 


lO 

s 


o 

o 

CO 


«n 

C7> 

co 


o 

o 

O) 


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o 

O) 


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o> 


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o 


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C\l 

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CM 

cn 


DRAFTING  QIV.  (2062) 


Fig.  2a. — China’s  foreign  trade,  1864  to  1924  (logarithmic  scale) 


and  bean  cake,  skins,  hemp,  grass  cloth,  and  camphor,  with  no  one 
of  these  items  exceeding  in  value  200,000  taels. 

DEVELOPMENT  OF  FOREIGN  TRADE 

In  a  perusal  of  the  Decennial  Returns  of  Trade  for  the  decade 
1882  to  1891,  one  is  impressed  wdtli  the  first  appearance  in  the 
Chinese  market  of  Japanese  cotton  yarn,  cotton  piece  goods,  cotton 
socks,  singlets,  towels,  handkerchiefs,  matches,  soap,  copper  ware, 
marine  products,  coal,  and  timber.  Indian  cotton  yarn  and  cotton 
piece  goods  also  made  their  appearance  during  this  decade.  Rus¬ 
sian  kerosene  from  Batum  then  entered  the  China  market  in  com¬ 
petition  with  American  kerosene.  By  1890  the  total  imports  of 
kerosene  in  China  had  risen  to  35,000,000  gallons,  just  ten  times 
those  of  1880.  About  1890  the  smokestacks  of  modern  factories 


RESUME  OF  THE  TRADE  OF  CHINA  29 

first  appeared  on  the  Chinese  horizon.  The  Chinese  Government 
was  recognized  as  a  new  element  in  the  market  for  industrial 
equipment,  arsenals,  mints,  and  other  works.  The  Viceroy,  Chang 
Chih  Tung,  startled  the  natives  at  Hankow  with  the  erection  of  two 
large  smokestacks,  one  at  Wuchang  for  a  big  modern  cotton-spin¬ 
ning  mill,  the  other  at  Hanyang  on  the  opposite  side  of  the  Yangtze 
River  for  the  Hanyang  iron  works.  Economically  there  was  no 
reason  for  the  location  of  an  iron  works  at  Hankow,  for  the  ore  and 
coke  could  be  more  advantageously  handled  at  Tayeh,  some  distance 
down  the  river,  where  the  iron-ore  deposits  were;  but  the  Viceroy 
was  anxious  to  view  from  his  window  the  smoke  rising  from  these 
modern  industrial  plants.  Thus  it  may  be  said  that  with  the  year 
1890  modern  industrialism  had  its  inception  in  China. 


In  commenting  upon  the  increasingly  responsive  attitude  of 
Chinese  toward  foreign  manufactured  goods,  a  report  for  Canton 
of  the  time  makes  the  following  statement : 

For  his  cloth  he  (the  Chinese)  finds  the  foreigner’s  cotton  yarn  suitable; 
for  his  light,  kerosene  and  matches  ;  and  for  his  workshops,  metals  and  dyes. 
His  taste  for  American  flour  may  perhaps  be  attributed  to  the  refining  in¬ 
fluence  of  Western  civilization,  further  evidenced,  we  may  hope,  by  his  growing 
desire  for  condensed  milk,  of  which  over  12.000  dozen  tins  were  imported  in 
1891.  Among  the  officials  and  wealthier  class  of  Chinese  there  has  perhaps 
been  of  late  a  tendency  to  appreciate  such  foreign  luxuries  as  armchairs, 
sofas,  spring  beds,  etc.,  but  it  is  doubtful  whether  there  is  any  real  or  extended 
taste  for  these  articles.  Purchased  as  novelties  very  often,  they  doubtless  in 
many  cases  come  to  be  regarded  as  curios  and  are  kept  for  show  rather  than 
use.  The  use  of  kerosene  has  perhaps  of  late  years  somewhat  improved  the 
lighting  of  Canton  streets. 

It  is  interesting  to  note  that  Canton  capitalists  living  in  San  Fran¬ 
cisco,  where  they  came  to  appreciate  the  advantages  of  electricity, 
secured  in  1890  a  concession  from  the  Canton  authorities  to  supply 


30 


COMMERCIAL  HANDBOOK  OE  CHINA 


the  cities  of  Kwangtung  Province  with  electric  lights.  Shortly 
after,  they  commenced  operations  in  Canton  and  installed  a  small 
plant,  after  considerable  difficulty  in  leading  the  wires  through  the 
narrow  streets  of  that  very  populous  old  Chinese  city.  This  was 
the  first  Chinese  electric-light  venture.  There  is  scarcely  a  report  on 
the  trade  of  a  treaty  port  in  China  in  1890  which  ’did  not  comment 
upon  the  gigantic  strides  made  in  the  trade  in  kerosene  in  its  suc¬ 
cessful  competition  with  the  native  vegetable  oils  used  for  illuminat¬ 
ing  purposes.  Thus  by  1890,  while  opium  still  led  in  value  any  single 
item  of  foreign  imports,  with  cotton  piece  goods  a  close  second,  the 
relative  positions  of  these  commodities  in  the  import  trade  generally 
was  greatly  reduced  by  the  increased  trade  in  other  lines. 

In  exports  the  outstanding  comment  throughout  the  customs  trade 
reports  of  that  time  is  the  competition  offered  China’s  teas  by  the 
teas  grown  in  the  British  colonies.  One  of  the  commissioners  prophe¬ 
sied  that  “  experiments  in  America  in  tea  growing  will  undoubtedly 
place  that  country  in  serious  competition  with  China  in  the  tea 
markets  of  the  world.”  By  1890  Japan  had  already  become  a  promi¬ 
nent  factor  in  the  world’s  silk  trade,  and  indications  pointed  to  a 
serious  competitor  in  China’s  silks  in  the  production  of  Japanese 
filatures,  which  were  developed  along  more  modern  lines  and  in 
keeping  with  demands  of  the  markets  abroad,  rather  than  following 
the  course  of  domestic  needs.  China’s  total  foreign  trade  in  1890 
was  36  per  cent  greater  than  that  of  the  year  1880.  Imports,  how¬ 
ever,  had  increased  60  per  cent  while  exports  had  advanced  only 
12  per  cent.  Opium  represented  in  1890  about  25  per  cent  of  the 
total  imports. 

The  Decennial  Customs  Reports  for  1890  comment  quite  freely 
upon  the  very  substantial  advances  in  the  sales  of  American  cotton 
drills,  sheeting,  and  jeans  in  the  various  ports  of  China.  The  Ning- 
po  commissioner  of  customs  states  that  while  at  the  beginning  of 
the  decade  there  was  a  preponderance  of  English  drills,  as  shown  by 
the  imports  of  15,600  pieces  of  English  drills  against  3,015  pieces  of 
American  drills  for  the  year  1884,  by  1891  the  position  was  reversed, 
with  17,000  pieces  of  American  drills  and  4,800  English. 

The  reason  given  for  the  preference  for  American  drills  is  that 
they  are  a  stronger  and  firmer  fabric,  though  25  per  cent  dearer, 
hence  considered  by  the  Chinese  more  economical,  especially  for  the 
making  of  tents,  awnings,  sails,  and  for  other  heavy  wear. 

LEADING  ARTICLES  OF  IMPORT 

By  1910,  China’s  foreign  trade  aggregated  844,000,000  taels,  or  four 
times  the  total  trade  of  1890,  and  by  1923,  the  aggregate  was  1,676,- 
000,000  taels,  or  nearly  double  the  figures  for  1910.  Imports  for 
1910  netted  463,000,000  taels  (1  tael=U.  S.  $0.66).  For  1923  the 
imports  netted  923,000,000  taels,  or  double  those  for  1910  (in  1923, 
1  tael=U.  S.  $0.80). 

The  following  table  shows,  in  order  of  their  value,  the  leading 
articles  entering  into  China’s  import  trade  in  1910  and  1923: 


31 


RESUME  OF  THE  TRADE  OF  CHINA 

1910  IMPORTS 


1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 
9. 

10. 

11. 

12. 

13. 

14. 

15. 

16. 

17. 

18. 

19. 

20. 


Principal  items 


Cotton  yarn - 

Cotton  goods-. - 

Opium _ 

Rice. - - 

Metals _ 

Kerosene  (161,  000,  000 

gallons) _ 

Sugar _ 

Railway  materials _ 

Marine  products _ 

Machinery - 

Cigarettes  and  tobacco .. 

Coal-.- _ _ 

Dyes _ 

Matches _ 

Woolen  goods . . 

Leather _ 

Cotton,  raw _ 

Paper _ 

Flour _ 

Tea _ _ _ 


Per  cent 
of  total 
trade 

Value  in 
haikwan 
taels  1 

Principal  items 

Per  cent 
of  total 
trade 

Value  in 
haikwan 
taels  1 

13 

61,  500,  000 

21.  Medicines  ...  _ 

(2) 

3,  000,  000 

13 

60,  000,  000 

22.  Wines,  beers,  etc  .  .  . 

(2) 

3,  000,  000 

12 

55,  500, 000 

23.  Clothing  and  hats _ 

(2) 

2,  500,  000 

7 

31,  000,  000 

24.  Soap  _  .  ...  . 

(2) 

2,  000,  000 

6 

26,  000,  000 

25.  Cement _  ... 

(2) 

1,  600,  000 

26.  Building  materials  .  .. 

(2) 

1,  300,  000 

5 

22,  000,  000 

27.  Hardware _  .  .  . 

(2) 

1,  200,  000 

4J4 

21,  000,  000 

28.  Needles  ...  ...... 

(2) 

1,  000,  000 

3 

15,  000,  000 

29.  Glassware  _ _ 

(2) 

1,  000,  000 

2 

12,  500,  000 

30.  Hosiery...  . . .  . 

(2) 

1,  000,  000 

2 

9,  000,  000 

31.  Soda.  . .  .  . 

(2) 

1,  000,  000 

2 

9,  000,  000 

32.  Stationery _ _  . 

(2) 

1,  000,  000 

2 

8,  000,  000 

33.  Candles _  .  ... 

(2) 

1,  000,  000 

1  Vi 

7,  600,  000 

34.  Window  glass.  ...  ... 

(2) 

900,  000 

1 

5,  300,  000 

35.  Haberdashery  ...  ... 

(2) 

900,  000 

(2) 

5,  300,  000 

36.  Lamps  and  lamp  ware.. 

(2) 

800,  000 

(2) 

5,  000,  000 

37.  Ginseng  _  ....... 

(2) 

800,  000 

(2) 

4,  500,  000 

38.  Paint..  .  ...  ... 

(2) 

700,  000 

(2) 

4,  200,  000 

39.  Boots  and  shoes  . . 

(2) 

600,000 

(2) 

3,  500,  000 

40.  Clocks  and  watches 

(2) 

700,000 

(2) 

3,  300,  000 

41.  Condensed  milk  _  _  . 

(2) 

500,  000 

1923  IMPORTS 


1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 
9. 

10. 

11. 

12. 

13. 

14. 

15. 

16. 

17. 

18. 

19. 

20. 
21. 
22. 

23. 

24. 

25. 

26. 

27. 

28. 


Cotton  goods _ 

Rice _ _ _ 

Kerosene _ 

Raw  cotton _ 

Sugar _ 

Cotton  yarn _ 

Cigarettes  and  tobacco. . 

Machinery _ 

Flour _ 

Marine  products _ 

Dyes _ 

Woolen  goods _ 

Paper _ _ _ 

Coal _ 

Clothing  and  hats _ 

Lumber _ 

Wheat _ 

Railway  materials _ 

Medicines.. . . 

Leather . . . 

Copper  ingots  and  slabs. 

Wines,  beers,  etc . 

Bags _ _ 

Paraffin  wax _ 

Fertilizers _ _ 

Building  materials _ 

Lubricating  oil _ 

Soda . . . 


14 

132,  000,  000 

29.  Cement...  _  .  _  .. 

(2) 

3,  300,  000 

ioy2 

98,  000,  000 

30.  Chemicals  .  .  ..  . 

(2) 

3,  200,  000 

6 

58,  000,  000 

31.  Sugar  candy . 

(2) 

3,  200,  000 

6 

54,  000,  000 

32.  Soap..  ... 

(2) 

2,  900,  000 

5'A 

50,  000,  000 

33.  Perfumes... _ 

(2) 

2,  800,  000 

4  M 

42,  000,  000 

34.  Tin  foil .  .  .  _  ..  . 

(2) 

2,  600,  000 

4H 

41,  000,  000 

35.  Pain  s _  _ _  ... 

(2) 

2,  500,  000 

4 

35,  700,  000 

36.  Stationery  _  . 

(2) 

2,  300,  000 

3 

27,  200,  000 

37.  Motor  cars. .  _  ... 

(2) 

2,  200,  000 

3 

25,  000,  000 

38.  Window  glass _  .. 

(2) 

2,  000,  000 

23^ 

22, 100,  000 

39.  Rubber. . .  . 

(2) 

2,  000,  000 

2 

19,  000,  000 

40.  Clocks  and  watches..  . 

(2) 

2,  000,  000 

2 

16,  600,  000 

41.  Ginseng _ _  ..  _ 

(2) 

1,  800,  000 

m 

13,  000,  000 

42.  Lamps  and  lamp  ware.. 

(2) 

1,  600,  000 

iy2 

12,  800,  000 

13.  Condensed  milk _ _ 

(2) 

1,  600,  000 

i 

9,  600,  000 

44.  Glass  and  glassware 

(2) 

1,  500,  000 

i 

9,  100,  000 

45.  Chinaware... _ _  .. 

(2) 

1,  500,  000 

i 

9,  000,  000 

46.  Hand  tools. _ 

(2) 

1,  400,  000 

(2) 

7,  700,  050 

47.  Photographic  materials. 

(2) 

1,  300,  000 

(2) 

7,  000,  000 

48.  Hosiery 

(2) 

1,  100,  000 

(2) 

5,  800,  000 

49.  Printing  and  lithograph- 

(2) 

5,  200,  000 

ing  materials  _ 

(2) 

1, 100,  000 

(2) 

4,  300,  000 

50.  Needles.  ... 

(2) 

1,  100,  000 

(2) 

4,  000,  000 

51.  Matches _  _ 

(2) 

1,  000,  000 

(2) 

4,  000,  000 

52.  Telephone  and  telegraph 

(2) 

3,  400,  000 

materials. _  .  . 

(2) 

1,  000,  000 

(2) 

3,  300,  000 

53.  Scientific  instruments.. 

(2) 

1,  000,  000 

(2) 

3,  300,  000 

54.  Cigars - - 

(2> 

900,  000 

1  Value  of  haikwan  tael  in  United  States  currency,  1910,  $0.66. 

2  Less  than  1  per  cent. 


EXPLANATORY  NOTES 

Cotton  goods. — The  zenith  of  the  cotton-goocls  and  cotton-yarn  trade  was 
reached  in  1920,  when  imports  of  piece  goods  netted  147.000,000  taels  and 
yarns  79,000,000  taels.  It  must,  however,  be  borne  in  mind  that  the  silver  ex¬ 
change  for  1920  was  particularly  favorable  for  imports,  as  1  tael  was  equiv¬ 
alent  in  value  to  United  States  gold  $1.24 ;  whereas  the  1923  average  rate  for 
1  tael  was  equal  to  United  States  gold  $0.80.  With  the  increasing  manufacture 
of  cotton  yarns  and  cotton  piece  goods  in  China,  a  decline  in  the  importance  of 
these  commodities  as  imports  may  be  considered  a  possibility. 

Opium. — Opium  disappeared  entirely  from  the  customs  returns  after  the 
year  1917,  by  virtue  of  an  agreement  with  Great  Britain  and  the  other  Powers 
concerned.  Owing,  however,  to  the  disordered  internal  conditions  in  China 
during  the  past  few  years,  the  opium  poppy  is  grown  extensively  in  some  sec¬ 
tions,  where  it  is  not  only  encouraged  by  provincial  authority  but  in  some 
instances  the  farmers  are  actually  forced  to  grow  it.  This  accounts  in  some 


32 


COMMERCIAL  HANDBOOK  OF  CHINA 


degree  for  the  greatly  increased  rice  imports  for  1923,  as  many  rice  lands  were 
given  over  to  opium  growing. 

Rice. — In  1920  rice  imports  netted  5,300.000  taels ;  in  1922  they  reached 
80,000,000  taels;  and  in  1923,  98,000,000  taels.  Poor  crop  conditions,  com  Dined 
with  internal  disorder  and  extensive  opium  planting  seem  to  account  for 
these  unprecedented  imports  of  rice,  the  cost  of  which  doubled  during  the 
past  decade.  China's  rice  imports  depend  upon  such  a  number  of  variable 
factors  that  it  is  difficult  to  generalize  upon  the  subject. 

Kerosene. — By  1923  kerosene  jumped  to  third  place  in  China's  imports,  with 
215,000.000  gallons  valued  at  58,000,000  taels.  The  extension  of  kerosene  con¬ 
sumption  is  due  in  large  measure  to  the  enterprising  distributing  methods  em¬ 
ployed  by  the  foreign  organizations  in  China  and  to  the  fact  that  vegetable 
oils  have  now  become  important  articles  of  export  instead  of  being  used 
domestically  for  illuminating  purposes. 

Tobacco. — Items  11  (1910)  and  7  (1923)  indicate  the  remarkable  develop¬ 
ment  in  the  cigarette  and  leaf-tobacco  trade.  Thirty  years  ago  China  was  an 
exporter  rather  than  an  importer  of  tobacco.  Owing  to  enterprising  Western 
methods  of  salesmanship,  China  is  now  one  of  America’s  principal  customers 
for  cigarettes  and  leaf  tobacco.  Imports  of  cigarettes  for  1923  reached  a  value 
of  28.300.000  taels  and  leaf  tobacco  12,700.000  taels,  or  a  total  of  41,000,000 
taels,  thereby  placing  tobacco  products  as  seventh  in  importance  in  China’s 
imports.  The  manufacture  of  cigarettes  in  China  is  rapidly  growing  into  a 
big  industry.  The  country  has  become  an  exporter  of  cigarettes,  shipping  them 
to  the  South  Seas.  The  production  of  tobacco  is  improving  both  in  quality  and 
in  quantity,  and  the  consumption  of  tobacco  products  goes  forward  at  a  tre¬ 
mendous  pace. 

Raw  cotton. — Imports  of  raw  cotton  for  1923  amounted  to  54,000,000  taels 
and  exports  to  32.000,000  taels.  Japan  became  an  unusually  heavy  purchaser 
because  of  the  emergency  requirements  following  the  great  fire  and  earth¬ 
quake  of  September  1  of  that  year.  This  fact  in  part  accounts  for  China’s 
unprecedentedly  large  imports  of  raw  cotton  for  1923  (which  for  1922  amounted 
to  but  19.000,000  taels).  The  rapid  developments  in  the  manufacture  of  cotton 
yarn  and  cotton  cloth  in  China  are  increasing  China’s  demands  for  raw  mate¬ 
rials.  The  country  now  produces  about  2,000.000  bales  of  cotton.  Raw  cotton 
has  attained  a  substantial  place  in  China’s  list  of  exports  because  the  short, 
kinky  fiber  is  well  adapted  to  the  manufacture  of  blankets  in  the  United 
States,  and  Japan  finds  China's  cotton  economical  for  mixing  with  longer 
staple  cottons  purchased  elsewhere.  China  must  also  have  a  certain  amount 
of  longer  staple  cotton  to  mix  with  its  native  product  for  modern  manufacture. 
However,  as  internal  conditions  improve  the  country  will  grow  more  and 
better  cotton.  Substantial  progress  in  this  direction  has  already  been  made. 
China  should  be  able  to  raise  the  quantity  and  quality  of  cotton  required  for 
its  domestic  needs,  even  conceding  that  its  requirements  continue  to  expand. 

Sugar. — Before  the  twentieth  century  China  exported  rather  than  imported 
sugar.  Item  5  in  the  1923  imports  shows  sugar  imports  valued  at  50.000,000 
taels.  In  the  1910  imports  sugar  held  seventh  place,  aggregating  in  value  but 
21,000,000  taels.  China  has  the  soil,  climate,  and  labor  essential  to  the  devel¬ 
opment  of  both  cane  and  beet  sugar  industries,  though  little  has  as  yet  been 
done  to  put  the  sugar  industry  on  a  modern  economic  basis.  The  increased 
imports  indicate  an  improvement  in  the  purchasing  power  of  the  people. 

Wheat. — During  1920  China  exported  wheat  valued  at  25.500,000  taels  and 
flour  valued  at  18,000,000  taels.  During  1923  imports  of  flour  netted  27,200,000 
taels  and  of  wheat  9,100,000  taels.  Poor  wheat  and  rice  crops  are  responsible 
in  part  for  the  heavy  imports  of  1923.  When  the  price  of  rice  is  high  in  China, 
wheat  consumption  is  increased.  Furthermore,  the  Chinese  are  consuming 
larger  quantities  of  wheat  products,  apparently  because  of  an  increasingly 
favorable  attitude  toward  them.  In  spite,  however,  of  the  rapid  developments 
in  the  flour-milling  industry  of  the  country,  which  now  has  an  aggregate 
daily  capacity  of  125.000  barrels,  it  will  be  some  years  before  China  may  be 
expected  to  become  a  regular  exporter  of  flour.  Lack  of  internal  communi¬ 
cations,  disturbed  political  conditions,  and  antiquated  farming  methods  com¬ 
bine  against  it. 

Machinery  and  industrial  supplies. — With  the  development  of  a  modern 
industrial  society,  imports  of  metals,  machinery,  railway  materials,  building 
materials,  hardware,  lubricating  oil,  chemicals,  and  tools  will  continue  to 
increase.  This  is  evident  from  a  comparative  study  of  the  imports  of  these 


33 


RESUME  OF  THE  TRADE  OF  CHINA 

commodities  as  listed  in  the  above  tables  and  those  for  the  years  1900  and 
1890.  These  figures  indicate  the  remarkable  strides  toward  modernization 
as  made  by  China  during  the  past  20  years.  In  the  next  few  decades  even 
greater  advances,  relatively  speaking,  may  be  expected. 

Marine  products. — Sea  foods  figure  in  about  the  same  relative  position  in 
both  tables.  No  people  have  developed  more  highly  than  the  Chinese  the  use 
of  marine  products  in  their  dietary,  and  there  are  no  indications  of  a  lessened 
use  of  these  foods.  In  fact,  with  an  increase  in  the  country’s  wealth,  the 
imports  of  sea  foods  will  undoubtedly  grow  proportionately.  Foreign  business 
men  should  study  Chinese  tastes  in  these  commodities,  as  the  resources  of  the 
West  could  contribute  more  to  China’s  demands  in  marine  products  than  they 
do  at  present. 

Dyes. — Like  many  natural  products  of  China  which  are  processed  by  do¬ 
mestic  handicraft,  with  a  consequent  lack  of  uniformity  or  standardization, 
vegetable  indigo  and  other  vegetable  dyes  are  being  replaced  by  western 
manufactured  products.  China’s  imports  of  artificial  indigo  for  1923  amounted 
to  15,000,000  taels  and  of  aniline  dyes  6,000,000  taels.  The  consumption  of 
these  products  will  undoubtedly  increase  with  improved  marketing  conditions 
in  China. 

Coal. — For  many  years  China  was  rated  as  a  coal-importing  country,  but 
gradually  its  exports  of  coal  are  exceeding  its  imports.  It  is  to  be  expected 
that  with  the  increased  development  of  China’s  coal  resources  the  exports 
will  become  increasingly  important.  During  1923  coal  to  the  value  of  13,000,000 
taels  was  imported,  as  compared  with  exports  valued  at  20,500,000  taels. 

Woolen  goods. — Woolen  goods  were  imported  in  1923  to  the  value  of  19,000,- 
000  taels.  Gradually  this  trade  is  increasing.  Although  China  produces  con¬ 
siderable  wool,  which  has  become  an  important  article  of  export,  woolen  manu¬ 
factures  are  in  their  infancy,  and  domestic  manufacture  will  not,  for  some¬ 
time  to  come,  seriously  affect  imports  of  woolen  goods. 

Paper. — The  newspaper  was  a  matter  of  little  consequence  in  China  before 
the  beginning  of  the  twentieth  century.  Paper  imports  for  1923  were  four 
times  those  for  1910,  owing,  in  the  main,  to  the  demand  for  newsprint.  China’s 
raw  materials  for  paper  manufacture  are  principally  bamboo,  rice  straw,  wheat 
straw,  and  certain  grasses.  Chinese  manufactured  paper  appears  in  the  items 
of  exports,  mostly  for  certain  uses  for  the  Chinese  populations  abroad.  It  is 
to  be  expected  that  the  imports  of  newsprint  and  writing  paper  will  increase 
from  year  to  year. 

Lumber. — Supplies  of  lumber  in  China  are  now  a  matter  of  economic  trans¬ 
portation,  hence  lumber  imports  will  for  some  time  grow  in  importance  rather 
than  otherwise.  Exports  of  timber  for  1923  were,  however,  abnormally  high, 
on  account  of  the  emergency  demands  created  by  the  great  fire  and  earthquake 
in  Japan. 

Clothing. — In  1923  five  times  as  much  clothing  and  hats  was  imported  as  in 
1910.  This  is  distinctive  evidence  of  westernizing  influences.  Similarly,  haber¬ 
dashery  increased  from  900,000  taels  in  1910  to  3,000,000  taels  in  1923.  Hosiery, 
garters,  boots  and  shoes,  perfumes,  and  toilet  articles  likewise  show  consider¬ 
able  increases.  Native  manufacture  of  most  of  these  articles  will  undoubtedly 
in  the  future  offer  severe  competition  to  the  imported  articles. 

Medicines. — Medicines  are  increasing  in  importance  in  China’s  import  trade, 
being  in  1923  double  the  value  of  those  for  1910.  Many  foreign  proprietary 
medicines  are  now  extensively  marketed  in  China  through  enterprising  adver¬ 
tising  campaigns.  At  the  same  time,  considerable  quantities  of  Chinese  medi¬ 
cines  are  shipped  out,  in  the  main  for  the  use  of  Chinese  abroad. 

Leather. — Imports  of  leather  in  1923  amounted  to  7,000,000  taels,  which  repre¬ 
sents  a  steady  advance  in  the  trade.  The  country  is  a  heavy  exporter  of  hides, 
and  the  tannery  industry  is  in  process  of  development.  Thus  it  may  be  that 
leather  importation  will  not  continue  to  expand  indefinitely. 

Cement. — Similarly,  native  manufactures  of  cement  w7ill  in  time  make  China 
an  exporter  rather  than  an  importer  of  a  commodity  which  now  appears 
among  the  articles  of  import. 

Matches. — In  1910  matches  appear  as  fourteenth  in  importance  in  China’s 
imports,  whereas  in  the  1923  tabulation  matches  dropped  to  fifty-first  place, 
with  an  aggregate  valuation  of  no  more  than  1,000,000  taels.  Match-making 
materials  are  now  of  more  importance  in  China’s  imports  than  are  matches,  of 
which  the  country  is  rapidly  becoming  an  exporter. 


100020°— 26 - 4 


34 


COMMERCIAL  HANDBOOK  OF  CHINA 


Soap. — Soap  will  also  become  decreasiugly  important  in  China’s  import  trade. 
The  soaps  manufactured  in  China  10  years  ago  were  very  poor  imitations  of 
the  foreign  products.  To-day  they  compare  well  with  imported  soaps. 

Copper. — Copper  ingots  and  slabs  will  continue  an  important  item  of  import, 
as  the  country  has  apparently  very  small  available  resources  in  copper. 

Paraffin  and  candles. — Imports  of  paraffin  are  on  the  increase,  indicating  the 
development  of  the  domestic  candle-manufacturing  industry.  Candles  as  an 
article  of  import  are  no  longer  important. 

Motor  cars. — Motor  cars  do  not  appear  in  the  1910  customs  returns.  There 
is  a  very  small  mileage  of  surfaced  motor  roads  in  China,  and  probably  less 
than  10,000  miles  of  graded  roads  which  can  be  used  for  motor  transportation. 
The  gospel  of  good  roads,  however,  is  being  spread  among  the  people  of  the 
country,  and  with  improved  internal  conditions  it  is  to  be  expected  that  there 
will  be  a  very  considerable  development  in  roads,  hence  in  the  use  of  motor 
vehicles.  There  are  now'  (1926)  but  14,000  motor  vehicles  in  the  whole  of 
China. 

Gasoline. — With  the  increased  use  of  motor  transportation,  gasoline  imports 
will  naturally  continue  to  increase.  Those  for  the  year  1923  amounted  to 
3,800.000  taels. 

Window  (/lass. — There  is  under  construction  in  North  China  a  large  plant  for 
the  manufacture  of  window  glass.  Thus  imports  of  window  glass  may  not 
continue  to  increase  materially. 

Condensed  milk. — Imports  of  condensed  milk  for  1923  were  valued  at  1,600,000 
taels,  or  three  times  those  of  1910.  China  has  developed  no  dairy  interests, 
and  unless  the  soy  bean  is  utilized  for  the  production  of  imitation  milk,  the 
imports  of  condensed  milk  are  likely  to  continue  to  increase. 

Scientific  instruments,  photographic  and  lithographic  materials. — Such  items 
as  scientific  instruments,  photographic  materials,  printing  and  lithographing 
materials,  which  are  given  a  place  in  the  1923  returns,  but  do  not  appear  in 
those  of  1910,  indicate  a  growth  in  modern  industrial  enterprise.  This  is  bound 
to  continue,  and  probably  to  a  much  greater  extent  in  the  future  than  in  the 
past. 

LEADING  ARTICLES  OF  EXPORT 

China’s  exports  for  the  year  1910  netted  381,000,000  taels,  which 
amount  was  double  the  value  of  exports  in  1900  and  more  than  four 
times  that  of  the  exports  for  1890.  Exports  for  1923  aggregate 
753,000,000  taels,  or  about  double  those  of  1910. 

1910  EXPORTS 


Principal  items 

Per  cent 
of  total 
trade 

Value  in 
haikwan 
taels 

1.  Silk _ 

21 

85,  000,  000 

2.  Tea _ 

9 

35, 000,  000 

3.  Raw  cotton. _ 

8 

28,  000,  000 

4.  Beans  and  bean  cake _ 

8 

27,  000,  000 

5.  Hides  and  skins _  . 

4 

16,  000,  000 

6.  Sesame  seed _ _ _ 

4 

14,  500,  000 

7.  Vegetable  oils _ 

3M 

13,  200,  000 

8.  Provisions  and  vege¬ 
tables  . . 

3 

11,300,000 

9.  Straw  braid.. . . 

2 

7,  700,  000 

10.  Tin _ _ 

i  Vi 

6,  000,  000 

11.  Wool _ 

\'A 

5,  000,  000 

12.  Bristles...  . 

0) 

4,  500,  000 

13.  Cattle. 

(>) 

4,  500,  000 

14.  Mats  and  matting _ 

0) 

4,  300,  000 

15.  Firecrackers _ 

0) 

4,  000,  000 

16.  Eggs  and  egg  products.. . 

0) 

4,  000,  000 

17.  Paper.  .  . . .  . 

0) 

3,  500,  000 

Principal  items 

Per  cent 
of  total 
trade 

Value  in 
haikwan 
taels 

18.  Flour _ 

0) 

3,  500, 000 

19.  Peanuts  _  _ 

0) 

3, 000, 000 

20.  Hair,  human _ 

0) 

3, 000, 000 

21.  Tobacco,  leaf  and  pre- 

pared _ 

0) 

3,  000,  000 

22.  Furs _ _ _ 

0) 

2,  000,  000 

23.  Chinaware .  . 

0) 

2,  000,  000 

24,  Ramie  fiber _ _ 

0) 

2,  000,  000 

25.  Nankeens..  ...  .  - 

0) 

2,  000,  000 

26.  Rapeseed _  _ 

(*) 

2,  000.  000 

27.  Coal _ 

0) 

1,700,  000 

28.  Vegetable  tallow _ 

0) 

1,600,  000 

29.  Pig  iron _ 

(*) 

1,  500,000 

30.  Lard _ 

0) 

1,  300,  000 

31.  Animal  tallow _ 

0) 

1,  000,  000 

32.  Nutgalls _ 

(>) 

1,  000,  000 

33.  Antimony _  _ 

0) 

1,  000,  000 

i  Less  than  1  per  cent. 


35 


RESUME  OF  THE  TRADE  OF  CHINA 
1923  EXPORTS 


Principal  items 

Per  cent 
of  total 
trade 

Value  in 
haikwan 
taels 

1.  Silk  and  silk  goods _ 

23 

170, 000,  000 

2.  Beans,  bean  cake  and 

bean  oil.  .  .  . - 

15 

127, 400,  000 

3.  Raw  cotton _ 

4 

32,  600,  000 

4.  Eggs  and  egg  products.. 

4 

29,  600,  000 

5.  Tea _ 

3 

23,  000,  000 

6.  Timber _ _ 

3 

20,  700.  000 

7.  Coal  . - 

3 

20,  300,  000 

8.  Hides  and  skins _ 

2^ 

19,  100,  000 

9.  Peanuts  and  peanut  oil. 

2H 

18,  000,  000 

10,  Wood  oil.. .  ..  - 

2M 

17,  500,  000 

11.  Wool _  .  .. 

m 

12,  900,  000 

12.  Sesame  seed  .  .  ... 

VA 

12,  200,  000 

13.  Millet  and  kaoliang 

m 

12,  000,  000 

14.  Pig  iron  and  iron  ore - 

i 

8,  800,  000 

15.  Bristles.  ... - - 

i 

7,  800,  000 

16.  Tin  slabs  ...  - 

i 

8,  000,  000 

17.  Furs _ 

(9 

5,  600,  000 

18.  Straw  braid  ..  ...  .. 

(9 

5,  400,  000 

19.  Bran _  ..  - 

(9 

5,  000,  000 

20.  Hair  nets . . . 

(9 

4,  800,  000 

21.  Carpets  ... 

(9 

4,  700,  000 

22.  Nankeens. .  .  ... 

(9 

4,  700,  000 

23.  Paper  (Chinese) - 

(9 

4,  500,  000 

Principal  items 

Per  cent 
of  total 
trade 

Value  in 
haikwan 
taels 

24.  Mats  and  matting. 

(9 

4,  500,  000 

25.  Cotton  yarn. 

(9 

4,  400,  000 

26.  Lace _  .  _ _ _ 

(9 

4,  100,  000 

27.  Medicines  .  .... 

(9 

4,  000,  000 

28.  Chinaware  .  .  .. 

(9 

3,  300.  000 

29.  Intestines.  ...... 

(9 

3,  300,  000 

30.  Frozen  meats  and  game. 

(9 

3,  100,  000 

31.  Firecrackers. . 

(9 

2,  900,  000 

32.  Ramie  fiber...  _ 

(9 

2,  800,  000 

33.  Grass  cloth _ _  .  . . . 

(9 

2,  500,  000 

34.  Wheat..  ...  . . 

(9 

2,  100,  000 

35.  Rapeseed _  ...  . 

(9 

2,  000,  000 

36.  Cattle _ 

(9 

1,  600,  000 

37.  Hemp _ 

(9 

1,600,  000 

38.  Antimony _ 

(9 

1,  500,  000 

39.  Nutgalls...  ..  ..  . 

(9 

1,  400,  000 

40.  "Watches _  .  .  .  ... 

(9 

1, 400,  000 

41.  Camphor _  .  ...  . 

(9 

1, 400,  000 

42.  Varnish  .  .  _  . 

(9 

1,  400,  000 

43,  Feathers _  ..  .  .. 

(9 

1,  300,  000 

44.  Vegetable  tallow _ _ 

(9 

1, 100,  000 

45.  Licorice _  ..  .. 

(9 

1,  000,  000 

46.  Lard _ ... _ _ 

(9 

1,  000,  000 

47.  Umbrellas . . . 

(9 

1,  000,  000 

1  Less  than  1  per  cent. 

EXPLANATORY  NOTES 

Silk. — Raw  silk  and  silk  goods  head  both  of  these  export  lists,  with  about 
the  same  comparative  percentages  of  the  whole  trade.  In  keeping  with 
the  developments  in  the  export  trade  generally  during  the  period,  exports 
of  silk  and  silk  goods  for  1923  are  double  those  for  1910.  This  is  due  pri¬ 
marily  to  the  greater  position  in  the  American  market  because  of  improved 
methods  in  sericulture  and  silk  production  during  the  last  few  years  of 
the  period. 

Tea. — Tea  dropped  from  second  to  fifth  place  in  importance  during  the  13-year 
period.  In  fact,  in  1920  tea  exports  from  China  aggregated  only.  9.000.000 
taels.  During  the  three  years  following,  the  trade  recovered  to  a  considerable 
degree,  as  the  exports  of  1923  amounted  to  23,000.000  taels.  This  sum.  how¬ 
ever,  is  considerably  less  than  that  for  1910  and  is  in  keeping  with  the  general 
decline  of  the  China  tea  trade  over  a  number  of  decades  following  the  develop¬ 
ment  of  tea  growing  in  other  sections  of  the  world. 

Beans. — Beans  and  bean  products  had  by  1910  achieved  a  position  of  impor¬ 
tance  in  China's  export  trade,  although  20  years  before  these  items  did  not 
command  consideration,  and  by  1923  these  products  aggregated  127,000,000 
taels,  ranking  second  on  the  list  of  China's  exports.  This  phenomenal  develop¬ 
ment  is  one  of  the  striking  features  of  China’s  export  trade.  Seventy  per  cent 
of  the  beans  produced  in  China  are  raised  in  Manchuria,  hence  it  is  with  the 
development  of  this  region  that  the  bean  industry  has  come  into  prominence. 

Eggs  and  egg  products. — Eggs  and  egg  products  advanced  from  sixteenth 
place  in  1910  to  fourth  place  in  1923,  exports  aggregating  in  that  year  nearly 
30,000,000  taels.  Had  it  not  been  for  special  tariff  enactment  by  the  United 
States,  the  egg  exports  from  China  to  the  former  country  would  have  been 
much  greater.  Apparently  China’s  egg  products  have  found  a  permanent 
place  in  foreign  markets. 

Minerals. — It  is  noteworthy  that  China  is  gradually  coming  to  the  fore  as 
an  exporter  of  coal.  In  1910  coal  exports  amounted  to  but  1,700.000  taels, 
while  in  1923  they  aggregated  20.500,000  taels.  On  the  other  hand,  the  develop¬ 
ments  in  pig  iron  and  iron  ore  exports  are  less  for  1923  than  for  several 
years  prior  thereto,  although  considerably  above  those  for  1910.  Antimony, 
which  had  risen  during  the  World  War  to  unprecedented  figures  in  China’s 
export  trade,  has  dropped  back  to  1.500,000  taels,  which  is  but  50  per  cent 
greater  than  the  exports  for  1910,  although  China  presumably  possesses  more 
than  half  of  the  world’s  resources  in  antimony.  China’s  wealth  in  tin  is 
demonstrated  by  the  continuous  exports  of  this  mineral.  In  1910  exports  of 
tin  amounted  to  6,000,000  taels;  in  1922  to  11,000,000  taels;  but  in  1923  they 


36 


COMMERCIAL  HANDBOOK  OF  CHINA 


receded  to  about  8,000,000  taels.  As  with  iron  and  coal,  the  question  of 
economic  transportation  is  one  which  has  much  to  do  with  the  exploitation  of 
China’s  tin  resources. 

Vegeta  ble  oils. — The  1910  returns  of  vegetable  oils  were  lumped  together,  with 
the  aggregate  of  13,200,000  taels.  In  the  1923  returns  they  appear  separately, 
bean  oil  amounting  to  17,700,000  taels,  peanut  oil  to  6,000,000  taels,  and  wood 
oil  to  17.500,000  taels.  The  most  striking  development  in  this  direction  is 
that  of  the  wood-oil  trade.  Chinese  wood  oil  has  found  a  permanent  place 
in  the  markets  of  the  West,  being  now  considered  indispensable  in  the  manu¬ 
facture  of  paints  and  varnishes. 

Hides  and  skins. — While  there  has  not  been  any  considerable  advance  in 
exports  of  hides  and  skins,  yet  this  trade  will  continue  until  China  has  es¬ 
tablished  a  tanning  industry  sufficient  to  consume  its  domestic  supplies. 

Grains. — In  grains  such  as  millets,  kaoliang,  and  wheat,  in  bran  and  flour  and 
certain  other  food  products,  the  export  trade  will  undoubtedly  be  of  a  sporadic 
nature,  depending  upon  prices  abroad,  silver  exchange  and  crop  conditions  in 
China,  and  other  variable  factors.  Asiatic  Russia,  which  has  been  China’s 
steadiest  customer  for  the  products,  may  develop  sufficient  supplies  to  meet  its 
own  needs. 

Bristles. — Exports  of  bristles  have  been  greatly  stimulated  by  the  inability 
of  the  trade  in  Europe  and  America  to  secure  supplies  from  Russia. 

Sausage  casings. — Pig  intestines,  known  to  the  trade  as  sausage  casings,  have 
also  become  important  articles  of  export  from  China,  1923  returns  giving  the 
value  of  exports  as  3,300.000  taels. 

Feathers. — A  commodity  which  commands  very  little  value  in  China  is  feath¬ 
ers.  This  product  is  now  an  article  of  export,  which  amounted  in  1923  to 
1,300,00  taels. 

Meat  and  eggs. — Exports  of  cattle  and  beef  from  Tsingtao,  principally  to 
Japan,  are  a  noteworthy  development  in  China’s  foreign  trade  during  the 
past  decade.  Japan  is  also  a  heavy  purchaser  of  China’s  egg  products.  Frozen 
meats  and  game  to  the  value  of  3,100,000  taels  were  exported  during  1923,  but 
during  the  war  years  the  exports  were  considerably  greater.  This  trade  will 
continue  until  the  level  of  prices  in  China  has  been  raised  considerably. 

Timber. — Timber  export,  which  represents  a  value  of  20,700,000  taels  in  the 
1923  trade,  is  due  to  the  demand  created  in  Japan  following  the  earthquake  and 
fire  of  September,  1923.  Otherwise  China  is  not  a  substantial  exporter  of  this 
product. 

Nankeens. — The  1923  returns,  giving  China’s  exports  of  nankeens  at  4,700,000 
taels  and  cotton  yarn  at  4,400,000  taels,  are  substantial  evidence  in  the  customs 
returns  of  trade  that  cotton  manufacturing  in  China  is  assuming  a  position 
of  importance  that  is  being  felt  in  other  markets. 

Carpets  and  rugs. — An  item  which  the  World  War  has  brought  into  promi¬ 
nence  in  China’s  export  trade  is  carpets  or  rugs.  The  North  China  rug  has 
evidently  made  a  permanent  place  for  itself  in  the  American  market.  The 
exports  of  these  rugs  amount  now  to  about  $5,000,000  gold  a  year. 

Lace,  hair  nets,  and  furs. — Similarly,  Chinese  lace,  embroideries,  hair  nets, 
and  furs  have  become  important  items  in  China’s  trade  with  the  United  States. 

Wool. — China’s  exports  of  wool  increased  in  value  from  5,000,000  taels  in  1910 
to  12,900,000  taels  in  1923.  This  wool  finds  a  market  in  the  United  States  for 
manufacture  into  carpets,  where  it  is  admitted  free  when  used  in  this  in¬ 
dustry.  There  are  no  indications  that  China  will  soon  consume  its  surplus 
of  wool  stocks  in  domestic  manufacture. 

Chinaicare. — An  industry  in  China  which  possesses  great  potentialities  in 
foreign  trade  when  the  industry  is  modernized  and  properly  organized  is  the 
manufacture  of  porcelain  and  chinaware.  China’s  imports  and  exports  of  this 
commodity  are  about  equal,  but  the  demand  for  Chinese  porcelain  and  china- 
ware  from  abroad  is  very  considerable  and  an  expansion  of  the  trade  in  these 
products  only  awaits  the  modernization  of  the  industry. 

IMPORT  AND  EXPORT  TRADE  IN  1923  AND  1924 

•  _ 

The  following  tables  show  the  import  and  export  trade  of  China 
during  the  calendar  years  1923  and  1924,  and  the  distribution  of 
such  trade  according  to  countries  of  origin  and  destination. 


RESUME  OF  THE  TRADE  OF  CHINA 


37 


Net  Imports  of  Foreign  Merchandise  into  China  during  Calendar  Years 

1923  and  1924 


Articles 


TEXTILES  AND  MATERIALS 

Cotton,  raw . . piculs. 

Cotton  manufactures: 

Shirting  and  sheetings — 

American . pieces. 

English.. . do... 

Japanese... . ...do... 

Other  kinds . . do... 

Drills  and  jeans — 

American . .do... 

English . do... 

Japanese... . do... 

Other  kinds. _ _ _ do... 

Canvas  and  cotton  duck - yards. 

Cotton  yarn  and  thread _ piculs. 

Velvets  and  velveteens... . . . . 

Wool  and  cotton  mixtures - - - - - - 

Woolen  goods . . .... 

Silk  piece  goods... - - - catties. 

Silk  goods,  artificial... . yards. 

Silk  mixtures _ catties. 

Miscellaneous  piece  goods. - - 

Bags,  all  kinds _ _ .' - - - 

Carpets  and  carpeting . . . 

Clothing  (including  haberdashery,  hosiery,  hats,  etc.)--- 
All  other . . . . . 


Total  textiles  and  materials. 


METALS  AND  MINERALS 

Aluminum,  all  kinds . piculs. 

Brass  and  yellow  metal . . . . 

Copper  ingots . piculs. 

Copper  manufactures . . . 

Iron  and  steel  manufactures: 

Bamboo  steel,  hoops,  etc . . .piculs. 

Bars . . . do... 

Cobbles  and  wire  shorts _ _ .do... 

Gal vanized-iron  sheets . . . do... 

Other  sheets  and  plates _ do... 

Pipes  and  tubes . do... 

Rails _ _ _ do... 

Wire,  including  rope . do... 

Tinned  plates . do... 

Nails  and  rivets.. _ do... 

Plate  cuttings . .do... 

Angles  and  tees... . do... 

Cutlery.. . . . . . . 

Enameled  ware _ _ _ _ 

Hand  tools . . . . . 

Machine  tools . . . . . 

Needles . thousands. 

Iron  and  steel  manufactures,  miscellaneous. . 

Safes  and  steel  doors . . 

Stoves  and  grates . 

Lead: 

Pig  or  bars . . piculs. 

Tea  and  sheet.. . do... 

Tin  slabs . . do... 

Tin  foil  and  other  foils . . . . . . 

Zinc  spelter,  sheets,  etc _ piculs. 

All  other  metals . . . . 


Total  metals  and  minerals. 


SUNDRIES 

Arms  and  ammunition . 

Automobiles,  trucks,  and  motor  cycles . . . 

BSche  de  mer . piculs. 

Birds’  nests . . do... 

Building  materials: 

Bricks  and  tiles . . . . . . .  pieces . 

Cement _ _ piculs . 


1923 


Quantity 


1, 614, 371 


16, 818 
2,  732, 198 
2,  986,  040 


1,  702 
178,  627 
2, 126,  893 
1,929 
3, 108,  872 

1,  989,  938 

2,  681,  489 


64,  417 
1,  767,  976 
382,  331 


3,  007 
"230, ’464" 


108,  489 
1, 150,  072 
415,  830 
302, 123 
451, 140 
236,  532 
389,  497 
139,  591 
493, 162 
254,  635 
398,  266 
137,  011 


3,  253,  561 


164,  237 
8, 171 
58,  511 
110,  281 
29, 985 


43,  555 
94,  530 

3, 417,  653 
1,654,868 


Value  in 
thousands 
of  haik- 
wan  taels 


53, 816 


121 
18, 174 
18, 475 
4, 464 

10 

1,062 
11, 158 
11 

1,088 
43,  554 
1,  545 
8,  508 
19,  042 
804 
815 
1,459 

4,  225 

5,  889 
364 

10,  941 
76,  284 


281,  809 


181 

1,507 

5,814 

1,005 

707 
4,  686 
1,266 
2,  746 
2, 021 
2,032 
1,568 
1,399 
4,  647 
1,745 

1. 156 
535 
512 

1,251 

948 

463 

1.157 
429 
231 
456 

1,455 
84 
3, 362 
2,  633 
424 
4,  953 


51,373 


912 

2,264 

2,175 

1,051 

317 
3,  251 


1924 


Quantity 


1, 241, 881 


16, 993 
3, 718, 393 
3, 002,115 


20,  584 
219,  272 

1,  762,  392 

500 

2,  516, 134 

1,  793,  684 

2,  695, 163 


69,  925 
2,  883,  203 
387,  245 


3,  859 
564,  970 


144,  354 
1, 924, 872 
478,  454 
327, 152 
746,  866 
273,  046 
946,  521 
234,  972 
892,  819 
666, 155 
631,  546 
227, 908 


4, 849, 316 


159,  567 
5,  644 


106, 092 
36, 026 


48,  263 
92, 480 

5,  625, 175 
1,787,  484 


Value  in 
thousands 
of  haik- 
wan  taels 


40, 076 


131 
26, 830 
19,  222 

8,  875 

121 

1,358 

9,  579 

4 
883 
36,  261 
1,465 
11,  241 
17,  693 
1,000 
1,598 
1,524 
5,  974 
7,  763 
379 
10,  501 
86,  345 


288,  823 


199 
1,924 
13, 178 
1,152 

967 
6,  813 
1,509 
3,  008 
3, 189 
2, 171 
3,  005 
2,097 
8,  459 
4,033 
1,712 
811 
651 
2, 053 
1,115 
638 
1,684 
544 
250 
511 

1,552 

68 


2, 348 
498 
10,  882 


77, 021 


1,973 
3, 303 
2,509 
1,099 

454 
2, 074 


38 


COMMERCIAL  HANDBOOK  OF  CHINA 


Net  Imports  of  Foreign  Merchandise  into  China  during  Calendar  Years 

1923  and  1924 — Continued 


Articles 


1923 


Quantity 


sundries — continued 

Buttons,  all  kinds _ _ gross.. 

Casks,  empty _ _ _ 

Cereals  and  cereal  products: 

Bran... _ _ _ _ piculs.. 

Macaroni  and  vermicelli _ do _ 

Rice  and  paddy _ do _ 

Wheat _ _ _ do _ 

Wheat  flour _ do _ 

Chemical  products,  including  match-making  materials, 

medicines,  etc _ , _ _ _ _ 

China  ware,  all  kinds _ _ _ 

Clocks  and  watches _ pieces.. 

Coal _ tons.. 

Dyes,  colors,  paints,  and  varnish: 

Aniline _ 

Indigo,  artificial. _ _ piculs.. 

Other . . . . . 

Electrical  materials _ 

Fish  and  fish  products _ piculs.. 

Furs  (skins) _ pieces.. 

Fruits: 

Dried _ piculs.. 

Fresh _ _ _ _ _ do _ 

Furniture  and  materials,  including  bedsteads,  mirrors,  etc. 

G  inseng _ _ _ catties. . 

Glass  and  glassware _ _ _ _ _ 

Hides  and  skins,  raw _ .piculs.. 

Instruments  and  apparatus . . . 

Lamps  and  lampware . . 

Leather _ piculs.. 

Leather  manufactures,  including  belting,  boots  and 

shoes,  etc. _ _ _ _ 

Lumber: 

Hardwood . . . . . . 

Softwood _ square  feet.. 

Machinery: 

Agricultural... . . . . . . 

Textile _ _ _ 

Sugar  refining,  distilling,  etc _ _ 

Boilers,  turbines,  etc . . 

Milk,  canned _ _ _ _ _ 

Mineral  oil: 


Paper  and  paper  products,  including  stationery. 


Photographic  materials _ 

Printing  materials _ _ _ _ _ 

Railway  materials  and  supplies _ 

Cars _ _ _ _ _ _ _ 

Locomotives  and  tenders.. . . . . 

Rattans,  all  kinds _ _ piculs.. 

Sandalwood _ _ do _ 

Spices,  all  kinds _ ...do _ 

Sugar,  all  kinds.. _ do _ 

Sugar  canes  and  candy _ do — 

Tobacco _ piculs.. 

Cigars  and  cigarettes _ thousands.. 

Toilet  preparations,  including  perfumery _ 

Umbrellas,  all  kinds _ _ ..pieces.. 

Soap  and  materials _ _ _ 

All  other  sundries _ '. . . . . . - . 


Total  sundries. 
Total  imports. 


1, 858, 583 


2, 891, 497 
88,  216 
22, 434,  962 
2,  595, 190 
5,  826,  540 


555, 300 
1,  366, 108 


256, 102 


1,  852,  251 
1,  356,  193 

193,  799 
246,  426 


202,  618 
37,817 


137,  271 


125,  136,  134 


gallons.. 

214,  835,  669 

...do _ 

179,  139,  245 

..  do _ 

5,  139,  541 

do _ 

4,  274,  294 

...do _ 

25,  246,  439 

...do _ 

7,  499,  880 

...tons.. 

57,  267 

gallons. . 

6,  307,  815 

.  piculs .. 

510,  286 

145,919 
123,  105 
106,  514 
5,  823,  399 
610,  965 
315,312 
10,  142,  148 


1,  669,  964 


Value  in 
thousands 
of  haik- 
wan  taels 


425 

513 

5, 422 
1,384 
98, 199 
9,096 

27,  233 

16,  578 
1,569 
2,  074 
12,  861 

7,  943 
11,817 
6,  566 
9,  205 
19,  461 
1, 146 

2,  396 
1,  536 
3,415 
1,872 

3,  465 
1,045 
1,024 
1,655 

6,  864 

1,283 

4,  425 

5,  270 

302 
12,  316 
12,  482 
1,474 
1,818 

58,  292 
48,  017 
1,405 
1,411 
7,315 

3,  279 
1,469 
3,849 

18, 950 

4,  048 
1,344 

1,  139 

7,  057 
1,728 
1,170 
1,521 
1,337 
1,735 

48,  776 
3,  556 
12,  691 

28,  979 
3,  541 
1,082 

2,  874 
19,  544 


590,  221 


923,  403 


1924 


Quantity 


2, 586, 903 


3,  492,  513 
98, 146 
13, 198,  054 
5, 145, 367 
6,  657,162 


1,232, 499 
1,  610,  016 


421,  214 


2,  525,  304 
1,  142,  888 

186,  284 
293, 173 


184,  093 
"33,"  748 


156,  543 


287,  824,  072 


223,  207, 104 
177,  342,  689 
7,  013,  540 

6,  060,  388 
31,  268,  943 

9,  129,  302 
104.  025 

7,  265,  093 


576, 934 


151,839 
150,  966 
79, 198 
8, 905,  678 
506, 194 
683, 152 
9,  778,  697 


2,  392,  466 


Value  in 
thousands 
of  haik- 
wan  taels 


510 

692 

8, 370 
1,509 
63,  249 
17,  690 
30, 098 

17,  203 
1,751 
3, 100 
15, 160 

10,  611 
21,585 

6,  580 
9,247 

23,  860 
1, 165 

2,  035 
1,  726 

3,  439 
1,606 
4,913 

863 
1,210 
2, 190 
7,601 

1,  278 

4,  771 

11,  349 

279 

5,  710 

12,  783 
1,906 

1,  858 

57,  811 
46,  487 
1,611 
1,650 

7,  632 

3,  581 

2,  306 

4,  068 

23,  073 

5,  902 
1,613 
1,572 

8,  784 
2, 145 
1,065 
1,715 
1,993 
1,487 

72,  127 
4,  425 

24.  640 
28,  397 

3,  379 
1,516 
3,  282 

30,  797 


652,  367 


1,018,  211 


39 


RESUME  OF  THE  TRADE  OF  CHINA 


Exports  of  Chinese  Merchandise  to  Foreign  Countries,  Calendar  Years, 

1923  and  1924 


Articles 


TEXTILES  AND  MATERIALS 


Carpets _ _ _ 

Cotton,  raw _ . _ _ 

Cotton  manufactures: 

Shirtings  and  sheetings _ 

Nankeens _ 

Yarn _ _ _ 

Fur  clothing  and  rugs _ 

Hemp _ _ 

Ramie  fiber  and  thread _ _ _ 

Grass  cloth _ _ _ _ ._ 

Laces _ _ _ _ 

Silk  and  silk  products: 

Cocoons . . 

Raw . . . 

Waste _ _ _ _ _ 

Piece  goods. . . . 

Pongee . . 

Other  silk  products. . 

Wool: 

Camel . . 

Sheep . . . . . . 

All  other  textiles  and  materials . 

Total  textiles  and  materials _ 

METALS  AND  MINERALS 

Antimony _ 

Iron  ore  and  pig _ 

Tin  slabs _ _ _ _ _ 

Tungsten _ _ _ 

Zinc  ore _ _ _ 

All  other _ _ 

Total  minerals _ _ 


SUNDRIES 

Bamboo  and  bamboo  ware . . 

Bristles _ 

Camphor _ 

Casings. _ _ 

Cereals  and  cereal  products: 

Bean  cake _ _ 

Beans _ 

Maize . . . 

Rice  and  paddy _ 

Rapeseed... . . 

Seasame  seed . . . 

Seed  cake _ 

Vermicelli  and  macaroni _ 

Bran _ _ _ _ _ 

Wheat _ _ _ 

Wheat  flour . . 

Millet  and  kaoliang _ _ _ 

Coal _ _ 

Eggs: 

Albumen  and  yolk _ 

Fresh  and  preserved _ 

Frozen _ 

Feathers,  all  kinds _ 

Fish  and  fishery  products _ 

Furs _ _ _ 

Hair,  human _ _ _ 

Hair  nets. . . . 

Hides  and  skins: 

Buffalo  and  cow... . 

Goatskins — 

Tanned. . . 

Untanned . . . 

Meat  and  meat  products: 

Frozen  meat . . . 

Lard . . 

Tallow . . 


.piculs.. 

.pieces. 

.piculs. 

..do... 

.  pieces, 
.piculs. 
..do... 
...do... 


.do... 

.do... 

.do... 

.do... 

.do... 

.do... 


.do.. 

_do_. 


.  piculs. 
..do... 
..do... 
..do... 
..do... 
..do... 


.piculs. 

..do... 

..do... 


.piculs. 

..do... 

..do... 

..do... 

..do... 

..do... 

..do... 

..do... 

..do... 

..do... 

...do... 

..do... 

...tons. 


_ piculs. 

thousands. 

- do... 

. do... 

. .do... 

_ pieces . 

_ piculs  . 


.piculs. . 


.do... 

.do... 


.do... 

.do... 

.do... 


1923 


Quantity 


974, 574 

641,  483 
75,  605 
89,  001 
729,  668 
129,  234 
167,  488 
21, 197 


19, 326 
138,  423 
128, 118 
14,  533 
13, 962 


55,  618 
352, 109 


275,  420 
13,  585,  020 
133,  225 
66,  929 
1, 009,  672 
2,  905,  297 


74,  422 
15, 103 


24,  785,  869 
18,  269,  266 
357,  829 
63,  089 
492, 120 
1, 926,  379 
1, 318,  240 
255,  902 

2,  721,  474 
639,  919 
131,  553 

3,  362, 135 
3, 108,  682 

377,  535 
1,101,049 
375,  365 
73, 024 
194,  468 
7,  366,  551 
30, 039 


293,  740 

1, 406, 392 
7, 358,  207 

295,  576 
51, 925 
47,  352 


Value  in 
thousands 
of  hai- 
kwan  taels 


4,  691 
32, 606 

3, 733 
4,  704 
4,  370 
1,218 
1,607 
3, 131 

2,  540 
4,112 

1,745 
138,  916 
11,  560 
16,  829 
7,  719 

3,  868 

2,  259 
10,  079 

4,  482 


260, 169 


1,672 
8,  749 
7,  875 
790 
695 
2, 020 


21,  801 


1,  403 
7,  758 
1,421 
3,  319 

56,  866 
52,  416 
710 
337 
2, 004 
12, 161 

2,  979 
2,  913 
4, 981 
2, 173 

783 
11,779 
20,  545 

12,  367 
11, 491 
5,  764 

1,  256 

2,  326 
5,  551 

983 

4,840 

9,  266 

1,965 
5,  501 

2,  431 
809 
646 


1924 


Quantity 


1,080, 019 

1, 370, 222 
53,  656 
147, 031 
2, 033,  524 
158, 128 
285,  366 
24,  614 


26,  378 
315,  830 
158, 177 
13,  303 
14, 019 


37,  950 
485,  320 


217,  566 
18,  503,  330 
117,  353 
50,  325 
338,  241 
1, 126,  598 


65,  540 
10,  711 


22,  577,  716 
24,  589,  687 
228,  908 
41,  935 
502,  616 
934, 191 
1,253, 484 
276,  986 
3,  263,  462 
140, 185 
157,  285 
4, 130,  649 
3, 202, 352 

457, 948 
944,  253 
252,  392 
84, 072 
167,  238 
7, 169,  751 
28,  202 


227, 694 

1,110, 420 
4,  679,  873 

257,  832 
61,  733 
64, 804 


Value  in 
thousands 
of  hai- 
kwan  taels 


5,  989 
40,  420 

8, 180 
3,  409 
7,  513 
3, 067 

2,  232 
5,172 

3,  544 

4,  640 

2,  251 
108, 060 
10, 302 
15,  746 

6,  555 
4,  466 

1,991 
14,  041 
4,  536 


252, 114 


2, 034 
11,  278 
9,  088 
555 
22 
2, 191 


25, 168 


1,484 
8,  742 
994 
3,  893 

50,  897 
76, 066 
560 
227 
2, 087 
6,  501 
2,  626 

3,  594 
6,  272 

541 
714 
16,  .549 
20,  539 

16, 659 
9,893 

4,  972 
2, 048 
2,  215 
6,094 
1, 136 

2,  677 

6, 344 

1,744 

3,  539 

3, 039 
1,016 
829 


40 


COMMERCIAL  HANDBOOK  OF  CHINA 


Exports  of  Chinese  Merchandise  to  Foreign  Countries,  Calendar  Years 

1923  and  1924 — Continued 


Articles 


sundries — continued 

Nuts: 

Chestnuts . _ . . 

Peanuts — 

Shelled . 

Unshelled . . . 

Walnuts . . 

Paper  and  paper  products . . 

Pottery  and  earthenware _ _ 

Salt... . . . 

Straw  braid . 

Sugar,  all  kinds . . 

Sugar  candy  and  canes. . 

Tallow,  vegetable . 

Tea: 

Black . . . . . . 

Green . 

Tobacco: 

Leaf . 

Prepared . 

Varnish . 

Vegetables,  dried,  fresh,  etc . 

Umbrellas,  paper . . 

Mats  and  matting . 

Licorice . . . . . . 

Lumber: 

Hardwood.. . 

Softwood . . 

Poles . 

Fruit,  dried,  preserved,  etc . 

Chinaware . . . . . 

Matches . _• _ _ _ _ 

Oils,  vegetable: 

Bean  oil _ _ _ 

Peanut  oil . 

Wood  oil . 

All  other . 

Total  sundries . 

Total  exports . 


iy23 


Quantity 


1924 


piculs.. 

..do _ 

..do _ 

..do _ 

..do _ 

..do _ 

..do _ 

..do _ 

..do _ 

..do _ 

..do _ 

..do _ 

..do _ 


42, 240 

1, 374,  693 
871,  832 
45,  899 
319,  309 
213, 197 
3,  706,  470 
83,  911 
363, 001 
507,  420 
96,  348 

450,  686 
284,  630 


Value  in 
thousands 
of  haik- 
wan  taels 


290 

8, 047 
3, 999 
665 
4,833 
951 
1,770 
5,  444 
2, 451 
632 
1,086 

13, 992 
8,  361 


Quantity 


44,  771 

2,  663, 414 
964,  383 

75, 177 
341,  846 
217, 177 

3,  340,  529 

76,  552 
149,  898 
257,  956 
114,  856 

402,  776 
282,  314 


Value  in 
thousands 
of  haik- 
wan  taels 


314 

16, 958 
4, 450 
1,201 
5, 124 
1,203 
1,581 
5,516 
1,091 
324 
1,330 

12, 026 
8,  363 


..do _ 

..do _ 

..do _ 

..do _ 

pieces.. 


piculs.. 


222,  724 
56, 187 
19,  374 
726,  855 
4,  962,  432 


75,  987 


3,  570 
2,  217 
1,556 
1,725 

994 

4,  504 
1,045 


208,  232 
56,  957 
18,  268 
681, 047 
4,913,834 


44,  531 


3, 424 
2,128 
1,332 
1,824 
1,175 
4,  878 
630 


..cubic  feet., 
square  feet.. 

_ pieces.. 

. piculs.. 

. do - 

. gross.. 


505,  732 
192,  402,  694 

2,  402,  385 
197,  428 
243,  760 

3,  699,  157 


521 
11,  746 
9,034 
2,414 
3,298 
1,  375 


548,  592 
111,403,  821 
2,533,119 
142,  663 
215,  594 
1,  793,  347 


404 
3,  470 
9,  502 
1,536 
2,  799 
701 


piculs. 

..do... 

..do... 


2, 126,  928 
467, 140 
836,  887 


17,  689 
6,  175 
17,  477 
83,  342 


2, 


470,  947 


752,  917 


121,470 
672,  268 
890,  038 


20,  484 
8,  452 
17,  715 
90,  076 


494,  502 
771,  784 


Note.— The  exports  do  not  include  exports  to  foreign  countries  by  junks. 

Distribution  of  Trade  by  Countries  of  Origin  and  Destination,  Calendar 

Years  1923  and  1924 

[In  thousands  of  haikwan  taels] 


Countries 

Gross  imports 

Exports 

1923 

1924 

1923 

1924 

Hongkong  _  _ _ _ 

248,  083 
211,  024 
154,448 
120,  397 
10,  879 

10,  327 
13,  600 

7,  549 
32,  456 
55,  241 
3,735 

1 1,  955 
3,908 

10,203 

243,  919 
234,  762 
190,  957 
126,  011 
18,  278 
15,  576 
20,  733 
10,  560 
38,  688 
38,  828 

175,  796 
198,  517 
126,804 
43,  207 
2,  753 
2,001 
8,085 

173, 163 
201, 176 
100,  755 
50,  251 
3, 420 
1, 107 
9,317 

Japan  _  -  _ 

United  States  _ 

Great  Britain  _ 

Belgium  _ _ _ 

Canada  _ 

Dutch  East  Indies _ _ _ _ 

France _ _ _ _ _ 

39,  578 

45,  096 
15, 949 

Germany _ _ _ _ _ 

11,915 
12,  329 

India _ _ _ _ _ - 

11, 436 

Italy . . . . . . . 

6,  273 

1 1,  505 

9,  468 

8,948 

Chosen  _ _ _ _ _ _ _ 

30,281 

30,  855 

Netherlands _ _ _ _ 

20,  460 

8,511 

13,501 

Russia  and  Siberia.. . . 

10,  098 

34,  092 

46,  359 

Straits  Settlements _ 

9,  214 
45,  615 

9,  322 

17,  928 

19,  617 

Other _ _ _ _ _ _ 

43, 132 

31,  652 

40,  834 

Total . . . . . . . 

948,  634 

1,  039, 102 

752,  917 

771,  784 

41 


RESUME  OF  THE  TRADE  OF  CHINA 


Value  of  Direct  Foreign  Trade  of  Principal  Chinese  Ports,  Calendar  Years 

1923  and  1924 

[In  thousands  of  haikwan  taels] 


Ports 

Imports 

Exports 

1923 

1924 

1923 

1924 

Harbin  district 1 . . . . . 

9,236 

9,439 

33,860 

45,302 

Antung - - -  - -  - . 

26,818 

23,827 

41, 906 

32,417 

Dairen _ _ _ _ _ 

68,416 

77, 160 

113,907 

125, 700 

Newchwang  - - 

11,920 

11,911 

3,928 

2, 948 

Tientsin  _ - - - - - - - 

76. 178 

76, 122 

49, 954 

47,825 

Kiaochow. - - - - - - - 

32,808 

34, 620 

24,674 

39, 914 

Hankow - - - - 

38,552 

18,849 

16, 278 

19,849 

Shanghai - - - 

417,870 

483,470 

276,838 

276,455 

Amoy _ _ _ 

12,090 

13,591 

3,573 

4,067 

Swatow _ _  _ _ _ 

29,040 

26,828 

12,800 

12, 790 

Canton  ...  _ _ _ _ _ _ 

73, 846 

54,020 

90,228 

82, 776 

Kowloon  (including  railway  traffic) . . . .  . . 

35, 106 

51,671 

18,621 

20,  962 

Lappa - - - - - - - - 

18,064 

21,886 

3,785 

5,006 

Kongmoon . . . .  - . 

15,021 

13,339 

2, 697 

1,782 

Mengtz - - - -  - 

13,659 

14,845 

9,043 

9, 976 

All  other . . . . . . 

70,010 

107,524 

50,825 

44,015 

Total - - - - 

948, 634 

1,039, 102 

752, 917 

771,784 

1  Harbin  district  includes  Lahasusu,  Manchouli,  Harbin,  and  Suifenho.  Antung  includes  Tatungkow. 


GENERAL  TRADE  NOTES 

Invisible  imports . — In  any  statement  of  China’s  trade  balance,  it  is  necessary 
to  take  cognizance  of  certain  invisible  imports.  The  American  consul  at 
Hongkong  estimates  that  $250,000,000  silver  is  remitted  annually  to  that  British 
colony  by  Chinese  in  other  countries,  for  purchases,  remittances  to  relatives, 
and  investments.  It  is  probably  safe  to  estimate  a  total  of  $100,000,000  silver 
in  remittances  from  the  Canton  communities  abroad  to  Cantonese  in  China.  It 
is  estimated  that  Swatow  receives  anually  $30,000,000  silver  from  its  na¬ 
tionals  abroad,  and  that  Amoy  receives  $20,000,000  silver.  American  con¬ 
tributions  to  missionary  and  other  philanthropic  work  in  China  aggregate  at 
least  $25,000,000  silver  a  year.  The  cost  of  the  maintenance  of  foreign  diplo¬ 
matic  missions,  foreign  men-of-war  in  Chinese  waters,  the  foreign  expedi¬ 
tionary  forces  in  China,  and  foreign  shipping  in  China  amount  to  probably 
$20,000,000  silver  a  year.  Tourists’  expenditures  may  be  reckoned  at  about 
$10,000,000  silver.  The  aggregate  of  these  invisible  imports  would  probably 
net  at  least  $300,000,000  silver  a  year.  To  this  sum  may  be  added  invest¬ 
ments  of  foreign  capital  in  China.  China’s  unfavorable  trade  balance  amounts 
to  about  $300,000,000  silver  a  year,  and  the  excess  of  imports  of  silver  over  the 
exports  amounts  to  about  $75,000,000  silver  annually.  China  incurs  an  addi¬ 
tional  obligation  of  about  $150,000,000  silver  a  year  in  foreign  exchange  to 
meet  its  debt  service.  (In  these  calculations  $1  silver  may  be  taken  as  equiva¬ 
lent  to  $0.50  United  States  gold.) 

Movement  of  silver. — For  the  five  years,  1919-1923,  China  imported  silver 
bars  and  silver  coin  to  the  equivalent  of  448,000,000  taels,  and  exported 
163,000,000  taels,  or  an  average  excess  of  imports  yearly  of  57,000,000  taels 
or  $80,000,000  silver  (United  States  gold  at  the  1923  rate,  $46,000,000).  The 
tendency  of  the  silver  dollar  to  replace  the  tael  unit  in  China's  silver  currency 
is  worthy  of  note. 

Silver  exchange. — Silver  exchange  is  a  factor  of  commanding  importance  to 
China’s  import  and  export  trade.  During  1920,  because  of  the  unprecedented 
heights  to  which  silver  advanced,  there  were  numerous  failures  in  business, 
and  foreign  business  concerns  in  China  suffered  severely  following  the  sudden 
fall  in  silver  exchange. 

When  the  silver  dollar  reached  an  equivalent  of  $1.20  gold,  China  lost  an 
exceptional  opportunity  to  refund  its  foreign  obligations  and  pay  off  its  rail¬ 
way  loans. 

Extraterritorial  rights. — One  of  the  results  of  the  European  war  was  to 
deprive  German,  Austrian,  and  Russian  citizens  of  their  extraterritorial  rights 
in  China.  This  makes  for  complications  in  the  relations  of  Chinese  with 


42 


COMMERCIAL  HANDBOOK  OF  CHINA 


foreigners,  as  the  citizens  of  those  countries  without  extraterritorial  rights 
are  under  the  jurisdiction  of  Chinese  laws  and  courts,  while  those  enjoying 
extraterritorial  rights  are  under  the  laws  and  courts  of  their  respective 
nations. 

Foreign  business  moving  inland. — In  former  years  the  foreign  trader  con¬ 
fined  the  vast  bulk  of  his  business  transactions  in  China  to  a  comparatively 
few  Chinese  located  at  coastal  or  river-treaty  ports.  Closer  contact  with  the 
consumers  and  producers  is  now  essential  and  foreign  business  is  penetrating 
the  interior. 

Salesmanship  necessary. — There  is  a  very  noticeable  tendency  toward  spe¬ 
cialization  in  import  and  export  lines  in  China,  particularly  with  China’s  large 
imports  of  industrial  equipment.  Men  who  are  thoroughly  familiar  with  the 
commodities  handled  are  supplanting  general  import  and  export  merchants. 
In  other  words,  service  and  skilled  salesmanship  are  increasingly  important 
factors  to  successful  business  with  the  Chinese. 

Increased  costs  in  business. — The  expenses  of  conducting  business  in  China 
have  increased  very  considerably  during  the  past  10  years.  Living  costs  have 
advanced  about  100  per  cent  and  labor  upward  of  50  per  cent.  The  copper 
cash,  nominally  worth  one-tenth  of  1  cent  silver,  has  been  superseded  in  all 
except  the  more  remote  sections  of  the  country  by  the  copper  cent  piece,  indi¬ 
cating  a  higher  living  cost  among  the  masses  and  at  the  same  time  an  increased 
purchasing  power. 

Industrial  development. — The  extensive  development  of  modern  industry 
and  manufacturing  among  the  Chinese  during  the  past  two  decades  is  sig¬ 
nificant.  The  character  of  the  products  manufactured  has  improved  very 
appreciably.  The  organization  of  numerous  modern  banks  among  Chinese 
communities  has  been  marked.  During  the  past  10  years  over  100  modern-type 
Chinese  banks  with  an  aggregate  paid-up  capital  of  more  than  $300,000,000 
silver  have  been  opened  in  Shanghai. 

Japanese  investments. — The  heavy  investments  of  Japanese  capital  in  indus¬ 
trial  projects  during  the  past  few  years  is  indicative  of  Japanese  confidence 
in  the  future  economic  development  of  China. 

Good-roads  movement. — The  agitation  for  good  roads  during  the  past  10 
years  has  resulted  in  the  construction  of  about  8,000  miles  of  graded  dirt  roads 
to  serve  motor  traffic.  The  greater  receptivity  of  the  Chinese  to  the  needs  of 
economic  transportation  is  distinctly  encouraging  to  the  establishment  of  a 
modern  economic  society. 

Miscellaneous. — China,  like  America,  is  continental ;  hence  the  internal  de¬ 
velopment  of  the  country  will  offer  to  the  capital,  brains,  and  energies  of  its 
people  better  prospects  than  can  come  through  direct  interest  in  foreign  trade, 
for  which  the  Chinese  have  not  as  yet  developed  the  shipping  facilities,  insur¬ 
ance  organizations,  banking  houses,  or  business  establishments  with  their 
oversea  connections.  Thus,  as  internal  conditions  in  China  improve,  foreign 
traders  may  expect  increasingly  larger  opportunities  for  business  in  China 
through  organizations  especially  developed. 

In  spite  of  disturbed  political  conditions  in  China,  trade,  modern  construc¬ 
tion  work,  and  modern  industrial  developments  increase  year  by  year ;  there¬ 
fore  tremendous  strides  should  follow  any  marked  improvement  in  the  direction 
of  political  stability. 

TRADE  WITH  SPECIFIC  COUNTRIES 

TRADE  WITH  UNITED  STATES 

The  Chinese  customs  returns  from  1867  to  1913  show  that  the 
direct  trade  of  China  with  the  United  States  netted  less  than  9  per 
cent  of  China’s  total  foreign  trade.  In  fact,  trade  with  the  United 
States  ranged  from  6.5  per  cent  to  9  per  cent  of  China’s  total.  It  is 
very  difficult,  indeed,  impossible,  to  apportion  the  actual  amount  of 
China’s  trade  with  the  United  States,  for  the  reason  that  exports 
from  Hongkong,  which  are  in  reality  goods  transshipped  through 
Hongkong  to  other  countries,  are  merely  credited  to  the  trade  of 
Hongkong.  Similarly,  imports  from  abroad  coming  through  Hong¬ 
kong  and  transshipped  to  Chinese  ports  appear  in  the  customs  returns 


RESUME  OF  THE  TRADE  OF  CHINA 


43 


as  credited  to  Hongkong.  As  a  very  considerable  amount  of  Ameri¬ 
can  trade  with  China,  particularly  with  South  China,  passes  through 
the  port  of  Hongkong,  the  United  States  loses  credit  in  the  Chinese 
customs  returns  for  much  of  its  trade.  To  a  lesser  extent  some  of  the 
United  States  trade  with  China  is  transshipped  through  Japan  and 
has  been  accredited  to  Japan.  Up  to  the  year  1913  these  discrep¬ 
ancies  were  not  a  considerable  factor;  but  since  then,  with  the  in¬ 
crease  in  America’s  trade  with  China  these  discrepancies  have  become 
a  matter  of  great  importance.  A  table  is  given  below  showing  the 
value  of  China’s  direct  trade  with  the  United  States,  as  taken  from 
reports  of  the  Chinese  Maritime  Customs,  for  the  years  1904,  1913, 
and  1923.  Values  are  converted  into  United  States  gold  currency. 


Years 

Imports  from 
United  States 

Exports  to 
United  States 

Total  trade 
with  United 
States 

Per  cent 
of  China’s 
total 
trade 

1904  _ 

$20,368,300 

25,826,427 

123,558,120 

$18, 907, 407 
27,447,069 
101,443,019 

$39, 275, 707 
53,273,496 
225, 001, 139 

9 

1913 _ _ _ _ _ 

7 

1923.-  _ _ _ 

17 

It  is  worth  while  to  analyze  the  1923  figures  to  ascertain  the  ex¬ 
tent  of  the  discrepancy  between  China’s  actual  trade  with  the  United 
States  and  the  trade  as  accredited  by  the  Chinese  Maritime  Customs. 

As  for  China’s  exports  to  the  United  States,  shippers  of  Chinese 
commodities  who  invoice  these  commodities  for  shipment  direct  to 
the  United  States  are  obliged  to  cover  the  shipments  with  consular 
invoices,  which  are  used  for  the  United  States  customs  entry  pur¬ 
poses.  The  aggregate  of  the  consular  invoices  of  declared  exports 
from  the  various  ports  of  China  to  the  United  States  for  1923  was 
$178,216,127  gold.  The  declared  exports  from  Hongkong  to  the 
United  States  for  1923  amounted  to  $13,664,233  gold.  Conserva¬ 
tively  speaking,  we  might  consider  that  $8,000,000  of  the  Hongkong 
exports  represents  Chinese  goods.  This  would  make  the  exports 
from  China  roughly  $186,000,000.  The  United  States  statistics  of 
foreign  trade  show  that  for  the  calendar  year  1923  United  States 
imports  from  China  aggregated  $186,602,172,  and  that  imports  from 
Hongkong  were  $19,860,635.  For  that  same  year  imports  from 
Dairen  were  also  given  separately  as  $4,354,944,  which  gives  a  total 
of  about  $210,000,000  United  States  gold  for  imports  from  China 
and  Hongkong.  Thus,  roughly  speaking,  we  may  say  that  the 
United  States  figures  show  imports  into  the  United  States  from 
China  of  about  $200,000,000  United  States  gold  for  1923.  These 
figures  are  practically  double  those  of  the  trade  returns  of  the  Chi¬ 
nese  customs. 

The  principal  single  item  showing  a  discrepancy  between  the 
customs  trade  returns  and  the  figures  as  shown  by  the  United  States 
Government  agencies  is  raw  silk,  particularly  at  Canton.  The 
Chinese  returns  accredit  the  bulk  of  the  silk,  which  in  reality  moves 
from  Canton  to  the  United  States,  as  exports  to  Hongkong,  although 
actually  invoiced  at  Canton  for  shipment  to  the  United  States  via 
Hongkong.  It  is  probably  safe  to  estimate  that  about  $35,000,000 
(gold)  worth  of  raw  silk  exported  from  China  was  not  credited  to 
China’s  trade  with  the  United  States. 


44 


COMMERCIAL  HANDBOOK  OF  CHINA 


Concerning  China’s  imports  from  the  United  States,  it  is  more 
difficult  to  estimate  the  amount  of  the  discrepancies  in  the  Chinese 
customs  figures,  because  of  the  lack  of  reliable  checking  agencies. 

The  imports  into  Hongkong  from  the  United  States  for  the  year 
1923  netted  £5,860,000,  or  about  $27,000,000  United  States  gold. 
Over  50  per  cent  of  these  imports  consisted  of  flour  and  kerosene 
for  transshipment  to  China.  Of  the  remaining  items  ginseng, 
cigarettes,  tin  plate,  leaf  tobacco,  raw  cotton,  machinery,  fertilizers, 
raisins,  and  old  newspapers  constituted  the  greater  part.  These 
were  also  primarily  for  China.  It  is  safe  to  assume  that  $20,000,000 
of  these  imports  entered  into  the  trade  of  China.  This  sum  would 
increase  China’s  imports  from  the  United  States  to  about  $150,000,000 
gold  and  give  the  United  States  20  per  cent  of  China’s  import  trade. 

China’s  exports  to  the  United  States  for  1923  may  be  conserva¬ 
tively  estimated  at  $180,000,000  gold,  or  about  30  per  cent  of  China’s 
total  export  trade.  Thus,  China's  total  trade  with  the  United  States 
in  1923  aggregates  at  least  $320,000,000  gold,  or  24  per  cent  of  the 
former  country’s  total  foreign  trade. 

DIRECT  TRADE  WITH  FOREIGN  COUNTRIES 

Statistics  showing  the  value  of  China’s  direct  trade  with  separate 
countries  for  1913  and  1923  appear  below.  The  figures  are  taken 
from  the  Chinese  Maritime  Customs  returns  of  trade,  and  haikwan 
taels  are  converted  to  United  States  gold.  (The  haikwan  tael  was 
equivalent  to  $0.73  in  1913  and  to  $0.80  in  1923.) 


Countries 

Imports 

Exports 

Total 

1913 

1923 

1913 

1923 

1913 

1923 

Australia,  New  Zea¬ 
land,  etc . . 

$511,770 

$2, 690, 604 

$390,994 

$1,191,212 

$902, 764 

$3,881,816 

Austria-Hungary _ 

3,004,875 

79, 589 

1,130,078 

96,676 

4, 134, 953 

176,265 

Belgium.  . . 

11,540,680 

35,205,007 

8,703,000 

4,772,324 

2, 202, 525 

16,313,005 

39,717,741 

10, 905, 525 

British  India . 

44,192,785 

4,512,734 
475, 587 

9,863,444 

54,056,229 

Canada... . 

1,360,121 

8,261,899 

1,600,607 

1,835,699 

9,862,506 

Chosen  (Korea) _ 

2,571,096 

9, 563,952 

4, 966, 654 

24, 224, 904 

7,537,  750 
284, 562 

33,788,856 

Denmark.  . . 

73,520 

892, 228 

211,042 

1,206,054 

2,098,282 

Dutch  East  Indies . 

4,984,020 

10, 880, 260 

1,899,089 

6,468,265 

6,883,110 

17,348,525 

France _ 

3,863,348 

6,038,923 

29, 706, 591 

31,662,127 

33,569,939 

37,701,050 

French  Indo-China _ 

3,486,086 

14, 750, 929 

1,375,676 

3,210,171 
9, 531,774 

4,861,762 

17, 961,100 

Germany _ 

20,632,450 

25,  964, 853 

12,411,388 

33,043,840 

35,496,627 

Hongkong  1 _ 

125,122,711 

198, 466,  764 

85,386,794 

140,636,999 

210,509,510 

339, 103,763 

Italy - 

483,802 

2, 988, 377 

6,063,850 

7,574,240 

6,547,652 

10,562,617 

Japan  (including  For¬ 
mosa) _ 

87,003,716 

168,819,437 

47,781,710 

158,813,875 

134,785,417 

327,633,312 

Macao . . . 

4,808,592 

4,988,655 

3, 610, 284 

3,174,006 

8.418,876 

8, 162,661 

Mexico  and  Central 
America _ 

5 

5,199 

43,082 

28,640 

43,087 

33,839 

Netherlands.  . . 

1,037,  997 

3,126,577 

6,336,807 

6,808,834 

7,374,804 

9,935,411 

Norway  . . 

253, 393 

1,622,375 

1,973 

29, 547 

255,366 

1,651,922 

Philippine  Islands. . 

1,015,219 

1,088,124 

555, 967 

3,185,256 

1,571,186 

4, 273, 380 

Portugal _ _ 

855 

3,434 

13,446 

9,121 

14,301 

12,555 

Russia- 

European  ports _ 

214,030 

132. 545 

3,636,052 

6,959 

3,850,083 

139,  504 

Land  frontier  _ 

8, 936, 224 

4, 686, 824 

2,256,857 

1,289, 584 

11,193,081 

5,976,408 

Amur  ports . . 

375, 457 

86, 996 

5,809,447 

454, 829 

6, 184,  904 

541,825 

Pacific  ports  _ 

6,623,754 

3,255,888 

21,045,372 

25, 522, 244 

27,669,126 

28,  778, 132 

1  Much  of  what  is  entered  at  Hongkong,  both  in  the  import  and  the  export  trade,  represents  goods  for 
transshipment. 


RESUME  OF  THE  TRADE  OF  CHINA 


45 


Countries 

Imports 

Exports 

Total 

1913 

1923 

1913 

1923 

1913 

1923 

Siam . . 

$38,088 

$5,007, 708 

$1,478,337 

$2, 708, 210 

$1,516,425 

$7, 715, 918 

Singapore,  Straits  Set- 

tlements,  etc - - 

6,513,918 

7,370,  977 

5,505,926 

14,342,249 

12, 019, 844 

21,713,226 

South  Africa  (including 

Mauritius) . . 

7 

20,364 

45, 734 

150, 212 

45,  741 

170,576 

South  America. _  .  ___ 

126 

37,081 

48, 195 

103,098 

48, 321 

140, 179 

Spain  (including  Gi- 

braltar) _ 

2,468 

23,518 

277,691 

1,102, 493 

280, 159 

1,126,011 

Sweden. .  _  ...  . 

1,123,381 

1,770,631 

166,188 

229,413 

1,290,069 

2,000,044 

Switzerland..  _ 

42,307 

2,843,599 

34, 773 

6,272 

77, 080 

2, 849,831 

Turkey,  Persia,  Egypt, 

Aden,  etc.  . . 

102, 196 

675, 124 

2,695,006 

8,891,357 

2,  797, 202 

9.566,481 

United  Kingdom _ 

70,648,078 

96,317, 784 

11,916,535 

34, 565,  704 

82, 564, 613 

130,883,488 

United  States  (includ- 

ing  Hawaii) _ 

25,826,427 

123,558,120 

27,447,069 

101,443,019 

53,273,496 

225,001,139 

Total  2__  _ 

427,405,724 

758,  907, 135 

294,009, 743 

602,333,932 

721,415,467 

1,361,241,068 

Less  reexports  to  for- 

eign  countries _  . 

11,757,220 

20,184,826 

11,757,220 

20, 184, 826 

Net  total . . 

415,648,504 

738,722,310 

294,009.743 

602,333,932 

709,658,247 

1,341,056,242 

2  In  certain  years  the  individual  items  do  not  add  to  the  official  total  as  given,  but  in  all  cases  such  dis¬ 
crepancies  are  relatively  insignificant. 

TRADING  PORTS 


There  are  69  treaty  ports  in  China  in  which  foreigners  are  per¬ 
mitted  to  reside,  purchase  property,  and  erect  business  establish¬ 
ments.  In  addition  there  are  11  trade  marts  voluntarily  opened  by 
the  Chinese  Government  to  foreign  trade,  but  at  which  foreigners 
may  reside  and  lease  premises  for  business  or  residential  purposes. 
In  the  voluntarily  opened  ports,  leases  to  property  are  restricted  to 
definite  periods,  in  some  cases  30  years,  whereas  in  the  treaty  ports 
foreigners  may  lease  land  in  perpetuity.  In  the  special  foreign  con¬ 
cession  areas  of  some  of  the  treaty  ports  the  leasing  of  land  is  in  some 
cases  restricted  to  the  nationals  of  the  powers  concerned  and  also  for 
certain  prescribed  periods.  At  47  of  the  69  treaty  ports  the  Chinese 
Maritime  Customs  maintains  offices.  These  ports  are  listed  in  the 
following  tables,  which  also  contain  comparative  statements  of  the 
direct  foreign  trade  of  China  for  each  of  the  ports  for  the  years  1913 
and  1923.  These  tabulations  indicate  the  percentage  of  each  port’s 
trade  in  the  total  foreign  trade  of  China  for  the  years  1913  and  1923, 
and  also  the  percentages  of  increase  or  decrease  for  the  two  years. 


46 


COMMERCIAL  HANDBOOK  OF  CHINA 


Value  of  the  Direct  Imports  of  China,  by  Ports,  1913  and  1923 


1913 

1923 

1923 
trade  1 

Ports 

Value  in 
haikwan 
taels 

Percent¬ 
age  of 
total  for 
China 

Value  in 
haikwan 
taels 

Percent¬ 
age  of 
total  for 
China 

com¬ 

pared 

with 

1913 

trade 

Aignn  _ _ _ _ 

290,  282 
47,  765 
20, 172,  340 
399,  969 
671,  199 

6,  227,  225 
28,  740,  282 

7,  930,  274 
3,  562,  743 

51,  354,  297 

0.  0495 

108,  238 

0.  0114 

Per  cent 
-62 

Sansing _ _ _ _ _ 

.0082 

Harbin  2 _ _ _ _ _ 

3.  4407 

9,  236,  497 
1,  054,  412 
3,  189,  154 
26,  818,  200 
68,  416,  348 
11,  920,  059 
1,  966,  761 
76,  178,  355 
22,  251 
5,411,298 
32,  807,  680 
671,  398 
16,  860 
391,  322 
490,  111 

1, 131,  124 
22,  367 
38,  551,  704 
3,  857,  431 

1,  967,  851 
3,  845,  613 
3,  646,  278 

417,  870,  452 
52,  096 

2,  520,  488 
7,  064,  232 

49,  525 
66,  753 

7,  137,  439 
12,089,623 
29,  039,  744 
73,  846,  423 
31,  957,  386 

3,  148,  871 
18,  064,  389 
15,  020,  954 

8,  098,  828 
6,  858,  678 

294,  693 
3,  914,  715 
3,  475,  259 
133,  971 
13,  659,  338 
184,  054 
2,  364,  697 

.  9737 

-54 

+164 

+374 

+330 

+138 

+50 

-45 

+48 

Hunchun _ _ _ _ 

.0682 

.  1111 

Lungchingtsun _ _ _ ._  _ _ ._ 

.  1145 

.  3362 

Antung  3 _ 

1.  0621 

2.  8270 

Dairen  _ _ _ _ _ _ . 

4.  9020 

7.  2121 

Newchwang.  _ 

1.  3526 

1.  2565 

Chinwangtao _  . 

.  6077 

.  2073 

Tientsin. . . . . 

8.  7592 

8.  0313 

Lungkow _ _ _ _ 

.  0023 

Chefoo  . . . . . . . 

5,  211,897 
15,  466,  785 
778,  435 

.  8889 

.  5704 

+4 

+112 

-14 

Kiaochow _ _ _  .  _ _ _ 

2.  6381 

3.  4584 

Chungking _  _ _ 

.  1328 

.  0708 

Wanhsien . . . . 

.  0018 

Ichang _ 

189,  390 
200,  063 
1,  490,  357 
6,  200 
34,  164,  083 

1,  538,  984 
904,  186 

.  0323 

.  0412 

+107 
+145 
—  24 

Shasi  .  _ 

.0341 

.0517 

Changsha  _  _ _ 

.  2542 

.  1192 

Y  ochow . . . . . 

.0011 

.  0024 

+260 
+13 
+  150 
+118 
+45 
—4 

Hankow.. _ _ _ _ _ _ _ 

5.  8272 

4.  0639 

Kiukiang... . .  . . . . 

.  2625 

.  4066 

Wuhu _ _ 

.  1542 

.  2074 

Nanking _  _ 

2,  645,  070 

3,  819,  697 
244,  452,  421 

19,  031 
558,  060 

2, 890,  195 
2,  857 
28,  607 

7,  735,  734 
10,  916,  097 
20,  111,062 
31,791,219 
29,  731,  794 

711,  138 
11,850,834 

6,  799,  520 

5,  119,  399 
10,  776,  994 
19,  482 

3,  783,  894 

1,  850,  365 

99,  257 

8,  644,  260 
184,  890 

2,  401,798 

.  4511 

.  4054 

Chinkiang . . . . . . 

.  6515 

.  3844 

Shanghai _ _ _ 

41.  6948 

44.  0497 

+71 
+174 
+352 
+144 
+1,  633 
+133 
—8 

Soochow _  _ 

.  0032 

.  0055 

Hangchow...  ..  ..  _  . 

.  0952 

.  2657 

Ningpo _  _  . 

.  4930 

.  7447 

Wenchow . . . . . . 

.  0005 

.  0052 

Santuao _  .  . . 

.  0049 

.0070 

Foochow _  ..  .  .  . . 

1.  3194 

.  7524 

Amoy _  .  . . . . . 

1.  8619 

1.  2744 

+  10 
+44 
+  132 
+7 
+343 
+52 
+209 
+58 
—46 

Swatow _ _ _  _ 

3.  4302 

3.  0293 

Canton .  .  . . . . . 

5.  4224 

7.  7847 

Kowloon . .  . .  . . 

5.  0712 

3.  3688 

Kowloon  (railway  traffic) . . .  .. 

.  1213 

.3319 

Lappa . . . . 

2.  0213 

1.  9042 

Kongmoon _ _ _  ..  ... 

1.  1597 

1.  5834 

Samshui _ _ _  _ 

.8732 

.  8537 

Wuchow4 _  .  _ _ _  _ 

1.  8381 

.  7230 

Nanning _  _  ...  _  _ _ _ 

.0033 

.0310 

+1,412 

+3 

+88 

Kiungchow _  ..  . . 

.  6454 

.4127 

Pakhoi.  .  _ _ _ 

.  3156 

.3663 

Lungchow. . . . . . . 

.  0169 

.0141 

+35 

+58 

+.3 

Mengtsz... . . . . 

1.  4744 

1.  4399 

Szemao...  . . . . . 

.  0315 

.0194 

Tengyueh ..  . . . . 

.4097 

.2493 

+1.5 

Total _ 

586,  290,  431 

99.  9998 

948,  633,  920 

99.  9688 

+62 

1  In  quantity  increases  in  imports  during  the  10  years  the  leading  ports  in  order  of  relative  importance 
are  Shanghai,  Canton,  Dairen,  Tientsin,  Antung,  and  Kiaochow  (Tsingtao).  Of  these  six  ports  Antung 
showed  the  grestest  percentage  of  increase  and  Dairen  stood  second. 

2  Harbin’s  decrease  of  10,935,843  taels  in  imports  for  the  decade  is  due  in  part  to  the  falling  off  in  the  im¬ 
portations  of  Russian  cotton  piece  goods  through  the  border  port  of  Manchouli,  under  the  Harbin  customs 
supervision.  During  1913  Manchouli’s  imports  of  goods  via  the  Trans-Siberian  route  amounted  to  13, 312,- 
459  taels,  the  greater  part  of  which  was  Russian  piece  goods.  The  imports  for  1913  for  the  frontier  port 
of  Suifenho,  also  under  the  Harbin  customs,  were  valued  at  7,884,939  taels.  A  very  considerable  falling 
off  in  this  trade  is  noted,  owing  to  the  interruption  of  traffic  between  Suifenho  and  Vladivostok. 

3  Antung’srapid  rise  in  direct  import  trade  maybe  attributed  to  the  specially  favored  position  which  this 
port  occupies  in  customs  duties,  as  rail-borne  goods  coming  through  Chosen  (Korea)  into  China  receive  a 
special  duty  consideration  of  one-third  less  than  the  regular  5  per  cent  tariff  imposition.  This  special  treat¬ 
ment  is  about  the  equivalent  of  the  railway  freight  expenses  in  transporting  cargo  from  Japan  into  Man¬ 
churia,  hence  accounts  for  the  rapidly  increasing  prosperity  of  the  port  of  Antung. 

4  Wuchow’s  trade  for  1910  aggregated  10,776,994  taels,  and  for  1923,  6,858,678  taels.  The  average  annual 
trade  for  the  11  years  was  valued  at  8,880,000  taels.  Thelow  record  in  1923  was  due  to  military  disturbances. 


47 


RESUME  OF  THE  TRADE  OF  CHINA 
Value  of  Direct  Exports  of  China,  by  Ports,  1913  and  1923 


Ports 


Aigun . 

Sansing . . . 

Harbin. . . 

Hunchun . . 

Lungchingtsun _ 

Antung  1 _ 

Dairen  C... . . . 

Newchwang . . 

Chinwangtao . 

Tientsin  2 . . 

Lungkow . . 

Chefoo.. . . 

Kiaochow . . 

Chungking . 

Wanhsien . 

Ichang . 

Shasi . 

Changsha . . 

Y  ochow _ 

Hankow . 

Kiukiang . 

Wuhu. . 

Nanking . 

Chinkiang . 

Shanghai 4 . . 

Soochow . . 

Hangchow. . . 

Ningpo . . 

Wenchow . . . . 

Santuao . . . . 

Foochow . . 

Amoy . 

Swatow.. . . 

Canton . . . 

Kowloon . . . 

Kowloon  (railway  traffic) 

Lappa . . . 

Kongmoon. . 

Samshui... . 

Wuchow... . 

Nanning... . . 

Kiungchow. . . 

Pakhoi... . 

Lungchow . 

Mengtsz . . 

Szemao . . 

Tengyueh . 

Total . 


1913 

1923 

1923  1 
trade 
com¬ 
pared 
with 
1913 
trade 

Value  in 
haikwan 
taels 

Percent¬ 
age  of 
total  for 
China 

Value  in 
haikwan 
taels 

Percent¬ 
age  of 
total  for 
China 

Per  cent 

1, 216,  966 

0.  2828 

96, 057 

0.  0127 

-92 

2,  445,  967 

.6065 

18;  565,  529 

4.  6033 

33,  860,  436 

4.  4972 

+82 

445, 193 

.1104 

478, 033 

.0635 

+7 

174,315 

.0432 

1,  836,  271 

.2438 

+953 

3,  746,  943 

.9296 

41,  905,  652 

5.  5658 

+1,018 

30, 012,  606 

7.  4416 

113,906,  777 

15. 1287 

+279 

11,000,  993 

2.  7277 

3,  928, 152 

.5217 

-64 

1,  605,  528 

.3981 

5,  997,  602 

.7966 

+273 

8, 140,  949 

2.  0185 

49,  953,  666 

6.  6347 

+514 

1,  462,  557 

.  1942 

4,  695,  539 

1. 1642 

9, 154,  765 

1.  2159 

+95 

12,  960, 096 

3.  2135 

24,  674,  467 

3.  2772 

+90 

77, 132 

.0191 

303,  217 

.0403 

+293 

14,  475 

.0019 

2,  485 

.0003 

296 

.001 

'283 

(3) 

-4 

1, 072 

.0003 

19,  743 

.0026 

+1,  741 

3,  747 

.0009 

16,  806;  858 

4. 1673 

16,  278, 195 

2. 1620 

-3 

121,  283 

.0301 

23,  235 

.0031 

-81 

843 

.0002 

1,  957, 037 

.2599 

+113,427 

123 

(3) 

4, 036,  887 

.5362 

+3,281,922 

573,  685 

.  1422 

285, 149 

.0379 

-50 

176,  858,  415 

43.  8522 

276,  838,  233 

36.  7687 

+56 

690 

.0002 

8,  851 

.0012 

+1, 182 

293,  548 

.0390 

6, 158,  639 

1.  5270 

10,  880, 131 

1.  4451 

+77 

2,  533,  307 

.6281 

3,  573,  050 

.4746 

+41 

8,  282,  047 

2.  0535 

12,  799,  513 

1.  6999 

+54 

55, 937, 841 

13.  8698 

90,  228,  494 

11.  9838 

+61 

12,  812,  500 

3. 1768 

16,  712,  804 

2.  2197 

+30 

268,  521 

.0666 

1,  908, 151 

.2534 

+610 

5,  225,  256 

1.  2956 

3,  784,  567 

.5026 

-27 

1,  471,  436 

.3648 

2,  697, 069 

.3582 

+83 

812,  701 

.  2015 

866,  693 

.1151 

+7 

3,  448,  466 

.8550 

4, 198,  981 

.5577 

+22 

2,  036,  416 

.5049 

1, 062,  350 

.1411 

-47 

2,  099,  262 

.5205 

3,  826,  932 

.5083 

+82 

918, 091 

.2276 

2,  301,  752 

.3057 

+151 

10, 024 

.0025 

139, 134 

.0185 

+1,  288 

11,066,  270 

2.  7439 

9, 042,  543 

1.  2010 

-18 

39, 360 

.0097 

42,  868 

.0057 

+9 

730,  277 

.1811 

1,  536,  611 

.2041 

+110 

403,  305,  546 

100.  0000 

752,  917,  416 

100.  0000 

+87 

1  Dairen’s  increase  from  7.4  per  cent  of  China’s  export  trade  in  1913  to  15.1  per  cent  with  a  total  increase 
of  84,000,000  taels  is  distinct  evidence  of  enterprise  in  Manchuria.  In  this  connection  it  is  also  worthy  of 
note  that  Antung,  which  in  1913  had  about  1  per  cent  of  China’s  export  trade,  in  1923  enjoyed  5.6  per  cent 
of  this  trade,  with  an  increase  of  38,000,000  taels,  or  over  1,000  per  cent.  The  specially  favored  position  of 
Antung  in  duty  treatment,  whereby  one-third  of  the  export  duty  is  remitted,  is  accountable  for  considerable 
of  this  advance,  otherwise  Dairen  would  probably  have  taken  a  large  percentage  of  this  trade. 

2  The  fact  that  Tientsin,  which  in  1913  enjoyed  2  per  cent  of  China’s  direct  export  trade,  in  1923  claimed 
6.6  per  cent  of  China’s  exports,  with  an  aggregate  increase  of  42,000,000  taels,  indicates  a  tendency  on  the 
part  of  the  North  China  ports  to  enter  into  direct  trade  with  foreign  countries  rather  than  transship  these 
goods  through  Shanghai.  Tientsin’s  increase  in  exports  for  the  period  under  consideration  amounted  to 
514  per  cent. 

3  Negligible. 

4  While  Shanghai  increased  its  relative  position  in  the  import  trade  of  China,  in  the  export  trade  it  en¬ 
joyed  7  per  cent  less  of  the  total  trade  of  China,  in  spite  of  the  fact  that  exports  from  Shanghai  increased 
during  the  decade  by  about  100,000,000  taels. 


48 


COMMERCIAL  HANDBOOK  OF  CHINA 


CARRYING  TRADE 

American  tonnage  in  the  direct  foreign  import  trade  of  China 
increased  from  26,909  ship  tons  entered  in  1913  to  2,100,926  tons 
entered  in  1923,  an  increase  of  over  2,000  per  cent.  In  1913  but  1.85 
per  cent  of  the  total  entered  tonnage  was  American,  whereas  in  1923 
this  percentage  was  increased  to  10.22.  The  proportion  of  China’s 
import  trade  carried  by  American  ships  in  1913  was  one-fourth  of  1 
per  cent,  whereas  in  1923  it  advanced  to  7.5  per  cent. 

The  average  tonnage  for  the  American  entries  in  1923  was  about 
3,000,  whereas  the  average  for  Japanese  ships  was  1,750  tons,  for 
British  ships  1,400,  and  for  Chinese  1,000  tons.  In  other  words, 
America  does  not  get  full  credit  for  its  carrying  trade  with  China, 
in  that  a  considerable  amount  of  American  tonnage  disembarked  at 
Hongkong,  from  which  point  it  was  transshipped  to  ports  in  China 
by  British,  Japanese,  and  Chinese  ships,  which  received  credit  in 
their  entered  tonnage  for  this  American  trade. 

The  following  table  shows  the  net  tonnage  of  steamers  entered  at 
Hongkong  in  1913  and  1923 : 


Flags 

1913 

1923 

American . . . . . . . . . 

Net  tons 
290,  987 
4,  215, 369 

1,  907,  307 

2,  460,  143 

Net  tons 
1,421,962 
5,  572, 944 
3, 129,  156 
2,  854,  981 

British  _ _ _ _ _ _ _ 

Japanese  _ 

Other .  . . . . . . . . 

Total _ _ _ _ _ _ 

8,  873,  806 

12,  979,  043 

This  table  shows  that  nearly  1,500,000  tons  of  American  cargo 
arrived  in  Hongkong  in  1923,  the  vast  bulk  of  which  was  destined 
to  China,  but  transshipped  in  other  than  American  ships.  No  data 
are  available  as  to  the  value  of  the  cargo  carried  by  these  ships, 
but  it  would  alter  very  materially  the  table  of  relative  values  of  the 
import  trade  of  China  as  carried  by  ships  of  different  nationalities; 
hence  it  is  highly  necessary  in  using  these  figures  that  qualifications 
be  made  in  connection  with  this  discrepancy. 

Referring  to  the  tonnage  entrances  for  1923  for  the  port  of  Hong¬ 
kong,  it  is  worthy  of  note  that  the  average  tonnage  for  the  Amer¬ 
ican  ships  entered  was  5,300,  for  the  British  ships  2,000,  for  the 
Japanese  2,300,  and  for  those  of  other  nations  1,400  tons,  which  is  a 
further  indication  of  the  fact  that  a  larger  relative  percentage  of  the 
American  shipping  at  Hongkong  was  in  transoceanic  steamers. 

In  consulting  the  table  of  import  shipping  it  is  noted  that  German 
shipping  decreased  in  1923  from  the  figures  for  1913  by  73  per  cent 
for  tonnage  and  55  per  cent  in  value  of  cargo  carried.  It  is  antic¬ 
ipated,  however,  that  during  the  next  decade  German  shipping 
will  have  regained  its  former  position. 

The  following  table  shows  the  share  taken  by  each  nationality  in 
the  import  trade  of  China  in  1913  and  in  1923,  also  the  value  of  the 
foreign  imports  from  these  nations  in  the  years  mentioned  and  the 
relation  of  such  trade  to  China’s  total  import  trade: 


RESUME  OF  THE  TRADE  OF  CHINA 


1913 

1923 

Flags  1 

Tonnage 
of  entries 

Per  cent 
of  total 
tonnage 

Tonnage 
of  entries 

Per  cent 
of  total 
tonnage 

Per  cent 
increase 
or 

decrease 

American  2 _ _ _ _  _ _ 

269,  091 
5, 127,  578 
43,  338 
161,  779 

1.85 

2, 100,  926 
7,  259,  706 

140,  196 
507,  118 
600,  212 
377,  236 

83,  944 
6,  596,  025 
200,  729 
177,  266 
59,  497 
12,  007 
55,  617 

141,  220 
2,  247,  366 

10.  22 

+680 
+41.5 
+200.  4 
+213.  5 
+28 
-73 

British _  .  .  . .  _ _ _ 

35.  32 

35.  31 

Danish.  .  ..  ...  .  _ _  _ 

.29 

.68 

Dutch  _ _  _  _  .  _  _ 

1.04 

2.42 

French _  _  _  .  _ 

469,  450 
1,  405,  086 

3.23 

2.91 

German _ _  _ 

9. 68 

1.83 

Italian  .  _  _ 

.40 

Japanese. _  _ _  _  _  _ 

3,  882,  664 
167,  196 
63,  451 
422,  274 

26.  74 

32.08 

+70 

+20 

+179 

-86 

Norwegian  ..  _ _  .  .  _ _ 

1.  15 

.97 

Portuguese..  _ _ _ _  _ 

.44 

.86 

Russian _ _  .  .  _ 

2.  91 

.29 

Spanish.  _  ...  _  _ 

.06 

Swedish _  _  _  _ 

34,  344 
135,  167 
2,  336,  806 

.  23 

.27 

+62 
+.  4 
-3.8 

Nontreaty  powers . . 

.93 

.69 

Chinese.  _ _ _ _ 

16.09 

10.93 

Total _ _ _ _ 

14,  518,  224 

100.  00 

20,  559,  065 

100.  00 

+41.6 

1913 

1923 

Value  of 

Per  cent 

Value  of 

Per  cent 

Per  cent 
increase 

import 

of  total 

import 

of  total 

trade 

imports 

trade 

imports 

or 

decrease 

Haikwan 

Haikwan 

taels  3 

tales  3 

3,  076,  644 

0.25 

70,  852,  240 

7. 47 

+2,  202.  9 

270,  429,  460 

46. 12 

371,  448,  317 

38. 11 

+33.  25 

1,  107,  621 

.17 

5,  661,  328 

.60 

+402. 1 

6,  661,  282 

1. 14 

17,  028,  378 

1.79 

+  155.6 

20,  599, 159 

3.  51 

28,  423,  281 

2. 99 

+38 

47,  353,  265 

8.  09 

21,  300,  543 

2.24 

-55 

2,  600,  905 
291,  884,  897 

.  27 

136,  486,  197 

23.  28 

30.  77 

+113.  85 

4,  276,  353 

.73 

11,545,  455 

1.  21 

+170 

19,  213 

.003 

2, 161,  525 

.23 

+11,150 

21,  064,  826 

3.  59 

8,  977,  407 

.94 

-57.4 

45,  827 

1,  879,  862 

.005 

983,  075 

.  17 

.  19 

+91 

6,  979,  491 

1.  19 

7,  387,  700 

.78 

+5.8 

67,  253,  845 

11.47 

107,  436,  255 

11.  325 

+60 

586,  290,  431 

100.  00 

948,  633,  920 

100.  00 

+62 

Flags 


American  * . . 

British . . . 

Danish _ 

Dutch _ _ 

French _ 

German _ 

Italian. _ _ 

Japanese . 

Norwegian _ 

Portuguese... . 

Russian . . 

Spanish _ _ 

Swedish.. . . 

Nontreaty  powers. 
Chinese . . 


Total. 


1  Austria  became  a  nontreaty  power  after  the  World  War;  Chili  did  not  enter  into  the  foreign  import 
trade  of  China  until  a  commercial  treaty  was  signed  in  1922;  Polish  and  Spanish  flags  made  their  first  appear¬ 
ances  in  China’s  carrying  trade  in  1923;  German  flags  reappeared  after  the  war  in  1921. 

2  By  way  of  comparison,  it  is  of  interest  to  note  that  the  American  tonnage  in  China’s  trade  in  1882  was 
167,801  and  in  1891,  67,090  tons. 

3  The  exchange  value  of  the  haikwan  tael  of  1913  is  quoted  by  the  Customs  as  $0.73  and  for  1923,  $0.80 
United  States  gold. 


Although  it  has  not  been  considered  necessary  to  reproduce  a 
tabulation  for  the  clearances  of  steamers  from  China  in  the  export 
carrying  trade,  because  the  actual  amount  of  tonnage  is  not  very 
different,  yet  it  is  of  interest  to  know  that  the  American  position 
for  the  period  1913-1923  in  the  export  trade  is  relatively  similar  to 
that  in  the  import  trade.  American  ships  are  credited  with  taking 
from  China  during  1923  exports  valued  at  32,000,000  taels.  Here, 
again,  is  a  very  considerable  discrepancy,  due  to  the  fact  that  silk 
exports  taken  from  Hongkong  by  American  ships,  which  represent 
cargo  that  originated  in  Hongkong,  probably  exceeded  in  value  the 


100020°— 26 - 5 


50  commercial  handbook  of  china 

aggregate  amount  credited  to  China  in  the  export  trade.  America’s 
acknowledged  tonnage  for  Hongkong  was  almost  equal  to  the  clear¬ 
ances  from  China,  and  it  is  known  that  the  ships  carried  heavy  and 
valuable  cargoes. 

SHIPPING 

The  fact  that  Shanghai  and  Hongkong  have  been  placed  in  the 
same  category  with  the  ports  of  New  York  and  London  in  shipping 
tonnage,  and  presumably  in  relative  importance  in  the  world’s  ship¬ 
ping  trade,  warrants  an  analysis  of  China’s  shipping  situation. 

The  fact  that  China  has  poor  internal  rail  communications — the 
most  inadequate  in  the  world  for  its  size  and  population — causes  a 
much  higher  development  of  domestic  water  transportation  than 
would  obtain  otherwise. 

It  is  the  practice  of  the  Chinese  Maritime  Customs  to  accredit 
to  each  port  the  actual  registered  tonnage  of  the  steamers  entering 
and  clearing  that  port,  irrespective  of  the  frequency  of  the  calls  or 
the  actual  amounts  of  cargo  discharged  or  loaded.  Thus,  in  the  table 
appearing  in  this  section  it  is  seen  that  the  river  ports  Chinkiang, 
Nanking,  Wuhu,  and  Kiukiang  are  each  accredited  with  about 
9,000,000  tons  of  shipping  for  the  year  1923.  Although  less  im¬ 
portant  commercially  than  Hankow,  still  they  have  on  the  aver¬ 
age  a  credit  of  about  2,000,000  in  tonnage  per  year  more  than  enters 
and  clears  the  port  of  Hankow.  Hankow’s  total  trade  for  1923  is 
given  as  240,000,000  taels,  wiiereas  that  for  each  of  the  three  ports, 
Chinkiang,  Nanking,  and  Wuhu,  for  the  same  period  is  less  than 
40,000,000  taels.  A  similar  situation  obtains  with  the  coasting  trade. 
Chefoo  is  credited  with  a  tonnage  of  3,000,000,  which  is  not  much 
less  than  that  credited  to  Tientsin,  whose  actual  trade  is  four  times 
as  great.  Similarly,  the  coasting  trade  of  Ningpo,  Foochow,  Amoy, 
and  Swatow,  because  of  the  frequent  calls  of  coasting  steamers  on 
regular  schedules,  receives  far  more  tonnage  credit  than  the  trade 
entitles  them  to. 

It  is  interesting  to  note  also  that  in  tonnage  of  ocean  steamers, 
the  customs  tabulations  give  the  coast  trade  ocean  status,  apparently 
reserving  to  the  river  trade  domestic  or  nonocean  status.  Thus 
Shanghai’s  30,000,000  tons  of  shipping  contains  about  18,000,000 
tons  of  entries  and  clearances  representing  river  and  coast  trade, 
the  actual  cargo  tonnage  of  which  would  on  this  account  be  con¬ 
siderably  less.  In  a  somewhat  similar  way,  Hongkong  is  credited 
with  35,000,000  tons  entered  and  cleared  in  foreign  trade  for  1923. 
As  Hongkong  is  located  on  Victoria  Island  off  the  coast  of  South 
China,  all  contact  between  Hongkong  and  China  is  necessarily  by 
water,  hence  a  very  considerable  amount  of  transit  trade  between 
Canton  and  other  sections  of  China  passes  through  Hongkong 
and  is  credited  to  the  shipping  returns  of  Hongkong’s  foreign  trade. 
Canton’s  total  tonnage  for  1923  was  given  as  6,600,000.  As  the  port 
of  Canton  has  not  been  developed  for  direct  ocean  shipping  except  as  it 
concerns  coast  port  trade,  the  bulk  of  this  tonnage  also  passes  through 
Hongkong,  either  on  coasting  steamers  or  in  transit  at  Hongkong. 
Similarly,  the  regular  coast  lines  running  from  Swatow,  Foochow, 
and  Amoy  also  make  Hongkong  a  port  of  call.  Thus  the  table  of 
tonnage  of  vessels  entered  and  cleared  at  each  port  of  China  and  at 
Hongkong  must  be  taken  with  the  reservations  herein  mentioned. 


RESUME  OF  THE  TRADE  OF  CHINA 


51 


It  is,  however,  noteworthy  that  the  tonnage  of  vessels  which  en¬ 
tered  and  cleared  Chinese  ports  increased  from  a  total  of  6,600,000 
tons  in  1864  to  18,800,000  in  1884,  30,000,000  in  1894,  64,000,000  in 
1904,  and  nearly  100,000,000  tons  in  1924. 

The  following  table  shows  the  tonnage  of  vessels  entered  and 
cleared  at  each  open  port  of  China  in  1923. 


Ports 

Total 

shipping 

Tonnage 
of  ocean 
steamers 

Percent¬ 
age  of 
shipping 
borne  by 
ocean 
steamers 

Ports 

Total 

shipping 

Tonnage 
of  ocean 
steamers 

Percent¬ 
age  of 
shipping 
borne  by 
ocean 
steamers 

Tons 

Tons 

Per  cent 

Tons 

Tons 

Per  cent 

Aigun  _ 

229,  588 

Shanghai _ 

30, 018, 240 

24, 726, 143 

82 

Harbin 

757'  440 

Soochow .  _ _ 

'  186',  249 

Antung _ _ 

534'  506 

521, 820 

97.  6 

Hangchow _ 

234^  282 

Dairen 

9, 042'  027 

9, 034,  351 

99.  9 

Ningpo  _ _ 

2,  329'  981 

2,  313, 727 

99.3 

Newchwang _ 

1, 107^090 

1, 107, 090 

100 

Wenchow _ 

'  250;  098 

202',  947 

81 

Chinwantgao.. 

2,  651,  654 

2,  651,  654 

100 

Santuao _ 

77,  644 

76, 176 

98 

Tientsin  _ _ 

3,  853,  831 

3,  853,  831 

100 

Foochow _ 

1,  483, 442 

1, 480,  880 

93 

Lungkow ... 

'  104'  736 

'  104'  736 

100 

Amoy.. . . 

3, 136'  384 

3, 136j  384 

100 

Chefoo _ 

3,  27 1'  065 

3, 270'  227 

99.  97 

Swatow _ 

4,  66O'  662 

4, 660'  662 

100 

Kiaochow  -  _ 

3'  393j  521 

3, 392, 069 

99.  95 

Canton  . _ 

6,  569,  457 

2,  899;  833 

44 

Chungking 

269, 330 

Kowloon. . 

2'  032'  328 

Wanshien  _  - 

443,  665 

Lappa  _ 

'  764,  707 

Ichang  - _ - . 

1, 006,  861 

Kongmoon _ 

1, 191 '  206 

Shasi  _ 

1,  324, 054 

Samshui.  _ 

i,  395'  930 

Changsha  _ 

'  542'  990 

Wuchow _ 

61 1' 001 

Yochow  _ 

2,  274'  514 

Nanning _ 

28'  145 

Hankow _ 

7,  463,  701 

1, 052,  652 

14 

Kiungchow _ 

1, 156,  586 

1, 156,  586 

100 

Kiukiang  _ 

8,817, 094 

102,  702 

1 

Pakhoi _  . 

437, 058 

437, 058 

100 

Wuhu _  _ 

9,  669'  297 

637 j 504 

6 

Lungchow _ 

1,952 

Nanking _ 

9,  347,  886 

443^  572 

5 

Mengtsz _ 

1, 124 

Chinkiang..  . 

9, 075',  558 

547;  281 

6 

Note. — The  total  tonnage  of  ocean  steamers  entered  and  cleared  at  the  open  ports  of  China  during  1923 
represents  51  per  cent  of  the  total  shipping  of  China.  The  above  figures  do  not  include  tonnage  of  vessels 
entered  and  cleared  under  the  Inland  Steamer  Navigation  Rules  of  the  Chinese  Maritime  Customs  nor 
junks  entered  and  cleared  at  the  Chinese  Native  Customs.  Total  tonnage  of  ocean  steamers  entered  and 
cleared  at  the  ports  of  China  in  1921  was  reported  at  53,135,726, 


Of  interest  to  American  business  are  the  steamers  especially  con¬ 
structed  to  ply  in  the  upper  Yangtze  trade  over  the  rapids.  There 
are  in  this  trade  at  present  40  steamers,  of  which  10  are  American 
and  9  British.  It  is  anticipated  that  15  new  steamers  will  be  added 
to  the  upper  Yangtze  trade  during  1925,  3  or  4  of  which  will  be 
under  the  American  flag. 

The  method  of  assessing  tonnage  dues  in  China  militates  against 
oversea  shipping  and  encourages  transshipments  at  non-Chinese 
ports.  In  other  words,  it  discourages  steamers  which  ply  between 
European  or  American  ports  and  the  F ar  East  from  making  Chinese 
trading  ports  ports  of  call,  as  tonnage  dues  are  assessed  on  a  quar¬ 
terly  rather  than  on  a  trip  basis.  Coasting  and  river  steamers  are 
favored  in  this  manner  over  steamers  calling  but  once  or  twice 
during  a  quarter,  as  the  latter  pay  as  much  per  ton  for  one  or  two 
entries  in  three  months  as  is  paid  by  steamers  which  can  make 
numerous  entries  during  the  same  period  on  one  assessment. 


IMPORT  TRADE  OF  CHINA 

By  Trade  Commissioner  George  C.  Howard 


The  Chinese  Maritime  Customs  in  their  annual  Report  and  Ab¬ 
stract  of  Statistics  divide  the  import  trade  into  12  grand  groups 
which  are  quoted  in  the  following  table,  with  comparative  figures 
for  the  calendar  years  of  1913  and  1923  ; 


Imports 

1923 

1913 

V  alue  in 
haikwan  taels 

Per  cent 
of  total 

Order  of 
impor¬ 
tance 

V alue  in 
haikwan  taels 

Per  cent 
of  total 

Order  of 
impor¬ 
tance 

Cotton  goods  (except  yarn) . . 

131,886,293 

14.3 

1 

111,358,934 

19.5 

1 

Rice.- _ _ 

98, 198, 591 

10.6 

2 

18,383,719 

3.2 

6 

Kerosene. _  .  . . -  ... 

58,291,716 

6.3 

3 

25,408,845 

4.5 

5 

Raw  cotton . . 

53,816, 201 

5.8 

4 

2,984,022 

.5 

16 

Sugar.. . . 

51,997, 721 

5.6 

5 

36,463,491 

6.4 

3 

Metals  and  minerals -.  .  .  _ 

44,938,111 

4.9 

6 

29,156,086 

5.1 

4 

Cotton  yarn _  ..  _  . 

41,633,818 

4.5 

7 

71,060,089 

12.5 

2 

Cigarettes _ _ _ 

28,272,615 

3. 1 

8 

12,589,300 

2.2 

8 

Flour. _ _ 

27, 232, 615 

2.9 

9 

10,300,612 

1.8 

9 

Machinery. _  _ 

26, 677, 796 

2.9 

10 

7, 137, 048 

1.3 

13 

Fish  and  fishery  products _ 

25,081,819 

2.7 

11 

12,  974,540 

2.3 

7 

Woolen  goods .  . . . 

19,042,413 

2.1 

12 

4, 879, 281 

1.9 

14 

Paper _ _ _ _ 

16,626,519 

1.8 

13 

7, 169, 255 

1.3 

12 

Coal _ ...  _  ... 

12,860,605 

1.4 

14 

9,420,  758 

1.7 

11 

Tobacco . . . .  . 

12,  777,016 

1.4 

15 

3, 572, 560 

.6 

15 

Artifical  indigo _  ... 

11,816,918 

1.3 

16 

9, 633,157 

1.7 

10 

Unclassified  and  miscellaneous _ 

262, 251,787 

28.4 

197,670,860 

34.7 

Total  net  imports _ _ 

923, 402, 554 

570,162,557 

The  above  table  will  indicate  both  the  growth  in  the  value  of  the 
total  trade  and  the  changed  importance  of  the  various  groups  dur¬ 
ing  the  years  from  1913  to  1923. 

RELATIVE  POSITION  OF  COUNTRIES 

According  to  the  Abstract  of  Statistics,  the  relative  position  of 
the  various  countries  as  suppliers  of  China’s  imports  were,  in  1913 
and  1923,  as  shown  in  the  following  table : 


1923 

1913 

Direct  imports 

Value  in 
h  aikwan 
taels 

Per  cent 

Value  in 
haikwan 
taels 

Per  cent 

Hongkong _ _ _  -  - 

248,  083, 456 

26.  15 

171, 636, 099 

29.  27 

Japan _ _ _  -  .  .  . . . 

211,024,  297 

22.  25 

119,  346,  662 

20.  36 

United  States _ _ _ - . -  _ _ 

154,  447,  651 

16.  28 

35,  427, 198 

6.  04 

Great  Britain . .  . .  .  . . 

120, 397,  229 

12.  69 

96,  910,  944 

16.  53 

British  India . . . 

55,  240,  982 

5.  82 

48,  292, 190 

8.  24 

Germany .  . . . . - 

French  Indo-China  . .  --  . . - 

32,  456,  067 
18,  438,  662 
13,  600,  326 
11,954,  940 
JO,  878,  750 
10,  327,  374 
10,  202,819 

3.42 

1.94 

28,  302, 403 

4.83 

Netherlands  Indies . . .  . . - . . 

Chosen  _  _  _ 

1.43 

1.  26 

6,  836,  792 

1.  17 

Belgium _  _ 

Canada  -  -  _ _ _  _ _  --  --  - 

1. 15 
1.09 

15,  830,  838 

2.  70 

Russia  and  Siberia _ _ _  _ _ _ 

1.08 

22, 152,  888 

3.  78 

Straits  Settlements . .  .  -  --  - - 

Macao  -  .  _  -  .-  --  _ _ 

9,213,  722 

.97 

8,  935,  416 
6,  596, 148 
26, 022,  853 

1.52 
1.  12 

Other. _  _  -  --  _ 

42,  367,  645 

4  47 

4.4 

Value  of  haikwan  tael  in  1923,  $0.80;  in  1913,  $0.73. 

52 


IMPORT  TRADE  OF  CHINA 


53 


It  will  be  noticed  that  in  both  1913  and  1923  Hongkong  is  shown 
as  having  the  greatest  single  share  of  the  import  trade.  As  Hong¬ 
kong’s  exports  to  China  are  practically  all  transshipped  goods  from 
other  countries,  the  difficulty  of  giving  a  clear  and  accurate  state¬ 
ment  as  to  the  origin  of  imports  will  be  readily  appreciated.  Any 
attempt  to  determine  the  origin  of  Hongkong’s  exports  to  China  is 
frustrated  by  the  fact  that  none  of  the  export  statistics  issued 
by  Hongkong  retain  the  identity  of  the  commodities  by  country  of 
origin. 

Therefore  the  reader  should  keep  in  mind  the  discrepancies  aris¬ 
ing  from  the  Hongkong  and  also  Canadian  and  Japanese  figures, 
as  a  very  considerable  portion  of*China’s  imports  from  the  United 
States  come  through  those  countries  and  in  Chinese  Maritime  Cus¬ 
toms  figures  are  credited  to  them  instead  of  to  the  United  States. 

A  reviewT  of  the  place  of  the  United  States  in  the  import  trade  of 
China  in  1923  reveals  the  fact  that  93.3  per  cent  of  the  total  share 
of  the  United  States  is  made  up  of  20  items.  They  are  listed  in  the 
following  table,  which  also  gives  the  percentage  supplied  by  the 
United  States  of  the  total  imports  of  each  item  from  all  sources,  and 
the  value  in  per  cent  of  each  item  in  relation  to  total  imports  from 
the  United  States: 


Imports  from  United  States 

Value  in 
haikwan 
taels 

Per  cent 
of  total 
imports 
from 
United 
States 

Per  cent 
of  total 
gross  in¬ 
ports  into 
China 
from  all 
sources 

Kerosene, . . . . . .  . . 

48,  776, 000 
1,  745, 000 
1,  344,  000 

1,  237,  000 

2,  530,  000 
20,  752,  000 
10,  545,  000 
16.  369,  000 

6,  936,  000 
10,  681.  000 
4,  449,  000 

3,  991,  000 
3,  389,  000 
2,  822,  000 
1,  852,  000 
1,  803,  000 
1,  384,  000 
1,  322,  000 
1,  171,  000 
1,  047,  000 

33.8 

71.  5 

Paraffin  wax _ _ _  _ _ _  _ 

1.2 

42.  4 

Gasoline,  benzine,  naphtha,  and  petrol..-  .  . . . 

.9 

34.6 

Liquid  fuel _ * _  _*  . 

.9 

55.  3 

Lubricating  oil  . . . 

1.8 

74.  7 

Cigarettes  . . 

14  4 

72.  8 

Tobacco . .  . 

7.3 

80.  2 

Flour _  ..  _  . 

11.  4 

60.  1 

Wheat _  .  .. 

4.8 

76  3 

Metals  and  minerals..  _ _ _ _  .  . . . . . 

7.4 

23.  2 

Machinery _ 

3. 1 

16.  0 

Dyes,  colors,  paints . . 

2.8 

14.9 

Raw  cotton. 

2.  4 

6  2 

Timber,  softwood.. 

2.0 

53.  7 

Tinfoil  and  other  foils 

1.3 

69.9 

Paper-  _ 

1.2 

1.0 

.9 

10.  7 
55.  3 

Motorcars  . . . 

Electrical  materials  and  fittings. 

15.6 

Household  stores . . . 

.8 

26.  4 

Condensed  milk.. 

.  7 

52.2 

Total . . . 

144, 145,  000 

An  examination  of  these  figures  brings  out  strongly  the  fact  that 
commodities  comprising  the  largest  individual  items  of  this  trade 
are  those  handled  by  specialized  organizations  rather  than  by  gen¬ 
eral  import  and  export  houses. 

Some  outstanding  examples  of  this  in  connection  with  American 
products  are  kerosene  and  other  mineral-oil  products,  85  per  cent  of 
which  business  is  in  the  hands  of  two  firms;  cigarettes  and  tobacco, 
largely  controlled  by  one  or  two  concerns;  timber,  handled  to  the 
extent  of  78  per  cent  by  five  firms;  condensed  milk,  some  90  per  cent 


54 


COMMERCIAL  HANDBOOK  OF  CHINA 


of  which  is  done  by  two  firms ;  machinery,  a  large  percentage  by  four 
houses. 

From  these  and  similar  examples  it  is  patent  that,  provided  a  com¬ 
modity  lends  itself  to  wide  use  in  China,  the  most  effective  method 
for  securing  thorough  marketing  is  by  establishing  an  organization 
in  China  to  handle  it. 

This  method,  however,  is  one  which  is  followed  only  in  excep¬ 
tional  cases,  and  then  only  after  the  market  has  been  subjected  to 
long  and  painstaking  study  from  every  angle,  with  particular  ref¬ 
erence  to  the  commodity  in  question. 

For  fuller  statistics  regarding  China’s  imports  and  exports  see 
section  headed  “  Resume  of  the  Trade  of  China.” 

FINANCING  OF  IMPORTS 

There  are  numerous  methods  by  which  China’s  imports  are 
financed,  and  while  there  is  a  great  amount  of  detailed  information 
on  this  important  subject,  space  does  not  permit  of  any  broad 
discussion  here.  We  are  therefore  reproducing  here,  with  his  per¬ 
mission,  a  short  treatise  on  the  subject  written  recently  by  Mr.  E. 
Kann,  manager  of  the  Chinese- American  Bank  of  Commerce  in 
Shanghai : 

A  small  portion  of  China's  imports  is  financed  by  collection  drafts,  which 
means  that  the  exporter  will  obtain  his  money  (eventually,  plus  interest)  after 
advice  from  China  has  been  received  saying  that  the  drafts  have  been  duly 
paid.  A  larger  portion  of  imports  into  China  is  financed  by  telegraphic  transfer. 
This  means  that  the  goods  are  shipped  free  to  that  country  and  that  the 
proceeds  of  sale  are  transferred  by  cable  to  the  shipper  (or  his  order)  after 
having  been  realized. 

The  bulk  of  China’s  imports  are  financed  by  means  of  credits  opened  by 
the  importer  in  favor  of  the  exporter.  This  signifies  shifting  the  burden  of 
financing  an  oversea  transaction  from  exporter  to  importer. 

It  is  remarkable  how  little  exporters  really  know  of  the  legal  aspects  of 
the  various  forms  of  credits.  The  following  is  merely  an  attempt  to  define 
briefly  the  various  forms  of  credits  employed  by  importers  in  China : 

I.  Authority  to  purchase  (A/P). 

(a)  Revocable  and  with  recourse  to  drawer. 

(b)  Irrevocable  and  with  recourse  to  drawer. 

(c)  Revocable,  but  without  recourse  to  drawer. 

II.  Confirmed  credits. 

(d)  Confirmed  by  issuing  bank,  but  not  by  notifying  bank. 

(e)  Confirmed  by  issuing  bank  and  also  by  notifier. 

(f)  Confirmed  and  without  recourse  to  drawer. 

(g)  Confirmed  and  irrevocable. 

III.  Acceptance  credits. 


AUTHORITY  TO  PURCHASE 

The  authority  to  purchase  is  employed  largely  for  financing  imports  into 
China  from  foreign  countries.  The  authority  is  issued  by  a  bank  in  China 
upon  the  written  request  of  an  importer  of  approved  standing.  It  is  for  a 
specified  amount,  for  clearly  specified  goods,  to  be  shipped  within  a  clearly 
stipulated  period.  A  full  set  of  shipping  documents  accompanies  the  draft, 
drawn  either  at  sight  or  at  usance  up  to  six  months  after  sight ;  usually  90 
or  120  days  after  sight. 

The  typical  characteristics  of  the  A/P  referred  to  under  (a)  are: 

(a)  The  notifying  bank  abroad  acts  merely  as  agent  of  the  bank  in  China 
and  is  at  liberty  to  cancel  the  authority  to  draw,  if  the  bank  in  China  does 
not  provide  in  due  time  the  funds  which  are  needed  for  negotiating  the  drafts. 
This  right  is  clearly  visible  from  the  manner  in  which  the  authority  to  draw  is 
advised : 


IMPORT  TRADE  OF  CHINA 


55 


“Dear  Sirs:  We  beg  to  inform  you  that  we  are  in  receipt  of  instructions 

from  the _ Bank  in  Shanghai,  authorizing  us  on  behalf  of _ to 

negotiate  your  documentary  drafts,  if  tendered  before  the - for  $10,000, 

drawn  at  90  days  after  sight,  etc.,  etc.” 

(&)  The  issuing  bank  reserves  for  itself  the  right  to  cancel  the  credit,  or 
its  unused  balance,  at  any  time,  without  previous  notice  to  the  exporter  or 
without  the  consent  of  the  importer. 

(c)  The  drawer  (exporter)  is  responsible  to  the  issuing  bank  in  China  for 
payment  of  the  draft  on  due  date,  should  the  drawee  (importer)  fail  to 
meet  his  obligation.  This  obligation  is  clearly  impressed  on  the  exporter  in  the 
original  advice  to  him,  which  ends  up  in  the  words : 

“  Please  note  that  this  is  not  to  be  considered  as  being  a  bank  credit  and 
does  not  relieve  the  drawer  from  the  liability  attaching  to  the  drawer  of  a 
bill  of  exchange.” 

Although  these  conditions  seem  to  be  severe,  they  are  accepted  for  financing 
the  bulk  of  British  and  Continental  trade  with  China.  America  exacts  more 
severe  terms,  usually  confirmed  credits. 

The  next  variety  of  the  A/P  is  the  one  mentioned  under  (b)  irrevocable  and 
with  recourse.  Such  authorities  are  required  for  financing  goods  which  have 
to  be  manufactured  specially  (machinery,  cotton  or  woolen  cloth  with  partic¬ 
ular  patterns),  or  goods  which  have  to  be  collected  in  lots.  The  drawer  re¬ 
mains  responsible  until  the  draft  has  been  paid,  but  the  issuing  bank  has  not 
the  right  to  cancel  the  A/P  before  the  date  of  its  original  expiry. 

The  third  kind  of  A/P,  revocable,  but  without  recourse  to  drawer,  men¬ 
tioned  under  (c),  means  that  the  authority  to  draw  may  be  canceled  during 
its  life,  but  once  the  drafts  have  been  negotiated  the  drawer  (shipper)  is  no 
more  responsible,  should  acceptance  or  payment  of  the  draft  be  refused. 
The  issuing  bank  has  recourse  only  against  the  drawee  (importer)  and  is 
secured  by  the  goods. 

Some  writers  speak  of  a  fourth  kind  of  A/P,  namely,  irrevocable  and  with¬ 
out  recourse  to  drawer.  In  reality  this  would  be  a  confirmed  credit  par  excel¬ 
lence,  and  not  an  authority  to  purchase. 

CONFIRMED  CREDITS 

The  confirmed  credit,  as  classified  under  (d),  means  a  definite  engagement 
on  the  part  of  the  issuing  bank  either  to  negotiate  drafts  under  clearly  stipu¬ 
lated  conditions  or  to  honor  drafts  drawn  by  the  beneficiary.  This  shows 
that  the  issuing  bank  is  liable  to  the  shipper  for  the  fulfillment  of  its  engage¬ 
ments,  but  not  the  notifying  bank. 

The  class  of  confirmed  credit  specified  under  (e)  differs  from  the  foregoing, 
because  both  the  issuer  and  the  notifier  remain  liable  to  the  exporter.  This 
is  the  real  “confirmed”  letter  of  credit,  while  (d)  is  often  styled  (though  not 
correctly)  “unconfirmed.” 

Under  (f)  we  have  the  “confirmed  and  without  recourse  to  drawer”  credit. 
A  remarkably  large  percentage  of  exporters  do  not  know  much  about  the  varia¬ 
tions  in  the  sundry  classes  of  credits  just  described.  It  is  generally  taken  for 
granted  that  every  “  confirmed  ”  credit  is  “  without  recourse  to  drawer.”  This 
is  not  the  case.  According  to  law  the  drawer  under  a  confirmed  letter  of 
credit  is  liable  until  the  draft  has  been  accepted  by  the  drawTee.  Then  his 
responsibility  ceases,  and  the  holder  of  his  draft  has  no  more  recourse  on  the 
drawer,  should  the  acceptor  fail  to  pay  on  due  date.  Only  if  the  credit  is 
“  confirmed  and  without  recourse  ”  is  there  no  more  obligation  on  the  part  of 
the  drawer,  once  he  has  handed  in  his  draft  and  the  documents. 

The  next  class,  (g),  treats  “confirmed  and  irrevocable”  credits.  Irrevocable 
means,  as  already  previously  stated,  that  the  credit  can  not  be  canceled  prior  to 
the  expiration  date  without  the  consent  of  the  beneficiary.  In  theory  a  “  con¬ 
firmed  ”  credit  is  liable  to  be  canceled ;  in  practice  this  is  rarely  or  never  done. 
The  term  “  irrevocable  ”  does  not  absolve  the  drawer  from  liability  until  the 
draft  has  been  accepted. 

It  happens  frequently  that  exporters  to  China  demand  that  an  “  irrevocable  ” 
credit  should  be  established  in  their  favor.  They  take  it  for  granted  that  the 
term  “  irrevocable  ”  includes  the  attributes  “  confirmed  and  without  recourse.” 
This  is  by  no  means  the  case.  Unless  distinctly  advised  the  exporter  must  take 
the  term  “  irrevocable  ”  to  be  binding  only  on  the  issuing  but  not  on  the 
advising  bank. 

The  ideal  credit  for  the  exporter  is  the  “  confirmed — irrevocable — without 
recourse  ”  credit. 


56 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  acceptance  credit  method  of  financing  imports  into  China  has,  up  to  the 
present,  been  employed  in  London  only.  It  differs  in  many  respects  from  the 
methods  of  opening  either  A/P  or  confirmed  credits ;  principally  because  no 
drafts  are  sent  to  China  and  because  there  is  no  interest  to  be  paid  there. 

This  class  of  credit  will  be  used  only  if  discount  rates  are  low,  say,  not  above 
S1/2  per  cent;  otherwise  it  would  be  unremunerative  to  use  acceptance  credits.  - 

The  procedure  is  as  follows :  At  the  request  of  the  importer  in  China,  a  bank 
there  opens  an  acceptance  credit  with  a  London  bank  for  a  certain  amount, 
to  be  availed  of  by  the  exporter  within  a  certain  time,  and  against  shipment  to 
China  of  a  certain  class  of  goods. 

Instead  of  drawing  on  the  importer  in  China,  the  shipper  in  London  will 
draw  on  a  London  bank  (as  authorized)  at  60  to  120  days  after  sight.  The 
London  bank  accepts  the  draft  and  hands  it  back  to  the  exporter,  from  whom 
it  had  simultaneously  obtained  the  complete  set  of  shipping  documents;  these 
are  forwarded  to  the  issuing  bank  in  China. 

The  exporter  will  discount  in  the  open  market  the  draft  accepted  by  the 
London  bank,  if  he  is  in  need  of  funds.  Otherwise  he  will  hold  the  draft  until 
the  moment  when  it  will  suit  him  to  turn  the  acceptance  into  money. 

The  cost  of  such  a  transaction  is  the  commission  charge,  which  varies,  but 
which  averages  %  per  cent  per  month. 

If  the  market  rate  for  120-day  prime  banker’s  acceptances  is  3  per  cent,  for 
instance,  and  the  acceptance  commission  %  per  cent  per  mensem,  the  total 
interest  cost  will  be  4 y2  per  cent  per  annum,  compared  with  6  per  cent  payable 
under  A/P  or  confirmed  credits.  Financing  imports  into  China  under  accept¬ 
ance  credits  does  not  involve  disbursement  of  moneys  on  the  part  of  any  one 
of  the  parties  directly  involved  in  the  transaction.  The  accepting  bank  merely 
lends  its  credit.  All  it  demands  is  its  commission  and  the  remittance  of  cover 
from  China  on  due  date  of  the  draft. 

The  issuing  bank  has  no  outlay  of  funds,  but  its  risk  is  somewhat  larger, 
seeing  that  there  is  no  drawer,  and  consequently  no  recourse  on  drawer. 

Its  profit  consists  of  a  share  in  the  acceptance  commission  and  in  profits  when 
fixing  the  rate  of  exchange. 

HANDLING  SHIPPING  DOCUMENTS 

These  are  the  principal  features  of  credits  as  used  by  importers  in  China. 
There  are  many  particulars  connected  with  the  problem,  which  can  not  be 
discussed  here  for  lack  of  space. 

Yet  it  is  deemed  expedient  to  include  some  remarks  on  local  custom  regarding 
the  handling  of  shipping  documents  attached  to  the  drafts  negotiated  under 
credits  opened  by  China  banks.  If  goods  are  shipped  to  China  under  “  con¬ 
firmed  ”  credit  or  under  “A/P  without  recourse  to  drawer,”  the  shipper  is  in 
no  way  concerned  as  to  how  the  shipping  documents  are  handled  in  China ; 
this  is  an  arrangement  entirely  between  the  drawee  and  the  bank  in  China. 

If,  however,  goods  are  shipped  to  China  in  terms  of  an  “Authority  to  pur¬ 
chase,”  the  exporter,  remaining  liable  as  drawer  until  payment  of  the  draft,  is 
closely  concerned  with  the  handling  of  the  documents. 

Depending  on  the  consent  of  the  issuing  bank  in  China  and  on  the  agreement 
of  both  exporter  and  importer,  it  is  to  be  stipulated  whether  drafts  are  to  be 
drawn  with  documents  deliverable  on  acceptance  (D/A)  or  on  payment  (D/P). 
If  nothing  is  said  on  the  face  of  the  draft  it  is  understood  that  documents  are 
D/P.  Sometimes  the  bank  in  China  will  give  up  the  goods  to  the  importer 
against  the  latter’s  trust  receipt.  Unless  the  bank  has  the  distinct  consent  in 
writing  from  the  drawer,  it  loses  all  recourse  against  the  latter,  in  case  the 
acceptor  (importer)  fails  to  meet  his  obligations  on  due  date. 

It  is  customary  in  China  to  deliver  shipments  in  case  (bales,  barrels,  bags, 
etc.)  lots.  Say  an  exporter  has  made  a  shipment  of  25  cases  of  woolen  cloth 
to  China  and  drawn  at  90  days  after  sight,  under  an  A/P,  $6,000  (United 
States)  on  the  importer  in  Shanghai.  The  importer  may  take  delivery  of  case 
lots  before  due  date  by  paying  to  the  bank  the  corresponding  sums  as  part 
payments  of  the  face  amount  of  the  draft.  This  way  of  procedure  may  not 
suit  the  exporter,  especially  because  the  importer  has  the  choice  of  picking  out 
the  current  articles,  and  leaving  the  goods  with  a  narrow  market  unsold  and 
the  corresponding  amount  of  the  draft  unpaid. 

In  case  of  a  law  suit,  the  case  would  probably  be  decided  against  plaintiff 
on  the  ground  of  established  commercial  custom  in  China.  Very  few  exporters 
abroad  are  fully  aware  of  these  conditions,  the  existence  of  which  has  proved 
to  be  a  necessity  involving  infinitesimal  risks  for  the  exporter.  Should  the 


IMPORT  TRADE  OF  CHINA 


57 


latter,  however,  not  agree  to  the  procedure  described,  he  would  have  to  give 
instructions  to  that  effect,  or  have  the  draft  marked  “  Part  deliveries  not 
permitted.” 

CHEMICALS 

The  absence  of  detailed  statistics  renders  practically  impossible 
the  compilation  of  comprehensive  data  on  China’s  chemical  imports. 

Maritime  Customs  statistics  give  but  seven  headings  to  cover  chem¬ 
icals,  including  medicines.  These  are  given  in  the  following  table, 
with  comparative  figures  for  1913  and  1923,  all  principal  countries 
of  supply  being  shown  (values  in  thousands  of  haikwan  taels)  : 


Chemicals 

Total 

Great 

Britain 

United 

States 

Hongkong 

Japan 

Germany 

France 

1913 

1923 

1913 

1923 

1913 

1923 

1913 

1923 

1913 

1923 

1913 

1923 

1913 

1923 

Soda  _ 

1, 133 

3,317 

914 

2,  010 

4 

196 

43 

385 

22 

597 

6 

99 

91 

Soap  and  soap-making 

materials  1 

2,  896 

394 

99 

603 

1,  210 

58 

310 

Saltpeter 

415 

151 

332 

132 

5 

6 

78 

11 

Match-making  ma- 

terials  _  _ 

496 

2,  289 

58 

3 

3 

76 

487 

331 

1,  306 

10 

417 

27 

Chemical  products - 

494 

3,  386 

77 

336 

40 

259 

27 

492 

172 

1,428 

91 

387 

9 

28 

Glycerin  . _ _ 

136 

170 

22 

84 

43 

5 

2 

19 

109 

3 

7 

Medicines... . 

4,  117 

7, 929 

469 

1, 093 

66 

790 

2,395 

3, 134 

748 

1,  111 

100 

563 

26 

312 

Total..  . . 

6,  791 

20. 138 

1,  542 

3, 920 

113 

1,  387 

2,  873 

5,  238 

1,280 

5,  677 

394 

1,  538 

35 

775 

1  New  heading  since  1913. 

Note.— Value  of  haikwan  tael,  1913,  $0.73;  1923,  $0.80. 


As  Hongkong  supplied  26  per  cent  of  China’s  total  chemical  im¬ 
ports  during  1923,  details  of  Hongkong’s  imports  from  various 
sources  during  that  year  are  shown  in  the  following  table  (values 
in  pounds  sterling)  : 


Chemicals 

United 

Kingdom 

Japan 

United 

States 

Germany 

Nether¬ 

lands 

East 

Indies 

India 

All  others 

Total 

Acid: 

Carbolic. . 

26 

26 
4,  377 
6,  267 
10,  313 
2,943 
11, 115 
11,947 
8,  777 
14,  327 
12,  554 
24,  111 
1,427 
37, 198 
33,  534 

69 
17, 172 
4,  995 

117,417 

3,697 

84,685 

614,  265 

123,  394 

1,977 

Hydrochloric _ 

4, 377 
6,088 
9,  516 
107 
7,591 

Nitric. .  . . 

Sulphuric . 

Other.. . . 

2, 365 

252 

Bleaching  powder _ 

Borax _ 

6,082 

5,310 

Calcium  carbide _ 

3,  202 

3,584 

Glycerins  _ 

14, 327 

Phosphorus . 

10, 788 
22, 897 

Potash,  chloride  of... 

Quinine . 

643 

745 

Saltpeter . 

37, 198 

Soda  ash _  .  .  . 

31,  678 

Soda: 

Carbonate  _ 

62 

Caustic _ 

12,  799 

3,  011 

Sulphur _  . 

4,  882 

29,474 

Other  chemicals  and 
drugs  .  .  . 

37,  385 
3, 190 

15,689 

6,713 

Soda,  silicate  of  . 

Alcohol... 

82,245 

Manures  (chemical 
and  mineral) . 

259,  712 

60,  481 

118,310 

241, 169 

10,264 

Match-making  ma¬ 
terials. .. 

Photographic  chem¬ 
icals _ 

1,267 

438 

Total  . . 

369, 474 

244,  090 

263,  705 

51, 100 

82,990 

42,508 

92,  721 

1, 146,  588 

58 


COMMERCIAL  HANDBOOK  OF  CHINA 


UTILIZATION  IN  INDUSTRY 

There  is  no  organized  chemical  manufacturing  industry  in  China. 
There  are  a  few  factories  scattered  throughout  the  country  for  the 
manufacture  of  sulphuric  acid,  lactic  acid,  glycerin,  soda  ash,  caustic 
soda,  nitric  acid,  saltpeter,  and  a  few  miscellaneous  chemicals,  but 
owing  to  the  lack  of  statistics  regarding  output  it  is  impossible  to 
give  any  idea  of  the  quantities  which  China  produces.  As  China’s 
manufacturing  industry  progresses,  more  attention  is  being  given 
to  the  manufacture  of  chemicals  needed  in  the  country’s  various  in¬ 
dustries.  The  chief  drawbacks  to  rapid  expansion  are  expenses  of 
obtaining  necessary  raw  materials,  the  moderate  demand,  and  the 
absence  of  a  well-defined  market  for  by-products.  Therefore,  the 
great  proportion  of  China’s  entire  requirement  of  chemicals  is 
imported. 

China  has  a  well-developed  match-making  industry,  there  being 
nearly  100  factories  operating  which  have  an  estimated  total  output 
valued  at  about  $6,000,000  gold  per  year.  These  factories  use  po¬ 
tassium  chlorate,  red  phosphorus,  potassium  permanganate,  and 
nitrate  of  lead. 

China’s  soap  factories,  which  number  in  the  neighborhood  of  100, 
scattered  throughout  the  country,  use  glycerin,  sodium  hydroxide, 
soda  ash,  rosin,  and  soap  yellow. 

There  are  probably  50  good-sized  egg-products  factories  in  China 
which  preserve  eggs  either  by  drying  or  freezing.  In  these  factories 
there  is  a  demand  for  ammonia  and  boric  acid. 

In  the  cotton  and  spinning  mills  where  mercerization  is  done, 
caustic  soda  and  sulphuric  acid  are  used. 

Glass  factories  use  a  small  quantity  of  sodium  carbonate,  red  lead, 
sodium  nitrate,  and  arsenic. 

Ammonia. — Because  of  the  comparatively  small  number  of  ice 
factories  in  China,  imports  of  ammonia  are  still  small.  The  an¬ 
hydrous  ammonia  is  imported  principally  in  steel  cylinders  and  the 
market  is  controlled  by  a  large  German  firm.  American  manufac¬ 
turers  of  this  chemical  have  made  repeated  efforts  to  enter  the  Chi¬ 
nese  market  but  so  far  have  been  unsuccessful  in  meeting  German 
competition. 

Arnmonium  sulphate. — Although  chemical  fertilizer  is  passing  out 
of  the  experimental  stage  in  China  and  is  being  used  to  an  increas¬ 
ing  extent  in  South  China,  imports  of  ammonium  sulphate  are  still 
very  small.  Manufacturers  of  various  chemical  fertilizers  are  doing 
good  missionary  work,  and  the  use  of  these  fertilizers,  while  ex¬ 
pected  to  be  slow  of  expansion,  should  become  more  general. 

Calcium  carbide. — This  product  is  used  chiefly  in  the  manufacture 
of  gas  for  acetylene  lamps  and  has  not  yet  developed  a  very  large 
trade. 

Saltpeter. — The  Chinese  produce  a  rather  inferior  quality  of  salt¬ 
peter,  but  it  serves  their  purposes  sufficiently  well  to  supply  the  fire¬ 
works  industry.  Some  imported  saltpeter  is  being  used  as  fertilizer, 
and  Government  arsenals  use  it  in  the  manufacture  of  explosives. 

Bichromate  of  potash  and  bichromate  of  soda. — These  chemicals 
are  used  in  tanning. 

Hyposulphite  of  soda. — Confined  largely  to  photographic  pur¬ 
poses. 


IMPORT  TRADE  OF  CHINA  59 

Potassium  bichromate . — Used  in  tanneries  in  the  manufacture  of 

sole  leather. 

Borax. — Used  mainly  in  the  manufacture  of  white  brass. 

Bicarbonate  of  soda. — Used  for  manufacturing  soda  water  and 
medicine. 

Bleaching  powder. — Used  in  paper  manufacturing,  in  textile 
bleaching,  and  as  a  disinfectant. 

Ammonia  carbonate. — Used  mostly  in  biscuit  manufacturing. 

Industrial  chemicals  are  sold  in  China  principally  by  import 
houses  on  an  indent  basis,  and  only  the  items  for  which  there  is  a 
large  and  steady  demand  are  stocked.  These  include  soda  ash, 
caustic  soda,  bicarbonate  of  soda,  bleaching  powders,  boric  acid, 
glycerin,  oxalic  acid.  etc.  There  are  possibly  half  a  dozen  houses  in 
China  which  carry  stock  of  chemicals,  these  firms  in  the  main  being 
British.  One  large  British  firm,  which  practically  controls  the  trade 
in  soda  and  various  other  items  enumerated  above,  has  an  extremely 
well-organized  business  and  carries  stocks  in  the  principal  parts  of 
China. 

Medicines. — In  the  preceding  table  the  largest  single  item  sold  is 
that  of  medicines,  which,  in  1924,  reached  a  figure  of  approximately 
8,000,000  haikwan  taels. 

There  are  two  distinct  markets  in  China,  a  very  limited  one 
among  the  foreign  population  and  the  wealthier  Chinese  living  in 
treaty  ports,  who,  unlike  the  vast  majority  of  the  population,  use 
foreign  drugs  to  a  considerable  extent,  and  an  enormous  market 
among  the  whole  population  of  China  (estimated  in  the  neighbor¬ 
hood  of  400,000,000). 

It  is  a  simple  matter  to  sell  to  the  foreign  market,  methods  being 
little  different  from  those  pursued  at  home.  For  this  portion  of  the 
population  attractive  window  displays,  advertising  in  the  foreign 
and  native  language  press,  well-known  foreign  trade-marks,  reason¬ 
able  price,  and  good  quality  will  do  as  much  to  secure  trade  as  they 
will  in  the  United  States. 

The  enormous  market  among  the  rest  of  the  population  in  China 
must  be  approached  in  an  entirely  different  way.  It  must  be  remem¬ 
bered  that  in  addition  to  having  an  extremely  limited  purchasing 
power  and  being  (according  to  recent  estimate,  including  the  entire 
country)  90  per  cent  illiterate,  this  market  is  composed  of  people 
who  have  a  pharmacy  probably  different  from  any  other  in  the 
world,  which  has  been  evolved  through  hundreds  of  years.  In  addi¬ 
tion  to  this,  superstition  plays  no  little  part  in  their  ideas  of  medi¬ 
cine. 

In  connection  with  the  above  import  figures  it  is  necessary  to  point 
out  that  the  customs  valuation  of  drugs  imported  represent  but  a 
fraction  of  their  retail  sales  value.  In  the  case  of  a  certain  item, 
imports  are  made  in  case  lots,  and  the  value  per  unit  appearing  in 
the  customs  returns  is  in  the  neighborhood  of  10  cents  (silver),  'while 
the  retail  price  is  $1  (silver)  for  the  same  unit.  This  ratio  does  not 
apply  to  all  drugs,  but  it  is  an  indication. 

During  the  past  few  years  there  has  been  in  many  places  a  rapid 
drawing  away  from  the  old-style  drug  shop  to  the  more  modern  type 
of  dispensary,  where  both  imported  and  native  medicinal  prepara¬ 
tions,  as  well  as  toilet  articles  and  other  goods,  are  carried.  In  one 


60 


COMMERCIAL  HANDBOOK  OF  CHINA 


city,  it  is  stated  on  good  authority,  15  more  or  less  modern  Chinese 
dispensaries  now  exist  where  10  years  ago  there  were  two  old-type 
drug  shops. 

It  must,  however,  be  understood  that  owing  to  prevailing  condi¬ 
tions  it  is  an  extremely  slow  market  in  which  to  introduce  new  prod¬ 
ucts,  but  because  of  the  same  conservatism  which  makes  the  Chinese 
slow  to  adopt  new  things,  it  is  an  extremely  loyal  market  when  a 
product  has  once  been  properly  introduced  and  the  trade-mark  or 
chop  becomes  well  known. 

From  this  brief  statement  it  is  clear  that  in  order  to  reach  the 
native  market  a  thorough  knowledge  of  that  market  is  essential. 
Primarily  there  must  be  a  demand  for  the  product  which  is  to  be 
sold,  or  a  good  reason  to  believe  that  such  a  market  can  be  created. 
Price  must  be  within  reach  of  a  population  whose  purchasing  power 
is  extremely  low,  and  in  this  price  must  be  included  a  fair  margin 
of  profit  for  importer,  dealer,  and  retailer. 

In  case  of  a  company  establishing  their  own  house  here,  it  must 
be  borne  in  mind  that  the  initial  cost  of  doing  business  in  China — 
particularly  the  introducing  of  new  products  on  the  native  market — 
is  high,  and  that  results  are  extremely  slow  to  obtain. 

Advertising  and  distribution  facilities  are  probably  the  next  es¬ 
sential  features  to  consider,  and  it  is  our  opinion  that  the  advertis¬ 
ing  should  be  handled  by  some  one  who  is  thoroughly  conversant 
with  proper  advertising  methods,  as  there  are  innumerable  factors 
entering  into  effective  advertising  in  China  which  one  without  ex¬ 
perience  in  the  market  can  not  properly  handle.  An  advertisement 
which  would  carry  an  excellent  appeal  in  other  countries  might  be 
useless  or  possibly  harmful  in  China  on  account  of  many  factors, 
among  which  are  such  things  as  improper  translation,  incorrect 
color  on  posters  or  calendars,  and  nonconformity  with  the  ideas  and 
customs  of  a  particular  section  of  the,  country  in  which  advertising 
is  done. 

The  appointing  of  able  and  reliable  dealers  is  a  matter  which  is 
of  prime  importance  and  one  which  requires  a  thorough  familiarity 
with  the  market. 

Credit  as  it  exists  in  the  United  States  and  methods  of  determin¬ 
ing  the  credit  worth  of  a  native  firm  are  practically  nonexistent  in 
China,  and  a  familiarity  with  the  native  methods  of  doing  business 
is  therefore  most  essential. 

INDIGO,  DYES,  AND  COLORS 

The  interest  of  American  manufacturers  in  China  as  a  market 
for  dyes  is  of  very  recent  origin.  The  quantities  and  values  of  dye 
imports  from  the  United  States  for  the  years  1913,  1919,  1920,  1921, 
and  1923  are  shown  in  the  following  table : 


Item 

1913 

1919 

1920 

Piculs 

Haikwan 

taels 

Piculs 

Haikwan 

taels 

Piculs 

Haikwan 

taels 

Mangrove  bark.  ..  ..  . 

150 

275 

2,  050, 956 
4,  470,  482 
960 
135,  707 

Aniline  dyes _  _ 

656 

1, 667, 691 
.  341, 365 

Artificial  indigo . . . . 

4,  766 

44, 845 
16 
2,193 

Vermilion _ _ _ _ 

15 

237 

541 

2, 049 

Dyes  and  colors  (unclassed) . 

Total  value _ _ 

2,376 

87,  326 

3,246 

2,  096,  382 

6,  658,  380 

IMPORT  TRADE  OF  CHINA 


61 


Item 

1921 

1922 

1923 

Piculs 

Haikwan 

taels 

Piculs 

Haikwan 

taels 

Piculs 

Haikwan 

taels 

Aniline  dyes _ 

684, 249 
2, 617, 177 

1, 373 
76,  565 

181, 454 
958, 434 

354,  663 
3, 185, 029 

Artificial  indigo _ 

Vermilion.  ..  .  . . 

25, 108 
23 
941 

16, 029 

90, 158 

Dyes  and  colors  (unclassed)  _ 

Total  value _ 

326 

33,  633 

2,532 

54, 515 

3, 379,  364 

1, 173,  521 

3,  594,  207 

Note. — The  value  of  the  haikwan  tael  in  1913  was  $0.73  gold;  in  1919,  $1.39;  in  1920,  $1.24;  in  1921,  $0. 76; 
in  1922,  $0.83;  and  in  1923,  $0.80.  One  picul  equals  133}^  pounds. 


The  quantities  and  values  of  dye  imports  from  all  sources  for  the 
years  1913,  1919,  1920,  1921,  and  1923  are  given  in  the  following 
table : 


Item 

X, 

1913 

1919 

■ 

1920 

Piculs 

Haikwan 

taels 

Piculs 

Haikwan 

taels 

Piculs 

Haikwan 

taels 

Mangrove  bark..  _ _ _  _ 

Cinnabar.  _ _ _  .  ... 

Sapanwood _ 

Aniline  dyes _  _ _ 

107,  725 
1, 714 
23, 891 

174,  602 
130, 195 
51,  592 
5, 401,  820 
9,  633, 157 
56,  939 
243,  533 
956,  500 

177, 608 
1, 864 
80,  800 

351,  721 
267, 189 
224, 065 
3, 042,  917 

1,  312,  269 
637, 116 
256,  207 

1,  247,  200 

117, 820 
1,825 
69, 017 

238, 474 
178, 128 
231,  614 
7,  730,  291 
15,  306,  474 
470,  520 
269,  658 
1,  427,  868 

Artificial  indigo _  ..  .. 

Vegetable  indigo _ _ _ 

Vermilion.. .  _  ..  .  .  ..  . 

Dyes  and  colors  (unclassed) _ 

Total  value _ 

319,  575 
12,  620 
5,749 
135,  649 

18,  795 
87,  699 
2,647 
131, 143 

155,  641 
58,  467 
4,  008 
138, 013 

16,  648,  338 

7, 338,  684 

25,  853, 027 

Item 

1921 

1922 

1923 

Piculs 

Haikwan 

taels 

Piculs 

Haikwan 

taels 

Piculs 

Haikwan 

taels 

Mangrove  bark . . . . . 

Cinnabar _ _ _ _ _ 

Sapanwood _  ...... 

Aniline  dyes. . . .  .  _ 

190,  885 
2,  210 
30,  686 

432, 223 
201,  231 
104,  891 

7,  978,  514 
15,  260, 078 
324,  807 
263,  508 
2, 133,  802 

244,  415 
1,779 
28,  790 

563, 071 
148,  419 
108, 380 
6,  848,  907 
12,  301,206 
182,  231 
278, 128 
2,  281,  964 

196, 400 
1,738 
44,  272 

526, 487 
140,  306 
186,  238 
7,  943,  321 
11,816,  918 
162, 653 
343, 376 
2,  381,  536 

Artificial  indigo _  ...  ..  .  . 

Vegetable  indigo  . . 

Vermilion. ._  _  ...  _ 

Dyes  and  colors  (unclassed)  _  .... 

Total  value _ _  ...  _ _ 

157,  748 
42,  652 
3,  764 
194,  296 

227,  247 
21,  532 

5,  020 
195, 006 

256, 102 
16, 029 

8,  423 
202, 146 

26,  699, 054 

22,  712,  306 

23,  500,  835 

The  foregoing  figures  show  that  the  most  important  items  in  the 
d}^e  trade  of  China  are  aniline  dyes  and  artificial  indigo,  these  two 
items  constituting  85.8  per  cent  of  the  total  value  of  dyes  imported 
during  1913  and  84  per  cent  in  1923. 

The  year  1913  is  considered  the  last  normal  pre-war  year,  and 
during  that  year  Germany  supplied  82.6  per  cent  of  the  value  of 
aniline  dyes,  and  approximately  80  per  cent  of  the  artificial  indigo 
imported;  it  is  estimated  that  20  per  cent  of  the  latter  came  from 
Switzerland  although  this  is  not  shown  by  import  statistics. 

This  preeminence  of  German  manufactures  was  due  to  the  fact 
that  Germany,  in  addition  to  being  the  most  important  manufactur¬ 
ing  country,  had  been  long  in  this  market,  had  thoroughly  worked 


62  COMMERCIAL  HANDBOOK  OF  CHINA 

the  field  and  established  German  brands  on  a  sound  footing,  and 
had  a  very  efficient  system  of  distribution  throughout  the  territory. 

During  the  war,  while  Germany  was  unable  to  export  dyes  abroad, 
American  manufacturers  began  to  sell  their  dyes  in  China,  although 
1918  marks  the  first  serious  entry  of  the  United  States  into  the 
market.  Then  American  manufacturers,  their  position  strength¬ 
ened  by  their  great  progress  during  the  time  when  Germany  could 
not  supply  the  American  market,  began  earnestly  to  seek  a  share 
of  the  China  trade,  with  the  result  that  American  brands  are  now 
becoming  well  known  on  the  market,  and  will  undoubtedly  strengthen 
their  position  from  year  to  year. 

The  year  1923  may  be  regarded  as  abnormal  in  so  far  as  Germany’s 
participation  in  the  trade  is  concerned,  as  the  German  indigo  fac¬ 
tories  are  located  in  the  Ruhr,  which  during  part  of  that  year  was 
occupied  by  France,  giving  American  manufacturers  an  opportunity 
to  secure  wider  sales.  Imports  for  the  year  1924,  while  figures  are 
not  yet  available,  indicate  a  very  decided  increase  in  the  amount 
of  indigo  imported  from  Germany,  estimates  placing  this  at  208,400 
piculs  out  of  a  total  of  343,000  for  the  first  11  months.  The  total 
value  (in  haikwan  taels),  of  all  dyes  imported,  by  countries  of 
origin,  during  the  period  from  1919  to  1923,  inclusive,  shows  the 
rapid  recovery  of  the  market  by  Germany  and  are  given  in  the 
following  table : 


Countries 

1919 

1920 

1921 

Hongkong _ 

2,  271, 283 
28,  758 
22,  596 
6,  677 
83, 628 
14 

11,  755 

2,  832,  252 
12,  873 
26,  238 
17,  524 
23,  500 
329,  525 
47,  633 

4.  252,  954 
36,  575 
33,  546 
1,290 
70, 947 
1,763 
16,  371 

Macao _  _ _ 

French  Indo-China _ 

Siam  _ _ _ _ _ _ 

Straits  Settlements _ _ 

Dutch  Indies _ 

British  India _ 

Turkey,  Persia,  Egypt,  Aden,  etc _ 

Great  Britain  _ 

186, 983 

1,  284, 904 
3, 000 
4,166 
13 

3,  891,  552 

1, 966, 060 
2, 014,  338 

1, 915,  706 
3, 179,  639 

2,  207, 126 
98,  858 

Sweden _ _ _ 

Norway  _ 

Denmark  . _ . .  _  _ 

28 

5, 383,  518 

2,  951, 197 
2, 178,  851 

3,  611,694 
1,  425,  499 

106,  275 
420 

Germany _ _ 

Netherlands . . 

Belgium . . .  . 

44,  656 
972, 904 

France _ _ 

Switzerland _ _ _ 

Italy  ..  _ _ _ 

Austria  and  Hungary  _ 

29,  724 
160 
128 
928 
22,  308 
1,  894,  976 
3,  277 
67, 145 
6,  658,  380 

Russia  and  Siberia  _ 

23 

Russia,  Amur  ports _ 

2,  769 
24, 123 
51,  456 
1, 788,  463 
474 
2,  302 
3,  379,  364 

Russia,  Pacific  ports _  -  _ 

19, 180 
55, 375 

1,  650,  024 
11,456 
132,  213 

2, 096, 382 

Chosen . _ . .  .  _ _ 

Japan  (including  Formosa) _ 

Philippines _ 

Canada  .  _ 

United  States _ _ 

1922 


3,  704,  408 
6,  324 
31,  422 
409 
321,  532 
23, 122 
32, 109 
8 

362,  768 
15,  831 
11,053 
12,  497 
8,  698,  994 
5, 168,  992 
937,  862 
469,  562 
1, 973,  549 
166,  926 
1,  833 
8,  799 
8,  819 
63,  928 
44,  408 
1, 334,  313 


20,  889 
1, 173,  521 


1923 


3,  569,  090 
4,  807 
31,  656 
1,832 
335,  791 
6, 019 
12, 112 
176 
826,  708 
34.  347 
28, 031 
33, 098 
9,  939,  847 

1,  689,  777 
216, 036 
742,  883 

2,  276,  749 

9,  373 


810 


6,  256 
81,  718 
870,  846 
3,  711 
5,735 
3,  594,  207 


Nonsynthetic  dyes  comprise  but  a  small  part  of  the  total  dye 
imports  into  China,  and  a  comparison  of  figures  for  the  years  shown 
indicate  a  downward  tendency  in  favor  of  synthetic  products. 

Of  these  nonsynthetic  products,  mangrove  bark  is  the  most  im¬ 
portant  in  both  volume  and  value,  and  is  used  both  in  tanning  and 
dyeing.  In  dyeing  it  is  used  in  connection  with  iron  sulphate  for 
a  cheap  coloring  in  black,  gallnuts  being  used  for  the  same  purpose, 
and  sometimes  combined  with  mangrove  bark. 


IMPORT  TRADE  OF  CHINA 


63 


Sapanwood  is  next  in  importance.  This  wood — one  of  the  red¬ 
wood  family — is  usually  imported  in  chips  which  are  ground  to 
sawdust  and  then  soaked  with  water  to  form  an  extract.  It  can  be 
used  for  wool  dyeing  and,  therefore,  is  very  likely  among  the 
“  natural  dyestuffs  ”  sometimes  employed  "in  the  rug  industry.  It 
yields  varying  shades  ranging  from  red  to  bluish  red,  depending  on 
the  mordant  used.  This  dye  can  be  used  also  with  silk. 

Cinnabar  and  vermilion  are  both  red  sulphide  of  mercury.  The 
crude  ore  is  classed  as  cinnabar  to  differentiate  from  a  refined  grade 
which  is  termed  “  vermilion.”  Its  chief  use  in  China  is  in  the  prepa¬ 
ration  of  the  red  paste  that  serves  as  a  stamp  pad  for  “  chops.”  It  is 
also  used,  to  some  extent,  as  a  pigment. 

Under  the  customs  heading  “  Dyes  and  colors  unclassed,”  are  in¬ 
cluded  chrome  yellow,  cobalt  oxide,  emerald  green,  Prussian  blue, 
ultramarine,  and  a  wide  variety  of  lakes  and  pigments,  mostly  dry 
colors,  largely  used  in  the  paint  industry.  No  detailed  figures  are 
available. 

The  most  important  individual  item  in  China’s  aniline  dye 
trade  is  artificial  indigo  (20  per  cent  paste)  which,  in  1923,  con¬ 
stituted  approximately  50  per  cent  of  the  total  value  of  dye  imports. 
Prior  to  1905  there  was  practically  no  artificial  indigo  used  in  China, 
but  about  that  time  two  German  firms  began  to  import  it,  and  in  a 
short  time  succeeded  in  displacing  to  a  large  extent  the  vegetable 
product. 

The  situation  in  the  market  for  aniline  dyes  other  than  indigo  is 
practically  parallel  to  that  in  the  indigo  market.  Germany  has  long 
held  a  dominant  position  in  this  trade,  and  while  its  share  was  cut 
to  nothing  during  the  w^ar  years,  it  has  made  wonderful  strides  in 
regaining  its  share  of  the  market  since  1919.  The  quantity  and 
value  (in  haikwan  taels)  of  imports  of  artificial  indigo  in  the  years 
1913  and  1919  to  1923,  inclusive,  are  given  in  the  following  table : 


Countries  ' 

1913 

1919 

1920 

Piculs 

Haikwan 

taels 

Piculs 

Haikwan 

taels 

Piculs 

Haikwan 

taels 

Hongkong . . _ . . 

13, 875 
33 

523, 015 
668 

424 

34, 516 

3,930 

207,  610 

Macao _ 

French  Indo-China... . . 

18 

1,520 

Straits  Settlements _  . 

19 

300 

102,  261 

713 
8, 433 
3,  502,  744 

Great  Britain. _ _ _ ...  .. 

2,  256 

128, 205 

11,076 
21,575 
12,  020 
13,  244 
21,879 
313 

925, 192 
2,  614,  615 
1,134,  300 
1,173,639 
1,849,186 
29,  724 

Germany.  _ _ _ 

Netherlands . . .  ..  _ 

Belgium _  _ _  .... 

185, 108 
17,  688 
550 

5,  009,  083 
579, 991 
16,  271 

30 
9, 348 

8, 368 
643,  905 

France.  . . .  . 

Austria  and  Hungary _  ..  _ 

Russia,  Pacific  ports _ _ _ 

18 
1,  979 

_io 

3, 522 
153,  421 

1,  320 

Japan  (including  Formosa) _ 

13 

365 

1,  487 

112,  666 

Philippines _ _ 

Siam.. . 

342 

40 

25,  009 

4 

318 
44,  845 

13,  200 
4,166 
2, 790,  492 
600 
17,  836 
4, 470,  482 

Norway _ 

Switzerland _ 

Chosen . . . 

2 

10 
4,  766 

153 

998 

341,365 

Canada . . 

United  States  (including  Hawaii)... 

Total  gross  imports. . . . 

319,  847 

9,  641,  283 

18,  843 

1,  315,  773 

156, 100 

15,  345,  228 

64 


COMMERCIAL  HANDBOOK  OF  CHINA 


Countries 

1921 

1922 

1923 

Piculs 

Haikwan 

taels 

Piculs 

Haikwan 

taels 

Piculs 

Haikwan 

taels 

Hongkong . . . . 

French  Indo-China _ _ 

12, 864 
108 
19, 823 
17,  821 
17,  968 
16, 101 
38,  745 
496 

895, 751 

8, 856 
1,  934,  448 
1,  857,124 
1,  906,  229 
1,  409,  700 
3,  535,  600 
64, 384 

13, 431 
169 
1,  765 
100, 307 
60,  230 
8,478 
6,  991 
3,  599 
13 
99 

854, 969 
18, 993 
195, 973 
5,297,  811 
3, 334,  945 
503,  618 
434,  497 
161, 131 
1,159 
6,306 

11,848 

716, 495 

Great  Britain . 

Germany . . .  .. 

Netherlands _ _ _ 

Belgium _  _ _ _ 

France _ _ _ _ _ 

Italy . . . . .  . . . 

13,  718 
82,  037 
2,918 
342 
10,959 

643, 792 
4, 404,  838 
211,759 
12,  885 
582,  802 

Russia,  Pacific  ports _ 

43 

112 

20 

2 

46,  797 
62 

3, 193 
12, 105 
1,333 
90 

2,  221,  365 
1,  245 

Japan  (including  Formosa) . . 

Philippines _ 

265 

14, 387 

Siam  ...  _  _ _  _ 

Switzerland . . . . 

Chosen  .  .  _ 

11,409 

1,  289,  373 

39,  257 

2 

250 
16, 029 
10 

1,  932,  657 
130 
14,  422 
958,  434 
800 

Canada _ _ _ 

United  States  (including  Hawaii) _ 

Netherlands  Indies _ 

25, 108 

2,  617, 177 

90, 158 

3, 185,  029 

Total  gross  imports . 

160,  708 

15,  533,  029 

250,  630 

13,  715, 845 

259,  016 

11,  996,  841 

The  value  (in  haikwan  taels)  of  aniline  dyes  imported  into  China 
for  the  years  1913  and  1919  to  1923,  inclusive,  is  shown  in  the  fol¬ 
lowing  table : 


Countries 


Hongkong . 

Macao . . . 

French  Indo-China _ 

Siam . 

Straits  Settlements . 

British  India.. . . 

Netherlands  Indies _ 

Great  Britain _ 

Sweden . 

Denmark . . 

Norway . 

Germany.  . . . . 

Netherlands... . 

Belgium. - - 

France- . 

Switzerland. . 

Italy . . . 

Austria  and  Hungary... 
Russia  and  Siberia  by 

frontier . . 

Russia,  Pacific  ports.. . 

Russia,  Amur  ports . 

Chosen _ _ 

Japan  (including  Formosa).... 

Philippine  Islands. . . 

United  States  (including  Ha¬ 
waii) . 

Canada . 


land 


Total  gross  imports. 


1913 


Haikwan 
tads 
545, 320 
042 
22,400 


10,802 


201,810 
3, 540 
436 


2,187,251 
240,862 
2,058,870 
65, 150 


3,543 

9,117 

852 


278 
’  15,’ 744’ 


656 


5,427,345 


1919 


Haikwan 
taels 
230, 956 
21,437 
400 
520 
452 
4,407 


37, 008 


30,000 

316,268 


23 

564 


1,026 
824, 206 
42 

1,667,691 

131,171 


3,272,231 


1920 


Haikwan 
taels 
808,744 
7,937 
109 
615 
12 
7,642 
329, 525 
324,582 


1,225, 780 
824,382 
838,110 
35,144 
389, 147 


160 

30 

15 

1,193 

1,090,962 


2,050,956 

49,309 


7, 984, 354 


1921 


Haikwan 

taels 

1,398,186 

28,654 

1,490 

296 

170 

6,378 


250, 703 
82, 458 


3,390,278 
1,041,198 
750, 128 
9,687 
136, 126 
38,035 
420 


1,022 


634 
699, 936 
370 

684, 249 
1,158 


8,521,576 


1922 


Haikwan 

taels 

1,275,208 


7,521 
283 
166 
14,563 
12,525 
113,077 
15,831 
12,372 
2,280 
3,101,939 
1,724,951 
388, 150 
6.899 
40, 781 
539 


1,940 

373 


8,025 

371,807 


181,454 

330 


7,281,014 


1923 


Haikwan 

taels 

1,270,672 


28,358 
454 
98 
7,881 
4,321 
113,733 
34, 282 
30, 898 
28, 031 
4,805,347 
1,394,190 
137,513 
54,527 
52, 331 
2,829 


10,316 
207,888 
2, 378 

345, 663 
3,000 


8,534,710 


Note. — For  all  _ 
in  Belgium  and  the 


urposes  it  is  safe  to  consider  all  indigo  and  aniline  dyes  shown  as  originating 
ands  as  being  of  German  manufacture. 


Approximately  95  per  cent  of  all  aniline  dyes  sold  in  this  market 
reach  the  consumer  in  small  tins.  The  following  packages  are  usual : 
8-ounce  tins,  200  to  the  case;  1-pound  tins,  100  to  the  case;  20-ounce 
tins,  100  to  the  case. 


IMPORT  TRADE  OF  CHINA 


65 


That  portion  of  the  dyes  sold  in  bulk  is  in  barrels  of  133ys  to 
500  pounds,  with  the  Chinese  preference  strongly  in  favor  of  the 
smaller  barrel. 

Dyes  are  imported  into  Shanghai  by  the  manufacturer’s  own  office, 
or  agent,  and  sold  to  Chinese  agents  or  dealers  in  Shanghai.  These 
agents  and  dealers  have  branch  offices  or  agents  in  outports  through¬ 
out  the  interior,  and  effect  distribution  through  them. 

Dyes  which  are  imported  in  tins  are  generally  sold  under  the 
manufacturer’s  chop,  this,  of  course,  being  a  Chinese  chop  taken 
out  especially  for  this  market.  Those  dyes  which  are  imported  in 
bulk  and  repacked  by  the  Chinese  dealer  or  agent  are  sold  under  his 
own  chop. 

Manufacturers  of  all  nationalities  appoint  Chinese  houses  to  han¬ 
dle  certain  chops,  of  which  the  Chinese  house  has  control  and 
which  are  sold  only  through  them. 

While  Chinese  firms  handling  aniline  dyes  very  often  also  handle 
indigo,  a  great  many  firms  selling  indigo  do  not  sell  aniline  dyes. 
On  the  other  hand,  a  great  many  of  the  firms  handling  indigo  are 
at  the  same  time  consumers,  having  a  dye  shop  attached. 

Dyes  are  generally  sold  by  the  importer  to  the  dealer  or  agent 
on  a  10-day  native  order,  although  this  is  by  no  means  an  absolute 
rule,  credits  being  given  from  30  to  90  days,  according  to  the  relia¬ 
bility  of  the  dealer  and  his  relations  with  the  importer.  As  a  general 
rule,  longer  credits  are  given  on  indigo  than  on  other  dyes. 

The  Chinese  generally  sell  on  open  credits  which  are  settled  four 
times  yearly  on  the  appointed  settlement  days,  although  of  course 
there  are  variations  from  this  rule. 

The  Germans  can  be  considered  practically  masters  of  the  market 
for  aniline  d}7es.  Out  of  a  total  gross  import  into  China  in  1923 
valued  at  8,531,710  haikwan  taels,  Germany  (including  cargo  from 
Belgium  and  the  Netherlands)  supplied  6,337,050  haikwan  taels’ 
worth — not  considering  imports  from  Hangkong,  practically  all  of 
which  were  of  German  origin.  (In  the  case  of  indigo  the  German 
predominance  is  much  less  marked,  although,  as  previously  stated, 
1923  can  not  be  considered  a  normal  year,  for  the  reason  that  the 
large  indigo  manufacturing  plants  of  Germany  were  in  the  occupied 
zone  and  exported  50  per  cent  less  indigo  than  in  the  preceding  year.) 

American  dye  importers  state  that,  test  for  test,  American  dyes 
are  equal  to  the  German  product,  and  they  attribute  the  hold  which 
German  dyes  have  on  the  market  largely  to  the  fact  that  their  chops 
are  better  known,  having  been  in  the  market  longer.  The  matter 
of  chops  is  said  to  be  of  far  greater  importance  in  the  dye  trade 
than  in  the  indigo  trade  and,  therefore,  the  oldest  chops  on  the 
market  have  an  enormous  advantage  over  the  newer. 

Markets  for  various  colors  are  divided  according  to  the  colors 
popular  for  wear  in  the  various  sections  of  China.  For  instance,  in 
certain  districts  the  women  wear  red  trousers  almost  exclusively, 
and  the  sales  of  red  dyes  in  these  sections  are  very  much  heavier  than 
in  sections  where  the  use  of  other  colors  is  predominant.  Direct 
blues  and  blacks  are  the  most  popular,  then  come  reds  and  scarlets, 
then  basic  violets,  greens,  and  blues. 

100020°— 26 - 6 


66 


COMMERCIAL  HANDBOOK  OF  CHINA 


Sulphur  black  has  made  considerable  progress  in  China  during 
the  past  few  years  and  the  bulk  of  this  business  is  divided  between 
Japan  and  Germany,  with  German  cargo  gradually  replacing 
Japanese. 

FOODSTUFFS 

The  imported  foreign  foodstuffs  referred  to  in  this  section  con¬ 
sist  of  fresh,  dried,  and  canned  fruits,  vegetables,  meats,  flavoring 
extracts,  pickles,  condensed  and  malted  milk,  groceries,  and  all  pack¬ 
age  and  bulk  articles  of  this  nature  exclusive  of  flour,  wheat,  and 
rice. 

The  market  in  China  for  these  foodstuffs  is  found  not  only  among 
the  Chinese  population,  but  also  among  over  283,000  resident  for¬ 
eigners,  of  which  number  152,000  are  Japanese  and  96,000  Russians, 
with  the  remainder  Europeans  and  Americans.  The  Japanese  and 
Russians  are  concentrated  in  Manchuria,  while  the  other  foreign 
nationals  are  found  in  considerable  numbers  in  the  larger  treaty 
ports  of  Shanghai,  Hankow,  Tientsin,  and  the  British  Colony  of 
Hongkong.  The  main  distributing  point  for  North  and  Central 
China,  including  the  densely  populated  Yangtze  Valley,  is  Shang¬ 
hai,  with  Hankow  and  Tientsin  of  secondary  importance.  Hong¬ 
kong  is  the  distribution  center  for  South  China.  Imported  food¬ 
stuffs,  becoming  “  foreign  ”  in  China,  and  originally  imported  solely 
for  the  consumption  of  resident  foreigners  unable  or  unwilling  to 
limit  their  dietary  to  articles  of  native  produce,  have  so  grown  in 
volume  and  variety  within  recent  years  as  to  represent  a  sizable 
factor  in  China’s  imports. 

Spreading  from  the  scattered  retail  stores  of  every  foreign  na¬ 
tionality  found  in  every  community  in  China  there  are  a  relatively 
large  number  of  both  Chinese  and  foreign  retail  and  wholesale 
organizations,  with  the  attendant  smaller  list  of  importers,  jobbers, 
and  commission  houses. 

American  foodstuffs,  particularly  canned  and  package  goods,  are 
found  in  all  interior  towns  of  any  size,  and  the  Chinese  people 
themselves  are  consuming  these  articles  in  increasing  amounts.  The 
two  largest  department  stores  in  Shanghai,  both  handling  a  com¬ 
plete  department-store  line  of  both  foreign  and  domestic  merchan¬ 
dise,  are  devoting  approximately  one-half  of  their  street-floor  selling 
space  to  foodstuffs.  While  at  first  glance  this  may  seem  startling, 
to  one  familiar  with  things  Chinese  and  the  extent  of  the  Chinese 
dietary,  probably  unequaled  in  the  world  for  its  balance,  content, 
variety,  and  efficiency,  it  seems  in  no  way  unusual.  Particularly  is 
this  true  if  we  realize  further  the  part  which  restaurant  life  and 
foods  play  in  the  Chinese  social  structure.  Restaurants  of  all  sizes, 
types,  and  varieties  to  suits  all  castes,  tastes,  and  pocketbooks  are 
met  with  everywhere  in  China.  They  are  at  once  the  business  man’s 
club,  theater,  and  eating  place.  While  Americans  may  believe  them¬ 
selves  to  be  the  originators  of  the  community  restaurant,  distributing 
hot  cooked  dishes  ready  to  serve,  the  Chinese  have  possessed  this 
service  for  some  hundreds  of  years,  and  also  have  itinerant  cooks 
shouldering  their  own  stoves,  ovens,  fuel,  foodstuffs,  and  dishes, 
prepared  to  serve  anything  from  Dutch  soup  to  freshly  baked  bread, 
at  an  instant’s  notice.  Large  modern  Chinese  hotels  in  the  larger 
cities  of  China  to-day  serve  both  European  and  Chinese  food,  while 


IMPORT  TRADE  OF  CHINA 


67 


the  middle  and  higher  classes  of  Chinese,  either  to  relieve  the  rou¬ 
tine  of  their  own  culinary  art  or  to  adopt  a  modified  Western  diet, 
are  buying  more  and  more  of  foreign  foodstuffs. 

The  figures  in  the  following  table  showing  the  total  gross  imports 
of  foodstuffs,  except  wheat,  wheat  flour,  rice,  and  paddy,  are  taken 
from  the  published  statistics  of  the  Chinese  Maritime  Customs  and 
illustrate  not  only  the  growth  of  the  value  of  imported  foodstuffs 
but  also  the  growing  share  taken  by  American  goods,  which  has 
increased  from  856,000  haikwan  taels  ($624,880  gold)  or  1.1  per  cent 
of  the  total  in  1913,  to  3,847,000  haikwan  taels  ($3,077,600  gold),  or 
4.4  per  cent  of  the  total  in  1923. 


Articles 


1913 


1923 


Total 


United 

States 


Total 


United 

States 


Haikwan 

taels 


Haikwan 

taels 


Haikwan 

taels 


Haikwan 

taels 


Beans,  peas,  etc . 

Bicho  do  mar . 

Birds’  nests.. . 

Biscuits _ _ _ 

Butter  (including  ghee) 

Cardamoms . . 

Caviar . . 

Cereals: 


1, 022, 044 
1, 173, 001 
654, 991 


4,648 


592, 453  138 

198,465  . . 

25, 666  196 


991,  050 
2, 178,  882 
1, 052,  392 
388,  480 
858, 923 
412, 172 
27,  424 


Barley.— _ _ _ _ 

Maize _ _ _ _ 

Oats _ _ _ _ 

Cheese _ _ _ _ 

Cinnamon. _ _ 

Cloves  and  spices _ _ 

Cocoa,  crude. _ _ _ _ 

Cocoa  and  chocolate,  prepared _ _ _ 

Coffee... . . . . . . . 

Confectionery  (not  including  chocolate  and  cocoa) . . 

Eggs,  game,  and  poultry . . . _ 

Fish  and  fishery  products  (not  including  bicho  do  mar,  is¬ 
inglass,  seaweed,  and  agar-agar). _ _ 

Foodstuffs,  unclassified _ _ 

Fruits: 


29, 822 
17,  250 
84,  032 
110,  475 
65,  201 
94,  712 
4, 140 
60,  433 
82,629 
352,  960 
32, 930 

13, 033,  646 


5,  745 
19,  827 


1,719 
18 
2, 985 
38,  578 
10,  407 


227,  273 


Dried . . 

Fresh _ _ _ _ _ _ 

Honey . . _ 

•Macaroni  and  vermicelli _ 

Margarine  and  artificial  butter _ _ 

Meats,  prepared  or  preserved  (including  lard  and  preserved 


767,  278 
665,  785 
38,  856 
795,  024 
13,  691 


33,  616 
28, 172 
1,  705 
3,  308 


game  and  poultry.. . . . 

Milk,  condensed: 

In  tins  (by  dozens)... _ _ 

In  tins  (by  piculs) . . 

Molasses.. . . . . 

Mushrooms.. . . . . 

Pepper,  black  and  white. . . 

Seaweed  and  agar-agar _ _ _ 

Stores,  household,  not  otherwise  classified. 
Sugar: 


336,  263 


23,  476 


791,  546 


222, 925 


663,  904 
995,  122 
1,  715,  584 
4,  219,  006 


188,  762 


64,  532 
15,  677 

17,  774 
120,  403 

91,  863 

88,  449 
14, 132 

112,  002 
80,  111 
482,  082 

89,  687 

19,  506,  817 
671, 157 

2,  450, 984 
1,  552,  044 

18,  551 
1,  383, 923 

34,  799 

440,  801 

253,  526 
1,  770,  566 
212,  390 
664,390 
887,  054 
3, 175, 943 
4,  430,  825 


Brown. 

White.. 

Refined 

Candy. 

Canes.. 


Tea.. . . 

Water,  aerated  and  mineral. 
Wines,  beer,  spirits,  etc.: 

Beer  and  porter _ 

Wines . . . 

Spirits . . 

Other  beverages . . 

Soy . . 


9,  240, 197 
10,  652,  542 
14,  617,  831 
1,  844,  718 
157,  091 
5,  283,  400 
200,  490 


2 

1,113 
4,594 
1, 173 


828 

4 


6,  148,  692 
13,  049,  495 
30, 139,  265 
3,  224,  111 
335,  063 
818,  702 
237,  414 


736,  078 
1,  244,  465 
1, 165,  664 
55,  939 


6 

14, 952 
19,  460 
210 


830,  317 
2,  306,  357 
2,  421,  622 
202,  799 
323,  270 


3,562 


54,  798 
114, 153 


32,  650 


612 
43,  326 


3,  262 
1,  405 
27,  903 
36,  030 
60,  353 


204,  521 


642,  469 
283,  668 
324 
17,  032 
298 

9, 937 

9,200 
1, 047,  375 
316 


44 


1, 171,  284 

24 

484 

10,427 


9, 527 


1,503 
60,  396 
66 


Value  of  haikwan  tael  in  United  States  gold:  1913,  $0.73;  1923,  $0.80. 

Foodstuffs  are  subject  to  an  import  duty  of  5  per  cent  ad  valorem 
or  the  substantial  equivalent  in  specific  rates  of  duty.  By  a  further 


68  COMMERCIAL  HANDBOOK  OF  CHINA 

payment  of  one-half  of  the  amount  of  import  duty — that  is,  approxi¬ 
mately  2x/2  per  cent  surtax — goods  destined  for  interior  points  not 
treaty  ports  are  supposedly  exempt  from  likin  or  local  taxes.  There 
are  no  existing  Chinese  regulations  corresponding  to  the  United 
States  pure-food  laws  or  in  any  way  regulating  the  quality  and 
content  of  imported  foodstuffs. 

Imported  milk  products  are  marketed  by  an  extensive  organiza¬ 
tion  in  China,  independently  of  other  foodstuffs.  The  same  is  true 
for  raisins.  All  other  foodstuffs  are  in  general  marketed  somewhat 
after  the  following  manner.  A  Shanghai  commission  house,  jobber, 
or  broker  obtains  the  agency  for  a  food  product.  The  initial  ship¬ 
ment  of  goods  on  arrival  is  distributed  as  far  as  possible  on  the 
Shanghai  market  and  the  remainder,  if  any,  goes  to  outport  agencies 
also  on  a  commission  basis  to  be  rehandled  in  like  manner.  An  ex¬ 
tremely  limited  number  of  Shanghai  concerns  have  their  own  rep¬ 
resentatives  in  ports  such  as  Hankow,  Tientsin,  Dairen,  and  Hong¬ 
kong,  but  in  most  cases  these  agencies  are  directly  supervised  by 
Chinese,  not  American  or  European  sales  managers. 

If  a  market  with  the  size  and  potentialities  of  China  does  not 
justify  the  initial  expense  of  a  Shanghai  office  for  distribution  and 
sales  promotion  work,  the  detail  of  a  factory  or  home  sales  repre¬ 
sentative  to  a  carefully  selected  resident  commission  house  or  agent 
is  to  be  recommended.  This  gives  the  combined  cooperative  effort  of 
an  agency  thoroughly  familiar  with  local  conditions  and  a  repre¬ 
sentative  thoroughly  familiar  with  the  product.  With  these  working 
out  together  an  adapted  style  and  size  package,  label,  trade-mark, 
appropriate  advertising  matter,  combined  Chinese  and  English  di¬ 
rections  and  explanatory  matter,  recipes,  the  distribution  of  samples, 
use  of  demonstrators,  selection  of  agents,  training  of  salesmen,  and 
first-hand  estimate  of  market  possibilities,  satisfactory  results  are 
obtained.  The  non-English-speaking  Chinese,  by  far  the  majority 
of  Chinese  purchasers,  buy  imported  package  and  canned  goods 
largely  on  the  relative  merits  of  the  brand,  trade-mark,  or  chop. 
Outside  of  American  raisins  and  canned-milk  products  few,  if  any,- 
import  packages  have  an  identifying  mark  in  the  Chinese  language, 
Chinese  descriptive  matter,  or  directions  for  preparing  and  serving. 
A  further  study  of  Chinese  methods  of  preparing  foods  of  the 
Chinese,  dietary  and  language,  the  development  of  an  intelligent 
Chinese  sales  force  working  through  the  retail  and  wholesale  stores, 
restaurants,  and  dealers,  the  use  of  demonstrators  illustrating  the 
methods  of  preparing  and  serving  the  foodstuffs,  all  are  highly 
desirable. 

Illustrative  of  the  ready  appreciation  and  use  of  canned  and  pack¬ 
age  foods  among  the  Chinese  is  the  fact  that  there  are  more  than 
11  canning  factories  in  China  with  a  total  maximum  daily  output  of 
62,000  cans.  While  these  articles  can  not  as  yet  be  said  to  hold  an 
important  place  in  the  everyday  dietary  of  even  the  wealthier  class 
Chinese,  their  popularity  is  increasing.  Chinese  fruits,  vegetables, 
meats,  and  biscuits  constitute  the  entire  production  of  these  factories. 

WHEAT  AND  FLOUR 

Contrary  to  the  popular  idea  among  those  unacquainted  with 
China  that  all  the  Chinese  are  rice-eating  people,  there  are  millions 


IMPORT  TRADE  OF  CHINA 


69 


of  Chinese  who  do  not  eat  rice,  and  who  probably  have  never  even 
seen  rice.  The  population  of  North  China,  including  that  of  Man¬ 
churia,  is  not,  for  the  most  part,  rice-eating.  These  people  produce 
and  consume  wheat,  millet,  corn,  beans,  and  sweet  potatoes,  as  the 
main  part  of  their  diet.  Other  parts  of  China,  even  to  the  extreme 
southern  portions,  consume  wheat  flour,  and  the  quantities  consumed 
are  constantly  increasing. 

Owing  to  lack  of  reliable  statistical  information,  estimates  as  to 
the  total  average  wheat  crop  of  China  vary  from  200,000,000  to 
(500,000,000  bushels. 

As  the  use  of  wheat  flour  is  becoming  more  general,  exports  of 
wheat  and  flour  from  China  tend  to  become  less,  while  imports  are 
rising.  The  following  table  shows  imports  and  exports  of  wheat 
and  wheat  flour  between  China  and  foreign  countries  since  1910 : 


Years 


1910 

1911. 

1912 

1913. 

1914. 

1915. 

1916. 

1917. 
1918 
1919. 
1920 

1921. 

1922. 

1923. 


Wheat 

Flour 

Imports 

Exports 

Imports 

Exports 

Piculs 

Piculs 

Piculs 

Piculs 

1,392 

2, 199, 186 

740, 841 

901, 296 

3, 197 

1,  926, 121 

2, 183,  042 

669,  889 

2,564 

1,  376,  689 

3,  202,  501 

637,  484 

2,  032 

1,  848,  071 

2,  596,  821 

139,  206 

998 

1,  969,  048 

2,  166,  318 

69,  932 

2,585 

1,  514,  536 

177,  367 

196,  596 

59,  555 

1,  155,  179 

233,  464 

289,  747 

36, 169 

1,  557,  601 

678,  849 

798,  031 

16 

1,  815,  461 

4,  551 

2,011,  899 

20 

4,  453,  471 

271,  328 

2,  694,  271 

5,  425 

5,  431,  520 

511,  021 

3,  960,  779 

81,  346 

5, 194,  022 

752,  673 

2, 047,  004 

873, 142 

1,  151,  014 

3,  600,  967 

593,  255 

2,  595, 190 

639,  919 

5,  826,  540 

131,  553 

One  picul  equivalent  to  133}4  pounds. 


It  will  be  noted  that,  while  the  importation  of  wheat  is  a  recent 
development  resulting  from  the  growth  of  China’s  milling  industry, 
large  importations  of  flour  were  being  made  as  far  back  as  1911,  1912, 
and  1913.  There  was  a  falling  off  in  imports  during  and  immedi¬ 
ately  after  the  war  until,  in  1920,  there  was  a  decided  increase,  which 
has  since  continued. 

The  principal  considerations  governing  the  importation  of  wheat 
and  flour  are  price  and  available  domestic  supply.  When  China’s 
crop  in  districts  available  to  the  milling  centers  is  good,  the  demand 
for  imported  wheat  is  smaller  than  at  times  of  failure,  unless  prices 
are  such  that  it  is  to  the  advantage  of  the  millers  to  import  either 
wheat  or  flour.  In  many  instances  millers  will  import  flour  to  sell  ~ 
under  their  own  brands,  and  dispose  of  their  wheat  at  a  profit  in¬ 
stead  of  milling  it.  At  other  times  they  will  mill  imported  wheat  and 
sell  the  product  in  competition  with  imported  flour. 

American  wheat  is  in  very  close  competition  with  Australian  and 
Canadian  wheat  and  most  mills  blend  these  with  Chinese  and  Ameri¬ 
can  wheats.  Price  and  quality  are  the  governing  factors  in  determin¬ 
ing  the  source  of  imports,  and  in  price  considerations  the  question  of 
exchange  rates  is  of  great  importance. 

Prior  to  1921  China’s  imports  of  wheat  were  small,  the  heaviest 
being  in  1916  when  59,555  piculs  were  imported,  principally  from 


70 


COMMERCIAL  HANDBOOK  OF  CHINA 


Russia  and  Siberia.  This  is  due  largely  to  the  fact  that  the  develop¬ 
ment  of  the  Chinese  milling  industry  has  occurred  within  the  past  15 
years,  and  from  1914  to  1921  little  of  the  world’s  wheat  supply  was 
available  to  China — in  fact,  China  was  exporting  large  quantities. 
Beginning  with  1922,  however,  imports  have  assumed  important  pro¬ 
portions,  owing  to  poor  wheat  crops  in  1922  and  1923.  The  following 
tabulation  shows  sources  of  imports  for  1922  and  subsequent  years 
as  compared  with  1921,  the  most  important  previous  year: 


Imported  from — 

1921 

1922 

1923 

First  9  months 
1924,  Shanghai  only 

Hongkong  _ 

Piculs 

37 

Haik¬ 

wan 

taels 

101 

Piculs 

403 

1 

Haik¬ 

wan 

taels 

1,090 

8 

Piculs 

181 

5 

158 

2 

61 

298,  037 

2,  010,  690 

286,  056 

Haik¬ 

wan 

taels 

405 

100 

632 

8 

257 

1,136,758 

6,  935,  938 

1,  021, 967 

Piculs 

Haik¬ 

wan 

taels 

British  India _ _ 

5 

23 

Russia,  Amur  ports _ 

Chosen  .  _  _ _ 

8,  763 
65 

29,987 

322 

1,083 

9 

7,480 

800,  827 

63, 339 

2,  551 
46 

25,  061 

2,  807,  701 

221,350 

J apan  (including  Taiwan) . . 
Canada _  _ 

111 

1,  939,  213 

1,  927, 156 

1, 181,  306 

474 

6, 138,  026 

6,  820,  563 

4,  282,  282 

United  States  (including 
Hawaii)..  _ 

72, 481 

271, 395 

Australia,  New  Zealand, 
etc _ 

Total _ 

81,  346 

301,  805 

873, 142 

3,  057,  807 

2,  595, 190 

9,  096,  065 

5, 047,  791 

17,  241,  368 

United  States  share 
_ _ per  cent.. 

89.9 

91.16 

76.25 

39.  56 

Note. — Value  of  haikwan  tael  in  United  States  gold:  1921,  $0.76;  1922,  $0.83;  1923,  $0.80;  1924,  $0.7983. 


Shanghai,  being  the  most  important  milling  center  in  China  (aside 
from  Manchuria,  which  ordinarily  grows  its  own  wheat  supply), 
has  imported  88.04  per  cent  of  the  total  wheat  imports  of  China  dur¬ 
ing  1921-1923,  inclusive.  Based  on  this  percentage,  it  may  be  as¬ 
sumed  that  China’s  total  wheat  imports  for  the  year  1924  will  be 
around  5,734,000  piculs,  as  practically  none  was  imported  after 
September. 

Wheat  is  imported  through  American,  Japanese,  British,  and 
Chinese  import  houses,  which  buy  either  through  their  own  branches 
in  the  country  of  supply  or  through  exporters  or  brokers  in  those 
countries.  Japanese  houses  do  a  large  portion  of  the  business  in 
China  because  they  have  their  own  branches  in  America,  and  in  some 
instances  have  their  own  steamship  lines  over  which  to  effect  ship¬ 
ment.  Wheat  from  the  United  States,  Canada,  and  Australia  is 
bought  and  sold  under  Government  certificates  covering  both  grade 
and  weight.  In  general  it  is  a  “  cash  ”  business  both  for  the  importer 
and  the  Chinese  customer,  although  these  terms  may  vary  with  the 
facilities  and  connections  which  the  importer  has  in  the  country  of 
purchase  and  his  relations  with  his  customer  in  China. 

Imported  wheat  arrives  both  in  bulk  shipments  and  sacked. 
Owing  to  the  lack  of  modern  handling  facilities  in  Shanghai,  bulk 
shipments  are  sacked  in  the  hold  before  handling  if  possible.  Ap¬ 
proximately  40  per  cent  of  the  wheat  arriving  at  Shanghai  is  dis¬ 
charged  on  shore  and  handled  through  godowns,  the  remainder 
being  discharged  in  the  stream  onto  lighters.  The  average  rate  of 
discharge  of  sacked  wheat  is  from  800  to  1,000  tons  per  day. 

While  China’s  modern  milling  industry  has  increased  tremen¬ 
dously,  there  are  still  thousands  of  old-fashioned  native  stone  grind- 


IMPORT  TRADE  OF  CHINA 


71 


ers  working  throughout  the  interior,  turning  out  a  coarse  grade  of 
flour  for  local  consumption.  It  is  the  gradual  education  of  the 
people  to  an  appreciation  of  well-milled  flour,  as  well  as  the  increas¬ 
ing  use  of  all  flours,  that  is  causing  the  advance  in  the  importation 
of  foreign  flour  and  the  increasing  demand  for  the  excellent  product 
turned  out  by  the  modern  mills. 

China’s  flour  imports  depend  on  the  domestic  wheat  crop  and  on 
prices  both  for  domestic  and  for  foreign  flour.  Poor  wheat  crops 
during  1922  and  1923  caused  large  imports  of  flour,  but  it  is  prob¬ 
able  that  imports  during  1924  will  show  a  heavy  falling  off  from 
these  two  years.  It  is  thought  that  China’s  milling  capacity  will 
gradually  increase  until  it  is  able  to  supply  the  normal  demand  for 
high-grade  flour,  and  that  imports  will  depend  largely  upon  the 
extent  to  which  price  fluctuations  make  such  trade  profitable. 

The  share  of  the  United  States  in  the  flour  business  of  China 
(direct  imports)  was  31.83  per  cent  in  1921,  54.97  per  cent  in  1922, 
and  60.07  per  cent  in  1923.  In  addition  to  these  direct  shipments, 
the  bulk  of  Hongkong’s  shipments  into  China  consisted  of  American 
flour,  which  brings  the  total  share  of  the  United  States  up  to  approxi¬ 
mately  88  per  cent  in  1921,  89  per  cent  in  1922,  and  82  per  cent  in  1923. 

During  the  buying  season,  usually  from  November  to  April,  the 
larger  Pacific  coast  mills  have  representatives  in  China,  and  through 
them  supply  the  more  important  buyers.  There  are,  however,  par¬ 
ticularly  in  seasons  of  free  buying,  a  good  many  smaller  orders 
which  go  to  Pacific  coast  brokers  and  exporters. 

The  flour  import  business  is  done  by  Chinese,  American,  British, 
and  Japanese  import  houses,  who  usually  import  flour  under  some 
specified  chop  or  brand.  As  a  rule,  letters  of  credit  are  opened  in 
favor  of  exporters  or  brokers  in  the  United  States  and  importers 
in  China  selling  for  cash  on  delivery. 

It  is  impossible  to  determine  the  principal  flour  importing  section 
of  China,  as  the  standing  of  the  ports  changes  from  year  to  year 
with  changes  in  crop  conditions  and  prices  in  the  various  sections 
of  China.  In  1923  Tientsin  took  24.9  per  cent,  Shanghai  18.1  per 
cent,  and  Dairen  14.8  per  cent  of  the  total,  wThile  in  1921  Canton  led 
with  25.8  per  cent,  and  Shanghai  followed  with  24.7  per  cent,  Tien¬ 
tsin  taking  but  little  over  iy2  per  cent. 

Both  wheat  and  flour  are  imported  into  China  duty  free. 

CIGARETTES  AND  TOBACCO 

The  volume  of  the  cigarette  business  in  China  is  undoubtedly 
one  of  the  best  examples  of  results  which  can  be  obtained  in  that 
country  through  a  systematic  building  up  of  the  market  and  the 
development  of  a  thorough  and  elaborate  system  of  advertising, 
merchandising,  and  distribution. 

Cigarette  smoking,  while  a  habit  very  recently  acquired  in  China, 
is  to-day  cited  as  an  extraordinary  example  of  the  luxury  purchas¬ 
ing  power  of  a  people  whose  per  capita  wealth  is  extremely  low. 

According  to  the  best  available  records  the  importation  of  ciga¬ 
rettes  was  begun  about  1890,  when  a  few  cases  per  year  were  brought 
in  and  sold  in  carton  lots  to  shopkeepers  for  disposal  among  for¬ 
eigners  in  the  ports. 


72 


COMMERCIAL  HANDBOOK  OF  CHINA 


Gradually,  Chinese  in  the  treaty  ports  experimented  with  and 
adopted  the  cigarette,  and  in  1902  cigars  and  cigarettes  were  given 
a.  separate  heading  in  the  Chinese  Maritime  Customs  returns.  In 
that  year  imports  under  this  heading  were  valued  at  1,199,119  hai- 
kwan  taels.  (During  1902,  1  haikwan  tael=$0.64  United  States 
currency. ) 

The  rapid  growth  of  this  trade  since  then,  and  the  increase  in 
imports  of  cigarettes  from  the  United  States,  in  periods  from  1910 
to  1923  inclusive,  are  shown  in  the  following  table : 


Imported  from — 

1910 

1914 

1919 

1923 

Thou¬ 

sands 

Haikwan 

taels 

Thou¬ 

sands 

Haikwan 

taels 

Thou¬ 

sands 

Haikwan 

taels 

Thou¬ 

sands 

Haikwan 

taels 

Hongkong. . . 

217, 616 

441, 463 

'  368,740 

932, 319 

707, 005 

2,  774, 243 

400, 637 

1, 306, 021 

Macao _ 

360 

1,006 

427 

1,192 

1,  566 

4, 188 

3, 227 

6, 729 

French  Indo-China _ 

8,  872 

17,  735 

41,  563 

55, 965 

13,  068 

17,  289 

3, 121 

5, 509 

Siam _ 

1 

7 

49 

377 

120 

240 

Straits  Settlements. . 

11,000 

19,  910 

3,883 

5, 023 

1, 400 

8, 470 

Dutch  Indies  _ 

143 

481 

British  India _ 

25, 096 

45,  845 

196 

548 

1,394 

3, 964 

621 

2, 851 

Turkey,  Persia,  Egypt, 

Aden,  Algeria,  etc _ 

15, 352 

79,  667 

12, 055 

128, 179 

5,  962 

51,000 

3,  954 

62,  365 

Great  Britain . . 

2,112,566 

4, 049,501 

4,  439,  607 

9, 806,  899 

153, 433 

1,021, 148 

518,  825 

3,  703,  789 

Denmark . . . . 

1 

6 

Germany _ _ _ 

5, 816 

20, 020 

79,  206 

160,  626 

2,  586 

13,  810 

Netherlands. . . . 

80 

480 

1 

7 

'  150 

'  700 

Belgium  . . 

67 : 

233 

90 

373 

24 

109 

France . . . 

10,013 

25,  556 

1,656 

3,  674 

2,154 

10,  502 

6, 819 

7,  611 

Italy . . . . . 

358 

744 

1,052 

3,  954 

577 

3,  752 

551 

4,  878 

Austria  and  Hungary. 

25 

150 

49 

237 

Russia,  European  ports.. 

52 

311 

Russia  and  Siberia  by 

land  frontier  _ 

495,  650 

743,  565 

544,  501 

1,  089,  846 

395 

739 

Russia,  Amur  Ports _ 

133 

249 

30 

40 

Russia,  Pacific  Ports . 

745 

3,  542 

2,  720 

4,  249 

600 

548 

2, 202 

4,852 

Chosen  _ 

20, 050 

36,  536 

127,  798 

274,  568 

557,  225 

905,  617 

80,  692 

210,  642 

Japan  (including  For- 

mosa) _ 

325,  134 

604,  438 

207, 022 

413,  095 

380, 004 

992, 100 

43,  820 

118,  461 

Philippine  Islands _ 

1,017 

1,970 

6,  051 

18,013 

11,264 

36,  926 

7,  258 

13,  822 

Canada _ 

156, 875 

295,  730 

1,  819,  590 

4,  605,  727 

907, 063 

2,  277,  866 

United  States  (including 

Hawaii). . . 

532, 112 

968,  216 

162, 500 

322,  550 

4,  239,  735 

11,006,  437 

8, 197, 159 

20,  752,  039 

Gross  imports  from 

foreign  countries. 

3,  782,114 

7, 061, 137 

6, 155,  994 

13,  517, 060 

7,  895, 056 

21,  442,  328 

10, 179,  369 

28, 493, 514 

Reexported  to  foreign 

countries _ 

58,  569 

158,891 

110,586 

195,444 

123, 109 

478, 879 

62,  476 

220, 899 

Net  imports  from 

foreign  countries. 

3,  723,  545 

6,  902,  246 

6,  045, 408 

13,  321,  616 

7,  771,947 

20, 963,  449 

10,116,893 

28,  272,  615 

Note. — Value  of  haikwan  tael  in  1910  was  $0.73  gold;  in  1914,  $0.67;  in  1919,  $1.39;  in  1923,  $0.80. 


It  is  impossible  to  state  what  quantity  of  American  cigarettes 
find  their  way  into  China  through  Hongkong.  However,  it  is  of 
interest  to  note  that  in  1923  Hongkong  imported  cigarettes  to  the 
value  of  97,289  pounds  sterling  from  the  United  States,  and  a  large 
portion  of  these  were  reexported  to  China. 

While  the  importation  of  cigarettes  has  grown  rapidly,  this  by 
no  means  illustrates  the  growth  of  consumption  in  China.  A  well- 
known  tobacco  journal  recently  estimated  the  consumption  of  ciga¬ 
rettes  in  China  as  approximately  40,000,000,000  yearly  (as  com¬ 
pared  with  about  60,000,000,000  in  the  United  States).  Statements 
made  by  various  authorities  in  China  seem  to  indicate  that,  if  any¬ 
thing,  this  estimate  is  low.  In  1910  importation  of  tobacco  was, 
according  to  the  Chinese  Maritime  Customs,  about  14,000,000  pounds 
In  1916  this  had  increased  to  approximately  20,000,000  pounds.  The 


IMPORT  TRADE  OF  CHINA 


73 


rapid  development  of  the  cigarette  manufacturing  industry  since 
that  time  has  increased  the  importation  of  tobacco  until,  in  1923, 
imports  totaled  43,000,000  pounds. 

Imported  tobacco  is  used  almost  entirely  in  the  manufacture  of 
cigarettes.  Only  foreigners  use  imported  tobacco  for  pipe  smoking 
and  the  quantity  is  negligible.  Chinese  use  native  tobacco  for 
smoking  in  native  pipes. 

Imports  of  tobacco  into  China  are  shown  in  the  following  table : 


Imported  from — 

1910 

1914 

1919 

1923 

Piculs 

Haikwan 

taels 

Piculs 

Haikwan 

taels 

Piculs 

Haikwan 

taels 

Piculs 

Haikwan 

taels 

Hongkong - - - 

35,  859 

495, 949 

47,  366 

625, 684 

21, 670 

494, 907 

32, 155 

1, 239, 904 

Macao -  - 

9,335 

45, 940 

3,  324 

18,  423 

2,  278 

13,  585 

2,598 

32,  271 

French  Indo-China . . 

211 

6,  630 

247 

9,  674 

44 

1,514 

211 

10,  558 

Siam _ 

19 

547 

123 

3,  222 

21 

538 

62 

1,736 

Straits  Settlements  - 

139 

1,  546 

469 

5, 004 

60 

6, 996 

8 

363 

Netherlands  Indies  _ 

236 

2,  031 

372 

15, 940 

122 

407 

British  India..  _  .  .. 

179 

1, 996 

45 

i;  338 

244 

4,836 

22 

318 

Turkey,  Persia,  Egypt,  Aden, 

Algeria,  etc... - - 

66 

1,365 

247 

7,  500 

5 

337 

259 

18,215 

Great  Britain  - 

1,  979 

46, 109 

253 

30, 957 

1,929 

48, 969 

654 

113,  749 

Germany  _ 

70 

11,052 

5, 436 

162,  724 

184 

5,  091 

Netherlands  _ 

3 

105 

9, 138 

Belgium  ..  _ 

21 

597 

30 

896 

88 

9,  964 

France . . . . 

279 

3,  279 

58 

1,  787 

3 

189 

633 

39;  124 

Italy  .  ..  _ 

24 

269 

77 

6,  240 

Austria  and  Hungary _ 

1 

80 

19 

553 

Russia,  European  ports _ 

Russia  and  Siberia  by  land 

frontier.. _  _ 

4,  580 

114,  500 

5, 246 

196,  532 

35 

447 

Russia  Amur  ports _ 

59 

730 

Russia  Pacific'ports _ 

2,015 

39,  625 

975 

23,  570 

297 

854 

87 

2,  624 

Chosen _  _ 

125 

3,  842 

5,  573 

57,  741 

16, 061 

306, 437 

35,  352 

600,  248 

Japan  (including  Formosa)... 

7, 364 

152,  512 

3,  637 

93,  742 

13,  762 

368,  264 

15,918 

359,  231 

Philippine  Islands _ 

208 

3,  459 

4,  590 

164, 193 

1,998 

95,  925 

3, 101 

67, 823 

Canada _ 

82 

3,  361 

95 

3,  920 

26, 821 

927,  390 

United  States  (including 

Hawaii) _ _ _ 

40,  846 

1, 123,  753 

41, 196 

1,314,084 

81,  799 

3,  283,  243 

229,  616 

10,  538,  725 

Denmark _ 

6 

South  Africa  (including 

Mauritius) _ _ ... 

10 

669 

Mexico  and  Central  America 

(including  Formosa) _ 

1 

113 

Gross  imports  from 

foreign  countries  ... 

103,  638 

2, 058,  442 

119,  360 

2,  738, 223 

166, 992 

5,  553,  984 

321,  298 

13, 056,  958 

Reexported  to  foreign 

countries . . —  —  _ 

1,171 

33,  531 

1,006 

44,  975 

7, 168 

202, 993 

5,986 

366,  280 

Net  imports  from  for- 

eign  countries . . 

102,  467 

2, 024,  911 

118,  354 

2,  693,  248 

159, 824 

5, 350,  991 

315,312 

12,  690,  678 

Note. — Value  of  haikwan  tael  in  1910,  $0.73  gold;  in  1914,  $0.67;  in  1919,  $1.39;  in  1923,  $0.80. 
equivalent  to  133M  pounds. 


One  picul 


In  1914  an  additional  classification  was  made  in  the  Chinese  Mari¬ 
time  Customs  returns  to  cover  imported  tobacco,  by  value  only. 
Total  gross  imports  under  this  heading  were:  14,434  haikwan  taels 
in  1914;  30,815  in  1919;  and  86,338  in  1923. 

In  addition  to  the  direct  imports  from  the  United  States,  a  large 
quantity  of  American  tobacco  reaches  China  through  Hongkong. 
Statistics  showing  exact  quantities  are  not  available,  but  in  1923 
Hongkong  imported  raw  tobacco  from  the  United  States  to  the  value 
of  84,569  pounds  sterling,  the  greater  part  of  which  undoubtedly 
found  its  way  into  China.  The  manufacturing  companies  consume  a 
large  amount  of  Chinese  tobacco  both  for  making  cigarettes  of  pure 
Chinese  tobacco  and  for  blending  with  imported  leaf.  China  pro- 


74 


commercial  handbook  of  china 


duces  all  the  varieties  of  tobacco  grown  in  the  United  States,  and  many- 
additional  types.  From  the  custom  of  Chinese  trade  in  classifying 
Chinese  produce  under  the  name  of  the  district  in  which  it  originates 
or  according  to  some  simple  numerical  system,  it  is  impossible  to 
give  a  type  corresponding  either  to  the  American  commercial  or  to 
the  botanical  classification.  The  better  known  types  which  are  ex¬ 
ported  are  “Namheung,”  “Wongkong,”  “Tungchow,”  and  “Kwong- 
fung.”  In  both  Shantung  and  Honan  Provinces  much  tobacco  is 
produced  annually  from  Virginia  seed,  the  tobacco  seed  being 
brought  over  from  America  each  year  and  cultivation  supervised  by 
American  tobacco  experts.  Other  prominent  types  are :  “  Willow 
leaf,”  “green  veined,”  “yellow,”  “fragrant  amber,”  “hollyhock,” 
“  uneven,”  and  innumerable  others.  Tobacco  is  also  commonly  clas¬ 
sified  as  cigarette,  cigar,  and  pipe  tobacco.  All  three  types  are 
grown  in  China.  The  largest  quantities  are  consumed  in  cigarettes, 
the  quantity  consumed  in  native  pipes  ranks  a  steadily  decreasing 
second,  and  cigars  constitute  an  increasing  third.  Cigarettes  tend  to 
displace  the  old  water  pipe,  and  cheap  cigars  are  rapidly  assuming 
an  important  place  in  popular  demand.  If  the  figure  of  3  pounds 
of  tobacco  per  thousand  cigarettes  is  taken,  the  1923  tobacco  imports 
would  be  sufficient  to  manufacture  approximately  14,300,000,000  cig¬ 
arettes.  On  this  basis  it  would  appear  that  47,000,000  pounds  of 
Chinese  tobacco  are  used  each  year  to  manufacture  cigarettes, 
although  no  statistical  substantiation  of  this  figure  is  obtainable. 
To-day,  not  only  foreign  firms  manufacture  cigarettes  in  China,  but 
there  is  one  very  large  Chinese  company  and  several  smaller  ones 
manufacturing  for  the  native  trade. 

In  addition  to  cigarettes  and  tobacco,  the  cigarette  trade  is  directly 
responsible  for  the  importation  of  large  quantities  of  lumber,  tin 
plate,  printing  inks  and  materials,  cigarette  paper,  foil,  cardboard, 
printing  paper,  wrapping  paper,  glassine  paper,  and  glue.  Some 
of  these  items  are  included  in  a  separate  customs  classification,  “  Cig¬ 
arette-making  materials,”  under  which  heading  1923  gross  imports 
totaled  2,1GG,G19  haikwan  taels.  Owing  to  the  fact  that  much  of 
this  material  is  classified  in  the  customs  returns  under  headings  such 
as  “  foil,”  “  paper,”  etc.,  it  is  impossible  to  give  exact  figures,  but  the 
total  amounts  used  in  connection  with  the  manufacture  of  30,000,- 
000,000  cigarettes  a  year  must  reach  a  very  high  figure. 

According  to  Shanghai  customs  statistics  the  great  bulk  of  ciga¬ 
rette  imports  consists  of  those  valued  between  1.50  and  3  haikwan  taels 
per  thousand.  The  imports  of  cigarettes  into  Shanghai  from  Janu¬ 
ary  to  September,  1924,  inclusive,  are  shown  in  the  following  table : 


Value  per  thousand 

Number  in  thousands 

Value  in  haikwan  taels 

United 

States 

Total 

United 

States 

Total 

1.50  haikwan  taels  or  less . . . . . . 

1.50  but  not  over  3  haikwan  taels _  ...  _ 

3  but  not  over  4.50  haikwan  taels . . .. . 

4.50  but  not  over  6.50  haikwan  taels.. _  .  _ _ 

6.50  but  not  over  8.50  haikwan  taels  _ _ _ 

8.50  but  not  over  12.50  haikwan  taels.  _ 

Over  12.50  haikwan  taels _ _ _ _ 

Total . . . . 

56, 956 
5, 491,  741 
31,  985 
1,  925 
300 
1,753 
215 

91, 185 
5,  993,  213 
33,500 
101,  338 
39,428 
116,  476 
4,746 

70, 746 
13,  771,886 
142,  818 
8,  681 
2,  001 
19,  993 
4,  622 

115, 232 
15,  016, 860 
149,  430 
615, 135 
320,  235 
1,097,671 
79,  623 

5,  584,  875 

6,  379,  886 

14,  020,  747 

17,  394, 186 

IMPORT  TRADE  OF  CHINA  75 

The  import  duty  on  1,000  cigarettes  in  liaikwan  taels  is  as  follows: 

Value  over  12.50  haikwan  taels  per  1,000  and  all  cigarettes  not  bearing  a 

distinctive  brand  or  name  on  each  cigarette - 0.  S3 

Value  over  8.50  but  not  over  12.50  haikwan  taels  per  1,000 - .  53 

Value  over  6.50  but  not  over  8.50  haikwan  taels  per  1,000 - 38 

Value  over  4.50  but  not  over  6.50  haikwan  taels  per  1,000 — : _ .28 

Value  over  3  but  not  over  4.50  haikwan  taels  per  1,000 - 19 

Value  over  1.50  but  not  over  3  haikwan  taels  per  1,000 - 11 

Value  1.50  haikwan  taels  or  less  per  1,000 - -  06 


Among  the  factors  contributing  to  the  expansion  of  business  in 
cigarettes,  first  place  should  be  given  to  existing  marketing  methods 
as  compared  with  those  of  1900.  In  those  days,  cigarettes  were  sold 
through  the  compradors  of  foreign  houses  established  in  treaty 
ports,  in  the  same  manner  as  many  other  commodities  are  handled 
even  to-day.  The  importer  had  no  knowledge  of  the  market’s  re¬ 
quirements,  of  the  demand,  or  of  the  conditions  under  which  his  goods 
were  sold  to  the  consumer.  The  transaction  was  ended,  so  far  as  he 
was  concerned,  when  the  goods  were  delivered  to  buyers  through  his 
comprador. 

Great  strides  have  been  made  since  then.  Trade  has  been  de¬ 
veloped  by  intensive  working  of  markets  in  the  interior,  through 
advertising  and  sales  effort,  appointing  of  local  agents  and  distrib¬ 
uters,  and  the  constant  and  intelligent  study  of  the  very  diverse 
requirements  of  the  markets  in  various  districts. 

The  outstanding  feature  of  the  method  by  which  the  largest  for¬ 
eign  company  sells  in  China  is  their  breaking  away  from  the  old, 
established  method  of  conducting  business  through  import  houses 
and -compradors.  They  have  put  in  their  own  elaborate  dealer  and 
distributer  system  throughout  the  interior,  supervised  directly  by 
foreigners  in  branch  offices  located  at  strategic  points. 

The  most  widely  used  method  of  distribution  is  selling  through 
Chinese  dealers  who  are  known  as  division  dealers  and  who  cover  a 
certain  allotted  territory,  which  is  usually  a  whole  provincial  district. 
Under  these  division  dealers,  who  act  as  chief  distributers  for  their 
various  territories,  are  appointed  subdealers,  who  are  the  actual 
means  of  bringing  the  goods  to  the  consumer. 

The  division  dealers  put  up  cash  security  against  which  credit  is 
allowed  for  goods  supplied  on  consignment.  Goods  consigned  may 
be  double  the  value  of  the  cash  security,  the  balance  being  secured 
by  written  guaranty  bond  or  “  shop  guaranty.”  Division  dealers 
are  held  financially  responsible  for  subdealers. 

Division  dealers  obtain  a  rebate  ranging  from  5  to  10  per  cent, 
which  is  either  deducted  from  the  purchase  price  or  paid  50  per  cent 
on  purchase  and  50  per  cent  at  the  end  of  the  Chinese  year.  On 
retail  sales  the  subdealers  receive  a  profit  of  10  to  20  per  cent  and 
allowances  are  also  made  on  the  return  of  cases. 

In  certain  instances  the  sale  of  specific  brands  has  been  assigned 
to  Chinese  agents  who  have  complete  responsibility  for  the  sale  and 
distribution  of  the  brand  throughout  China.  By  this  method  one 
brand  has  made  a  conspicuous  success  and  is  now  one  of  the  five 
largest-selling  brands  in  the  world. 

Originally,  pioneer  work  was  done  in  conjunction  with  adver¬ 
tising  matter  in  the  form  of  posters,  handbills,  and  similar  mediums. 


76 


COMMERCIAL  HANDBOOK  OF  CHINA 


This  material  was  not  of  the  quality  employed  to-day,  but  was 
intended  to  make  a  strong  appeal  to  the  uninformed  mind  of  the 
public. 

At  present  the  largest  foreign  cigarette  company  operates  an  ex¬ 
tensive  advertising  department  where  foreign  advertising  experts 
work  in  collaboration  with  a  corps  of  Chinese  advisors.  This  de¬ 
partment  designs  newspaper  displays,  posters,  and  hangers,  calcu¬ 
lated  to  make  the  strongest  appeal  to  the  Chinese.  The  distribution 
of  cigarette  cases  and  other  novelties  is  cared  for.  A  very  com¬ 
plete  motion-picture  plant  is  maintained.  Educational  and  travel 
pictures  are  produced  and  distributed  through  the  various  motion- 
picture  houses  in  China  in  conjunction  with  advertising  for  certain 
brands  of  cigarettes. 

The  other  foreign  and  Chinese  cigarette  companies  conduct  adver¬ 
tising  campaigns  through  the  press  and  by  means  of  billboards, 
posters,  and  calendars,  but  necessarity  on  a  smaller  scale. 

The  rapid  growth-  of  the  cigarette  trade  is  primarily  due  to  the 
opening  up  of  new  territory  by  the  cigarette  companies,  and  it 
promises  steady  increase  as  the  use  of  cigarettes  becomes  more  gen¬ 
eral  in  territory  already  covered  and  as  new  districts  are  worked 
intensively.  In  view  of  the  fact  that  China  is  to-day  consuming  not 
over  one-sixth  of  its  capacity  as  a  cigarette  user,  it  is  felt  that  an 
excellent  and  increasing  business  for  American-made  cigarettes  and 
American  tobacco  can  be  expected. 

COTTON  GOODS 

Cotton  manufactures  constitute  by  far  the  largest  single  item 
in  the  import  trade  of  China.  During  1923  imports  of  cotton  yarn 
and  thread  amounted  to  103,605,159  pounds  plus  1,212,705  gross 
spools  of  thread  valued  at  43,553,743  haikwan  taels.  Imports  of  piece 
goods  and  other  cotton  manufactures  were  valued  at  129,966,368 
haikwan  taels,  making  a  total  value  of  173,520,111  haikwan  taels, 
and  representing  18.79  per  cent  of  China’s  total  imports  for  that 
year. 

The  enormous  population  of  China  depends  largely  on  cotton 
goods  as  a  material  for  clothing.  The  better  class  of  Chinese  is 
using  an  increasing  amount  of  wool,  and  silk  is  likewise  an  important 
material  for  dress,  but  the  masses  are  too  poor  to  afford  them.  The 
climate  in  many  sections  of  the  country  is  sufficiently  mild  to  permit 
the  general  use  of  cotton  clothing  throughout  the  greater  part  of 
the  year,  and  even  in  the  colder  section  cotton  garments  stuffed 
with  raw-cotton  wadding  are  worn  during  the  winter  months. 

The  following  table  shows  the  value,  in  haikwan  taels,  of  the  im¬ 
ports  into  China  of  all  articles  and  imports  of  cotton  manufacture 
(including  thread  and  yarn),  also  the  percentage  that  the  latter 
bears  to  the  total  import  trade  during  the  years  1880-1923 : 


IMPORT  TRADE  OF  CHINA 


77 


Years 


1880. 

1885. 

1890. 

1895. 

1900. 

1905. 

1910. 

1913. 

1914. 

1915. 

1916. 

1917. 

1918. 

1919. 

1920. 

1921. 

1922. 

1923. 


Value  of  total 
imports  in 
haikwan 
taels 

Imports  of 
manufac 

Value  in 
haikwan 
taels 

cotton 

tures 

Per  cent 
of  total 

Value  of 
haikwan 
tael  in 

U  nited 
States 
currency^ 

79, 293,452 

23,382,957 

30. 54 

$1.41 

88,200,018 

31,493,823 

35.  70 

1.29 

127,093,481 

45,020,302 

35. 41 

1.27 

171,696,715 

53,074,164 

30.  91 

.80 

211,070,422 

75, 606, 360 

35.  82 

.75 

447, 100, 791 

181,452,953 

40.  58 

.73 

462, 964, 894 

130, 679, 235 

28.  22 

.66 

570,162,557 

182,419,023 

31.  99 

.73 

569,241,382 

183,428,473 

32.  21 

.67 

454,475,719 

149,300,513 

32. 85 

.612 

516,406,995 

136, 679, 386 

26.  47 

.819 

549,518,774 

158, 950, 267 

28.93 

1.08 

554,893,082 

151,380,423 

27.  28 

1.26 

646,997,681 

209,786,337 

32.4 

1.39 

762, 250, 230 

246,813,429 

32.3 

1.24 

906,122,439 

208,662,426 

23.0 

.76 

945,049,650 

218,523,170 

23. 1 

.83 

923,402,887 

173,520,111 

18.8 

.80 

The  principal  sources  of  supply  for  the  large  volume  of  cotton 
piece  goods  consumed  in  China  are  England,  Japan,  and  Hongkong, 
with  smaller  quantities  from  the  United  States,  France,  Netherlands, 
Canada,  Germany,  Italy,  and  India. 

A  good  indication  of  the  origin  of  imports  may  be  gained  from 
the  following  table,  which  shows  the  value,  in  haikwan  taels,  of  the 
gross  imports  of  cotton  piece  goods  and  cotton  thread : 


Year 


1913. 

1914. 

1915. 

1916. 

1917. 

1918. 

1919. 

1920. 

1921. 

1922. 

1923. 


United 

States 

Great 

Britain 

Japan 

Hongkong 

All  other 

Total 

8,  932,  699 
4,  858,  556 
3,  075,  642 

1,  753,  499 
441, 160 
690,  674 

2,116,  235 
2, 173,  099 

2,  961,  586 
2, 180,  488 

284,  817 

60, 038, 160 
64,  346, 128 
42, 878,  260 
32,  262,  460 
31,  421,  794 
31,  872,  302 
36,  921,  744 
74, 149,  316 
64,  768,  547 
63,  961,  428 
47,  668,  770 

22, 894,  732 

25,  992,  074 

26,  247,  361 
29,  777,  359 
54,  685,  716 
57, 142,  096 
87, 158,  792 
77,  757,  705 
62, 169,  523 
71,  382,  417 
68, 132, 934 

11, 795,093 
11, 914, 125 
10, 915, 444 
9,  667,  759 

11,  451,  487 
10,  441,  767 

12,  488,  826 
10,  975,  084 
15,  584,  915 
16, 114, 192 
15,  307,  542 

9,  484,  701 
6,  982, 644 
1, 104,  326 
3,  827,  098 
1,  294,  488 
2, 127,  600 
5,  883,  567 
8, 126,  707 
3,  708,  727 
3,  556,  098 
3,  464,  392 

113, 145,385 
114, 093,  527 
84,  221,  033 
77,  288, 175 
99,  294,  645 
102,  274,  439 
144,  569, 164 
173, 181, 911 

149. 193,  298 

157. 194,  623 
134,  858, 455 

It  will  be  noted  that  Hongkong  is  credited  with  a  large  portion 
of  the  cotton  goods  imported.  Hongkong  does  not  produce  cotton 
goods  but  is  merely  a  transshipment  point.  In  order  to  form  an  ap¬ 
proximate  idea  of  the  countries  of  origin  of  the  cotton  goods  imported 
into  China  from  there  the  analysis  of  Hongkong’s  imports  of  this 
class  of  merchandise  during  1923  is  shown  in  the  following  table : 


Items 

United 

Kingdom 

United 

States 

Japan 

North  and 
Middle 
China  1 

All 

other 

Total 

Value  in  pounds  sterling  __  __ 
Percent . . . 

2, 365,  241 
57.3 

12,  348 
.3 

1, 147,  775 
27.8 

427, 944 
10.4 

172, 131 
4. 1 

4, 125, 439 

1  Exported  from  Hongkong  to  foreign  countries  and  also  to  South  China. 


78 


COMMERCIAL  HANDBOOK  OF  CHINA 


Owing  to  the  low  individual  purchasing  power  of  the  bulk  of 
China’s  population,  the  China  market  is  primarily  one  for  low- 
priced  cotton  goods — not  necessarily  common  quality,  but  fair  to 
good  quality  textiles  which  are  relatively  less  expensive  to  purchase 
than  high-grade  finer  textiles  such  as  are  used  in  the  United  States, 
Agentina,  and  some  other  countries.  The  development  of  the 
country  along  modern  lines  enhancing  the  purchasing  power  of 
its  people  will  undoubtedly  make  a  market  for  a  greater  proportion 
of  finer  and  higher  priced  materials,  but  the  backbone  of  the  business 
will  probably  always  be  the  demand  for  the  cheaper  goods  by  the 
masses. 

The  quantities  of  the  principal  lines  of  cotton  piece  goods  im¬ 
ported  during  the  years  1913  and  1923  from  Great  Britain,  Japan, 
and  the  United  States,  the  changing  position  of  Japan  and  Great 
Britain  in  the  trade,  and  the  heavy  falling  off  in  America’s  share 
during  the  period  are  shown  in  the  following  table : 


Items 


Shirtings,  grey,  plain.. . 

Sheetings,  grey,  plain . . . 

Shirtings,  white,  plain . . . 

Shirtings,  white,  figured _ _ _ 

White  Irishes . . . . . 

Drills . . . . . 

Jeans.. . - . 

T  cloths,  32-inch . . 

T  cloths,  36-inch _ _ 

T  cloths,  bleached,  30-inch  by  40 

yards . . . . 

Cambrics,  lawns,  muslins . . 

Lenos  and  balsarines . . . . 

Plain  cotton  prints - - 

Printed  drills,  furnitures  and  twills.  . 

Printed  crfipe . •_ . 

Printed  sateen,  rep,  etc - 

Turkey  red  cottons  and  dyed  T 

cloths - - - - 

Dyed  cottons,  plain,  fast  black _ 

Dyed  cottons,  plain,  colored - 

Dyed  cottons,  figured. - - 

Shirtings,  dyed,  plain _ _ _ 

Shirtings,  Hongkong-dyed,  plain - 

Cotton,  Spanish  stripes,  64-inch _ 

Flannelettes,  plain,  dyed  or  printed.. 

Flannelettes,  yarn  dyed . 

Crimps  and  crepons - - 

Cotton  blankets... . . . 


Total. 


Great  Britain 


1913 


Pieces 
3,  627,  455 
127,  510 
3,  730, 898 
57, 144 
43, 098 
44,  894 
1,498,114 
900,  682 
48, 035 


230,  582 
28,  058 
348,  275 
77,  500 


119,  445 

697, 101 
1,611,838 
764,  814 
746,  636 
61, 833 


31,  676 
98, 035 


82, 967 


14, 876,  590 


Fancy  muslins . . . 

Art  muslins  and  cretonnes,  un¬ 
enumerated. . 

Cottons,  yarn  dyed . . 

Crimps  and  crepons . . 

J apanese  cotton  crepe . . . . 

Japanese  cotton  cloth _ 

Velvets  and  velveteens . . 

Cotton  goods,  unenumerated _ 


Total. 


Cotton  handkerchiefs. 
Cotton  towels . . 


Total. 


Yards 


1923 


Pieces 
1, 009, 838 
10, 120 
1, 430, 760 
90,  064 
10,  700 
1,781 
117, 905 
20,  250 


49,  694 
278, 839 
30,  546 
341,  792 
20,  843 
8,  252 
88,  266 

2,  042 
1,111,678 
407, 483 
304,  364 
4,830 


10,  599 
2,  253 
20,  787 
12,  209 


5,  385,  895 


4,  535,  217 

5,  343,  926 


9,  879, 143 


Dozen 
971, 843 
124, 706 


1,  096,  549 


Yards 
5,  581 

337, 088 
3,  557, 928 
4,  500 
64, 061 


2,  231, 109 
2,  253,  261 


8,  453,  528 


Dozen 
1,  574,  070 
126 


1,  574, 196 


Japan 


1913 


Pieces 
95,  227 
3, 356,011 
61,  438 
15 


1,  666,  757 
94,  377 
372,  741 
1,257 


13, 105 

6, 686 


1923 


Pieces 
1, 691,  361 
1, 124,  515 
446,  546 
3,  298 


32 

233, 188 
1,  792 
21,817 

7,  236 

8,  462 


57, 406 
’200, ’274' 


6, 197, 821 


Yards 


187, 457 

10,  574,  401 
q  400 

60,156’  719 


70, 928, 069 


Dozen 
59, 961 
1,  431, 132 


1,  491,  093 


240,  707 

1,  703,  387 
284,  316 
127,  369 

13, 429 
62, 052 
149 
964, 159 
42,  580 
142 
15,  011 

520, 187 
389,  262 

2,  456,  658 
143,  301 
146,  760 


1, 162 
445,  664 
59,  587 
13 

71,  262 


10, 952,  877 


Yards 


325, 908 
3, 176, 215 
6,  546 
502,  772 
41,  777,  332 
171,511 
2, 851,  575 


48,  811,859 


Dozen 
257, 102 
42, 851 


299,  953 


United  States 


1913 


Pieces 
45, 725 
1,  559, 255 
2,  262 


507, 138 
37,  580 


519 


126 


99 

37 


234,  515 


609 


2,  387, 865 


Yards 


18,812 


18, 812 


Dozen 


24 


24 


1923 


Pieces 


667 

316 

364 


844 
"  19,"  118 


35 


152 

’l03 


1,825 

1,560 


180 


25, 166 


Yards 


3, 343 
25,  971 


7,  642 
195,  364 


232,  320 


Dozen 

3,635 

590 


4,  225 


IMPORT  TRADE  OF  CHINA 


79 


While  space  does  not  permit  an  exhaustive  study  of  the  various 
types  of  cloth  which  each  country  supplies  to  the  China  market,  a 
brief  statement  regarding  the  position  in  the  market  of  the  two 
main  suppliers,  Great  Britain  and  Japan,  and  also  of  the  United 
States,  may  be  of  interest.  [For  a  detailed  study  of  the  piece- 
goods  market  of  China,  reference  is  made  to  Special  Agents  Series 
No.  107,  Cotton  Goods  in  China,  by  Commercial  Agent  Ralph  M. 
Odell,  published  by  the  Bureau  of  Foreign  and  Domestic  Commerce, 
Washington,  D.  C.] 

The  relative  positions  of  these  three  countries  have  undergone 
marked  changes  during  the  past  20  years  as  shown  in  the  following 
table  of  the  percentages  secured  by  them  in  the  total  cotton-piece 
goods  imports  of  China : 


Countries 

1902 

1913 

1923 

Great  Britain .  .  .  _  _ _  _ _ _  . 

55.3 

53.3 

35.2 

Japan  _ ..  _  _  _  _  _ 

2.7 

20.2 

51.0 

United  States.  _ _  _  ..  ..  _ 

26.  8 

8.0 

.02 

All  other  countries.  . .  . . . . . . . 

15.  2 

18.5 

13.8 

» 

•  Japanese  manufacturers  are  enjoying  an  increasing  portion  of 
China’s  trade  by  reason  of  their  proximity  to  the  market  and  their 
excellent  transportation  facilities  for  making  quick  deliveries,  the 
willingness  of  Japanese  importers  and  dealers  to  handle  goods  at  a 
smaller  margin  of  profit  than  other  foreign  firms  in  China,  their 
liberal  attitude  regarding  credits  to  Chinese  dealers,  cheaper  cost  of 
packing  because  of  the  much  shorter  distance  from  mill  to  consumer, 
dumping,  speculation  in  raw  cotton,  readiness  to  exactly  copy  good 
designs  originated  by  other  producers,  and  their  cheaper  prices. 

Although  Japanese  spinners  are  turning  out  finer  cloths  than  they 
were  a  few  years  ago,  practically  all  Japanese  imports  into  China 
are  in  plain  or  simple  weaves,  i.  e.,  goods  easily  made,  and  of  coarse 
counts  and  consequently  of  lower  grade  cotton,  and  in  colored  goods 
where  simple  dyeing  and  finishing  only  are  required.  Importations 
are  chiefly  made  up  of  plain  grays,  low-grade  colored  lastings,  cotton 
flannels  and  cotton  blankets,  and  cheap  printed  cottons.  One  of  the 
largest  items,  some  48,000,000  yards  in  1923,  is  in  “Japanese  cotton 
cloth,”  a  plain  gray  unsized  cloth  for  finishing  in  China,  in  which 
Japan  has  no  competition.  This  material  is  handled  mostly  by 
Japanese  importers  who  sell  direct  to  dye  works.  After  being 
dyed  the  material  is  sold  under  the  name  of  “  dyed  shirtings.” 

China  is  a  natural  market  for  Japan  in  the  cloths  which  the  latter 
is  well  equipped  to  manufacture,  and  the  energy  and  earnestness  of 
Japanese  manufacturers  and  merchants  will .  undoubtedly  bring 
about  further  increases  in  Japan’s  already  large  share  in  the  trade 
of  China. 

Great  Britain’s  position  in  the  China  market  is  a  strong  one. 
British  chops  are  well  and  favorably  known,  and  old,  established 
houses  are  handling  this  trade  with  the  strong  backing  of  British 
banks.  The  items  which  go  to  make  up  the  bulk  of  Great  Britain’s 
trade  with  China  are  those  in  which  British  manufacturers  excel — 
namely,  plain  white  shirtings;  all  classes  of  printed  cottons;  lawns; 


80  COMMERCIAL  HANDBOOK  OF  CHINA 

dyed  plain  and  fancy  cottons;  velvets  and  velveteens.  A  fai,r  pro¬ 
portion  of  British  cotton  piece  goods  is  sold  at  three  auctions  held 
weekly.  This  method  of  buying  is  extremely  popular  with  the 
Chinese,  and  auction  chops  in  many  cases  bring  higher  prices  than 
equally  good  cloths  sold  otherwise. 

Great  Britain  is  losing  both  to  Japanese  and  to  Chinese  cloths  much 
of  its  trade  in  coarse  yarn  cloths,  but  it  is  felt  that  in  the  materials 
in  which  these  countries  do  not  compete,  British  manufacturers  will 
continue  to  secure  the  bulk  of  the  business  unless  far  more  serious 
competition  develops  from  the  United  States  than  has  been  felt  dur¬ 
ing  the  past  10  years. 

The  weaving  industry  in  China  has  made  rapid  strides  during  the 
past  five  years.  In  1919  there  were  8,200  power  looms  in  all  of  China, 
while  in  J  une,  1924,  there  were  16,273  looms  working  and  6,500  under 
construction.  It  is  calculated  that  these  looms,  working  12  hours  a 
day  for  300  days  a  year,  have  an  annual  capacity  of  approximately 
342,000,000  yards  of  cloth  (of  50  picks  per  inch).  The  reasons  for 
the  growth  of  the  spinning  industry  in  China  and  its  concentration 
in  Shanghai  are  discussed  in  this  section  under  the  headings  of 
u  Cotton  and  yarn  ”  and  “  Textile  machinery.” 

In  addition  to  the  production  of  plain  gray  cloths,  there  are  in 
China  several  bleaching  and  dyeing  plants  well  supplied  with  modern 
equipment.  These  plants  not  only  finish  native-made  cloths,  but 
also  imported  gray  goods  which  are  sometimes  handled  on  contract 
and  sometimes  bought  outright  and  resold  as  white  or  dyed  goods. 
Recently  a  plant  has  been  established  for  dyeing  and  printing,  and 
has  turned  out  some  very  creditable  prints  for  the  domestic  market. 

There  is  little  need  for  modern  dye  works  in  China  at  present,  as 
the  vast  majority  of  the  work  is  done  by  native  dye  shops  throughout 
the  country,  who  dye  yarn  for  weavers  and  cloth  for  local  piece- 
goods  dealers,  and  these  methods  will  doubtless  be  followed  for  many 
years  to  come. 

RAW  COTTON  AND  COTTON  YARN 

Cotton  manufacturing  in  China,  in  a  modern  sense,  is  of  compara¬ 
tively  recent  development.  Before  the  war  with  Japan  the  Chinese 
were  beginning  to  erect  spinning  mills,  but  only  in  a  half-hearted 
way.  Prior  to  1895  foreigners  were  not  permitted  to  operate  mills, 
but  among  the  concessions  from  China  under  the  treaty  of  Shimo- 
noseki,  signed  in  1895,  was  the  right  of  foreigners  to  import  machin¬ 
ery  and  to  engage  in  manufacturing  industries  of  all  kinds  in  the 
treaty  ports  of  the  country.  Immediately  several  of  the  foreign 
firms  that  were  large  importers  of  English  piece  goods  and  Indian 
yarns  took  advantage  of  the  provisions  of  the  treaty  and  began  the 
erection  of  spinning  mills.  Previous  to  that  time  there  had  been  in 
operation  six  native-owned  mills  containing  183,000  spindles.  By  the 
end  of  1896  a  number  of  foreign  mills,  with  a  total  of  about  400,000 
spindles,  were  in  operation  in  Shanghai. 

The  rapidity  with  which  the  industry  has  developed  is  indicated 
by  the  fact  that  in  June,  1924,  there  were  3,032,246  cotton  spindles  in 
China,  with  a  further  658,396  spindles  in  construction.  At  the  same 
date  there  were  16,273  looms,  and  6,504  in  course  of  erection. 


IMPORT  TRADE  OF  CHINA 


81 


The  output  of  these  spindles  is  from  800,000  to  1,000,000  bales  (1 
bale  equals  400  pounds)  of  yarn  per  year. 

Calculating  that  each  loom  works  12  hours  a  day,  it  should  pro¬ 
duce  72  yards  of  cloth  of  50  picks  per  inch.  Reckoning  this  at  70 
yards  for  16,273  looms  working  300  days  a  year  the  capacity  is 
341,733,000  yards,  or  8,543,325  pieces  of  40  yards  in  length. 

The  published  figures  of  the  Chinese  Maritime  Customs  show  that 
exports  of  cotton  yarn  through  the  Maritime  Customs  (practically 
100  per  cent  being  interport  trade)  have  increased  from  28,192,933 
pounds  in  1900  to  290,475,630  pounds  in  1923,  while  in  the  same 
period  sheetings  have  increased  from  29,360  pieces  to  3,441,147 
pieces.  The  total  value  in  haikwan  taels  of  manufactured  cotton 
goods  passing  through  the  Maritime  Customs  in  1923  was  as  follows : 


Sheetings,  3,441,147  pieces - 20, 119,  519 

Drills  and  jeans,  945,643  pieces _ - —  4,  883,  342 

Native  cloth  (fancy),  501,323  pieces _  2,038,773 

Nankeens,  29,341,863  pounds _  13,  409,  242 

Cotton  towels _ _  938,  333 

Cotton  socks _  1,  764,  792 

Cotton  blankets  and  counterpanes _  476,  826 


43,  630,  827 

In  addition  to  the  power  looms  the  use  of  hand  looms  in  China  is 
more  extensive  than  in  any  country  in  the  world,  but  these  do  not 
enter  into  the  market  for  imported  cotton  or  imported  yarns. 

During  the  year  1913  the  total  net  importation  of  raw  cotton  into 
China  was  134,735  piculs,  but  with  the  rapid  growth  of  cotton 
manufacturing  this  grew  to  1,614,371  piculs  in  1923.  Sources  and 
values  of  these  imports  are  shown  in  the  following  table : 


Sources 

1913 

1923 

Quantity 

Value 

Quantity 

Value 

Hongkong.. .  . 

Piculs 

9,081 

702 

2,133 

1 

496 
83, 169 

Haikwan 

taels 

215,  800 
17,  567 
36, 352 
15 

11,  432 
1,  824,  683 

Piculs 

7,084 

360 

10,233 

Haikwan 

taels 

135,  227 
8, 606 
226,  590 

Macao _  _ 

French  Indo-China . . 

Siam _  _ _ 

Straits  Settlements _ 

1,  706 
1, 147,  948 
3,  498 
1,  185 

65,  030 
36,  960,  526 
199,  615 
47,  055 

British  India  . . 

Turkey,  Persia,  Egypt,  Aden,  etc . . . 

Great  Britain .  . . 

3 

1 

187 
17 
12 
2,  321 

42 
14 
1,  237 
301 
290 
46,  420 

Germany _ 

Belgium  _ 

France . . 

375 

13, 125 

Russia  and  Siberia  by  land  frontier..  ..  .  ..  _ 

Russia,  Pacific  ports _ _  _  ..  _ 

Chosen  . 

596 
386,  398 
10 

72,  851 

3,153 
13,  341,  732 
162 

3,  389,  467 

Japan  (including  Formosa) . . .  ...  ..  _ 

Philippines 

15,  214 

363,  417 

United  States  (including  Hawaii) . . .  . . 

Gross  imports _ _ _ _ _ 

26,  310 

608,  891 

139,  647 
4,912 

3, 126,  461 
109, 143 

1,  632,  244 
17,  873 

54,  390,  288 
574,  087 

Reexports-  . .  ......  ...  . 

Net  imports _  _  _ _ _ 

134,  735 

3,  017,  318 

1,  614,  371 

53, 816,  201 

Shanghai,  having  63  per  cent  of  the  total  spindles  of  China 
(2,330,270  erected  and  under  construction,  as  compared  with  3,690,- 


100020°— 26 - 7 


82  .  COMMERCIAL  HANDBOOK  OF  CHINA 

642  in  all  China)  is  naturally  the  chief  importer  of  raw  cotton, 
taking  84.6  per  cent  of  the  total  during  1921-1923,  inclusive.  The 
next  important  port  was  Tientsin,  which  took  6.7  per  cent  over  the 
same  period.  Kiaochow,  owing  to  the  large  increase  in  number  of 
spindles  during  1923,  jumped  from  about  6  per  cent  in  the  two 
previous  years  to  10.6  per  cent. 

The  principal  factors  that  have  contributed  to  the  establishment 
and  growth  of  the  Chinese  cotton-goods  industry  have  been  the  fol¬ 
lowing:  (1)  A  supply  of  native-grown  cottons  of  sufficiently  good 
quality  for  spinning  low  counts;  (2)  an  enormous  domestic  demand 
for  the  product  of  the  mills,  which  in  the  case  of  yarn  by  far  ex¬ 
ceeds  that  in  any  other  country  in  the  world;  (3)  low  cost  of  power, 
which  is  secured  through  a  good  supply  of  coal  from  native  mines 
and  Japan,  and  in  Shanghai  by  the  unusually  low  rate  charged  for 
electric  power  generated  by  the  municipality ;  and  (4)  an  abundance 
of  very  cheap  labor,  which  makes  the  cost  of  production  lower  than 
in  any  other  part  of  the  world  and  which  is  not  subject  to  any  legal 
restrictions  as  to  hours  of  work  or  age  of  employees. 

The  cotton  that  is  consumed  in  the  mills  is  not  of  as  good  quality 
as  American  cotton,  but  it  can  be  used  economically  for  spinning  the 
coarse  counts,  which  are  in  greatest  demand  in  China.  Its  low  cost 
gives  the  mills  a  marked  advantage  in  the  production  of  heavy 
sheetings  and  drills,  in  which  the  value  of  raw  material  constitutes 
a  large  percentage  of  the  total  cost. 

The  finest  counts  of  yarn  being  spun  commercially  in  China  at 
the  present  time  are  42s.  The  greatest  demand  is  for  10s  to  16s.  It 
is  not  believed  that  there  will  be  a  tendency  for  finer  counts  of  yarn 
in  China,  such  as  has  been  experienced  in  Japan,  for  some  time  to 
come,  owing  to  the  fact  that  the  purchasing  power  of  the  people  is 
not  sufficient  to  enable  them  to  purchase  higher  grades  of  cloth. 

Furthermore,  to  produce  finer  counts  requires  better  cotton,  and 
there  is  no  real  organized  movement  yet  on  foot  in  China  toward 
better  cottons.  There  are  several  experimental  stations  which  are 
doing  exceptionally  fine  work  in  this  way,  but  the  scope  of  their 
work  is  limited  by  lack  of  funds.  The  demand  is  greater  for  the 
lower  counts,  but  there  is  less  competition  at  present  in  the  finer 
counts,  because  there  are  comparatively  few  mills  equipped  to  spin 
the  finer  yarns.  Accordingly  it  would  not  be  surprising  if  any  new 
equipment  the  Japanese  put  in  during  the  next  year  or  two  would 
be  arranged  for  spinning  the  finer  counts. 

Price  is  the  governing  factor  in  the  demand  for  American  cotton 
in  China,  so  far  as  the  average  Chinese  mills  are  concerned.  The 
few  mills  organized  and  equipped  to  spin  finer  counts  than  the 
majority  of  the  Chinese  mills  are,  of  course,  obliged  to  use  Ameri¬ 
can  cotton  for  this  finer  yarn,  regardless  of  price.  As  a  rough  esti¬ 
mate  there  are  approximately  100,000  spindles  out  of  the  total  num¬ 
ber  in  China  that  are  in  this  group. 

The  importation  of  Indian  cotton  is  almost  entirely  dependent 
upon  price,  with  the  exception  of  a  very  small  quantity  which  is 
imported  on  account  of  its  superior  quality.  The  amount  of  this 
better  grade  of  Indian  cotton  is  very  limited.  There  are  certain 
grades  of  Indian  cotton  which  compete  in  a  way  with  American 


IMPORT  TRADE  OF  CHINA 


83 


staple,  but  they  are  very  limited  and  not  large  enough  in  quantity 
to  be  considered  seriously. 

Egyptian  cotton  compares  favorably  with  American  cotton  on  the 
basis  of  staple,  but  the  price  makes  it  prohibitive  in  this  market. 

Practically  all  of  the  American  cotton  that  is  used  by  the  Chinese 
and  English  owned  mills  is  imported  through  branch  offices  of 
American  cotton  dealers.  At  the  present  time  there  are  three  such 
offices.  A  certain  amount  of  cotton  used  by  the  Japanese  mills 
passes  through  these  offices,  but  the  greater  part  is  imported  through 
Japanese  commission  houses  having  direct  connections  with  the 
New  York  Cotton  Exchange  through  their  New  York  offices. 

There  is  very  little  speculation  in  this  market  in  American  cotton 
either  by  the  Chinese  or  Japanese.  This  may  be  attributed  princi¬ 
pally  to  the  fact  that  the  local  exchange  offers  easier  and  cheaper 
facilities  and  is  recognized  by  all  to  be  on  a  sound  financial  basis. 
All  cotton  sold  by  American  dealers  is  on  a  basis  of  cash  against 
delivery,  whereas  it  is  customary  for  the  Japanese  importers  to  give 
the  Japanese  mills  30  days’  credit. 

The  heavy  increase  in  China’s  yarn  manufacturing  capacity  has 
had  the  natural  effect  of  reducing  yarn  imports.  During  1913-1915 
the  average  importation  was  2,695,000  piculs  of  yarn  yearly,  of  which 
Japan  supplied  approximately  50  per  cent.  As  compared  with  this 
figure,  the  average  importation  during  1921-1923  was  approximately 
1,065,000  piculs,  of  which  Japan  supplied  approximately  50  per  cent. 
Following  Japan  are  Hongkong  and  India,  in  the  order  named. 
Hongkong’s  contribution  consists,  to  a  very  large  extent,  of  Indian 
and  Japanese  yarns,  transshipped  there  principally  for  South  China 
ports. 

The  counts  being  imported  at  the  present  time  are  mostly  20s  to 
42s,  the  cheaper  grades  coming  from  India  and  Japan,  while  the 
better  grades  are  supplied  by  England  and  the  United  States.  Amer¬ 
ican  yarn  can  not,  as  a  rule,  compete  in  price  with  the  English  prod¬ 
uct,  and  for  this  reason  the  share  of  the  United  States  in  the  yarn 
trade  is  negligible. 

From  1913  to  1915  the  demand  for  higher  counts  was  practically 
nil,  and  the  United  States  supplied  none,  while  Great  Britain  sup¬ 
plied  less  than  5,000  piculs  in  any  year. 

During  the  years  1921  to  1923  Great  Britain  is  credited  with  an 
average  of  17,337  piculs  per  year.  The  share  of  the  United  States, 
however,  averaged  but  97  piculs  per  year  over  that  period. 

Imports  of  cotton  yarn  are  distributed  fairly  evenly  among  the 
various  ports  of  China,  although  during  the  past  three  years  Tientsin, 
being  the  distributing  point  for  North  China,  has  imported  16  per¬ 
cent — the  greatest  individual  share — followed  by  Mengtsz,  on  the 
Nansi  River  in  Yunnan  Province,  which  has  taken  13  per  cent,  dis¬ 
tributing  it  through  the  southwest.  Shanghai,  being  the  center  of 
China’s  cotton-spinning  industry,  does  not  figure  as  a  leading  port  in 
this  trade,  ranking  seventh  in  1923,  with  total  imports  of  24,870 
piculs  valued  at  1,826,000  haikwan  taels. 

Yarn  is  imported  through  Japanese,  English,  Indian,  and  Amer¬ 
ican  importers,  mostly  for  the  account  of  Chinese  yarn  dealers  who 
have  their  own  distributing  organizations  throughout  China. 


84 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  following  table  shows  imports  of  cotton  and  cotton  yarn  from 
1912  to  1923,  inclusive : 


Items 

1912 

1913 

1914 

1918 

1919 

1920 

1921 

1922 

1923 

RAW  COTTON 

Hongkong _ 

French  Indo-China. 
British  India .  . 

Japan  (including 

Formosa) .  _ 

Canada.  ...  _ 

Piculs 
31,  417 
2,  785 
97,  124 

14,  063 

Piculs 

9, 081 
2,  133 
83, 169 

15,  214 

Piculs 

6,  379 
3, 924 
50,  766 

20,  882 

Piculs 
25,  847 
4, 121 
18,  364 

128,  222 
1, 957 

11,  665 
1,712 

Piculs 

6,  217 
4,  766 
98,  430 

75,  029 
11,  453 

37, 199 
8,  709 

Piculs 
22,  526 
11,049 
418,  964 

161, 978 

Piculs 
30,  458 
10,  303 
981,  136 

141,  754 

Piculs 
18, 961 
5,  476 
1,  370,  069 

302,  895 

Piculs 
7,084 
10,  233 
1,  147, 948 

386,  398 

United  States  (in¬ 
cluding  Hawaii) . . 
All  others  ....  ... 

Gross  imports.. 

COTTON  YARN 

Hongkong... . 

British  India 

Japan  (including 

Formosa) _ 

All  others _ 

Gross  imports.. 

141,  200 
6,  356 

26,  310 
3,  740 

44,  865 
1,  086 

34,  049 
39,  930 

516,  676 
9,811 

155,  319 
5,  150 

72, 851 
7,  730 

292, 945 

139,  647 

127, 902 

191,  888 

241,  803 

688,  496 

1,  690, 138 

1,  857,  870 

1,  632,  244 

708,  841 
627,  832 

920,  589 
65,  769 

688,  644 
656,  649 

1,  272,  983 
81,  798 

683,  261 
520,  145 

1,  242,  828 
108,  040 

373,  673 
127,  679 

666,  800 
25,  771 

472,  040 
435,  458 

479,  228 
30,  457 

373, 979 
329,  637 

568,  204 
95,  355 

324, 969 
183,  658 

575, 945 
200,842 

304, 928 
68,  001 

680,  017 
165,  621 

286,  573 
39,  025 

405,  615 
31,918 

2,  323,  031 

2,  700, 074 

2,  554,  274 

1,  193, 923 

1,  417, 183 

1,  367, 175 

1,  285,  414 

1,  218,  567 

763, 131 

Note. — One  picul  equivalent  to  133^  pounds  avoirdupois. 

WOOLEN  GOODS 

An  extremely  interesting  trend  in  China’s  piece-goods  market  is 
the  increasing  use  of  woolens  by  Chinese,  who  have  begun  to  show 
appreciation  of  the  advantages  of  woolens  over  padded  and  fur- 
lined  cotton  clothing. 

A  comparison  of  the  imports  of  1913  with  those  of  1923  is  shown 
in  the  following  table : 


Item 

1913 

1923 

Lastings,  long  ells,  camlets,  and  buntings . . .  ..pieces.. 

Blankets  and  rugs _ _ _ _ _  _  _  ...  .pounds.. 

Yarn  and  cord. . .  .  ..  ..  ..  ..  .  . . . .  ..piculs.. 

All  other _ _ _ _ _ _ _ _ _ ..yards.. 

100,  281 
1,  696,  202 
14,  710 
1,  901, 888 

23,  416 
500, 166 
32,  380 
5, 985,  451 

While  the  United  States  has  but  an  extremely  small  share  of  this 
trade,  the  details  of  imports  of  woolen  goods  for  the  years  1913 
and  1923,  which  may  be  of  interest  to  American  manufacturers  as 
indicating  the  growth  and  present  extent  of  the  China  market,  are 
shown  in  the  following  table : 


Item 

United 

States 

Great 

Britain 

Hong¬ 

kong 

Ger¬ 

many 

Japan 

Total 

1913 

Blankets  and  rugs . pounds.. 

Bunting  . . . . pieces.. 

Camlets _ _ do  .  . 

Quan¬ 

tity 

Quantity 
253,  657 
1,282 
6,  571 

20,  462 
10,  032 
27,  016 
22, 110 
122,  298 
423,  304 

1,940 

Quantity 
341,  961 
236 
9, 317 

44,  563 
13,  788 
6,091 
17,  076 
92,  372 
181,039 

1,558 

Quantity 
157, 624 

4 

Quantity 
34,  770 
341 

Quantity 

1, 696,  202 
2,003 
16,  286 

387,  884 
79,  487 
33, 179 
48,  813 
241,  329 

1, 193, 188 

14,  710 

Haikwan 
taels 
634, 872 
11,009 
230, 137 

556,  263 
35,  843 
407,  098 
292,  405 
149,  930 
1,119,599 

1,  600,  783 

Cloth,  broad,  medium,  habit  and 

russia...  .  _ yards  . 

Woolen  flannel _  ...  do _ 

Woolen  lastings...  _ pieces.. 

Long  ells _ _ do 

105 

262, 156 
13,  728 

2 

9,512 
13,  762 

100 
2,  250 
249,  923 

303 

Woolen  Spain  stripes _ yards.. 

Woolen  goods,  unclassed  ...do _ 

Woolen  and  worsted  yarn  and 
cord . piculs.. 

53, 199 

5,  490 

IMPORT  TRADE  OF  CHINA 


85 


Item 

United 

States 

Great 

Britain 

Hong¬ 

kong 

Ger¬ 

many 

Japan 

Total 

1923 

Quart- 

Haikwan 

Woolen  blankets 

and  rugs 

tity 

Quantity 

Quantity 

Quantity 

Quantity 

Quantity 

taels 

.  .pounds  . 

1,  447 

121,  706 

272, 852 

37, 393 

18,  704 

500, 166 

476,  508 

Broad  and  medium  habit  and  rus- 

si  fin  ninth  _ 

. yards.. 

3, 159 

49,  341 

75,  616 

1, 136 

140, 184 

388, 626 

Hamlets  and  hnntine 

nieces 

3i  218 

3;  740 

'  122 

7, 107 

150j  157 

Woolen  coatings  and  suitings 

_ yards 

227 

2, 168,  563 

514,  506 

81, 872 

101,518 

3,  207,  898 

7,  009,  781 

Woolen  flanneL . . 

. .do  .  . 

1,  321 

15,  445 

309,  642 

514 

9, 122 

340,  936 

340,  844 

Woolen  lastings  _ 

_ pieces. 

2,518 

3,  277 

5,810 

122,  336 

Long  ells 

. do  .. 

5,  320 

4,  871 

10,  499 

Hoi  947 

Wnnlen  Snain  strines 

vards  _ 

4,  928 

2,  896 

7;  920 

8;  461 

Woolen  *  goods.  *  unenumerated 

. yards.. 

1,573 

1,673,443 

96,  098 

95, 104 

259,  710 

2,  288,  513 

5,  442,  721 

Woolen  and  worsted 

yarn  and 

cord . . 

_ piculs.. 

8 

21,892 

1,  383 

6,798 

1,576 

32,  380 

5,317,141 

Note.— Value  of  hiakwan  tael  in  gold:  1913,  $0.73;  1923,  $0.80.  One  picul  equivalent  to  133j^  pounds. 


Although  there  is  a  small  market  among  foreigners  and  the  more 
wealthy  Chinese  for  high-grade  wroolen  and  worsteds  for  clothing, 
the  principal  demand  is  for  the  cheaper  cloths  which  are  suited  for 
wide  distribution  in  native  garments. 

Some  15  or  20  Chinese  mills  of  various  sizes  are  in  operation, 
manufacturing  both  from  native  and  from  imported  yarn  a  variety  of 
articles  including  cloth,  blankets,  shirts,  trousers,  scarfs,  hosiery, 
gloves,  hats,  and  sweaters. 

Great  Britain  supplied  70  per  cent  of  direct  imports  in  1923  but  as 
Great  Britain  supplied  79  per  cent  of  Hongkong’s  1923  imports  of 
these  goods  it  is  probable  that  approximately  79  per  cent  of  the 
imports  from  Hongkong  are  British  woolens.  Germany  supplied 
approximately  9.6  per  cent  of  the  direct  imports,  and  some  13.5  per 
cent  of  Hongkong’s  imports  during  1923. 

The  most  of  the  woolen-goods  business  is  in  the  hands  of  British 
import  houses  which  indent  for  Chinese  dealers,  giving  90  to  120 
days’  credit. 

High-grade  goods  for  foreign  consumption  are  purchased  by  the 
retail  shops  through  importers  and  dealers,  and  also  direct  from 
mill  on  samples  furnished  by  traveling  representatives  or  by  mail. 
Terms  in  the  latter  case  vary,  but  well-established  Chinese  foreign 
shops  buy  on  90-day  sight  draft. 

PETROLEUM  PRODUCTS 

KEROSENE 

The  importance  of  America’s  oil  fields  in  relation  to  trade  with 
China  is  fully  illustrated  by  an  analysis  of  China’s  imports  from  the 
United  States  for  the  year  1923. 

During  that  year,  the  gross  total  of  direct  imports  from  the  United 
States  to  China  was  valued,  according  to  returns  of  the  Chinese 
Maritime  Customs,  at  154,488,000  haikwan  taels  which,  at  $0.80  gold 
is  equivalent  to  $123,558,400.  Of  this,  55,632,000  haikwan  taels  or 
$44,505,600  gold  was  made  up  of  kerosene  oil,  gasoline,  lubricating 
oil,  and  paraffin  wax.  This,  it  will  be  noted,  constitutes  36  per  cent 
of  the  total  imports  into  China  from  the  United  States,  and  is  by 
far  the  greatest  single  group  in  this  trade. 


86 


COMMERCIAL  HANDBOOK  OF  CHINA 


In  fact,  this  total  is  larger  than  appears  by  a  study  of  the  customs 
returns,  but  owing  to  the  impossibility  of  determining  definitely  the 
value  of  imports  from  Hongkong  and  Canada  which  originated  in 
the  United  States,  it  is  necessary  to  adhere  to  published  figures  for  the 
purpose  of  comparison.  As  an  instance  of  this,  it  is  known  that  the 
total  imports  of  American  kerosene  in  1923  were  182,250,811  gallons, 
valued  at  48,775,567  haikwan  taels.  The  customs,  in  their  analysis  of 
foreign  trade,  show  159,544,760  gallons  valued  at  42,231,901  haikwan 
taels  as  originating  in  the  United  States,  the  difference  being  made 
up  by  imports  from  Hongkong,  transshipment  through  Singapore, 
etc.  While  in  the  case  of  kerosene  it  is  possible  to  secure  actual 
figures  from  the  customs’  “Abstract  of  Statistics  ”  showing  the  nature 
of  the  oil  imported — that  is,  “American,”  “Borneo,”  “Sumatra,” 
etc. — it  is  not  possible  in  other  cases.  The  figures  regarding  kerosene 
are,  therefore,  accurate,  but  figures  showing  imports  of  other  oils 


Fig.  3. — Transporting  petroleum  products  to  interior  Provinces 


merely  show  imports  direct  from  the  United  States  and  do  not  take 
into  consideration  the  quantities  imported  through  Hongkong. 

In  view  of  the  fact  that  mineral  oil  is  not  produced  in  commercial 
quantities  in  China,  the  country’s  entire  requirements  of  kerosene  are 
imported.  Oil  is  said  to  exist  in  good  quantities  in  various  portions 
of  the  country,  but  the  extreme  difficulty  of  transportation  and  the 
unsettled  conditions  which  exist  in  the  interior  have  militated 
against  the  development  of  these  resources  by  either  foreign  or 
Chinese  interests.  Aside  from  test  drillings  in  Shensi  Province  dur¬ 
ing  1915  and  1916  by  a  large  American  oil  company,  and  later  efforts 
by  a  Japanese  firm,  little  has  been  done  in  the  way  of  attempts  to 
establish  a  domestic  source  of  supply  for  this  important  item  of 
China’s  requirements. 

The  quantity  of  kerosene  consumed  in  China  each  year  and  the 
steady  growth  in  the  importation  of  American  oil  is  well  illustrated 


IMPORT  TRADE  OF  CHINA 


87 


by  the  following  figures  taken  from  the  records  of  the  Chinese 
Maritime  Customs  showing  imports  of  kerosene  (quantity  in  1,000 
gallons;  value  in  1,000  haikwan  taels)  in  periods  from  1910  to 
1923,  inclusive: 


From— 

1910 

1914 

1919 

1923 

Quantity 

Value 

Quantity 

Value 

Quantity 

Value 

Quantity 

Value 

America.  - 

Borneo..  .  - 

Burma  ..  ..  _ 

96, 100 
19, 044 
508 
19 
2,229 
42,  780 
710 

11, 496 
2, 822 
65 

4 
637 
6,  613 
106 

160,  428 
22,  616 

\ 

23,  871 
3,  477 

157,  294 
6,401 

36,  333 
1,  475 

179,  739 
5, 140 

48,017 
1,  405 

Japan...  ...  . - 

Russia.  - - 

Sumatra. ..... - - 

Persia  _ 

514 
5,  234 
36,  671 

98 

1,118 
5,  868 

651 

33,  612 
1,  440 

212 

8,264 

430 

12 
424 
25,  246 

4 
140 
7,  315 

Other  sources  .  ... 

4,  274 

1,411 

Note.— Value  of  haikwan  tael  in  United  States  gold:  1910,  $0.66;  1914,  $0.67;  1919,  $1.39;  1923,  $0.80. 


It  will  be  noted  that  the  United  States  supplied  82.5  per  cent  of 
the  total  value  of  kerosene  imports  during  1923  and  83.3  per  cent 
of  the  quantity,  as  compared  with  52.8  per  cent  of  value  and  59.5 
per  cent  of  quantity  in  1910. 

Aside  from  the  naturally  expanding  demand  resulting  from  the 
increasing  purchasing  power  in  the  country,  the  growth  of  this 
business  is  due  almost  entirely  to  the  increased  distribution  which 
large  American  and  British  oil  companies  are  effecting  throughout 
the  interior.  The  use  of  kerosene  in  the  treaty  ports  where  electric 
light  is  available  is  not  a  great  factor  in  demand,  but  it  is  the  in¬ 
terior,  where  lighting  is  accomplished  by  means  of  kerosene  lamps 
and  lanterns,  which  furnishes  the  great  market,  and  there  consump¬ 
tion  is  steadily  increasing.  Aside  from  increased  distribution,  prob¬ 
ably  the  greatest  factor  in  the  spread  of  the  use  of  kerosene  is  the 
increase  in  facilities  for  transportation,  enabling  oil  to  reach  sec¬ 
tions  of  the  country  hitherto  inaccessible,  and  it  is  certain  that  as 
transportation  facilities  improve,  the  use  of  kerosene  will  increase. 
The  substitution  of  kerosene  for  candles,  tallow  dips,  and  other 
native  means  of  lighting  is  proceeding  rapidly  in  territory  opened 
up  by  the  oil  companies,  and  the  popularity  of  kerosene  is  likewise 
heightened  by  the  introduction  of  lamps,  lanterns,  and  other  oil¬ 
burning  devices,  by  the  oil  companies  and  by  importers  of  these 
various  devices. 

It  is  interesting  to  note  the  value  which  is  attached  to  empty  oil 
tins  in  China,  and  the  various  uses  to  which  they  are  put.  Cut  into 
quarters  and  made  into  dustpans  a  tin  will  bring  60  cents  to  $1 
silver;  made  into  a  small  suitcase,  $1.50  to  $2.50  silver;  painted  vari¬ 
ous  colors  they  may  be  seen  suspended  from  signal  poles  and  used 
as  signals  for  river  craft.  New  tins  are  cut  carefully  and  the  tin 
sheets  sold  to  shops  making  various  tin  articles.  Dealers  also  de¬ 
rive  a  profit  from  the  sale  of  the  wooden  cases. 

Many  factors  affect  the  sale  of  kerosene,  among  the  most  important 
of  which  are  crops  and  crop  prices;  silver  exchange  and  local  ex¬ 
changes  against  Shanghai  and  other  import  centers;  local  military 
disturbances;  water  levels  in  the  creeks  and  canals  through  which 


88  COMMERCIAL  HANDBOOK  OF  CHINA 

shipments  must  pass;  and  the  supply,  export  demand,  and  price  of 
vegetable  oils  which  may  be  used  for  dip  lights. 

The  increasing  use  of  electric  light  throughout  China,  while  not 
keenly  felt  at  present,  constitutes  a  growing  factor  in  the  lighting 
field  which  will  naturally  affect  oil  sales. 

Approximately  85  per  cent  of  the  kerosene  trade  of  China  is  con¬ 
trolled  by  two  organizations — one  large  American  company,  selling 
American  oil  exclusively,  and  one  large  British  company  which, 
while  acting  as  sales  agents  for  Dutch  and  other  producers,  sells 
American  oil  to  the  extent  of  approximately  60  per  cent  of  its  total 
China  sales. 

These  companies  bring  their  oil  in  bulk  in  their  own  tank  steam¬ 
ers  and  store  it  in  tanks  at  seaports.  From  these  points  it  is  dis¬ 
tributed  by  tank  barges  to  other  distributing  points  on  navigable 
rivers,  where  other  storage  tanks  are  maintained.  Tank  cars,  tank 
lighters  and  steamers,  storage  tanks,  and  other  equipment  are  owned 
by  the  companies. 

At  various  points  from  which  distribution  can  be  effected  at  mini¬ 
mum  cost,  plants  for  the  manufacture  of  tins  and  cases  are  operated. 
Using  Chinese  labor,  importing  tin  plate,  and  buying  lumber  in 
quantities,  these  companies  are  able  to  case  their  own  oil  for  fur¬ 
ther  distribution  as  case  goods  at  prices  which  are  extremely  difficult 
to  meet  with  oil  imported  in  cases  from  America  or  elsewhere. 

One  American  company,  handling  probably  10  per  cent  of  the 
kerosene  trade,  import  all  their  goods  in  cases,  and  distribute  from 
godowns  located  at  advantageous  distributing  centers. 

Independent  oil  companies,  when  prices  in  China  are  such  as  to 
permit  the  importation  of  case  goods  at  a  profit,  indent  kerosene 
from  the  United  States  against  orders  from  Chinese  dealers.  In  the 
majority  of  cases  these  dealers  are  located  in  treaty  ports,  and  either 
sell  locally  or  resell  to  agents  in  other  localities.  These  dealers  buy 
at  a  stipulated  price,  which  must  be  such  as  to  allow  them  the 
same  commission  as  they  would  make  in  buying  from  the  large  fac¬ 
tors  in  the  trade. 

The  success  of  the  companies  controlling  the  kerosene  trade  is  due 
primarily  to  their  very  excellent  and  far-reaching  system  of  distri- 
l3ution  throughout  China,  which  has  been  built  up  at  the  expense  of 
painstaking  study  of  conditions  in  each  separate  locality;  heavy 
outlay  in  time  and  money;  the  gathering  together  and  continual 
augmenting  of  a  personnel  of  trained  men ;  intensive,  thorough,  and 
continuous  effort  to  reduce  transportation  costs  to  an  absolute  min¬ 
imum  ;  and  constant  advertising  and  introductory  work,  both  through 
the  usual  advertising  channels  and  by  the  introduction  of  oil-burn¬ 
ing  devices  of  various  descriptions. 

These  companies  maintain  a  network  of  Chinese  agents  through¬ 
out  the  country.  To  these  agents,  wdio  are  bonded  for  appropriate 
amounts,  oil  is  consigned.  The  proceeds  of  sales  are  remitted  by  the 
agents,  less  commissions  and  fixed  allowances  for  godown  expenses, 
etc.  The  goods  remain  the  property  of  the  foreign  company  until 
payment  is  received  by  them.  This  system  has  many  advantages, 
one  of  the  greatest  in  recent  years  being  the  comparative  safety  of  the 
goods,  owing  to  the  hesitancy  of  bandits  and  military  authorities  to 
interfere  with  foreign  property.  ' 


IMPORT  TRADE  OF  CHINA 


89 


FUEL  OIL 

The  heavy  increase  in  the  demand  for  fuel  oils  in  China  which 
has  taken  place  in  the  past  10  years,  is  due  in  a  large  measure  to 
the  increased  use  of  fuel  oil  by  ships.  The  greatest  growth  has 
been  in  the  use  of  bunker  oil  but  there  has  also  been  a  heavy  and 
continuous  growth  in  the  use  of  ships  operated  by  Diesel  oil-burning 
engines,  and  this  demand  promises  to  continue  its  already  heavy 
increase. 

The  quantity  thus  used  is  indicated  by  the  figures  of  reexports 
shown  in  the  table  of  imports  given  below.  In  addition  to  its  use 
on  ships,  a  fair  quantity  of  fuel  oil  is  being  used  in  China  for  operat¬ 
ing  various  types  of  work  engines.  The  continuous  growth  of  this 
trade  is  expected  with  the  progress  of  industrialization. 

As  indicated  by  the  following  table  of  imports  (1913,  1918,  1921, 
and  1923),  prior  to  1918  the  greater  part  of  the  liquid  fuel  was  im¬ 
ported  from  the  Dutch  East  Indies  and  Straits  Settlements.  This 
was  due  in  part  to  the  fact  that  American  companies  had  no  storage 
facilities  for  fuel  oil  which  would  enable  them  to  bring  in  their  oil  in 
such  quantities  as  to  compete  with  the  product  of  near-by  producing 
countries. 

Since  1918,  through  the  changing  over  from  coal-burning  to  oil¬ 
burning  vessels,  a  demand  has  grown  for  heavy  oil,  such  as  California 
produces.  The  consumption  of  these  heavy  oils  has  increased  greatly 
and  both  American  and  British  companies  are  obtaining  supplies 
from  the  United  States. 

The  imports  of  fuel  oil,  and  countries  from  which  imported,  are 
shown  in  the  following  table : 


Countries 

1913 

1918 

1921 

1923 

Quantity 

Value 

Quantity 

Value 

Quantity 

Value 

Quantity 

Value 

Hongkong  . 

Tom 

1,  378 
6, 989 
12,  813 

Haikwan 

taels 

25,  822 
57,  735 
104,  179 

Tom 

10,  220 
19,  269 
2,  597 

30 

43 

2,825 

Haikwan 
taels 
212, 119 
305, 900 
42,  751 

487 

5,  342 

39, 099 

Tom 

17, 066 
714 
21,  279 

3 

32,  755 

Haikwan 
taels 
629,  460 
16,  680 
456, 135 

51 

668,  425 

Tons 

9, 940 
19,  584 
14, 088 

Haikwan 
taels 
213,  629 
468,  496 
316, 946 

Straits  Settlements... 
Dutch  East  Indies.... 
Japan  (including 
Formosa)  ...  ... 

United  States  (in¬ 
cluding  Hawaii). ... 
Australia  and  New 
Zealand.  . . 

83 

12,  608 

45,  666 

1,  237,  377 

Macao  _ 

46 

973 

Gross  imports. . 
Reexports _  _ 

21,  263 
9, 198 

200,  344 
75,  240 

34, 984 
16,  780 

605,  698 
267,  473 

71,  817 
31,  256 

1,  770,  751 
649, 992 

89,  324 
32,  057 

2,  237,  421 
768,  385 

Net  imports _ 

12,  065 

125,  104 

18,  204 

338,  225 

40,  561 

1, 120,  759 

57,  267 

1,  469,  036 

Fuel  oil  is  imported  in  bulk,  stored  in  tanks  at  important  points, 
and  distributed  in  drums  to  the  inland  trade.  That  for  sale  to 
ocean-going  vessels  is  imported  with  a  duty  drawback,  against  which 
duty  is  refunded. 

Shanghai  is  the  principal  port  of  importation,  followed  by 
Hankow,  Hongkong,  and  Kiukiang,  in  the  order  named.  Hankow 
is  increasing  in  importance  as  a  port  of  importation,  owing  to  the 
increasing  use  of  fuel  oil  in  the  boats  plying  the  Yangtze  River 


90 


COMMERCIAL  HANDBOOK  OF  CHINA 


and  also  on  account  of  the  increased  use  in  various  industries  which 
can  be  supplied  from  Hankow. 

GASOLINE 

The  increasing  use  in  China  of  motor  cars  and  trucks,  during  the 
past  10  years,  has  resulted  in  the  steady  and  rapid  growth  of  the 
gasoline  trade.  Total  imports  in  1914  were  823,000  gallons,  valued 
at  215,000  haikwan  taels;  in  1923  imports  had  risen  to  6,325,000 
gallons  valued  at  3,890,000  haikwan  taels. 

The  position  of  the  United  States  in  this  trade  has  varied,  but 
its  average  share  of  the  total  imports  has  been  28  per  cent  over  the 
10-year  period  from  1914  to  1923  inclusive.  The  gross  imports 
of  gasoline,  benzine,  naphtha,  petrol,  etc.,  into  all  of  China,  and 
countries  from  which  imported  (value  in  thousands  of  haikwan  taels, 
quantity  in  thousands  of  gallons)  are  shown  in  the  folloAving  table: 


Imported  from — 

1914 

1917 

1920 

1923 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Hongkong _  _ _ 

55 

16 

37 

18 

147 

72 

282 

164 

Singapore,  Straits  Settlements _  . 

431 

94 

579 

197 

462 

277 

1,026 

565 

Netherlands  Indies...  _  .  . 

99 

34 

705 

420 

2,  826 

1,  590 

Russia  and  Siberia  by  land  frontier _ 

5 

2 

3 

1 

77 

116 

3 

1 

Russia,  Amur  ports.  _  _ 

1 

1 

1 

1 

1 

Russia  Pacific  ports. 

5 

4 

2 

1 

53 

38 

13 

12 

Chosen.  ...  .  . . . 

1 

3 

2 

1 

1 

2 

2 

Japan  (including  Taiwan) _ 

25 

8 

241 

161 

640 

416 

249 

204 

United  States  (including  Hawaii) _ 

298 

89 

199 

133 

568 

385 

1,  953 

1,  344 

Philippines..  . . . . . 

31 

11 

French  Indo-China . . . 

2 

1 

6 

5 

Macao.  .  . . . . . 

1 

Great  Britain . . 

3 

3 

Total _ _ _ 

821 

213 

1, 194 

558 

2,  656 

1,  727 

6,  365 

3,891 

It  is  estimated  that  50  per  cent  of  the  imports  from  Hongkong 
are  American  gasoline,  increasing  the  share  of  the  United  States 
in  that  proportion. 

Gasoline  imported  from  the  Netherlands  East  Indies,  Singapore, 
and  Straits  Settlements,  is  handled  by  a  large  British  company 
acting  as  selling  agents  for  The  Royal  Dutch  Shell  Co.  Owing  to 
proximity  to  the  market,  they  are  in  a  position  to  do  the  largest 
share  of  the  trade  as  the  foregoing  figures  illustrate. 

Gasoline  is  imported  from  the  United  States  in  drums  and  tins 
ranging  in  capacity  from  5  to  50  gallons.  From  Sumatra  and 
Java  it  is  brought  in  by  tank  steamers,  stored  in  bulk,  and  tinned 
locally. 

Case  goods  and  cargo  in  drums  are  usually  stored  in  “  dangerous 
cargo  ”  warehouses  at  treaty  ports,  or  in  the  godowns  of  the  im¬ 
porting  companies,  and  distribution  is  effeceted  from  the  principal 
ports  of  importation,  either  by  the  vessels  of  the  importer  or  by 
coastwise  and  river  boats  operated  by  various  steamship  companies. 

The  bulk  of  the  gasoline  trade  is  done  direct  between  the  import¬ 
ing  oil  companies  and  large  users  and  retailers  such  as  garages  and 
hire-car  operators. 


IMPORT  TRADE  OF  CHINA 


91 


A  great  majority  of  the  automobiles  being  located  in  treaty  ports, 
where  conditions  closely  resemble  those  obtaining  in  the  United 
States,  distribution  and  advertising  are  carried  out  along  almost 
identical  lines.  Advertising  in  the  daily  press,  distribution  of 
calendars  and  other  novelties  are  among  the  many  advertising  meth¬ 
ods  used. 

Filling  stations  are  maintained  at  garages,  and  also  by  individual 
oil  companies,  prices  being  the  same  at  either.  Visible  pumps  are 
in  general  use  at  filling  stations. 

Automobiles  are  the  greatest,  and  practically  the  only  users  of 
gasoline  in  China.  The  quantity  used  in  motor  boats  and  stationary 
engines  is  small,  and  generally  confined  to  use  for  starting  only, 
as  kerosene  and  fuel  oil  are  far  cheaper.  Such  engines  are  prac¬ 
tically  all  equipped  with  kerosene  carburetors. 

The  growth  of  the  gasoline  trade  depends  at  present  on  the  prog¬ 
ress  of  good  roads  in  China  and  on  further  development  or  the 
use  of  automobiles. 

LUBRICATING  OIL 

The  industrial  development  of  China  has  brought  with  it  an 
increasing  demand  for  lubricating  oils,  and  the  United  States  has 
steadily  improved  its  position  in  this  trade.  The  imports  of  lubricat¬ 
ing  oils  into  all  of  China  (quantity  in  thousands  of  gallons,  value 
in  thousands  of  haikwan  taels)  are  shown  in  the  following  table: 


Imported  from— 

1911 

.  1914 

1919 

1923 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Hongkong _ _ _ _ _ 

145 

47 

324 

99 

674 

220 

646 

343 

French  Indo- China  ..  .  _ 

2 

1 

8 

4 

16 

7 

25 

16 

Singapore,  Straits  Settlements,  etc _ 

178 

49 

64 

22 

354 

99 

55 

20 

Netherlands  Indies  . . .  .  ..  . 

11 

3 

5 

1 

188 

54 

260 

115 

Great  Britain  _ _ _  ..  _ _ _ 

46 

21 

32 

16 

18 

9 

23 

25 

Germany ..  .  _ _ _  .. 

169 

57 

15 

7 

5 

8 

Netherlands.. . . . . . 

13 

4 

Belgium _  .  _  _  _  .. 

187 

60 

169 

50 

France _  _ _ _  . 

53 

15 

1 

Austria  and  Hungary _  _ 

102 

30 

17 

5 

Russia  and  Siberia  by  land  frontier.. 

22 

6 

95 

55 

10 

2 

2 

2 

Russia,  Amur  ports.  _  .  .. 

2 

Russia,  P  acifkf  ports ._ . . . 

215 

69 

212 

104 

166 

57 

7 

5 

Chosen.. . . . .  ... 

43 

12 

5 

1 

10 

5 

23 

11 

Japan  (including  Taiwan) _  ...  .  . 

382 

111 

410 

123 

935 

383 

635 

299 

Philippines _  .  ...  ... 

1 

1 

10 

8 

United  States  (including  Hawaii) _ 

716 

175 

1,  861 

514 

5,  398 

1,936 

6,  042 

2,  530 

Canada _ _ _ _ 

103 

60 

Siam _  _ 

1 

Macao _  _  ..  . 

1 

Australia,  New  Zealand,  etc _  .  .. 

1 

1 

\ 

Note.— Value  of  haikwan  tael  in  gold:  1911,  $0.65;  in  1914,  $0.67;  in  1919,  $1.39;  in  1923,  $0.80. 


The  increasing  demand  is  due  primarily  to  the  growth  of  indus¬ 
tries  using  modern  machinery  (spinning  mills,  flour  mills,  electric 
light  and  power  plants,  oil  mills,  cement  plants),  and  the  increasing 
use  of  automotive,  railway,  and  street-car  transportation,  and  motor 
9  boats. 

It  is  estimated  that  motor  oils  constituted  approximately  8  per 
cent  of  the  imports  of  lubricating  oil  in  1923,  while  the  remainder, 
92  per  cent,  was  for  industrial  purposes. 


92 


COMMERCIAL  HANDBOOK  OF  CHINA 


Approximately  80  per  cent  of  the  business  in  lubricating  oil  is  in 
the  hands  of  three  large  American  firms,  about  10  per  cent  is  done 
by  an  old-established  British  company,  and  the  rest  is  handled  by 
a  few  firms  of  Chinese  dealers  who  import  direct  and  also  buy  from 
the  various  independent  oil  companies.  The  large  foreign  com¬ 
panies  sell  direct  to  consumers  in  the  majority  of  cases,  having  well- 
established  distributing  facilities.  They  hold  stocks  at  all  impor- 

deliver  to  customers  either  ex  godown  or  at  the 

The  Chinese  importing  firms  are  few  in  number  and  handle  but 
10  per  cent  (approximately)  of  the  business,  but  it  is  to  these  dealers 
that  the  independent  oil  companies  operating  in  China  endeavor  to 
sell,  as  they  have  well-established  agent  organizations  in  important 
consuming  centers.  The  independent  companies  must  rely  on  these 
dealers  to  effect  their  distribution,  as  the  building  up  of  an  inde¬ 
pendent  distribution  organization  is  difficult  and  requires  heavy  ex¬ 
penditures  in  both  time  and  money  to  perfect. 

Motor  oil  is  delivered  to  garages  maintaining  filling  stations  and 
is  sold  by  these  garages,  as  in  other  countries.  Filling  stations  are 
also  maintained  bv  the  oil  companies  independently  of  the  garages, 
prices  being  the  same  at  either. 

The  advertising  of  lubricating  oil  is  carried  on  through  the  usual 
channels  such  as  foreign  and  Chinese  newspapers  and  periodicals, 
billboards,  and  mail  campaigns. 

As  most  of  the  motor  oil  is  used  in  the  foreign  concessions  where 
practically  the  same  conditions  apply  as  in  the  United  States,  ad¬ 
vertising  methods  are  practically  the  same.  Illuminated  signs  on 
garages,  and  the  distribution  of  literature  being  among  the  many 
used  to  create  a  consumer  demand. 

PARAFFIN  WAX 

The  manufacture  of  matches  and  candles  in  China  has  made  good 
progress  during  the  past  few  years,  and  paraffin  wax  is  being  im¬ 
ported  in  increasing  quantities.  In  1913  imports  totaled  137,845 
piculs,  valued  at  1,176,895  haikwan  taels.  By  1921  these  amounts  had 
increased  to  266,728  piculs  and  2,901,357  haikwan  taels,  and  1923  im¬ 
ports  were  519,087  piculs  valued  at  4,118,351  haikwan  taels. 

The  United  States  has  supplied  42.5  per  cent  of  China’s  total  im¬ 
ports  over  the  past  10  years,  not  including  that  reaching  China 
through  Hongkong.  The  share  of  the  United  States  in  1923 
in  direct  imports  was  44.8  per  cent  or  232,815  piculs  valued  at 
1,744,903  haikwan  taels. 

Other  suppliers  are  the  Malay  States,  Netherlands  East  Indies, 
and  British  India,  and  a  small  amount  also  arrives  from  Japan  and 
Great  Britain.  Hongkong  is  second  to  the  United  States  as  a  source 
of  imports,  but  her  supplies  are  derived  from  the  above  countries 
and  reach  China  as  transshipped  cargo. 

Paraffin  wax  is  imported  and  used  by  large  American  and  British 
oil  companies  in  their  candle-manufacturing  plants,  and  is  sold  by 
them  to  other  candle  makers  and  match  factories.  According  to* 
recently  published  statistics  there  are  approximately  40  soap  and 
candle  factories  in  China,  but  owing  to  the  lack  of  details  regarding 


tant  points,  i 
buyers  plant. 


IMPORT  TRADE  OF  CHINA 


93 


them,  it  is  impossible  to  say  whether  they  are  equipped  with  modern 
machinery  for  making  wax  candles  or  are  making  native  tallow 
candles.  It  is  likewise  impossible  to  procure  statistics  as  to  the 
quantity  of  candles  manufactured  in  China.  It  is  known  that  China 
consumes  a  great  number  each  year,  but  what  proportion  of  these 
are  wax  and  what  portion  are  native-made  tallow  candles,  is  not 
known. 

In  addition  to  domestic  makes,  candles  are  imported  from  abroad 
in  varying  quantities,  the  majority  coming  from  the  Netherlands 
Indies.  In  the  years  1918  to  1923,  inclusive,  the  average  importa¬ 
tion  of  candles  of  all  kinds  was  67,800  piculs  a  year. 

An  indication  of  increased  candle  manufacturing  in  China  may  be 
had  from  the  import  statistics  on  candlewick,  which  has  increased 
from  153  piculs  in  1918  to  551  piculs  and  656  piculs  in  1922  and 
1923,  respectively. 

The  manufacture  of  matches  also  consumes  an  increasing  quantity 
of  wax.  There  are  at  present  about  125  match  factories  in  China, 
and  while  statistics  are  not  available,  the  increasing  domestic  output 
can  be  judged  from  the  decrease  in  imports,  which  have  fallen 
steadily  from  over  28,000,000  gross  in  1913,  to  2,241,000  gross  in 
1923. 

HARDWARE 

MARKET  FEATURES 

In  approaching  the  China  market  American  manufacturers  should 
appreciate  the  following  three  outstanding  facts  which  apply  with 
particular  force  to  small  items  such  as  hardware : 

1.  China  is  a  market  of  great  aggregate  purchasing  power,  but 
the  individual  purchasing  power  of  the  great  mass  of  the  popula¬ 
tion  is  extremely  low. 

2.  The  Chinese  are  an  extremely  conservative  people,  and  the 
introduction  of  goods  bearing  a  new  or  hitherto  unknown  chop  or 
trade-mark  is  a  slow  process.  However,  once  known  and  found  to 
stand  for  excellence  and  value,  a  trade-mark  is  of  the  utmost  value, 
as  the  very  conservatism  which  makes  the  Chinese  slow  to  adopt 
the  new  tends  to  make  them  extremely  loyal  customers. 

3.  It  is  necessary  to  adapt  business  methods  to  the  established 
customs  of  the  country,  and  to  study  the  market  and  its  requirements 
thoroughly  from  all  angles  before  attempting  to  supply  its  wants. 

In  general  the  market  for  imported  hardware  is  very  limited. 
The  Chinese  use  tools,  cooking  utensils,  stoves,  brushes,  and  cutlery 
of  their  own  design  and  make,  and  imported  articles  can  be  sold 
only  to  foreigners  in  China  and  to  a  few  Chinese  living  and  work¬ 
ing  in  foreign  or  semiforeign  style.  The  market  is  gradually  broad¬ 
ening,  but  no  great  quantities  are  sold. 

Enameled  ware  and  articles  of  tin  and  aluminum,  made  especially 
to  suit  Chinese  uses — or  adaptable  to  these  uses — are  finding  an  in¬ 
creasing  market,  but  in  general  are  subject  to  the  limitations  of  the 
low  individual  purchasing  power  of  the  bulk  of  the  population. 

Lamps  and  lanterns  burning  kerosene,  having  been  well  introduced 
by  the  large  oil  companies,  find  a  good  market,  and  both  the  im¬ 
ported  and  domestic  articles  are  used  practically  throughout  the 
country.  J  b 


94 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  use  of  building  hardware  and  locks  of  all  descriptions  is  in¬ 
creasing  under  the  stimulus  of  the  steady  increase  in  foreign-style 
building,  the  increasing  use  of  foreign-style  furniture  among  the 
Chinese,  and  the  growing  manufacture  of  foreign-st}de  trunks,  bags, 
safes,  cabinets,  and  office  furniture. 

GENERAL  IMPORT  METHODS 

Probably  90  per  cent  of  China’s  imports  of  hardware  is  sold 
through  import  houses  acting  as  commission  agents.  These  houses 
indent  to  fill  orders  as  received  from  Chinese  dealers,  but  at  times 
order  for  stock  some  articles  which  are  well  established  on  the  market 
and  which  enjoy  a  regular  turnover. 

When  the  dealer’s  order  is  received,  the  importer  places  his  order 
with  the  manufacturer.  When  shipment  is  made  the  dealer  is  no¬ 
tified  in  order  that  he  may  settle  his  exchange,  and  is  again  notified 
some  10  days  prior  to  the  arrival  of  the  cargo  in  Shanghai. 

The  importer  settles  his  own  exchange  and  usually  takes  up  docu¬ 
ments  from  the  bank  on  trust  receipts,  paying  the  bank  when  the 
dealer  takes  delivery.  Delivery  is  usually  made  against  cash. 

Hardware  is  usually  sold  f.  o.  b.  port  of  shipment,  plus  2%  per 
cent  commission,  plus  ocean  freight,  marine  insurance,  duty,  han¬ 
dling  charges,  and  all  other  costs  except  storage,  which  is  for  im¬ 
porter’s  account. 

Shanghai  hardware  dealers,  as  a  class,  are  in  good  standing  with 
the  import  houses.  It  is  said  that  they  order  conservatively,  make 
three  or  four  turnovers  a  year  under  ordinary  circumstances,  and  are 
not  prone  to  speculation  in  meehandise,  although  a  certain  amount  of 
speculation  in  the  matter  of  fixing  exchange  is  to  be  expected.  As 
a  rule  they  take  delivery  of  cargo  promptly  and  are  quite  satisfac¬ 
tory  to  deal  with. 

t / 

COMPETITION 

British. — American  and  British  methods  of  importation,  sale,  and 
distribution  are  practically  identical,  and  the  principal  advantage 
which  British  manufacturers  have  over  American  is  the  fact  that 
many  of  their  chops  or  trade-marks  are  better  known  in  China 
owing  to  having  been  longer  in  the  market. 

In  some  lines  British  prices  are  higher  than  American,  yet  the 
American  goods  are  equal  in  excellence  but  have  a  trade-mark  less 
widely  known  in  China. 

German. — German  prices,  which  are  quoted  in  sterling  and  in  gold, 
are  nearly  equal  to  American  or  British  prices,  although  the  quality 
of  German  cargo  is  not  up  to  the  standard  of  either. 

In  order  to  keep  in  the  market  German  houses  are  giving  30  to  60 
days’  credit;  taking  postdated  native  bank  orders  in  payment  as 
against  the  “  cash  on  delivery  ”  terms  of  the  British  and  American 
importers.  This  practice,  together  with  the  fact  that  they  are  put¬ 
ting  on  the  market  goods  designed  for  Chinese  use,  is  said  to  be  the 
main  factor  at  present  assisting  their  sales. 

Japanese. — The  Japanese  are  close  to  the  market,  give  quicker 
delivery  than  any  of  their  competitors,  and  have  a  good  hold  on 
interior  markets  in  certain  lines,  such  as  aluminum  ware  and  enam- 


IMPORT  TRADE  OF  CHINA 


95 


eled  ware,  as  their  prices  are  cheapest  and  the  individual  purchas¬ 
ing  power  of  the  customers  in  the  interior  is  extremely  low. 

Terms  of  30  to  60  days  are  also  given  by  the  Japanese.  They 
likewise  endeavor  to  manufacture  goods  to  suit  the  market.  Local 
Chinese  dealers  state  that  although  their  cheapness  appeals,  Japanese 
goods  are  inferior  in  quality  to  German. 

CLASSES  IMPORTED 

In  dealing  with  hardware  it  is  unfortunate  that  more  *  detailed 
import  statistics  are  not  available  for  all  China.  The  yearly  analysis 
of  China’s  import  trade  published  by  the  Chinese  Maritime  Customs 
shows  in  detail  only  the  following  classes  of  hardware :  Cutlery  and 
electroplated  ware,  enameled  ware,  lamps  and  lamp  ware,  stoves 
and  grates. 

Total  value  of  imports  into  all  China  under  these  headings  was 
as  follows  during  the  year  shown  (value  in  haikwan  taels)  : 


Articles  and  countries 

1913 

1918 

1921 

1923 

Cutlery  and  electroplated  ware: 

Hongkong.-  .  . . - _ _ 

27, 058 
88 
4,  813 

7 

272 

17,991 

9 

509 

24,  063 
49 
832 

31, 079 
13 

10,  574 

Macao  ..  .  _ _ _ 

French  Indo- China  _ _ _ _ _ 

Siam  .  -  --  . . . . 

Singapore,  Straits  Settlements,  etc _ _ _ 

42 

117 

1,  933 
667 
5,388 
95,  068 
215 
289 
.,  611 
125,  234 
7,075 
586 
992 
400 
732 
750 
326 
1,239 
1,  023 
125,  644 
71 
291 
112,302 

Netherlands  Indies . . . 

British  India _  _ _ _ _ _ 

7,258 
73,  863 

623 
51, 173 

1, 189 
138,  296 

Great  Britain..  .  _  ...  .  ..... _ 

Norway .  . . . . . . . 

Sweden  _ _ _  ...  ... 

60 

2,530 
489 
53,  211 
39,  746 
1,634 
9,343 

Denmark . . . . . . . . 

Germany  _  _ _ _  .  .  . . 

72, 112 
63 

21, 105 
1,884 

Netherlands _ _ _  ....... _ 

Belgium  _. .  . .  ....  .  ... 

France. _ ....  ... _  ..  .  _ _ 

27 

Switzerland.  .......  ....  .  .... 

Italy _ _ _ _ _ _  _ _ 

74 

20 

7,  420 
4,  212 
796 
37,  233 

7 

1,502 

11,684 

631 

Austria  and  Hungary . . .  .  .  .  ..  . 

Russia  and  Siberia _ _ _  ^  _ 

Russia  Pacific  ports .  .  .  .  ... 

120 
520 
92,929 
236 
3,  712 
48, 162 

29,  563 
1,904 
106,  678 
336 
3,730 
67,  575 

Chosen _  1  .  ... _  ....  .  _ 

Japan  (including  Taiwafi)  ....  .  _ _ 

Philippine  Islands .  . . .  .  .  .  _ _ 

Canada _  _ _  _ _  ..  .  .  _ 

United  States  (including  Hawaii) _  ...  ... 

Gross  imports . . . . . .  .  .  .  . . 

272,  531 
5,963 

216,  684 
243,  238 

481,  285 
16,  608 

523,  502 
11,  789 

Reexports  ...  _  . . . . .  .  .  .  .. 

Net  imports . . . . ..... 

266,  568 

464,  677 

511,  713 

Enameled  ware: 

Switzerland. . .  . 

3, 100 
154,541 
90 

1,  201 

Hongkong _ _ _  .  .  _  .  . 

168,  024 
458 
10,  516 
22 
6,318 
3,880 
29,  257 
332 
2,128 
127,  476 
9,000 
12,  327 
1,283 

7 

691,  138 
17,  053 
77 

10,  256 
806 
60,087 

196,  208 
51 
3,808 

218,  700 
57 
829 

Macao . . . .  ...  ..... 

French  Indo-China . . 

Siam.  .  _  ..  . . . 

Singapore,  Straits  Settlements,  etc _ 

816 
1,956 
56,  245 
3,  330 

7 

43,  945 

13,  931 
670 
21,  418 

British  India . . . . 

1,525 
6,  835 

Great  Britain . .  . . . . 

Sweden . . . . . . 

Denmark.  _  ...  .  ... 

176 
88,  209 
1,004 
52 

1,866 
15, 074 
76 
40 

Germany  . . . . . 

Netherlands _ _ _ _  .  . 

Belgium.  . . . 

554 
29 
4,  564 

France .  . . 

Italy  . . .  .  .  . . . . 

Austria  and  Hungary _ _ 

Russia  and  Siberia . . . . 

29 
87 
398 
3,  933 
884, 178 

10 

Russia,  Amur  ports _ _ _ 

Russia,  Pacific  ports.  . . . . 

3,  760 
6,  750 
813,  861 

3,  406 
17,  617 
836,998 

Chosen _  '  .  . . . . 

Japan  (including  Taiwan). . 

96 


COMMERCIAL  HANDBOOK  OF  CHINA 


Articles  and  countries 

1913 

1918 

1921 

1923 

Enameled  ware — Continued. 

Philippine  Islands  . . . . 

117 

3,373 

4,  306 
59,249 
169 

105 
37,  076 
217 

United  States  (including  Hawaii).. . 

23,  675 
2,221 

Canada _ _ _ _ 

Gross  imports. _ _ 

1, 153,  935 
5,540 

1,  122,  948 
16,  416 

1, 158,  483 
29,  440 

1,  257,  521 
6,  865 

Reexports _ _  . _ _ _ _ _ 

Net  imports _ _ _ 

1, 148,  395 

1, 106,  532 

1, 129,  043 

1,  250,  656 

Lamps  and  lamp  ware: 

Hongkong . . . . . . . . 

251,  255 
1,  279 

30,  891 
150 

3,  644 
2,607 
50 

76, 195 
24,  915 
247 
370,  679 
713 
23,  415 
2,165 
84 

31,  739 
22,  036 

217 
4,744 
1,833 
436,  056 
141 

143,  096 
473 
9,931 

239,  951 
1,420 
37,  958 

349,  798 
668 
39,  251 

Macao  .  ...  _ _ 

French  Indo-China _ _ _  . 

Siam... _ _  _  _ _ 

Singapore,  Straits  Settlements,  etc . . . . 

2,665 

240 
5, 106 
94 

38,  382 
74 
1,501 
610,  548 
24,  258 
12,  185 
905 
2,775 
392 

British  India _  _  ..  _ 

1,841 

Turkey,  Persia,  Egypt,  Aden,  Algeria,  etc . 

Great  Britain. .  . .  .  _ 

9,719 

68,  607 
13,  620 
5,  588 
324,  994 
2,871 
10,  536 
2,  488 

Sweden..  .  .  _  _  _  ... 

Denmark .  . . . . . . 

Germany _ _ _ _ _ _ _ _ 

Netherlands . . .  .  _ _ _ 

Belgium . . .  ..  _  _  ..  . 

France _  _  _  _  ... 

Italy.  .  _  ..  ...  . . 

•Austria  and  Hungary _  .  .  _  _ _ 

Russia  and  Siberia. _ _ _ _  ...  _ 

39 

3 

1,013 
3,  641 
371,917 
63 

32,  494 
112,  219 

Russia,  Amin-  ports _ _  _ _  _ _ 

220 

6,  469 

7,  267 
384,  527 

267 
10,  421 
338,  725 

Russia,  Pacific  ports _ _  ..  ..  _ _ _ _ _ 

1,518 
8,988 
343,  996 
356 
3,  887 
230, 475 

Chosen _  ....  .  ....  ..  _  ..  ..  . 

Japan  (including  Taiwan) _  .  . . .  . . 

Philippines _ _ _ _  .  ...  . 

Canada _ _ _  _  _ 

United  States  (including  Hawaii) . . . 

83,  770 

Australia,  New  Zealand,  etc . . . . 

Netherlands  Indies _ _ 

132 

74 

Gross  imports _ _ 

1,  368,  825 
12,  402 

686,  449 
6, 122 

1,  458,  726 
85,  049 

1,  675,  471 
20,  045 

Reexports _ 

Net  imports _ 

1,  356,  423 

680,  327 

1,  373,  677 

1,  655,  426 

Stoves  and  grates: 

Hongkong _ _ _ 

5,  518 

3,  881 
25 
102 

12,  256 
183 
467 
13 

15,  970 
91 

1, 118 
188 

Macao _ _ _ 

French  Indo-China. _ _ 

Singapore,  Straits  Settlements,  etc . . 

96 

67 

”  38, 589 

14,  238 

British  India _  _ 

Great  Britain. . .  . . . . . . 

10,  890 

165,  288 
4,  596 
491 
88,  591 
10 

19, 127 
8,  794 
170 

85, 962 
9,420 
1,036 
145,  200 

Sweden..  _  .  . . . . . . . 

Denmark _ _  .  .  .  .  .  .  _  .. 

- 

Germany _ _  .  _  _ 

165,  862 
4,  158 
21,  308 
535 
208 
2,407 
2,748 
10,  120 
289 
19,  617 
12 
237 
26,  490 
28 

N  etherlands _ _ _ _ 

Belgium _ _  _ _ _ _  _ 

1,  766 
9,876 
4,649 
5,587 
17 
200 
9,751 
11,  450 

France . . .  . . . . . . .  . 

Italy _ _ _ _ _ _ _ 

Austria  and  Hungary.  ..  _  . 

Russia  and  Siberia.  _ _ _ 

12 
34 
2,  390 
20,  779 
25,  020 
16,  530 
228,  762 

Russia,  Pacific  ports _  _ _ _ 

8 
761 
22, 349 

Chosen _ _  _ _ _ _ _  _ _ _ 

Japan  (including  Taiwan) . . . . 

Philippine  Islands . . 

Canada . . . ...  _ _ 

3,  006 
46,  399 

852 
166,  490 

United  States  (including  Hawaii) _ _ 

Australia,  New  Zealand _ _ _  _  _ _ 

Netherlands  Indies _ _ _ _ _ 

600 

Gross  imports _ _ _ _ 

312,  527 
1,415 

87,  421 

3,  320 

593,  513 
10,  603 

470,  223 
13,  834 

Reexports  . _  _ 

Net  imports _ _ _ _ 

311,112 

84, 101 

582,  910 

456,  389 

Items  not  included  under  these  headings  are  lumped  under  the 
two  headings:  Sundries,  unenumerated;  stores,  household. 

There  is  reason  to  believe  that  a  small  amount  of  cutlery,  flash¬ 
lights,  electroplated  ware,  and  miscellaneous  small  items  come  in  by 
parcel  post,  and  are  listed  under  the  general  heading  “  Postal  parcels, 
not  otherwise  classified.” 


IMPORT  TRADE  OF  CHINA 


97 


While  it  is  impossible  to  segregate  items  from  these  general  classi¬ 
fications,  it  is  of  interest  to  note  the  increases  in  value,  during  the 
past  10  years,  of  goods  coming  under  these  headings,  as  illustrated 
by  the  following  tables  taken  from  the  Chinese  Maritime  Customs 
returns  of  trade  for  the  years  shown  (value  in  haikwan  taels)  : 


Imported  from — 

Sundries, 

unenumerated 

Household  stores 

Postal  parcels,  not  otherwise 
classified 

1918 

1923 

1913 

1918 

1923 

1913 

1918 

1923 

United  States . . 

Great  Britain . . 

Japan _ _ 

Germany _ 

314,  603 
266,  716 
2,  223, 189 

1,  050,  319 
875,  789 
4,  933,  080 
557,  450 
3,631,028 
1,  731,  255 

181,443 
287, 127 
391,  925 
188,113 
359,  217 
2,512,  733 

369,  427 
129,  793 
833, 833 

1, 171,  284 
518,  790 
1,119,  749 
66,  631 
660,  649 
893,  722 

41,  486 
290,  859 
297, 164 
273,  508 
112, 121 
1, 398,  823 

466,  677 
331,  536 
1,  991,  375 

2, 157,  235 
794,  330 
2,  289,  448 
325,  554 
392,  070 
1,059,  374 

Hongkong  _ 

Others _ 

1,  095,  897 
435,  822 

379, 957 
256,  012 

284,  323 
283,  301 

Total. . 

4,  356,  227 

12,  777,  921 

3, 920,  558 

1, 969,  022 

4,  430,  825 

2,  413,  961 

3,  357,  212 

7,  018,  011 

Note— Value  of  haikwan  tael  in  gold,  1913,  $0.73;  1918,  $1.26;  1923,  $0.80. 


The  customs  records  at  the  port  of  Shanghai  give  more  detailed 
figures,  and  as  Shanghai  imports  an  average  of  50  per  cent  of  the 
hardware  brought  into  China,  the  following  figures  showing  1923 
imports  (value  in  haikwan  taels)  into  Shanghai  will  be  of  interest: 


Stoves  and  grates _  392,  968 

Locks  and  padlocks _  323,  239 

Lamps  and  lamp  ware _ 122,  553 

Enameled  ware : 

Basins  over  11  centimeters  but  not  over  22  centimeters  in  diameter-  837 
Basins  over  22  centimeters  but  not  over  36  centimeters  in  diameter.  335, 191 

Basins,  other  sizes _  18, 339 

Bathtubs _  38,  736 

Bowls,  cups,  and  mugs  not  over  11  centimeters  in  diameter _  4,  607 

Bowls,  cups,  and  mugs,  other  sizes _  324 

Enameled  ware  unclassed _  96,  087 

Filters  and  parts  of _  50,  290 

Ice  freezers  and  refrigerators _  36,  043 

Brushes : 

Clothing  _ _  3,  400 

Tooth  and  nail _  44, 147 

Unclassed _  28,  545 

Cutlery _  182,574 

Electroplated  ware _  58, 448 

Hair  clippers _  5,  416 

Razors,  including  blades  and  strops _  34,  847 

Scissors _  6,  518 


MACHINERY  AND  MACHINE  TOOLS 

The  advances  which  China  has  made  in  the  establishing  of  modern 
industries  during  the  past  20  years,  in  spite  of  the  numerous  handi¬ 
caps  to  which  this  process  of  industrialization  is  subjected,  speaks 
for  the  potentialities  existing  in  the  country’s  great  natural  resources, 
and  indicates  a  wide  and  developing  market  for  manufactured  prod¬ 
ucts  among  China’s  enormous  population  of  industrious,  thrifty,  and 
intelligent  people,  whose  purchasing  power,  while  low  individually, 
is  large  in  the  aggregate. 


100020°— 26 - 8 


98 


COMMERCIAL  HANDBOOK  OF  CHINA 


Illustrating  the  amount  of  machinery  being  absorbed  by  China, 
the  following  table  of  the  value  (in  haikwan  taels)  of  imports 
of  all  classes  of  machinery  into  China  from  1913  to  1923  will  be 
interesting : 


Year 

Machine  tools 

Agricultural  machinery 

Propelling  machinery 

Textile  machinery 

Total 

From 

United 

States 

and 

Canada 

Total 

From 
United 
States  and 
Canada 

Total 

From 
United 
States  and 
Canada 

Total 

From 

United 

States 

and 

Canada 

1913 _ 

51,288 

3,  773 

113,  077 

12,  553 

658,  349 

43, 964 

839,  724 

2,  615 

1914 . 

97,  616 

11,001 

334,  279 

937 

1,  047,  003 

64,  637 

2,  050,  646 

2,  530 

1915. . . 

72,811 

15,  494 

161,  563 

13,  210 

710,  887 

126, 157 

1,  419,  511 

15,  700 

1916 _ 

97,  778 

23,403 

207,  957 

164,  268 

606,  148 

134,  477 

1,  934,  131 

115,  431 

1917 _ 

208,  394 

40,983 

110,  969 

46,  819 

508,258 

140,  540 

1,  235,  800 

218,  928 

1918 . 

349,  108 

145,  571 

167,  506 

106,  173 

757,  469 

421, 987 

1,  714, 994 

379,  867 

1919 _ 

499,  853 

197,  859 

524,  739 

468,  405 

1,  640,  303 

907,  715 

3,  767,  406 

1,  944,  350 

1920 _ 

761,  073 

305,  780 

1,  023,  570 

832,  300 

2,  376, 122 

795,  605 

6, 927,  728 

3,  897,  204 

1921 . 

940,  337 

277,  827 

2,  199,  142 

1,671,  730 

5,  163,  781 

1,  051,  333 

26,  792,  072 

11,  768,  212 

1922 - 

657,  832 

85,  323 

768,  857 

544,  336 

2,  492,  730 

330, 947 

30,  529,  286 

7,910,  042 

1923 - 

491, 987 

88,  935 

349,  055 

105,  954 

1,  541,  618 

348,  277 

12,  334,  417 

933,  533 

Year 

Brewing,  distil¬ 
ling,  etc.,  ma¬ 
chinery 

Embroidering, 
knitting,  and  sew¬ 
ing  machinery 

Other  kinds 

Total,  all  classes 

Per  cent 
supplied 
by 

United 

States 

and 

Canada 

Total 

From 

United 

States 

and 

Canada 

Total 

From 

United 

States 

and 

Canada 

Total 

From 
United 
States  and 
Canada 

All  coun¬ 
tries 

From 
United 
States  and 
Canada 

1913  _ - 

1914  _ - 

1915 

49, 108 
25,301 
24,  774 
11,517 
87,  332 
19,  352 
3,271 
27,688 
634, 973 
268,809 
103,  188 

3,  400 
1, 007 

915,  898 
600,  243 
306,  253 
316,  243 
446,  424 
311,228 
628,  840 

1,  048,  596 
707,  170 
907,  643 
881,  774 

139,  513 
42,389 
6, 940 
25,486 
238,  789 
150,  206 
383,  736 
558,  035 
283,848 
177,  660 
118,  386 

5,  538,  579 
5, 106, 952 

2,  257,  884 

3,  481,  674 
3,  942,  941 
5,  019,  367 
8,  417,  416 

12,  443,  643 
21,  367,  427 
15,915,  486 
12,  909,  299 

363, 195 
601, 995 
573,  801 
804,  829 

1,  009,  378 

1,  442, 907 
3,  357,  728 
1, 172,  733 
8,  043, 992 
3,  250,  961 

2,  895,  585 

8, 166, 023 
9,  262, 040 
4, 953,  683 
6,  655,  448 
6,  540,  118 
8,  339,  024 
15,  481,  828 
24,  608,  420 
57,  804, 902 
51,  540,  643 
28,  611,  338 

569, 013 
724,  496 
751,  302 
1,  268,  284 

1,  696,  749 

2,  646,  711 
7,  259,  868 
7,  571,  717 

23, 154, 978 
12,  357,  285 
4,  577,  250 

7.0 

7.0 

15.8 
19.2 

25. 1 

31.9 

46.7 

30.9 

40.8 

24.1 
16.0 

1916  _ - 

1917  _ 

1918 

390 

1,312 

1919  _ 

1920  _ 

1921  _ 

1922  . 

1923  _ - 

75 

10, 060 
58,  036 
58,  016 
86,  580 

Note— Value  of  haikwan  tael  in  gold:  1913,  $0.75;  1914,  $0.67;  1915,  $0.62;  1916,  $0.79;  1917,  $1.03;  1918, 
$1.26;  1919,  $1.39;  1920,  $0.76;  1921,  $0.76;  1922,  $0.83;  1923,  $0.80. 


The  development  and  expansion  of  industrial  enterprises  in 
China  has  been  particularly  difficult  during  the  past  three  years, 
owing  to  conditions  which  have  caused  the  exercise  of  extreme  care 
in  the  matter  of  capital  investments  outside  of  the  treaty  ports. 
Compared  with  import  figures  during  the  period  of  rising  machinery 
importation  occurring  between  1916  and  1921,  those  for  1922  to  1924 
show  marked  declines,  but  a  comparison  of  1923  figures  with  those 
for  the  year  1913  will  serve  to  indicate  the  real  growth  of  the  trade 
during  the  10  years  intervening. 

This  is  particularly  true  when  it  is  considered  that  the  year  1923 
saw  very  few  new  enterprises  started,  but  was  a  year  of  settling 
up  and  completing  deliveries  on  old  contracts,  and  that  the  business 
done  during  that  year  will  be  materially  improved  upon  with  the 
natural  growth  of  demand  for  the  manufactured  products  of  China’s 
factories,  even  though  conditions  continue  in  their  present  unsettled 
state. 


IMPORT  TRADE  OF  CHINA 


99 


The  most  noticeable  feature  of  the  general  engineering  and  ma¬ 
chinery  business  in  China  during  1923  and  1924  was  the  fact 
that  a  very  large  number  of  foreign  firms  which,  during  the  boom 
period,  added  machinery  departments  to  their  establishments  are 
dropping  out  of  this  trade  and  closing  out  the  departments. 

Of  the  general  trading  firms  which,  during  the  boom,  added  en¬ 
gineering  departments  to  their  general  business  and  sold  machinery 
on  the  same  basis  as  they  were  selling  indent  goods,  many  have 
learned  through  practical  experience  that  this  way  of  conducting  an 
extensive  machinery  business  in  China  is  neither  feasible  nor  profit¬ 
able. 

In  only  very  few  instances  do  Chinese  industrial  concerns  or 
machinery  buyers  know  exactly  what  they  wish  to  buy.  It  is  there¬ 
fore  left  in  the  hands  of  the  selling  firms  to  supply  the  technical 
information  necessary  to  close  the  business.  The  Chinese  are  still 
averse  to  paying  consulting  engineers  for  drawing  up  specifications, 
and  this  part  of  the  work  must  be  performed  free  of  charge  by  the 
selling  firms.  This  necessitates  the  employment  of  well-qualified 
men  in  the  lines  dealt  with,  and  consequently  entails  a  heavy  ex¬ 
pense.  It  also  means  that  a  sale  is  not  finished  when  the  contract 
is  signed.  The  firms  which  are  handling  this  trade  are  really  re¬ 
sponsible,  for  every  practical  reason,  for  the  proper  operation  of 
the  plants  and  machinery  which  they  sell  to  their  Chinese  customers. 

Although  most  of  the  big  machinery  sales  are  made  on  a  c.  i.  f. 
basis,  the  firm  which  sells  the  machinery  usually  undertakes  to  in¬ 
stall  it,  and  in  the  majority  of  cases  the  Chinese  customer  does  not 
consider  that  he  has  had  good  delivery  until  the  machinery  deliv¬ 
ered  to  him  is  operating  satisfactorily. 

Owing  to  the  comparatively  limited  business  in  any  special  line 
of  machinery  and  the  heavy  expense  in  conducting  such  business, 
it  is  not  yet  possible  for  any  one  firm  to  specialize  in  any  one  kind 
of  machinery  and  at  the  same  time  make  a  successful  trading  estab¬ 
lishment  in  China. 

For  example,  an  electric  manufacturer  dealing  in  electrical  mate¬ 
rial  only  would  find  that  a  very  large  number  of  orders  in  connec¬ 
tion  with  combined  plants  would  not  come  within  his  reach  at  all, 
as  the  Chinese  are  not,  as  a  rule,  prepared  to  split  their  orders  for 
a  combined  plant  between  several  firms,  but  prefer  to  buy  the  whole 
plant  from  one  firm  which  they  can  hold  responsible  for  the  com¬ 
pleteness  and  operation  of  the  plant. 

While  a  certain  amount  of  business  in  small  machinery  can  natu¬ 
rally  be  done  by  nonspecializing  import  houses,  it  is  felt  that  the 
bulk  of  the  big  business,  consisting  at  it  does  of  combined  selling  and 
engineering,  will  be  effected  through  houses  properly  equipped  to 
handle  both  ends  of  the  work  to  the  satisfaction  of  both  the  Chinese 
customers  and  the  manufacturer  who  is  looking  to  his  agent  for 
thorough  representation. 

MACHINE  TOOLS 

While  the  total  volume  of  machine  tools  imported  into  China  is 
not  large  when  compared  with  the  imports  of  an  industrialized  na¬ 
tion,  it  must  be  remembered  that  China  is  still  in  the  stage  of  hand¬ 
craft,  and  the  growth  of  the  market  for  machine  tools  must  depend  to 


100 


COMMERCIAL  HANDBOOK  OF  CHINA 


a  large  extent  upon  the  progress  made  in  the  installation  of  modern 
mills,  factories,  etc.,  and  the  growth  of  the  necessity  for  mass  pro¬ 
duction  which  at  present  is  practically  absent  in  China. 

Machine  tools  are  sold  in  China  for  use  in  railroad  and  shipbuild¬ 
ing  establishments,  repair  shops  of  mills  and  factories,  and  machine 
shops  making  a  variety  of  articles.  The  last  named  is  confined 
mainly  to  small  tools. 

The  railways  of  China,  normally  the  largest  individual  purchasers 
of  machine  tools,  have  not  been  in  a  position  for  the  past  few  years 
to  purchase  the  amount  of  equipment  which  they  would  have  pur¬ 
chased  had  their  financial  condition  been  more  satisfactory.  Ship¬ 
building  activities  have  fallen  off  considerably,  and  shipyards,  which 
were  good  customers  for  machine  tools  during  normal  operation, 
have  done  little  local  buying  during  the  past  two  years.  A  majority 
of  the  purchases  of  the  foreign  owned  and  operated  shipyards  in 
Shanghai  and  Hongkong  are  made  through  home  purchasing  agents. 

Small  installations  for  light  manufacturing  purposes  are  becom¬ 
ing  more  frequent,  and  sales  of  small  tools  of  various  sorts  are  pro¬ 
gressing  fairly  well  in  spite  of  the  absence  of  buying  by  the  usual 
large  purchasers. 

The  growth  of  the  machine-tool  trade  from  51,000  haikwan  taels 
in  1913  to  500,000  haikwan  taels  in  1923  represents  a  steadier  expan¬ 
sion  in  the  use  of  machine  tools  than  the  rather  erratic  import  figures 
show.  In  1920,  7G1,000,  in  1921  some  940,000,  and  in  1922  approxi¬ 
mately  660,000  haikwan  taels’  worth  of  machine  tools  were  imported, 
while  in  1923  imports  had  dropped  to  492,000  haikwan  taels.  Con¬ 
sidering  these  figures,  it  must  be  borne  in  mind  that  heavy  over-buy¬ 
ing  took  place  both  in  1920  and  in  1921.  While  imports  are  shown  to 
have  fallen  off  during  1922  and  1923,  there  was  a  good  deal  of  ma¬ 
terial  going  into  consumption  from  stocks  which  had  accumulated 
during  the  three  previous  years,  which  is  naturally  not  shown  as 
imports. 

It  is  believed  that  the  various  arsenals  in  China  have  absorbed  a 
considerable  quantity  of  machine  tools  during  the  past  few  years, 
but  of  this  business  American  and  British  firms  are  deprived,  as  a 
result  of  agreements  preventing  the  sale  of  materials  to  Chinese  gov¬ 
ernmental  or  provincial  authorities  for  use  in  the  manufacture  of 
arms  or  ammunition. 

During  the  war  Japan  obtained  a  large  share  of  the  machine-tool 
trade,  but  with  the  reentry  of  Great  Britain  and  Germany  into  the 
market,  Japan’s  share  has  fallen  off,  until  in  1923  it  was  reduced  to 
but  11.8  per  cent,  from  a  1917  record  of  77  per  cent. 

The  United  Kingdom,  practically  out  of  the  market  from  1914  to 
1920,  reached  31  per  cent  of  the  total  during  1921,  while  the  United 
States  declined  from  40  per  cent  in  1920  to  29.5  per  cent  in  1921. 
All  countries,  with  the  exception  of  Germany,  show  declines  from 
1921  to  1923,  while  Germany,  which  was  absolutely  out  of  the  market 
from  1915  to  1920,  increased  its  share  of  the  machine-tool  trade  from 
3.6  per  cent  in  1921  to  44.5  per  cent  in  1923.  This  increase  was  due 
almost  entirely  to  the  fact  that  prices  of  German  tools  in  this  market 
were  from  20  to  40  per  cent  below  all  competition,  and  that  im¬ 
porters  of  German  tools  were  making  terms  which  it  was  impossible 
for  competitors  to  meet. 


IMPORT  TRADE  OF  CHINA 


101 


AGRICULTURAL  MACHINERY 

Conditions  obtaining  in  Chinese  agriculture  do  not  permit  the 
sale  of  any  great  quantity  of  American  agricultural  machinery. 

While  possibly  80  per  cent  of  China’s  population  is  engaged  in 
farming,  individual  holdings  are  extremely  small,  purchasing  power 
is  low,  native  tools  are  cheap  and  efficient,  and  labor  is  cheap  and 
plentiful.  While  a  considerable  quantity  of  agricultural  machinery 
of  various  sorts,  from  tractors  to  light  plows,  has  been  imported, 
the  bulk  of  the  large  equipment  has  been  for  experimental  purposes. 

There  are  constant  imports  of  items  under  the  customs  heading 
“  Machinery,  agricultural,”  but  their  small  volume  may  be  judged 
from  the  import  figures  previously  quoted.  A  considerable  portion 
of  these  imports  is  made  up  of  rice-hulling  machines.  Japan  turns 
out  a  low-priced  rice  machine  which  sells  well  in  this  market. 

The  comparatively  high  figures  for  1920  and  1921  are  accounted 
for  mainly  by  fairly  large  experimental  purchases  and  large  imports 
for  stock,  some  of  which  are  still  unsold. 

Good  work  is  being  done  by  educational  institutions  which  are 
making  efforts  to  introduce  American  agricultural  machinery  to  the 
Chinese. 

In  the  opinion  of  importers,  the  best  opportunities  lie  in  such  items 
as  small  rice-hulling  machines  to  operate  by  kerosene  engine,  irri¬ 
gating  hand  pumps,  walking  harrows,  walking  cultivators,  walking 
plows,  and  various  other  items  which  may  be  used  in  connection 
with  hand  labor  or  animal  power,  and  which  are  designed  to  meet 
the  peculiar  requirements  of  the  Chinese  farmer. 

FLOUR-MILLING  MACHINERY 

The  present  modern  flour-milling  industry  of  China,  represented 
by  approximately  160  mills  with  a  daily  capacity  estimated  at 
nearly  270,000  50-pound  bags,  has  been  but  25  years  in  the  making. 

Prior  to  1900  the  flour  produced  in  China  was  ground  by  old- 
fashioned  native  stone  mills,  turning  out  a  coarse  product  of  dark 
color  known  as  “  whole  wheat  ”  flour.  Many  thousands  of  these 
mills  are  in  operation  in  China,  but  as  the  white  product  of  the 
modern  mills  becomes  increasingly  popular,  as  shown  by  the  in¬ 
creased  sale  both  of  domestic  and  of  imported  flour,  there  is  every 
reason  to  anticipate  a  continued  growth  in  the  use  of  imported  flour¬ 
milling  machinery. 

At  present  Manchuria  has  45  mills;  Shanghai,  23;  Wusih,  8;  and 
Tientsin,  6,  with  the  rest  scattered  throughout  the  country  in  loca¬ 
tions  where  wheat  supplies  are  available. 

Statistics  as  to  the  country  of  origin  of  flour-mill  machinery  are 
lacking,  but  practically  all  the  modern  mills  in  China  are  using 
American  machinery,  some  of  the  best-known  American  makers 
being  represented  by  American  and  British  houses. 

The  newer  Chinese  mills  are  modern  in  every  sense  and  compare 
favorably  with  those  in  the  United  States,  both  as  to  plant  and 
product. 

The  lack  of  competent  mill  superintendents  has  been  commented 
upon  by  manufacturers  who  have  visited  China  and  studied  the 
situation,  as  has  the  apparent  superabundance  of  labor  employed  by 


102 


COMMERCIAL  HANDBOOK  OF  CHINA 


the  mills.  Good  men  are  being  developed  as  the  industry  progresses, 
however,  and  in  some  cases  foreign  superintendents  are  hired  by 
the  most  progressive  managements. 

Competition  is  doing  much  to  help  put  the  flour  mills  on  a  basis 
where  strict  cost  accounting  is  becoming  a  necessity,  and  it  may  be 
that  we  shall  witness  a  change  in  their  custom  of  sympathy  toward 
relatives  and  friends  in  the  matter  of  jobs. 

TEXTILE  MACHINERY 

The  outstanding  feature  in  China’s  industrial  development  is 
the  growth  of  its  cotton-spinning  and  weaving  industry,  which  has 
grown  from  about  500,000  spindles  in  1900  to  1,500,000  in  late  1920, 
and  3,690,642  (operating  and  under  construction)  in  June,  1924,  the 
last  available  census. 

Shanghai,  on  account  of  its  many  advantages  in  location,  trans¬ 
portation,  cheap  coal,  and  low  electric-power  rates,  has  become  the 
center  of  this  industry,  and  there  is  located  63  per  cent  of  China’s 
total  spindles  and  over  50  per  cent  of  its  mills.  Next  to  Shanghai 
in  importance  is  Tientsin,  with  7  Chinese  mills  having  277,652  spin¬ 
dles  (231,580  built  and  46,072  under  construction)  ;  Tsingtao,  with 
6  Japanese  mills  and  228,000  spindles  (155,000  built  and  73,000 
under  construction)  ;  and  Wusih,  with  6  Chinese  mills  and  a  total 
of  145,480  spindles  (136,680  built  and  8,800  under  construction). 

In  addition  to  the  rapid  increase  in  spindles,  the  installation  of 
power  looms  has  made  great  strides  during  the  past  five  years.  In 
1919  there  were  but  8,200  power  looms  in  China.  At  the  beginning 
of  1922  the  total  number  installed  and  on  order  was  approximately 
13,000,  while  in  June,  1924,  this  had  increased  to  22,777  installed  and 
under  construction.  As  with  spinning,  weaving  is  centered  in  Shang¬ 
hai,  which  has  67.4  per  cent  of  all  power  looms  in  China. 

Owing  to  lack  of  statistics  it  is  impossible  to  give  the  exact  number 
of  American-made  spindles  or  looms  in  China,  but  a  recent  trade 
estimate  places  the  number  at  953,740  spindles  and  3,400  looms. 

The  participation  of  the  United  States  in  this  trade  may  be  seen 
from  the  Chinese  Maritime  Customs  figures  for  1911  to  1923,  inclu¬ 
sive,  showing  total  gross  imports  of  machinery  for  spinning  mills  for 
all  China,  in  the  following  table : 


Year 

United 
States  and 
Canada 

United 

Kingdom 

Japan 

All  other 
countries 

Total 

Haikwan 

Haikwan 

Haikwan 

Haikwan 

Haikwan 

taels 

taels 

taels 

taels 

taels 

1911 _ _ _ _ _ 

7, 161 

241,  234 

60, 159 

23, 028 

331, 582 

1912 _ _ _ 

9,885 

307,  283 

50,  229 

91,219 

458, 616 

1913 _ _ _ 

2,  615 

572, 150 

112,500 

52,  459 

839,  724 

1914 _ 

2,  530 

1,540, 100 

187,  661 

308, 169 

2, 038,  460 

1915 _ _ - 

15, 446 

1,076,  229 

253,  490 

74,  346 

1,419,511 

1916 _ 

115,431 

1,  257,  961 

531, 437 

29,  312 

1,934, 141 

1917 _ 

218,  928 

669,  649 

300,  607 

24,  616 

1,  235,  800 

1918 _ 

379,  867 

669,  402 

642,  948 

22,  777 

1,714,994 

1919 _ 

1,  944,  350 

813,  254 

897,  760 

112,  042 

3,  767, 406 

1920 _ 

3,  897,  204 

1, 925,  696 

1,071,201 

33,  627 

6,  927,  728 

1921 _ 

11,768,212 

11, 160,313 

3,  622,  553 

240,  994 

26,  792, 072 

1922 _ _ 

7,  910,  042 

15, 171,  830 

6,  725,  264 

722, 150 

30,  529,  286 

1923 _ _ 

933,  533 

6, 152, 364 

4,  557,  784 

690,  736 

12,  334,  417 

Note.— Shipments  credited  to  Canada  may  reasonably  be  supposed  to  have  come  from  the  United 
States. 


IMPORT  TRADE  OF  CHINA 


103 


Prior  to  1915  the  share  of  the  United  States  was  negligible,  but 
from  1915  its  participation  grew  to  over  56  per  cent  in  1920,  only  to 
decline  to  less  than  8  per  cent  in  1923.  The  reason  for  this  rapid 
increase  and  subsequent  decline  may  be  discovered  through  an  anal¬ 
ysis  of  conditions  during  the  period  covered. 

During  the  war  the  established  mills  began  to  enjoy  large  profits, 
and  these  attracted  capitalists,  promoters,  and  industrialists  to  the 
industry.  A  large  number  of  companies  were  organized  and  ma¬ 
chinery  was  ordered.  American  manufacturers,  taking  advantage  of 
the  opportunity  and  aided  by  the  proved  excellence  of  their  product 
and  the  extremely  long  deliveries  being  made  by  British  makers,  suc¬ 
ceeded  in  securing  a  good  share  of  the  business. 

The  Chinese  organizers  of  these  new  projects,  being  in  the  majority 
of  cases  inexperienced  in  large  industrial  enterprises  and  anxious  to 
take  profits,  not  only  failed  to  capitalize  their  companies  adequately, 
but  overlooked  the  necessity  of  providing  sinking  funds. 

In  addition,  much  of  the  machinery  was  contracted  for  at  a  time 
when  silver  was  high  and  a  tael  was  worth  over  $1  gold.  F ailure  to 
cover  exchange  properly  resulted  in  many  heavy  exchange  losses 
when  payments  became  due,  as  the  tael  had  slumped  abruptly  in  its 
gold  value. 

In  addition  to  this,  much  of  the  equipment  was  bought  at  the  peak 
of  prices  for  Spinning  machinery.  This  placed  an  added  burden  on 
the  companies  purchasing  at  that  time  in  comparison  with  those 
securing  their  equipment  either  previously  or  subsequently  to  the 
price  peak. 

Inexperienced  management,  and  the  nepotism  which  characterized 
much  of  the  selection  of  personnel,  was  likewise  a  heavy  handicap, 
bringing  manufacturing  costs  out  of  line  with  those  of  efficiently 
managed  mills  operated  by  Japanese  and  other  foreign  nationals. 

In  spite  of  the  handicaps  many  of  the  mills  made  excellent  profits 
for  a  time,  but  as  competition  in  the  domestic  yarn  market  became 
keener,  these  Chinese  mills  began  to  feel  the  effects  of  their  numerous 
handicaps,  and  no  new  spinning  machinery  of  any  importance  has 
been  purchased  by  Chinese  since  1922. 

On  the  other  hand,  Japan  had  thousands  of  spindles  on  order  in 
England  when  the  postwar  slump  hit  Japan  in  1921.  A  very  large 
number  of  these  were  delivered  to  China,  thus  increasing  the  share  of 
Great  Britain  in  the  imports  of  1921  and  1922. 

While  few  new  spinning  enterprises  have  been  started  recently,  a 
healthy  development  has  taken  place  in  weaving,  as  previously , 
pointed  out.  Here  American  manufacturers  are  badly  handicapped, 
British  and  Continental  makers  being  considerablv  under  them  in 
price  and  taking  the  great  majority  of  this  business. 

Supplies  constitute  a  large  item  in  imports  in  this  industry,  and 
here,  again,  America  has  been  unable  to  compete  in  price  in  the 
Chinese  market  during  the  past  two  years,  throwing  the  business  else¬ 
where. 

The  rapid  growth  of  Japanese  interest  in  the  industry  in  China  has 
taken  place  largely  since  1919,  at  which  time,  according  to  figures 
published  in  that  year,  China’s  spindles  were  operated  as  shown  in 
the  table  which  follows : 


104 


COMMERCIAL  HANDBOOK  OF  CHINA 


Location 

Mills 

Spindles 

Shanghai: 

Foreign... . . . .  . 

5 

3 

42- 

1 

314,  258 
206,  965 
1,  073,  220 
25, 000 

Japanese . . . . .  . 

Chinese. _ _ _ _ 

Tientsin,  Japanese. . .  . 

Total _  _ _ _ _ _ _  _ _ _ 

51 

1, 619,  443 

Since  that  time  Japanese  interests  have  not  only  taken  over  one 
foreign  mill  of  65,842  spindles,  but  have  added  926,385  new  spindles 
and  37  mills  to  their  holdings.  In  addition  they  are  understood  to 
have  considerable  interest  in  Chinese  mills.  Foreign  interests  have 
released  one  mill  to  Japanese  and  have  added  but  42,000  spindles 
to  their  remaining  four,  all  of  which  are  in  Shanghai.  No  new 
foreign  mills  have  started.  Chinese  holdings  have  increased  556,723 
spindles  and  33  mills  in  the  same  period. 

During  the  latter  part  of  1923  the  condition  of  the  cotton  spinning 
and  weaving  industries  in  China  was  critical,  but  during  1924  condi¬ 
tions  became  so  much  worse  that  many  of  the  mills,  both  Chinese  and 
foreign  owned,  were  closed  for  varying  periods,  and  for  about  six 
months  of  the  year  few  were  operating  full  time. 

Cotton  prices  during  1924  were  high,  and  the  offtake  of  yarn  was 
disappointing  and  at  prices  which  were  too  low  to  enable  profitable 
manufacturing  even  by  the  Japanese  mills,  which  in  many  cases,  re¬ 
ceive  higher  prices  for  their  products  than  the  Chinese  receive. 

In  consequence  of  this  situation  there  was  practically  no  business  in 
textile  machinery  during  that  year,  while  the  supply  business  in 
connection  with  the  industry  was  very  largely  diminished.  Prices 
quoted  by  British  and  American  manufacturers  for  spinning  ma¬ 
chinery  were  very  similar,  and  manufacturers  of  these  two  countries 
are  still  the  principal  competitors  in  textile  machinery  in  China, 
but  during  1924  F rench  and  German  manufacturers  entered  the 
market. 

Textile  machinery  is  sold  in  this  market  direct  by  the  manufac¬ 
turers,  either  maintaining  their  own  offices  or  working  through  im¬ 
port  houses.  One  of  the  largest  American  manufacturers  of  textile 
machinery  maintains  its  own  organization  in  China,  which  works 
with  and  through  one  of  the  old-established  American  import  engi¬ 
neering  firms.  Machinery  sold  is  erected  under  the  personal  super- 
w  vision  of  the  manufacturer’s  organization,  and  this  firm  is  also  in  a 
position  to  render  both  advisory  and  mechanical  service  when  neces¬ 
sary.  • 

KNITTING  AND  SEWING  MACHINES 

Power-operated  knitting  machines  are  receiving  increasing  atten¬ 
tion  from  Chinese  hosiery  manufacturers.  The  manufacture  of 
hosiery  by  machinery  is  a  very  recent  development  in  China,  and 
even  at  present  the  great  majority  of  the  hosiery  knitting  is  carried 
on  as  a  household  industry,  one  or  two  hand-power  knitting  ma¬ 
chines  being  installed. 

The  upward  trend  in  sales  of  power  machines  is  the  result  of  a 
gradual  and  healthy  development  in  the  combining  of  small  groups 
of  hand-power  machines  into  small  factories,  which,  after  proving 


IMPORT  TRADE  OF  CHINA 


105 


their  earning  capacity,  are  purchasing  power  machines,  possibly  one 
or  two  at  a  time,  and  gradually  enlarging  their  output.  The  majority 
of  these  plants  are  knitting  hosiery  from  imported  yarn  of  from  42 
to  60  counts.  Part  of  the  product  of  these  machines  is  being  con¬ 
sumed  locally  and  part  exported  to  the  Malay  States,  Netherlands, 
East  Indies,  and  the  Philippine  Islands. 

About  98  per  cent  of  the  power  knitting  machines  at  present  in¬ 
stalled  in  China  are  said  to  be  of  American  manufacture.  Sales  are 
made  by  factory  representatives  working  in  some  cases  through  their 
own  organizations  and  in  others  through  the  organizations  of  import 
houses. 

Another  item  in  which  the  United  States  is  well  represented  is 
sewing  machines,  which  are  being  introduced  throughout  China  by  a 
large  American  company  which  has  established  its  own  widespread 
system  of  agencies.  These  agencies  are  in  charge  of  Chinese  who 
have  been  trained  by  the  company. 

Unfortunately,  detailed  statistics  covering  these  two  items  are  not 
available,  but  the  extent  of  the  business  may  be  judged  from  the 
fact  that  net  imports  under  the  heading  “Machines,  embroidering, 
knitting,  sewing,”  under  which  they  appear,  have  averaged  in  value 
590,000  haikwan  taels  over  the  past  11  years,  of  which  the  United 
States  is  shown  as  having  supplied  imports  having  an  average  value 
of  184,000  haikwan  taels  per  year 

ELECTRICAL  MACHINERY  AND  APPLIANCES 

The  use  of  electric  light  and  power  plants  in  China  started  in  the 
foreign  concessions  where  light  and  power  were  sold  by  central  sta¬ 
tions.  Beginning  with  the  concessions,  development  is  traceable 
to  cities  located  near  the  concessions  and  from  these  has  gradually 
spread  outward. 

Probably  90  per  cent  of  the  electric  plants  in  China  are  used  for 
lighting  purposes,  the  only  plants  carrying  power  loads  of  any 
importance  being  located  in  treaty  ports  such  as  Shanghai,  Tientsin, 
Harbin,  Hankow,  Canton,  and  cities  like  Hongkong  and  Mukden, 
where  industrial  development  has  made  rapid  strides  and  where  the 
majority  of  China’s  large  manufacturing  plants  are  located.  It  is 
extremely  difficult  to  secure  an  accurate  idea  of  the  exact  number  and 
capacity  of  electric  plants  in  China,  as  the  Government  statistics  are 
kept  only  by  number  of  permits  issued,  and  information  gathered 
from  individual  plants  is  usually  of  the  most  fragmentary  nature 
and  often  extremely  unreliable.  Based  on  the  best  obtainable  esti¬ 
mates,  however,  there  are  nearly  400  electric  light  and/or  power 
plants  in  China  with  a  total  generating  capacity  of  something  over 
400,000  kilowatts. 

The  growth  of  electrical  generating  plants  in  China  was  slow  up 
to  1916.  The  industry  during  1914  gave  promise  of  rapid  growth, 
but  this  was  delayed  by  the  uncertainties  arising  at  the  end  of  1914 
on  account  of  the  war,  but  from  1916  to  1921  there  occurred  a  very 
marked  and  rapid  expansion.  An  instance  is  that  of  the  Mukden 
Electric  Light  Works  which  started  14  years  ago  with  a  350-kilowatt 
unit,  had  increased  to  only  850  kilowatts  in  1920,  but  now  has  a 
capacity  of  4,000  kilowatts. 


106 


COMMERCIAL  HANDBOOK  OF  CHINA 


Prior  to  1910  the  electric  light  and  power  industry  in  China  was 
in  an  embryonic  stage.  Practically  all  of  the  plants  were  of  Eu¬ 
ropean  manufacture  and  few,  if  any,  turbo-generators  had  been  con¬ 
sidered  for  China.  In  1910  an  American  company  sold  a  350-kilo¬ 
watt  turbo-generator  to  the  Mukden  Electric  Light  Co.,  this  being 
the  first  turbo-generator  supplied  to  China.  Later  in  the  same  year 
an  order  was  secured  for  a  similar  machine  of  500-kilowatt  capacity 
for  the  Changshun  Electric  Light  Co.  At  the  time  of  the  placing  of 
these  two  orders  they  were  considered  revolutionary,  as  practically 
all  plants  installed  previously  had  been  driven  by  reciprocating 
engines. 

The  greatest  factor  in  the  growth  of  electrical  power  plants  has 
been  the  growing  industrial  enterprises,  particularly  of  modern  cot¬ 
ton  spinning  and  weaving  mills,  flour  mills,  and  oil  mills.  A  very 
large  part  of  the  output  of  the  Shanghai  Municipal  Council  electri¬ 
cal  undertaking  is  used  by  local  manufacturing  concerns.  In  loca¬ 
tions  away  from  Shanghai,  industrial  enterprises  have  been  responsi¬ 
ble  for  the  installation  of  power  plants  of  their  own,  varying  in  ca¬ 
pacity  from  500  to  3,000  or  4,000  kilowatts. 

The  rapid  growth  in  the  supply  of  American  machinery  has  been 
due  to  an  intensive  campaign  by  American  manufacturers  and  their 
representatives  or  agents  during  a  period  when  exchange  between 
gold  dollars  and  silver  was  particularly  attractive  to  the  purchaser, 
enabling  them  to  purchase  complete  plants  at  a  low  first  cost. 
American  manufacturers  for  a  number  of  years,  both  during  the  war 
and  immediately  following,  were  able  to  secure  orders,  as  most  of  the 
large  European  manufacturers  were  unable  to  make  deliveries,  and 
as  a  result  of  this,  machinery  manufactured  in  the  United  States 
received  a  very  distinct  stimulus. 

Simultaneous  with  this  demand  for  industrial  machinery,  un¬ 
doubtedly  influenced  by  the  electrical  equipment  installed  in  the 
spinning  mills,  there  wras  a  growth  in  the  demand  for  electric  light¬ 
ing  for  cities,  large  and  small,  and  while  the  manufacturing  in¬ 
dustries  are  confined  to  districts  surrounding  the  large  open  ports, 
lighting  installations  quickly  spread  themselves  over  all  parts  of 
China  from  north  to  south.  Electric  lighting  plants  are  now  to  be 
found  in  cities  many  days’  journey  from  the  nearest  railways  and 
waterways.  In  many  cases  these  small  plants  are  backed  by  local 
citizens,  who,  after  having  visited  the  outports,  appreciate  the  con¬ 
venience  of  electric  light,  compared  with  the  methods  to  which  they 
were  previously  accustomed. 

To-day  there  are  very  few  cities  or  towns  of  any  considerable 
population  which  are  without  a  supply  of  electricity.  A  fair  num¬ 
ber  of  small  units  of  2 y2  to  10  kilowatts  in  capacity  are  distributed  in 
locations  where  power  from  central  stations  is  not  available. 

In  most  places  in  China  are  available  cheap  supplies  of  coal  con¬ 
veniently  located.  Much  of  this  coal  is  of  poor  quality,  but  in  spite 
of  this,  with  anything  approaching  good  mangement,  these  small 
lighting  plants  pay  handsomely,  as  it  is  always  possible  to  secure 
high  rates  for  electric  current  and  thus  obtain  good  profits  on  in¬ 
vestments.  Even  in  locations  where  cost  of  coal  is  high,  many  of 
these  small  plants  are  operated,  selling  current  to  consumers  on  a 
flat-rate  basis  from  $1  to  $1.50  per  16  candlepower  lamp  a  month. 


IMPORT  TRADE  OF  CHINA 


107 


During  the  past  eight  years  there  has  been  healthy  expansion  in 
turbo-generator  plants  in  such  places  as  Shanghai,  Kwangtung, 
Hankow,  Foochow,  Harbin  (native  city),  Kirin,  Changchun,  Tien¬ 
tsin,  Peking,  Wuchang,  and  Amoy.  Owing,  however,  to  the  dis¬ 
turbed  political  situation  and  the  seizure  of  certain  plants  by  mili¬ 
tary  officials,  also  the  demand  for  free  current,  certain  power  plants 
in  China  are  unsatisfactory  from  a  credit  point  of  view.  In  many 
cases  these  power  plants  are  carrying  heavy  overloads  without  an 
opportunity  of  shutting  down  for  periodic  inspection  and  overhaul, 
with  the  result  that  the  plants  are  in  very  poor  shape. 

In  addition  to  turbo-generator  units,  there  are  a  large  number  of 
generators  driven  by  steam  and  oil  engines.  These  range  from  the 
smallest  sizes  of  a  few  kilowatts  up  to  300  kilowatts  in  capacity. 
There  are  also  a  few  water  turbines  of  small  size  but  there  has 
been  practically  no  development  of  any  consequence  in  this  special 
harnessing  of  power  in  China. 

Beginning  with  1921,  European — particularly  German  and 
Swiss — competition  began  to  show  itself  to  a  very  appreciable  degree, 
offering  equipment  which,  although  considered  in  many  cases  not 
equal  to  American  material,  was  acceptable  to  Chinese  purchasers, 
particularly  at  the  prices  offered.  European  manufacturers  seem 
to  be  willing  to  spare  no  expense  to  get  back  this  class  of  busi¬ 
ness  in  China.  This  is  evidenced  by  the  large  number  of  represen¬ 
tatives  now  competing  for  power-plant  business  here.  This,  coupled 
with  the  general  falling  off  in  demand,  on  account  of  political  condi¬ 
tions  during  the  last  two  years  and  also  on  account  of  the  fall  in 
exchange,  has  made  business  for  American  machinery  show  a  very 
considerable  falling  off.  Unfortunately,  Chinese  Maritime  Customs 
statistics  fail  to  make  a  separate  classification  for  electric-power 
plants  and  their  equipment.  Imports  of  this  class  of  material  are 
listed  under  “  Electrical  materials  and  fittings,”  “  Machinery,  other 
kinds  and  parts  of,”  “  Machinery,  propelling  (boilers,  turbines, 
etc.).” 

It  is  also  the  practice  to  list  complete  cotton-spinning  plants, 
flour  mills,  etc.,  under  their  respective  headings,  including  in  the 
entry  any  electrical  equipment  which  may  form  a  part  of  the  ship¬ 
ment.  Thus,  no  definite  import  figures  are  procurable  for  the  whole 
of  China. 

Estimates  made  from  available  individual  port  statistics,  and  by 
importers,  place  1923  imports  of  electric-power  stations,  of  all 
classes,  at  a  total  capacity  of  50,000  kilowatts. 

In  1923  under  the  customs  heading  “  Electrical  materials  and 
fittings  ”  the  total  value  of  gross  imports  was  8,480,510  haikwan  taels, 
of  which  the  United  States  supplied  1,322,000,  Great  Britain  1,244,- 
500,  Germany  2,064,100,  and  Japan  2,495,100  haikwan  taels. 

With  the  continued  widespread  domestic  uncertainty  and  disorder 
and  the  intense  low-priced  European  competition,  the  prospects  for 
any  heavy  increase  in  the  sale  of  American  electrical  machinery  in 
China  can  not  be  considered  as  bright  at  the  present  time  or  in  the 
immediate  future. 

Orders  will  be  placed,  of  course,  for  additions  to  present  installa¬ 
tions,  largely  made  up  of  American  machinery,  as  in  certain  in¬ 
stances  it  is  difficult  for  European  manufacturers  to  match  this 


108 


COMMERCIAL  HANDBOOK  OP  CHINA 


equipment.  Also  with  any  renewal  of  activity  in  the  cotton  spinning 
and  weaving  industry,  we  can  expect  an  increased  sale  of  power- 
plant  machinery,  provided  the  order  for  textile  machinery  is  placed 
with  American  manufacturers ;  and  in  this  class  of  machinery  Amer¬ 
ican  manufacturers  seem  to  be  in  line  as  they  encounter  competition 
only  from  British  manufacturers,  Continental  manufacturers  hav¬ 
ing  supplied  very  little  textile  machinery  to  China.  It  is  usually 
the  case  that  when  contract  is  taken  for  a  complete  textile  mill, 
the  power  plant  goes  to  the  same  supplier  as  the  spinning  and  weav¬ 
ing  machinery. 

The  upkeep  of  electric  plants  is  most  unsatisfactory  from  the 
point  of  view  of  efficiency,  and  the  manufacturers  or  their  represen¬ 
tatives  in  China  encounter  considerable  difficulty  in  impressing  upon 
their  customers  the  necessity  of  making  repairs  as  and  when  they 
become  necessary,  the  tendency  among  the  Chinese  operating  plants 
being  to  get  along  as  best  they  can  until  repairs  are  absolutely 
necessary  in  order  to  keep  the  plant  running,  and  then  the  seller 
is  called  on  to  perform  a  rush  job,  often  at  far  greater  expense  to  the 
customers  than  would  have  been  necessary  had  the  repairs  been 
made  in  time. 

The  majority  of  plants  make  no  effort  to  secure  an  evenly  distrib¬ 
uted  load,  most  of  those  in  interior  cities  starting  at  dusk  and 
running  until  daylight  and  closing  down  during  daylight  hours, 
as  no  day  load  is  available.  Manufacturers  are  endeavoring  to  edu¬ 
cate  the  operators  up  to  the  point  of  securing  a  24-hour  load;  and 
while  they  have  met  with  success  in  isolated  cases,  the  idea  is  very 
slow  in  spreading. 

Approximately  80  per  cent  of  the  imports  of  power-plant  equip¬ 
ment  from  the  United  States  is  controlled  by  two  American  com¬ 
panies.  These  companies  have  offices  in  Shanghai  and  branch  offices 
in  various  treaty  ports,  where  they  are  operating  in  conjunction 
with  established  engineering  firms.  A  considerable  amount  of  ad¬ 
vertising  is  done  by  these  companies  both  in  foreign  weekly  and 
monthly  journals  and  in  Chinese  newspapers.  Both  methods  are 
proving  of  considerable  value. 

With  the  increased  use  of  electric  power  the  market  for  electrical 
goods  of  all  sorts  is  expanding.  Sales  of  motors,  meters,  trans¬ 
formers,  switchboard  material,  wire,  insulators,  lamps,  fans,  plugs, 
and  numerous  electrically  operated  household  appliances  are  in¬ 
creasing.  Exact  figures  are  unobtainable,  as  customs  classifications 
give  no  detailed  data. 

Prior  to  1915  Germany  was  the  largest  supplier,  being  credited 
with  35  per  cent  in  1913,  but  its  share  dropped  to  zero  from  1916  to 
1919,  inclusive.  In  1920  Germany  supplied  but  1  y2  per  cent  of  total 
imports  while  by  1923  this  share  had  increased  to  24!/2  per  cent. 
German  prices  since  the  war  have  been  extremely  low  and  the  com¬ 
petition  has  been  hard  to  meet  on  such  items  as  small  motors, 
meters,  lamps,  and  household  appliances. 

The  Japanese  have  bettered  their  position  in  this  market,  aided 
by  the  development  of  their  home  manufacturing  industry  and  the 
excellent  opportunity  afforded  by  the  dislocation  of  trade  during 
the  World  War.  In  1913  Japan  is  shown  as  supplying  16.3  per 
cent  of  total  imports,  its  share  being  valued  at  392,749  haikwan 


IMPORT  TRADE  OF  CHINA 


109 


taels.  In  1923  its  share  was  valued  at  2,495,131  haikwan  taels  or 
29.4  per  cent  of  total  imports. 

The  United  States  has  secured  an  increasingly  important  share  of 
this  trade.  Prior  to  the  World  War  the  share  of  the  United  States 
was  small,  being  in  1913  but  7.4  per  cent,  but  by  1923  this  had  in¬ 
creased  to  15.5  per  cent  in  spite  of  the  increasingly  keen  competi¬ 
tion  from  Japan  and  Germany.  The  greatest  participation  was  in 
1921  when  the  United  States  secured  34.7  per  cent  of  the  total, 
but  that  year  may  be  regarded  as  abnormal. 

Great  Britain  supplies  a  good  portion  of  this  class  of  material, 
its  share  over  the  10  years,  1914  to  1923,  inclusive,  being  18.5  per 
cent. 

Although  domestic  manufacture  is  not  highly  developed,  there 
are  an  increasing  number  of  Chinese  firms  making  various  types  of 
electrical  equipment.  Among  the  domestic  manufactures  are  lamps, 
insulators,  dry  cells,  meters,  and  a  fairly. t  complete  line  of  wiring 
devices,  fuses,  and  heating  devices.  The  largest  individual  manu¬ 
facturer  is  an  American  company  which  makes  all  these  items 
except  dry  cells  and  heating  devices,  marketing  their  products 
through  the  China  agents  of  their  parent  company. 


AUTOMOTIVE  EQUIPMENT 


China,  a  country  one-third  larger  than  the  United  States  and 
having  a .  population  usually  stated  as  400,000,000,  had  less  than 
11,000  motor  vehicles  of  all  descriptions  operating  at  the  end  of  the 
year  1923,  including  1,200  in  Hongkong.  These  were  divided  as 
follows : 


Passenger  cars _  8,  508 

Trucks  and  motor  busses _  1, 140 

Tractors _ _  2 

Motor  cycles -  1, 124 


Fire-fighting  apparatus _  95 

Airplanes  and  seaplanes _  99 

Total _ 10,968 


These  figures  were  compiled  by  the  Shanghai  office  of  the  United 
States  Department  of  Commerce  with  the  assistance  of  American 
consuls  throughout  China,  and  are  the  most  accurate  figures  obtain¬ 
able  at  this  time,  owing  to  the  lack  of  governmental  or  other  statis¬ 
tical  bureaus  in  China. 

The  principal  reason  for  China’s  unimportant  position  as  an  au¬ 
tomobile  user  is  that  it  is  practically  without  roads  on  which  auto¬ 
mobiles  can  be  safely  and  successfully  operated. 

Statistics  as  to  the  extent  of  roads  which  can  care  for  automobile 
traffic  are,  to  say  the  least,  incomplete.  Aside  from  the  hard- 
surfaced  roads  existing  in  the  foreign  concessions  of  the  various 
treaty  ports  of  China,  there  are  extremely  few  roads  which  will 
permit  the  use  of  automobiles.  The  latest  available  information  as 
regards  roads  throughout  China  is  that  recently  compiled  by  the 
Chinese  Government  Bureau  of  Economic  Information.  In  pub¬ 
lishing  this  data  the  bureau  states  that  the  utmost  difficulty  was  met 
in  securing  complete  information,  but  that  the  figures  have  been 
checked  from  every  possible  source  and  represent  the  most  accurate 
statements  available  at  this  time.  These  figures  indicate  that  there 
are  3,535  miles  of  roads  actually  constructed,  3,090  miles  partly  con¬ 
structed  or  under  construction,  and  about  17,000  miles  projected  on 


110 


COMMERCIAL  HANDBOOK  OF  CHINA 


which  no  work  has  yet  been  done  and  for  which  no  provision  has 
been  made  as  to  funds. 

These  roads  do  not  represent  hard-surfaced  highways,  many  of 
them  being  mud  roads  which  have  been  put  in  a  state  of  repair 
which  will  make  it  possible  for  automobiles  to  use  them. 

It  is  for  this  reason  that  approximately  80  per  cent  of  the  auto¬ 
mobiles  in  China  are  concentrated  in  the  cities  of  Shanghai,  Peking, 
and  Tientsin,  as  the  following  table  showing  the  approximate  dis¬ 
tribution  of  motor  vehicles  in  China  and  Hongkong  will  indicate: 


City 

Passen¬ 
ger  cars 

Trucks 

and 

busses 

Motor 

cycles 

Airplanes 
and  sea¬ 
planes 

Fire  fight¬ 
ing  appa¬ 
ratus 

Tractors 

Amoy  1 _ 

26 

9 

• 

Antung _  _ 

8 

2 

Canton.  ..  _  _ 

288 

125 

135 

4 

Changchun  _ _ .....  .  ... 

29 

9 

2 

Changsha _ 

6 

4 

Chef oo  _  _ _  _ 

'2 

Chinkiang1.. . . . 

2 

Dairen1. . . .  ..  .  . 

152 

27 

24 

7 

Foochow  1 _ _  _ 

9 

8 

> 

Hangchow1 _ _ _ 

12 

10 

Hankow - -  - 

214 

11 

39 

2 

3 

1 

Harbin  _ _ _  ...  . 

342 

91 

12 

6 

Hongkong.  .  .  .  _ _ _ _ 

715 

158 

320 

H 

Kalgan  and  Urga..  _ _ _ 

105 

10 

3 

Mukden _  .  _  _ _ 

102 

15 

6 

9 

Manking.  _ _ _  _ 

52 

2 

6 

3 

1 

Nantungchow  1 _ 

100 

13 

Newchwang _  _ 

9 

• 

Peking  1 _  . 

1,248 

35 

39 

42 

Paotingfu  1 _ _ 

9 

Shanghai _ _ _ 

4,  094 

581 

330 

25 

49 

Tientsin  1 _ _ 

750 

14 

144 

15 

Tsinan _ _ _ _ 

63 

9 

10 

Tsingtao.. . . . 

188 

9 

43 

Yunnanfu . . . . 

1 

9 

Total  .  . . . . 

8,  508 

1,140 

1, 124 

99 

95 

2 

Total 


35 

10 

552 

40 

10 

2 

2 

210 

17 

22 

270 

451 

1,204 

118 

132 

64 

113 

9 

1,364 

9 

5, 079 
923 
82 
240 
10 


10, 968 


1  Figures  not  revised. 


In  addition  to  the  lack  of  roads,  it  must  be  borne  in  mind  that 
the  per  capita  purchasing  power  of  the  vast  population  of  China  is 
extremely  low,  in  most  cases  being  barely  sufficient  for  the  necessities 


of  life. 


PASSENGER  CARS 


From  the  above  it  is  clear  that  China’s  potentialities  as  a  market 
for  automobiles  can  not  be  gauged  on  the  usual  factors,  such  as  pop¬ 
ulation.  That  it  is  a  growing  market,  however,  is  clear  from  a  pe¬ 
rusal  of  net  import  figures  covering  the  value  of  automobiles  im¬ 
ported  over  the  period  1908  to  1923,  inclusive.  These  are  given  be¬ 
low  and  include  only  the  value  (in  haikwan  taels)  of  motor  cars  and 
parts : 


1908  _ 109,814 

1909  _  168,021 

1910  _ 181,304 

1911  _  286,860 

1912  _ 250,610 

1913  _  485,182 

1914  _ 521,955 

1915  _ 433,043 


1916  _  536,  725 

1917  _  914,  347 

1918  _  1,272,981 

1919  _  2,158,998 

1920  _  3,477.219 

1921  _  3,569,354 

1922  _  2,297,156 

1923  _  2,165,967 


IMPORT  TRADE  OF  CHINA  111 

American  cars  have  occupied  an  important  position  in  the  market 
since  China  became  an  automobile  user. 

The  principal  commercial  center  and  the  most  important  city  in 
China  is  Shanghai.  The  greatest  individual  share  of  the  motor-car 
imports  come  through  that  port.  Figured  by  value,  the  average  over 
the  past  10  years  was  54.19  per  cent,  the  next  largest  share  being 
taken  by  Tientsin,  which  shows  an  average  percentage  of  27.85  over 
the  same  period. 

In  addition  to  its  position  as  chief  port  of  importation,  Shanghai 
has  the  largest  registration  of  motor  vehicles  of  all  the  cities  in  China, 
and  it  is  therefore  natural  that  the  principal  dealers  have  their  head 
offices  there. 

Sales  of  motor  vehicles  are  effected  through  agents  appointed  by 
manufacturers  or  their  export  distributers.  These  agents  hold  ex¬ 
clusive  sales  rights  in  certain  specified  territories.  Where  agents  have 
branches  outside  Shanghai  they  control  all  territory  their  branches 
can  advantageously  cover.  Few  agents,  however,  are  in  a  position  to 
handle  the  entire  country,  and  they  either  appoint  subagents  or  the 
manufacturer  appoints  an  agent  in  each  of  the  important  distribut¬ 
ing  centers  such  as  Shanghai,  Tientsin,  Peking,  Hankow,  Harbin,  and 
Hongkong. 

In  appointing  agents  to  handle  all  China  the  most  rigid  and  pains¬ 
taking  study  should  be  made  of  their  ability  to  adequately  cover  the 
territory,  either  through  their  own  organization,  or  through  sub¬ 
agents  who  are  properly  qualified  to  handle  automobiles  to  ad¬ 
vantage.  Care  should  be  taken  that  no  important  consuming  section 
of  the  country  be  neglected,  as  with  the  gradual  spread  of  the  use 
of  automobiles  the  problem  of  wide  distribution  gains  rapidly  in 
importance  over  that  of  centralized  selling  effort  in  the  large  con¬ 
suming  cities. 

To  effect  proper  distribution,  China  should  be  treated  as  three 
separate  units — North,  Central,  and  South.  North  China,  with 
Tientsin  as  its  chief  port,  may  be  regarded  as  that  portion  lying  north 
of  34°  N.  latitude ;  Central  China,  to  which  Shanghai  is  the  principal 
port,  from  latitude  25  to  34°  N.,  and  South  China,  covered  from 
Hongkong,  includes  territory  from  the  border  of  Indo-China  to 
latitude  25°  N. 

At  present,  approximately  25  makes  of  American  cars  are  repre¬ 
sented  in  China  on  an  agency  basis.  Nearly  all  these  are  repre¬ 
sented  in  Peking,  Tientsin,  and  Hongkong  by  agents  or  subagents. 

The  automobile  business  in  China  is  in  the  hands  of  foreigners, 
and  for  this  reason  is  conducted  along  practically  the  same  lines  as 
in  the  United  States  or  European  countries.  Advertising  is  carried 
in  daily  papers  in  both  Chinese  and  foreign  languages.  Repair  and 
service  stations  are  maintained  by  agents,  the  majority  of  those  in 
Shanghai  operating  garages  in  connection  with  which  a  hire-car 
service  is  frequently  operated.  Sales  are  made,  if  necessary,  under 
time  payment  plans. 

There  are  no  automobiles  manufactured  in  China,  but  body  build¬ 
ing  is  done  in  Shanghai,  where  very  excellent  bodies  both  of  open 
and  of  closed  models  are  turned  out. 


112 


COMMERCIAL  HANDBOOK  OF  CHINA 

No  definite  figures  are  obtainable  as  to  the  proportion  of 
Chinese-owned  automobiles,  but  the  following  figures  may  be  taken 
as  an  indication.  In  the  French  concession  of  Shanghai  at  the  end 
of  1923,  out  of  1,234  passenger  automobiles  registered,  324  were 
Chinese  owned,  and  it  is  presumed  that  the  rest  of  Shanghai  may  be 
calculated  on  practically  the  same  basis.  Peking  shows  1,071  Chi¬ 
nese  owners  out  of  a  total  of  1,353  cars.  Canton,  with  some  300  cars, 
busses,  and  trucks,  has  approximately  250  owned  by  Chinese. 

The  foreign  population  in  treaty  ports  constituted  the  best  market 
formerly,  but  since  Chinese  have  learned  to  use  motor  transporta¬ 
tion,  the  important  and  growing  market  can  be  looked  for  among 
Chinese  buyers,  with  the  foreign  population  as  a  steady,  but  hardly 
an  increasing  outlet. 

American  cars  are  well  known  and  well  liked  in  this  market. 
The  past  year  has  seen  increasing  imports  of  small,  low-priced 
European  cars,  and  while  increasing  sales  effort  is  required  from 
year  to  year,  as  competition  becomes  keener,  there  is  every  reason  to 
believe  that  the  American  car  will  retain  its  prominent  position  in 
this  market. 

MOTOR  TRUCKS 

The  use  of  motor  trucks  is  unknown  except  for  hauling  within 
the  cities  where  modern  roads  exist,  and  for  use  as  busses  both  in 
cities  and  in  certain  parts  of  China  where  roads  are  built  or  where 
the  terrain  lends  itself  to  automobile  travel. 

The  concentration  of  trucks  in  a  few  cities  is  well  illustrated  by 
the  following  table  showing  the  approximate  registration  figures 
at  the  end  of  1923  : 


Amoy  ( Cliangchow  4;  Anhai  5) _  9 

Canton _  125 

Changsha  district  (busses) -  4 

Changchun _  9 

Dairen _  27 

Foochow - 8 

Hangchow  (trucks,  passenger  bus  bodies) -  10 

Hangkow _  11 

Harbin _  91 

Hongkong  (76  trucks  and  82  motor  busses) -  158 

Kalgan  and  Urga -  10 

Mukden  district  (including  7  busses) -  15 

Nanking _  2 

Nantungchow  (10  busses) -  13 

Peking _  35 

Shanghai _ 581 

Tientsin  (3  motor  busses) -  H 

Tsingtao _  9 

Tsinan  district  (2  not  in  use) -  0 


Total _ 1>  1-40 

In  addition  to  the  lack  of  roads  this  condition  is  aggravated  by 
the  antagonistic  attitude  of  guilds  to  members  of  which  the  introduc¬ 
tion  of  automobile  transportation  would  mean  loss  of  employment. 
This,  in  certain  sections,  assumes  a  very  serious  aspect,  although  in 
the  majority  of  the  foreign  concessions  the  automobile  is  recognized 
as  an  inevitable  adjunct  to  modern  development.  As  Chinese  become 
conversant  with  the  advantages  of  the  truck  over  old  methods  of  haul- 


IMPORT  TRADE  OF  CHINA 


113 


age,  it  is  believed  that  such  opposition  will  gradually  lessen,  and  in 
addition,  more  interest  will  be  taken  by  the  Chinese  in  the  develop¬ 
ment  of  roads. 

Shanghai  has  developed  into  the  largest  individual  truck  market 
in  China  by  reason  of  its  size,  its  greater  industrial  development, 
and  the  fact  of  its  spreading  manufacturing  and  shipping  districts, 
necessitating  longer  hauls  which  can  not  be  quickly  and  conveniently 
made  by  water. 

The  district  is  well  supplied  with  canals,  but  low  Tvater  causes 
bad  congestion  along  the  waterways,  and  truck  haulage  is  being 
resorted  to  in  an  increasing  measure.  As  other  centers  of  China 
become  industrialized,  the  necessity  for  longer  hauls  by  land  will 
become  apparent.  The  expansion  of  the  railroads  will  bring  with 
it  a  call  for  feeder  systems. 


Fig.  4. — Truck  with  chassis  built  in  Tientsin 


These  developments  will  be  extremely  slow,  however,  and  it  is 
felt  that  the  greatest  possibilities  within  the  next  few  years  lie  in 
the  field  of  bus  transportation.  At  present  motor  busses  or  cars 
for  public  passenger  transportation  are  operating  on  regular  routes 
in  cities  and  between  cities  and  towns  in  various  parts  of  China. 
Lines  are  operated  in  Shanghai,  Canton,  Hongkong,  Tsingtao,  Har¬ 
bin,  Mukden,  Dairen,  Tientsin,  Hangchow,  Changsha,  Chefoo,  and 
Kowloon.  Some  intercity  lines  are :  Kalgan  to  I  rga,  Tungchang  to 
Wuting,  Lintsing  to  Tehchow,  Tehchow  to  Nanking  and  Tsining  to 
Isaochow. 

These  lines  are  proving  extremely  popular  among  the  Chinese, 
and  additional  routes  are  planned  in  all  sections  of  the  country 
where  roads  make  it  possible.  These  routes  do  not  develop  as  rap¬ 
idly  as  planned,  owing  in  part  to  unsettled  conditions  existing  in 
many  sections  of  the  country.  Dealers  are  carefully  watching  this 
phase  of  the  automotive  market  as  being  the  most  likely  of  develop¬ 
ment  in  the  near  future. 

100020°— 2C - 9 


114  COMMERCIAL  HANDBOOK  OF  CHINA 

It  is  impossible  to  ascertain  from  any  published  figures  the  actual 
import  of  motor  trucks  into  China.  The  customs  list  them  under 
a  heading  which  includes  “  Vehicles:  Railway  carriages  and  wagons 
(including  tramcars).”  However,  it  is  safe  to  assume  that  exclud¬ 
ing  Hongkong,  80  per  cent  come  through  the  port  of  Shanghai,  and 
in  view  of  this  assumption,  the  following  figures  showing  approxi¬ 
mate  imports  through  that  port  for  one  year,  October,  1923,  to 
September,  1924,  inclusive,  will  be  of  interest:  From  the  United 
States,  152;  Great  Britain,  2;  France,  2;  Germany,  4;  total,  160. 

The  above  record  includes  light  commercial  trucks  of  a  well-known 
American  make,  many  of  which  are  used  in  conjunction  with  locally 
built  bodies  in  hire-car  service.  It  is,  therefore,  impossible  to  assume 
that  these  figures  indicate  growth  in  the  use  of  truck  haulage  in  pro¬ 
portion  to  the  number  of  trucks  imported. 

Import  figures  on  trucks  over  the  past  three  years,  could  they  be 
obtained  in  detail,  would  be  very  misleading,  owing  to  the  fact  that 
in  Shanghai  there  were  in  stock  at  the  beginning  of  1925  probably 
between  70  and  90  trucks  of  1  to  5  tons  in  capacity,  which  can  not 
be  disposed  of.  These  were  brought  in  as  initial  orders  on  agency 
arrangements,  some  on  speculation,  while  others  represent  stock 
imported  on  orders  later  canceled.  They  are  being  gradually  worked 
off'  at  prices  below  present  replacement  costs,  and  represent  a  serious 
deterrent  to  new  imports  for  some  time  to  come. 

There  are  in  China  no  separate  organizations  interested  in  truck 
sales,  trucks  being  handled  more  or  less  as  a  side  line  by  the  motor¬ 
car  dealers. 

More  attention  is  being  paid  to  light  commercial  trucks  for  bus 
service,  town  delivery,  and  similar  uses,  as  this  field  promises  earlier 
returns  than  that  of  haulage. 

METALS  AND  MINERALS 

Metals  and  minerals  constitute  one  of  the  important  items  of 
China’s  imports  from  the  United  States.  In  1923  this  classification 
covered  6  per  cent  of  the  direct  imports  from  that  country. 

Although  China  is  known  to  have  excellent  resources  both  in  iron 
and  in  coal,  the  lack  of  modern  and  efficient  transportation  prevents 
development  on  a  commercial  basis,  and  instead  of  a  producing 
country  China  is  an  importer  of  practically  all  requirements  in  iron 
and  steel.  This  condition  is  paralleled  in  the  majority  of  the  other 
metals  and  minerals  which  China  uses.  Those  which  China  pro¬ 
duces  are  dealt  with  under  “  Exports.” 

VALUE  OF  IMPORTS 

With  the  industrialization  of  China,  carrying  with  it  increased 
manufacturing  facilities  and  the  rapid  progress  in  the  construction 
of  modern  factories,  warehouses,  business  buildings,  wharves,  go- 
downs,  residences,  and  apartment  houses,  the  use  of  this  class  of 
material  is  expanding,  as  illustrated  by  the  following  table  showing 
total  value  of  imports  of  metals  and  minerals,  from  all  sources  and 
that  portion  supplied  by  the  United  States,  for  the  years  1913  and 
1923 : 


IMPORT  TRADE  OP  CHINA 


115 


Item 


Aluminum . . . . 

Aluminum,  manufactures  of . 

Brass  and  yellow  metal: 

Bars,  rods,  sheets,  plates,  and 

nails _ 

Wire _ _ - 

Unclassed - 

Copper: 

Bars,  rods,  sheets,  plates,  and 

nails _ 

Ingots  and  slabs - - - 

Wire _ _ - 

Other  manufactures - 

Unclassed - - 

Iron  and  mild  steel,  new: 

Anchors,  anvils,  chains,  and 

forgings - 

Angles  and  tees - - 

Bars - - - 

Castings,  rough - 

Cobbles  and  wire  shorts _ 

Hoops _ _ _ 

Joists _ _ 

Nail  rod _ _ _ 

Nails  and  rivets - 

Pig  and  kentledge _ 

Pipes  and  tubes _ 

Plate  cuttings - - - 

Rails . . . 

Screws _ 

Sheets  and  plates _ 

Wire _ 

Galvanized  sheets _ 

Galvanized  wire _ 

Ore- - - 

Manufactures  (not  including 
tinned  plates,  enameled 
ware,  needles,  scales,  safes, 

and  stoves _ 

Unclassified,  including  old _ 

Lead,  in  pigs  and  bars . . 

Tea  and  sheet _ 

Other  manufactures _ 

Manganese _ 

Nickel _ 

Manufactures  of _ _ 

Quicksilver _ 

Steel,  (bamboo,  bars,  hoops, 

sheets,  and  plates) _ _ 

Cast,  wire,  and  wire  rope _ 

Tin,  in  slabs _ 

Manufactures  of  (not  includ¬ 
ing  tinfoil)  _ 

Tinned  places _ 

White  metal  or  German  silver _ 

Zinc  (spelter) _ 

Sheets  and  plates . . . 

Other  manufactures . . . 

Metals  and  minerals  unclassed _ 

Ores,  unclassed.. . . . . 


1913 


United 

States 


Haikwan 

taels 


20 
73,091 
33,  634 


633,573 

23^905 


372,302 


63, 524 
1,882 
323,293 
15, 696 


97, 702 
30,511 


841 


150 

638 


Total. 


248 

76,086 


18,218 


1,765,314 


Total 


Haikwan 
taels 
5,211 
65, 222 


493,972 
87,  246 
263, 780 


258,083 
6.130,774 
203,247 
28, 397 
91,406 


140,711 


1,858, 696 
1,989 
846,415 
366,  204 


326, 653 
1,443,562 
230, 164 
376, 948 
762, 269 
922.335 


1,254,831 
283, 187 
1,417,244 
330, 891 
207 


1,749,953 
2,010,134 
770, 104 
30, 923 
53, 236 
1,341 
104.114 
16,221 
74, 893 

773, 171 
163, 506 
2,324,267 

112,888 
2, 439, 709 
206, 633 
107,254 
333, 876 
93, 240 
260,550 
104 


29,815,761 


Per  cent 


1.0 

8.6 

9.2 


43.9 

"6.3 


40.4 


5. 1 

.7 

22.8 

4.7 


5.6 

4.5 


2.7 


.2 

3.1 


7.0 


1923 


United 

States 


Haikwan 

tads 

3,494 

1,215 


2,822 

6^116 


3,995 

4,697,632 


12, 241 


10,056 
11,692 
600, 199 


332. 198 
59,  382 
10,  146 


397,061 


764, 260 
52,028 
924,366 
131,709 
101.606 
5, 108 
321,330 
64,042 


89,825 
283, 597 
26, 853 


536 

4430 


254, 100 
14,924 


1,220,826 


1,200 
28,  566 
5,309 
244,509 


10,687,073 


Total 


Haikwan 
taels 
39,574 
142, 288 


1,354,606 
' ’’lei’ 327 


861,  769 
5,817,291 


154, 689 


296,012 
541,077 
4, 745, 706 


1,  281,  827 
641,864 
262,  569 
41,806 
1,990,259 
227, 163 
2,062,737 
1,156,358 
1,575,954 
271,930 
2, 147,916 
191,751 
2, 871,365 
741,168 
34,757 


429, 925 
3,091,582 
1,469,489 
83,  714 
109, 761 
1,812 
363,190 


140, 340 

709, 103 
519, 967 
3, 375, 730 

1,679 
4,883,560 
30,270 
88, 177 
238,309 
98, 176 
729, 297 
12,578 


45,990,422 


Per  cent 


8.8 

.9 


.2 

3."  8 


.5 

80.8 


7.9 


3.4 

2.2 

12.6 


25.9 

9.3 

3.9 


20.0 


37. 1 

4.5 
58.7 
48.4 

4.7 

2.7 

11.2 

8.6 


20.9 

18.8 

1.8 


.5 

Ti 


35.8 

2.9 


25.0 


1.4 

12.0 

5.4 
33.5 


It  will  be  noted  that  total  business  has  increased  from  about 
30,000,000  hailcwan  taels  in  1913  to  approximately  46,000,000  in  1923, 
and  America’s  share  has  increased  from  less  than  2,000,000  taels 
and  6  per  cent  of  the  total  to  over  10,500,000  and  more  than  23  per 
cent  of  the  total  in  1923.  In  addition  to  this  there  has  been  an 
increase  from  19  to  37  in  the  number  of  items  which  America  is 
supplying. 


116 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  iron  and  steel  market  in  China  is  extremely  competitive; 
and,  with  price  as  the  prime  factor  except  in  rare  instances,  the  trade 
is  very  susceptible  to  changes  in  exchange  rates  which  make  pur¬ 
chasing  in  one  country  advantageous,  while  the  following  year  an¬ 
other  country  may  be  in  a  position  to  conduct  business  on  a  basis 
more  profitable  to  buyers  in  China. 

American  manufactured  steel  products  in  general  are  recognized 
by  the  Chinese  as  being  superior  in  quality  and  finish.  The  average 
Chinese  dealer,  however,  is  often  unable  to  pay  the  price  of  the 
more  expensive  American  product,  as  Continental  steel  mills  are 
selling  direct,  thus  making  the  competition  for  importers  handling 
American  steel  products  extremely  difficult.  Such  commodities  as 
bars  and  steel  plates,  in  wdiich  quality  is  not  easily  determined,  the 
dealer  will  purchase  from  Great  Britain  or  the  Continent  if  their 
price  is  lower.  A  good  portion  of  the  American  sales  of  steel  are 
effected  through  a  large  combination  of  steel  mills  in  the  United 
States,  which  maintains  its  own  offices  in  Shanghai,  and  handles 
business  for  all  China  from  there,  selling  both  direct  and  through 
agents.  Aside  from  this  company  there  are  no  American  mills  rep¬ 
resented  bv  their  own  organization,  and  sales  of  metal  products  are 
handled  in  the  majority  of  cases  through  established  agents  repre¬ 
senting  mills  direct,  or  by  import  houses. 

Chinese  firms  are  now  direct  importers  in  a  number  of  cases,  but 
the  greater  proportion  of  business  is  still  placed  through  foreign 
firms  in  China. 

The  usual  terms  on  which  importers  and  agents  work  are  draft 
at  90  to  120  days’  sight,  interest  at  current 'rate,  and  exchange  for 
buyer’s  account, 

APPLICATION  IN  INDUSTRY 

The  principal  uses  to  which  the  metals  listed  in  the  above  table 
are  put  in  China  are  as  follows: 

Aluminum. — Small  castings  and  some  stampings. 

Aluminum ,  manufactured ,  sheets. — In  the  manufacture  of  electri¬ 
cal  appliances;  building  of  motor  car  bodies;  telephone  and  electric 
bells;  switch  boxes;  water  bottles;  and  lately,  in  Xorth  China,  for 
airplane  appliances. 

Rods ,  vnre. — The  use  is  practically  limited  to  manufacture  of  elec¬ 
trical  appliances.  This  is  a  comparatively  new  departure  in  China, 
and  no  extensive  output  has  been  attained. 

Copper  in  ingots. — In  the  manufacture  of  coins.  Also  used  in 
Chinese  Government  arsenals,  railway,  and  shipbuilding  establish¬ 
ments. 

Copper  and  brass.  (Bars,  rod-s ,  sheets ,  nails ,  wire  tachs). — In  the 
manufacture  of  ornamental  structures;  kitchen  utensils;  domestic 
hardware;  trunks;  doors;  panels;  window  accessories;  signboards; 
sheathing  for  river  steamers;  water  taps  and  valves;  curio  imitations; 
printing,  electrical,  and  telephone  appliances;  rail,  car,  and  loco¬ 
motive  repairs;  building,  etc.;  wire  nets;  lanterns;  radiators;  wire¬ 
less  materials;  and  tanks. 

Mild  soft  steel.  ( Angles ,  bars ,  joists ,  channels,  ties,  tees,  half 
rounds). — Usually  of  a  tensile  strength  of  24  to  28  tons  per  square 
inch,  and  20  per  cent  elongation  in  8  inches  is  used  in  all  general 


IMPORT  TRADE  OF  CHINA 


117 


construction  work  connected  with  buildings,  ships,  cars,  bridges, 
tanks,  sheds,  warehouses,  wharves,  etc. 

Mild  steel  plates ,  sheets. — Black,  open  and  blue  annealed  used  in 
enamelware,  drums,  warehouse  shutters,  fire  and  insulating  doors, 
piling,  furniture,  motor-car  bodies,  stoves,  and  boilers. 

Nail  rods. — Also  called  wire  rods.  Manufacture  of  nails  for  native 
purposes ;  defective  rods  for  use  in  reenforcing. 

Pig  iron. — Imported  iron  used  only  by  railways  or  shipyards. 
Very  small  quantities,  usually  mixed  with  native-made  iron,  con¬ 
stitute  the  present  casting  product  of  China  for  stoves,  grates,  bars, 
pillars,  wheels,  crossings,  sewer  covers,  and  piping  for  waterworks. 

Hoops. — For  press  packing,  bundling,  trunk  hardware,  baling,  and 
truck  wheels. 

Pipes  and  tubes. — Seventy-five  per  cent  for  gas  and  25  per  cent 
for  water  pipes;  in  heating  and  sanitary  installations,  plumbing, 
railways,  lighting  towers,  general  canalization  and  draining. 

Wire ,  galvanized. — General  kitchen  utensils,  telegraph  and  tele¬ 
phone  installations,  domestic  hardware,  fences,  bundling,  etc. 

Galvanized  sheets. — Signboards,  roofing,  stoves,  tanks,  cylinders, 
cisterns,  dust  bins,  buckets,  washing  tubs,  watering  pots,  petrol 
storage. 

Tinned  plates. — American  product  favored  for  canning  ;*  British 
product  for  other  domestic  purposes;  various  uses  are  in  the  manu¬ 
facturing  of  tins  for  all  preserves,  dried  vegetables,  tobacco;  interior 
decorations;  moldings,  panels,  etc. 

Lead ,  in  pigs  ancl  bars. — Rolled  into  tea  lead  and  foil ;  manu¬ 
facture  of  cartridges;  insulating,  etc. 

Lead ,  tea  and  sheet. — For  packing  purposes,  insulating,  etc. 

Nickel. — Manufacture  of  silver  coins  and  in  plating. 

Zinc ,  sheets. — Manufacture  of  ornaments,  matches,  and  linings. 

Plate  cuttings ,  bars  and  rods. — Manufacture  of  native  implements 
for  agricultural,  industrial,  and  domestic  household  purposes,  through 
forging  with  an  inferior  quality  of  tool  steel  or  heat-treated  steel  by 
native  blacksmith  methods. 

Iron  and  mild  steel ,  old. — Put  to  practically  the  same  uses  as  plate 
cuttings. 

Quicksilver. — For  medical  purposes  and  also  used  by  arsenals. 

LEADING  PORTS  IN  MINERAL  TRADE 

Approximately  64  per  cent  of  China’s  total  imports  of  metals  and 
minerals  in  1923  came  through  the  four  ports  of  Shanghai  (22  per 
cent),  Hankow  (16  per  cent)  ;  Dairen  (15  per  cent)  ;  and  Tientsin 
(11  per  cent).  The  chief  items  taken  by  each  of  these  ports  are 
shown  in  order  of  value : 

Shanghai. — Bars  and  rods,  galvanized  sheets,  tinned  plates,  pipes 
and  tubes;  copper  ingots,  sheets,  plates,  and  wire;  pig  lead;  cobbles; 
angles;  brass  sheets  and  plates.  , 

Dairen. — Rails,  bars,  pipes  and  tubes,  plain  sheets,  galvanized 
sheets,  copper  ingots  and  slabs,  scrap,  wire  nails,  miscellaneous  manu¬ 
factured  articles,  bolts  and  nuts. 

Hankow. — Copper  ingots  and  slabs  (this  item  valued  at  3.997,000 
haikwan  taels,  constituting  over  50  per  cent  of  the  total,  being 


118 


COMMERCIAL  HANDBOOK  OF  CHINA 


destined  for  the  Hankow  mint),  tinned  plates,  bars,  wire  nails,  hoops, 
pig  lead,  galvanized  sheets,  bamboo  steel. 

Tientsin . — Bars  and  rods,  tinned  plates,  sheets  and  plates,  copper 
ingots  and  slabs,  galvanized  sheets,  hoops,  cobbles,  shorts,  nails. 

LUMBER 

The  quality  of  timber  desired  for  the  market  in  China  depends 
in  the  first  place  upon  low  price  rather  than  upon  quality  or  dura¬ 
bility.  This  applies  to  probably  90  per  cent  of  the  construction 
work  in  the  country.  Very  few  Chinese  undertakings  in  construc¬ 
tion  work  are  based  on  quality  and  durability  in  preference  to 
cheapness. 

This  report,  therefore,  covers  primarily  the  cheap  woods  required 
for  the  trade  and  does  not  take  into  consideration  the  higher-grade 
woods  imported  for  the  furniture  trades  or  for  special  finishes  and 
interior  decoration  of  high-grade  buildings,  such  as  are  built 
mostly  in  treaty  ports  in  China,  as  these  woods  are  not  supplied  to 
ihis  market  by  America. 


VARIETIES  IMPORTED 


From  America  are  obtained  Pacific  coast  softwoods,  including 
Douglas  fir,  hemlock,  silver  fir,  and  all  the  varieties  that  come 
mixed  in  what  is  generally  described  as  “China  grade  cargoes” 
of  so-called  Oregon  pine. 

From  Japan  softwoods  are  obtained  in  comparatively  small  lots 
from  Kyushu,  Hokkaido,  and  southern  Sakhalin.  These  softwoods 
consist  of  various  species  of  pine  and  spruce. 

From  Siberia  a  number  of  varieties  of  coniferous  woods  are  im¬ 
ported  into  China  in  round  logs,  squared  logs,  and  also  sawn  into 
boards  and  planks.  Quality  ranges  from  very  inferior  types  of 
coniferous  woods  to  high-grade  pine  such  as  kedra.  Matchwood  is 
also  imported  from  Sibera  in  increasing  quantities. 

From  the  Philippines  and  Indo-Malayan  territories,  lauan,  which 
is  also  known  under  other  names  through  the  Indo-Malayan  States, 
is  imported  and  classified  as  hardwood.  In  actual  fact,  however, 
the  majority  of  this  class  of  wood  brought  into  the  market  is  about 
as  soft  as  Oregon  pine.  It  is  finding  growing  favor  in  China  and 
the  demand  is  keeping  up  excellently  as  compared  with  supplies 
available. 

The  above  woods  are  used  in  general  construction  work.  In 
Chinese  house  building  they  are  combined  with  native  woods.  Most 
of  the  Chinese  houses  are  built  with  Foochow  pine  poles  used  as 
uprights.  For  joists  and  floors  either  imported  woods  or  native 
pines  are  used. 

Since  most  native  pines  come  in  lengths  of  7  to  12  feet — very  little 
of  the  wood  being  over  9  feet — they  are  used  where  these  short 
lengths  can  be  employed,  and  imported  woods  of  greater  lengths 
are  used  in  joists,  flooring,  stringers,  etc.  Native  pole  uprights  of 
good  quality  are  durable  and  are  cut  in  the  forests  to  the  length 
wanted  for  construction  of  native  houses.  Attempts  have  been 
made  in  the  past  to  use  Oregon  pine  in  place  of  the  native  round 
poles,  but  such  attempts  have  not  proved  successful  except  for 


IMPORT  TRADE  OF  CHINA 


119 


front  posts,  where  the  nicely  squared  Oregon  pine  gives  a  better 
appearance  than  the  round  native  pole. 

Some  of  the  imported  woods  of  inferior  grade  are  used  for  box- 
shook  manufacture,  but  the  greater  part  of  box  shooks  in  China 
are  made  from  native  pine. 

The  principal  American  wood  in  which  the  China  market  is  inter¬ 
ested  is  Douglas  fir.  Normal  consumption  of  this  wood  in  China 
is  approximately  120,000,000  to  130,000,000  feet  annually.  It  is 
imported  in  random  sizes  ranging  from  1  by  6  inches  up  to  24  by 
24  inches,  the  term  “  usual  China  specifications  ”  in  the  lumber 
trade  meaning  a  random  specification  from  1  by  6  inches  to  12  by 
12  inches,  in  lengths  up  to  and  including  40  feet. 

The  demand  for  sizes  varies  with  the  locality  in  which  it  is  to  be 
used.  The  heaviest  demand  in  Shanghai  is  for  2  by  12  inches, 
which  is  the  size  used  for  forms  in  reinforced-concrete  construction, 
which  is  making  rapid  headway  throughout  China.  The  size  second 
in  demand  in  the  Shanghai  market  is  1  by  6  inches,  which  is  manu¬ 
factured  locally  into  cheap  grades  of  flooring  for  use  in  Chinese 
houses  and  buildings  of  all  kinds. 

In  Tientsin  the  heaviest  stock  size  is  12  by  12  inches,  this  being 
consumed  largely  by  the  railways  and  for  heavy  construction. 

Apart  from  the  uses  for  native  house  construction  above  de¬ 
scribed,  Oregon  pine  is  the  principal  wood  used  in  general  foreign- 
house  construction  in  treaty  port  areas,  and  in  foreign-type  houses 
built  in  Chinese  cities.  It  is  also  used  for  wharves,  piling,  bridge 
work,  and  railway  sleepers. 

Aside  from  the  importation  of  hemlock,  silver  fir,  and  bastard 
woods  of  similar  nature  mixed  in  with  Douglas  fir  and  combined  in 
cargoes  under  the  name  of  “  China  grade  Oregon  pine  ”  there  are 
very  few  other  softwoods  imported  from  America  into  China  that 
can  be  considered  as  possible  of  commercial  development. 

The  lumber  trade  in  China  is  being  gradually  educated  to  im¬ 
port  in  dimensions  to  suit  consumption,  and  there  is  not  the  same 
volume  of  resawing  done  as  in  previous  years  when  the  heaviest 
imports  were  large  timbers  which  were  resawn  by  hand.  Mills  in 
China  operate  under  a  handicap.  It  is  only  possible  to  make  them 
successful  because  of  speed  of  operation  and  quantity  of  output. 
In  actual  practice,  where  time  is  not  a  great  object,  sawing  by 
hand  is  cheaper  than  machine  sawing. 

At  present  in  the  treaty  ports  such  as  Shanghai  and  Tientsin,  where 
large  lumber  yards  are  maintained,  heavy  imported  timbers  are 
worked  up  by  sawmills  operated  by  the  lumber  importers,  but  even 
considering  the  mills  in  the  treaty  ports,  the  majority  of  the  re¬ 
sawing  in  China  is  done  by  hand.  Wages  are  extremely  low  and 
the  workmen  possess  remarkable  skill. 

Competition  met  by  Douglas  fir  varies  according  to  the  values  of 
the  different  woods.  When  Oregon  pine  sells  at  a  low  price  im¬ 
ports  are  heavier;  when  it  is  higher  in  price  imports  slow  down. 
This  is  the  natural  result  of  supply  and  demand  when  the  Chinese 
look  more  to  the  price  of  the  wood  for  purchase  than  to  the  quality 
of  species  or  durability  thereof. 

The  varieties  of  hardAvoods  imported  into  China  are  very  great, 
comprising  northern,  tropical,  and  subtropical  woods  of  every  de¬ 
scription.  Of  the  northern  woods,  oak  and  ash  take  the  lead.  Of 


120 


COMMERCIAL  HANDBOOK  OF  CHINA 


tropical  and  subtropical  woods,  lauan  and  teak  are  the  most 
prominent. 

American  hardwoods  (exports  of  which  to  China  are  decreasing) 
do  not  figure  in  the  China  market  because  they  are  either  too  ex¬ 
pensive  or  are  no  better  than  the  hardwoods  obtainable  from  other 
sources  at  lower  prices.  The  mills  in  China  are  able  to  turn  out 
high-grade  hardwoods  in  interior  trim,  flooring,  and  other  grades, 
and  are  becoming  a  centralizing  point  for  hardwoods  from  various 
neighboring  territories  to  be  manufactured,  with  cheap  Chinese 
labor,  into  finished  kiln-dried  products  for  reexport  to  foreign 
countries,  including  the  United  States,  where  the  markets  will  pay 
a  higher  price  for  high-grade  materials  than  is  obtainable  for  ordi¬ 
nary  construction  work  in  China. 

Oregon  pine  is  imported  direct  by  American,  British,  and  Japa¬ 
nese  mill  agents  and  importers  operating  lumber  yards  in  Shanghai 
and  other  treaty  ports.  The  majority  of  the  importers  have  their 
head  offices  at  Shanghai,  with  branch  offices  in  Hongkong,  Nanking, 
Tientsin,  Hankow,  and  Tsingtao.  These  importers  sell  most  of 
their  lumber  to  Chinese  lumber  dealers,  but  in  many  instances  they 
sell  it  direct  to  contractors  on  individual  jobs. 

TERMS  TO  DEALERS 

The  usual  terms  of  sale  to  dealers  are  20  per  cent  bargain  money 
with  order,  balance,  cash  80  days;  although  a  variety  of  terms 
ranging  from  60  to  120  days  are  given  to  responsible  dealers  who 
have  an  established  credit. 

In  a  majority  of  instances  these  Chinese  dealers  are  located  in 
the  large  treaty  ports  and  they  in  turn  sell  to  dealers  in  the  interior. 

The  ultimate  buyer  of  most  Oregon  pine  is  the  contractor,  who 
usually  pays  the  dealer  as  and  when  he  receives  payments  from  the 
owner  for  whom  he  is  building. 

The  lumber  dealers  in  the  treaty  ports  belong  to  guilds,  but  so 
far  as  maintaining  prices  or  similar  functions  usually  attributed  to 
guild  activities,  the  lumber  guilds  in  treaty  ports  are  ineffective. 

STATISTICS  OF  TRADE 


The  following  table  shows  the  imports  of  softwood  into  China 
for  the  years  1921,  1922,  and  1923 : 


Imported  from — 

1921 

1922 

1923 

Hongkong  _ _ _ _  -  --  _ 

Square  feet 
152, 882 
39,  215 
16,  510 
316,  974 

Square  feet 
785,  202 
17, 104 
4,  100 
160,  739 

Square  feet 
566, 386 
58,  975 
2,  065 
31,610 
41,  653 
6, 123,  683 

Macao _  -.-1 _  _  _ 

French  Indo-China  ._  -  _ _ _  _ _ - 

Singapore,  Straits  Settlements,  etc..  . . -  - 

Netherlands  Indies  .  .  ...  _ 

Russia  and  Siberia,  by  land  frontier _  _ _ 

Russia,  Amur  ports  _  _  _  __  _  .  . _ 

782,  306 
161,  587 
1,  718,  165 
17,  476,  371 

7,  290,  850 
400 

10,  076,  892 
88,  348, 116 

3,  503,  699 

1,  127,  697 
16,  347,  847 
25,  606,  919 
16,939,  482 

Russia,  Pacific  ports  _  _  .  . 

7,  598,  125 
11,  256,  116 
14,  576,  746 
10,  493 
26,  254, 691 
60,  695, 933 

Chosen . .. .  .  ... 

Japan  (including  Taiwan)... .  .  .  ....  _ 

Philippine  Islands.. _  . 

Canada _  _ _ _ _ _ 

27,  178,  052 
142,  012, 899 

1,  156 

United  States  (including  Hawaii) .. .  ...  . . . 

Australia,  New  Zealand,  etc.  _ _ _ 

Direct  gross  import. ..  _ _ _ _ 

126,  380,  268 
13,  527,  069 

233,  684,  896 

1,  344,  079 

127,216,476 
2,  080,  342 

Reexported  abroad .  . 

Total  net  import _ _ _ 

112,  853,  199 

232,  340,  817 

125, 136, 134 

IMPORT  TRADE  OF  CHINA 


121 


PAPER 

China — the  discoverer  of  paper — remains  to-day,  owing  to  back¬ 
ward  industrial  development,  an  importer  of  this  commodity  rather 
than  an  exporter.  Within  the  last  14  years  imports  have  more  than 
trebled  in  value,  increasing  from  5,545,197  haikwan  taels  in  1910  to 
16,626,519  haikwan  taels  during  1923.  Japan  leads  in  the  import 
trade  (with  5,021,809  haikwan  taels  to  her  credit  in  1923),  with 
Hongkong,  Norway,  United  States,  Great  Britain,  and  Sweden  in 
the  respective  order  named,  each  taking  over  1,000,000  haikwan  taels’ 
worth  of  the  total  volume  of  imports. 

MANUFACTURE  IN  CHINA 

While  China’s  paper-manufacturing  capacity  is  known  to  be 
increasing  rapidly,  no  data  are  available  from  which  to  judge  the 
total  capacity.  An  indication  of  the  increasing  quantities  handled 
may  be  had  from  the  following  comparative  statement  of  total 
exports  of  Chinese  paper  to  China  ports  and  foreign  countries 
through  customs  ports  for  the  years  1914  and  1923 : 


Item 

1914 

1923 

Quantity 

Value 

Quantity 

Value 

First  quality  _  -  _ -  _  _  _  _ 

Piculs 
114,  045 
366,  269 

Haikwan 

tads 

2, 145,  062 
2,  782,  474 

Piculs 
207,  876 
350,  462 
212,  000 
212,  556 
48,  744 
13,  933 
40,  387 

Haikwan 

taels 

4,  648,  877 
3,  906, 959 
1,  101,  454 
3,  338,  242 
587, 170 
56,  633 
481, 178 

Second  quality _  _  _  _________  _____ 

Third  quality  1 _  __  _ _ _  _  __  _ 

Joss___  __  _____  _  _  _  __ 

120,  625 
41,  123 

2, 128,  433 
368,  353 

Mill _ 

Strawboard  2_  _  _  _  _  _  _  _  _  _ 

Other _  _ 

18,011 

95, 140 

Total  _  __  _  _ 

660,  073 

7,  519,  462 

1,  085,  958 

14, 120,513 

1  New  division.  2  New  heading. 


This  trade  position  will  doubtless  be  maintained  for  a  number 
of  years,  primarily  because  China’s  mineral  and  water-power  re¬ 
sources  have  not  been  sufficiently  developed  to  }deld  the  ready  sup¬ 
ply  of  water  and  component  chemicals  necessary  for  manufacturing 
purposes.  The  few  modern  mills  which  have  been  erected  are 
wholly  dependent  upon  outside  sources  of  supply  for  certain  raw 
materials.  It  is  claimed  that  several  of  these  mills  have  suspended 
operations  for  this  very  fundamental  reason. 

TYPES  IMPORTED 

The  Chinese  Maritime  Customs  returns  of  trade  for  the  whole  of 
China  do  not  separately  classify  specific  styles  of  paper.  The  only 
index  from  which  to  determine  the  trade  in  each  particular  class  is 
to  be  found  in  the  individual  port  returns  for  the  port  of  Shanghai, 
through  which  40  per  cent  of  the  total  volume  of  imports  enter  China. 

The  following  table  gives  the  value  in  haikwan  taels  of  the  prin¬ 
cipal  paper  items  imported  through  Shanghai,  and  sources  of 
origin  for  the  year  1923. 


122 


COMMERCIAL  HANDBOOK  OF  CHINA 


Articles 


Total  gross 
imports 
into 

Shanghai 


Art _ 

Bank  note - 

Cardboard _ 

Enameled _ 

Machine  glazed  cap _ 

Packing  and  wrapping. .. 

Simili _ 

Strawboard _ 

Tissue _ 

Wax,  paraffin,  and  grease 

proof _ 1 _ 

Writing _ _ _ 

Unclassed _ 

Printing,  common _ 

Printing,  common  (Jap¬ 
anese) _ 

Printing,  free  of  mechan¬ 
ical  wood  pulp . 


143, 084 
281,  045 
559,  496 
666, 102 
2, 050,  491 
437,  448 
248,  712 
160,  540 
25, 308 

i  246, 056 
394,  223 
845,  254 
2,  040,  820 

589,  967 

1,060,  242 


Japan 

Sweden 

United 

States 

Great 

Britain 

Ger¬ 

many 

Italy 

Norway 

26, 761 
26, 980 
95, 185 

28,  722 
234,  742 
378, 191 
179,  301 

53, 003 
14,  441 
34,  292 
124,  451 
43,  921 
37,  574 
16,  219 

26,  380 

95, 166 
179,  349 
96, 122 

104,  250 

190,  812 
116,716 
73, 969 
109,288 

389,314 
100, 080 
23,  214 

1, 079,  738 

54,  543 

48, 189 
2,334 

4,552 

7,  336 

22, 039 
129, 682 
198,  378 
84, 129 

3, 020 

40, 654 
23,  435 
65, 393 
298,  564 

4,881 

22,917 
23, 138 

21,  505 
43,  124 

154,  762 
276,  792 

69,  380 

51,  846 
647,  576 

400, 854 

479,  231 

589, 967 

39,  414 

631,549 

64,  295 

129,  570 

58,  694 

1  Of  this  amount  the  Netherlands  furnished  29,338  taels’  worth  and  Belgium  79,415  taels’  worth. 
3  Of  this  amount  Belgium  furnished  99,081  taels'  worth. 

Note. — In  1923  the  haikwan  tael  equaled  $0.80. 


Newsprint. — With  over  1,100  native  and  foreign  newspapers  and 
70-odd  lithographing  and  printing  establishments  operating  through¬ 
out  China,  the  business  in  newsprint  very  obviously  dominates  the 
paper  trade  of  China.  Annual  imports  into  Shanghai  aggregate 
$2,500,000.  The  cheapest  quality  of  newsprint  comes  in  from 
Japan — a  grade  with  which  even  the  Scandinavian  countries  can 
not  compete.  The  better  grades  of  newsprint  are  supplied  princi¬ 
pally  by  Sweden  and  Norway. 

Machine  glazed  cap. — Commonly  known  in  China  as  “  M.  G.  Cap  ” 
ranks  next  in  importance  to  newsprint.  It  is  a  very  thin  tissue  paper 
glazed  upon  one  side  and  used  principally  in  the  printing  of  Chinese 
books  and  pamphlets.  A  sheet  is  doubled  and  printed  upon  the  two 
glazed  sides,  thus  leaving  the  two  interposing  rough  sides  of  the  sheet 
blank.  The  Chinese  are  beginning  to  realize  that  by  using  newsprint 
they  can  print  upon  both  sides  of  the  paper  at  less  cost  than  by  using 
machine-glazed  cap,  and  the  two  larger  Chinese  textbook  establish¬ 
ments  are  introducing  newsprint  in  this  work  wherever  possible. 
This  new  policy  of  theirs  will  doubtless  decrease  the  demand  for 
machine-glazed  cap,  but  it  is  still  a  very  important  item  in  the  paper 
trade.  This  paper  is  supplied  by  Norway,  Sweden,  Germany,  and 
Japan. 

Booh  paper. — A  wood-free  printing  paper  is  very  much  in  de¬ 
mand.  This  grade  comes  mainlv  from  the  Scandinavian  countries 
and  England. 

Art,  enamel ,  and  coated  papers. — A  very  large  business  is  done  in 
these  classes  of  paper,  used  principally  in  half-tone  and  calendar 
work.  Deliveries  must  be  made  in  China  before  June,  in  order  that 
the  Chinese  lithographers  may  have  ample  time  to  turn  out  the  great 
volume  of  calendars  for  the  Chinese  New  Year  period.  The  calendar 
business  is  one  of  the  largest  single  items  in  the  trade.  Principal 
supplies  are  from  America,  England,  Italy,  Scandinavia,  Japan,  and 
Germany. 

Bank-note  paper. — America  has  a  practical  monopoly  in  this 
character  of  paper,  imports  from  this  source  during  1923  having 


IMPORT  TRADE  OF  CHINA 


123 


a  value  of  234,732  haikwan  taels  out  of  a  total  volume  of  the  trade 
valued  at  281,045  haikwan  taels.  Small  amounts  came  in  from 
Japan,  Great  Britain,  and  Germany. 

Blotting  paper. — America  and  Great  Britain  are  the  principal 
suppliers. 

Cardboard ,  pasteboard ,  and  strawboard. — This  class  embraces  one 
of  the  most  important  items  in  the  import  paper  trade.  America 
holds  the  cardboard  trade.  Strawboard  is  consumed  in  greatest 
quantities  and  is  supplied  principally  by  native  mills  and  by  im¬ 
ports  from  Japan.  Chip-board,  when  obtainable  from  America  at 
competitive  prices,  is  gradually  replacing  strawboard.  In  cardboard 
the  principal  item  is  a  white  patent-coated  news  back  (WPCNB). 
This  paper  is  used  chiefly  by  the  British-American  Tobacco  Co.  and 
other  large  manufacturers.  America  supplies  the  bulk  of  the  trade, 
although  Japan  and  Great  Britain  are  sending  in  a  little. 

There  is  also  a  fairly  large  market  for  sulphite  bristols,  white,  in 
22%  by  28,  95-pound,  100-pound,  and  120-pound.  At  the  present 
time  most  of  this  is  coming  from  Belgium.  A  rather  small  market 
exists  for  colored  index  bristols,  most  of  which  is  consumed  by  the 
foreign  population. 

Egg  shell  or  antique  booh . — This  character  of  paper  is  called 
“  cartridge  paper  ”  in  the  customs,  but  no  figures  are  available. 
There  is  said  to  be  a  very  small  market,  which  is  supplied  principally 
by  America  and  Great  Britain. 

Colored  printing. — A  large  market  obtains  for  supercalendered 
ground-wood-content  book,  practically  all  of  which  is  being  supplied 
by  Scandinavian  countries. 

Copying. — Japan  holds  the  market  on  this  paper  with  its  simili 
tissue,  although  a  small  quantity  of  American  tissue  is  being  used. 

Embossed. — Small  market,  mostly  supplied  by  Europe. 

Marble. — Very  small  market,  Germany  being  the  chief  supplier. 

Machine  glazed  buff. — A  very  common  machine  glazed,  ground- 
wood-content  paper  used  for  wrapping  and  for  making  cheap  en¬ 
velopes.  Scandinavian  countries  hold  the  trade. 

Packing ,  wrapping ,  and  kraft. — Volume  of  trade  approximates 
300,000  haikwan  taels  per  annum,  principally  supplied  by  Japan, 
Sweden,  Great  Britain,  and  Germany. 

Parchment ,  glassine ,  wax  paraffin ,  and  grease  proof. — Fairly 
large  market,  principal,  consumers  being  cigarette,  candy,  and  food¬ 
stuff  manufacturers.  America  led  in  the  trade  during  1921,  but  in 
1923  the  Scandinavian  countries  largely  supplied  the  demand  for 
this  character  of  goods.  Germany  is  also  a  factor  in  the  trade. 

Simili. — Japan  practically  controls  the  market,  with  Italy  and 
Sweden  following. 

Tissue. — Greater  part  imported  from  Great  Britain  and  Scandi¬ 
navian  countries. 

Wall  paper. — Very  limited  demand;  practically  confined  to  use 
by  foreigners.  Imports  mainly  from  Great  Britain. 

Toilet  paper. — Limited  demand,  with  United  States  ranking  first 
and  Japan  second. 

Writing. — A  fairly  large  market  exists  for  water-marked  sulphite 
bond  paper.  The  trade  is  about  equally  divided  between  United 
States  and  England. 


124 


COMMERCIAL  HANDBOOK  OF  CHINA 


Laid  writings. — Market  is  for  sulphite  and  esparto  content,  cheap 
water-marked,  laid  writing,  England  being  the  largest  supplier,  fol¬ 
lowed  by  Scandinavian  countries  and  Japan.  The  United  States  has 
practically  none  of  the  trade  in  laid  writing  paper. 

Cover. — The  United  States  has  been  losing  ground  in  this  class  of 
paper,  England  remaining  the  chief  supplier,  followed  by  Germany 
and  Scandinavian  countries.  Market  is  for  a  cheaper  character  of. 
paper  generally  than  that  offered  by  American  mills. 

Machine  glazed  poster. — Limited  market  for  this  paper,  which  is 
really  a  machine  glazed  sulphite  book.  A  machine  glazed  bleached 
sulphite,  which  is  also  on  the  market,  is  practically  the  same  as  the 
machine  glazed  poster.  Japan  and  Scandinavian  countries  are  the 
main  sources  of  supply. 

Drawing. — Very  small  market;  Japan  first,  England  second,  Italy 
third,  and  United  States  fourth. 

Paper  is  imported  in  most  instances  by  local  import  houses  which 
act  either  as  direct  mill  agents  or  as  representatives  of  paper  ex¬ 
porters  in  America  and  Europe.  Japanese  mills  are  generally  rep¬ 
resented  direct  by  large  Japanese  houses  in  China. 

DISTRIBUTION  METHODS 

Distribution  is  effected  through  Chinese  paper  dealers,  who  buy 
from  the  importer  and  take  delivery  at  warehouse,  paying  (except 
in  rare  instances)  cash  against  delivery. 

Importers  have  been  in  the  habit  of  indenting  against  dealers’ 
(usually  unsecured)  orders,  paying  import  duty,  clearance,  and 
handling  charges,  and  allowing  dealers  60  days  in  which  to  take 
delivery.  This  has  led  to  wide  gambling  by  the  less  responsible 
dealers,  who  order  in  the  expectation  of  price  advances  and  are  very 
difficult  to  hold  to  their  clearance  dates  if  the  market  goes  against 
them.  This  has  led  to  the  proposal  of  the  leading  foreign  paper  im¬ 
porters  to  form  an  association  for  the  formation  and  enforcement  of 
standard  practices  in  the  paper  import  trade  with  a  view  to  eliminat¬ 
ing  many  of  the  lax  methods  now  followed  and  to  put  the  trade  in 
foreign  papers  on  a  safer  basis. 

Large  paper  users,  such  as  the  cigarette  companies  and  the  larger 
printing  and  publishing  houses,  order  direct  for  a  large  portion  of 
their  requirements. 

MISCELLANEOUS  IMPORTS 

Space  does  not  permit  a  detailed  discussion  of  the  various  lines 
of  foreign  goods  which  are  yearly  being  imported  by  China  in  in¬ 
creasing  quantities.  Some  of  these  items,  however,  are  of  such  rela¬ 
tive  importance  that  they  are  given  below  in  paragraph  form  in  or¬ 
der  that  some  idea  of  the  quantities  may  be  formed.  Import  fig¬ 
ures  (values  in  haikwan  taels)  in  each  case  are  given  for  the  year 
1923. 

SPORTING  ARMS  AND  AMMUNITION 

Imports  of  sporting  arms  and  ammunition  were  valued  at  ap¬ 
proximately  122,000  taels.  There  is  a  fairly  good  field  for  these 
goods,  as  hunting  is  popular  in  all  parts  of  China  and  there  is  a 
great  variety  of  game  to  be  found.  Import  regulations  are  strict. 


IMPORT  TRADE  OF  CHINA 


125 


Sporting-goods  houses  carry  complete  lines  of  rifles,  shotguns,  and 
ammunition. 

MACHINE  BELTING 

Machine  belting  to  the  value  of  1,140,000  taels  was  imported.  Of 
this  430,000  taels’  worth  came  from  the  United  States,  385,000  taels’ 
worth  from  Great  Britain,  and  245,000  taels’  worth  from  Japan, 
llelative  demand  for  belting  is  in  the  following  order :  Leather,  cot¬ 
ton,  rubber,  balata,  canvas  and  other  textiles,  and  hair.  It  is  esti¬ 
mated  that  80  per  cent  of  the  belting  is  leather  and  is  used  in  power 
transmission  in  cotton  mills,  electric  light  and  power  plants,  filatures, 
paper  plants,  and  cement  works.  The  remaining  20  per  cent  is 
found  in  the  rice  and  flour  mills,  machine  shops,  sawmills,  and  other 
industries. 

BOOKS  AND  MUSIC 

Imports  of  books  and  music  in  1923  totaled  in  value  over  900,000 
taels,  of  which  the  United  States  supplied  over  one-third.  Libraries 
are  maintained  by  the  various  clubs,  and  there  are  a  number  of  public 
libraries  in  the  treaty  ports.  A  considerable  portion  of  the  books 
imported  are  of  a  religious  character,  imported  and  used  by  the 
missions.  In  the  treaty  ports  there  are  excellent  bookshops  where 
up-to-date  fiction  may  be  obtained,  in  addition  to  the  latest  works 
on  travel,  biography,  and  science. 

Printed  music  is  imported  in  a  fair  quantity — not  only  produc¬ 
tions  of  a  religious  character,  but  also  up-to-date,  popular  music  and 
also  music  for  the  orchestras  and  bands  which  are  to  be  found  in 
various  parts  of  China. 

BUILDING  MATERIALS 

This  item  is  of  rapidly  increasing  importance  in  China,  now  that 
foreign  type  of  construction  is  becoming  increasingly  popular.  To¬ 
tal  imports  under  this  heading  in  1913  were  valued  at  723,000  taels, 
of  which  the  United  States  supplied  imports  valued  at  145,000  taels, 
while  in  1923  the  total  had  risen  to  3,495,000  taels,  of  which  the 
United  States  supplied  a  share  valued  at  839,000  taels. 

CHINA  AND  EARTHENWARE 

Total  value  of  the  imports  of  china  and  earthenware  for  1923  was 
1,576,000  taels,  the  majority  of  which  consisted  of  cheap  ware  from 
Japan.  A  small  amount  of  finer  goods  is  also  imported,  but  this  is 
mainly  for  the  use  of  the  foreign  population  and  of  this  ware  Great 
Britain  supplies  the  largest  part. 

WEARING  APPAREL 

Under  this  heading,  exclusive  of  hosiery,  leather  shoes,  and  haber¬ 
dashery,  imports  were  valued  at  more  than  6,500,000  taels  in  1923,  of 
which  the  greatest  quantity  consisted  of  cotton  clothing  manufac¬ 
tured  in  Japan  (which  accounted  for  nearly  3,000,000  taels).  Hong¬ 
kong  is  next  in  importance,  supplying  imports  valued  at  more  than 
1,330,000  taels,  and  Great  Britain  next  with  a  share  valued  at  778.000 
taels. 


126 


COMMERCIAL  HANDBOOK  OF  CHINA 


Not  only  is  the  foreign  population  to  be  supplied  with  foreign- 
type  clothing  but  an  increasing  number  of  Chinese  men  are  adopt¬ 
ing  foreign  dress,  wholly  or  in  part.  Many  of  the  Chinese  wear 
native  clothing  with  the  exception  of  hats  and  shoes,  which  are 
often  imported. 

Imports  of  haberdashery  in  1928  were  valued  at  approximately 
3,000,000  taels,  of  which  Great  Britain  supplied  the  largest  share 
(1,222,000  taels);  Germany,  507,000  taels;  United  States,  275,000 
taels;  and  Japan,  552,000  taels.  Excellent  goods  can  be  purchased 
at  an  extremely  reasonable  price  owing  to  the  fact  that  duty  approxi¬ 
mates  5  per  cent  ad  valorem. 

Hosiery  to  the  value  of  1,431,000  taels  was  imported.  The  largest 
share  (valued  at  1,263,000  taels)  was  supplied  by  Hongkong.  Hong¬ 
kong  import  statistics  show  that  the  largest  individual  portion  origi¬ 
nated  in  Great  Britain  with  £10,672,  followed  by  the  United  States 
with  £3,512.  China  is  developing  the  hosiery  manufacturing  indus¬ 
try  and  is  not  only  manufacturing  for  local  consumption  but  is  also 
exporting  to  near-by  countries. 

CLOCKS  AND  WATCHES 

Total  imports  of  clocks  and  watches  to  the  value  of  2,074,000 
taels  were  brought  in  during  1923.  Switzerland  occupied  first  posi¬ 
tion  with  649,000  taels,  followed  by  Japan,  with  527,000  taels,  and 
Germany,  342,000  taels.  The  majority  of  the  German  and  Japanese 
goods  are  of  a  variety  which  sell  at  very  low  prices.  The  Swiss 
goods  range  in  price  from  $25  to  $300,  silver,  and  represent  goods 
which  appeal  to  the  more  well-to-do  Chinese  and  the  foreign  trade. 
The  United  States  is  not  yet  securing  an  important  share  of  this 
business,  imports  in  1923  amounting  to  101,000  taels.  A  number  of 
the  best-known  makes  of  American  goods  are  represented  here,  and 
it  is  believed  that  they  are  making  an  increasingly  important  market 
for  themselves. 

MUSICAL  INSTRUMENTS 

Under  this  heading  are  imported  pianos,  organs,  string  and  wind 
instruments,  gramophones  and  parts.  The  majority  of  the  pianos 
used  in  China  are  manufactured  in  the  country  by  foreign  firms 
which  have  made  a  particular  study  of  the  requirements  to  meet 
the  trying  climatic  conditions  here.  Pianos  are  imported  from 
America,  Germany,  and  Canada,  but  to  be  successful  they  must  be 
manufactured  especially  for  the  very  damp  climate,  with  its  exces¬ 
sive  heat  in  summer,  and  cold,  wet  winters.  Organs  are  mainly 
small  instruments  with  the  foot-operated  bellows,  although  the  larger 
churches  have  excellent  pipe  organs.  Small  organs  are  also  manu¬ 
factured  in  China.  String  instruments  for  foreign  music  are  prac¬ 
tically  all  imported,  but  the  field  is  practically  confined  to  the  foreign 
population  and  a  few  symphony  and  dance  orchestras.  The  same 
applies  to  wind  instruments.  Gramophones  are  imported  from  the 
United,  States,  Great  Britain,  Germany,  France,  and  Italy.  Gramo¬ 
phone  cases  are  manufactured  by  Chinese  firms  in  Shanghai  and 
elsewhere  in  China,  and  imported  mechanisms  are  installed.  These 
mechanisms  are  imported  principally  from  Germany,  France,  Swit¬ 
zerland,  and  America. 


IMPORT  TRADE  OF  CHINA 


127 


INDIA  RUBBER  AND  GUTTA-PERCHA  MANUFACTURES 

Gross  imports  were  valued  at  2,122,000  taels,  of  which  imports 
worth  1,018,000  taels  came  from  Japan.  Under  this  heading  are 
listed  automobile  tires  and  tubes;  jinrikisha  tires  and  tubes;  rubber 
boots  and  shoes ;  hot-water  bottles,  which  are  very  popular  in  China, 
where  they  are  used  as  hand  warmers,  etc. ;  and  a  variety  of  other 
rubber  goods  such  as  hose,  tape,  rubber  soles  and  heels. 

LEATHER 

Under  this  heading  are  lumped  all  the  classes  of  leather  which 
China  imports.  The  total  value  in  1923  was  6,976,500  taels,  of  "  which 
it  is  estimated  that  75  per  cent  was  sole  leather.  The  greatest  share 
came  through  Hongkong  and  consisted  of  Australian  and  Singapore 
leathers.  Singapore  leather  is  a  cheap  grade  of  soft  sole  leather 
very  widely  used  on  account  of  its  low  cost.  American  sole  leathers 
are  being  imported  in  increasing  quantities  as  the  trade-marks  under 
which  they  are  sold  are  becoming  better  known,  but  at  present  Aus¬ 
tralian  sole  leather  (bellies  and  sides)  are  the  most  important  of  the 
higher  grade  leathers.  Some  good  sole  leather  is  manufactured  in 
China  by  modern  tanneries,  but  the  majority  is  similar  to  the  cheap 
Singapore  variety. 

ARTIFICIAL  LEATHER  AND  OILCLOTH 

Separate  figures  are  not  published  for  artificial  leather  and  oil¬ 
cloth.  Total  gross  imports  (not  including  linoleum)  during  1923 
were  valued  at  175,000  taels.  The  share  of  the  United  States  was 
approximately  50  per  cent.  American  oilcloth  and  artificial  leather 
are  well  liked  in  the  market.  Artificial  leather  is  used  for  auto¬ 
mobile  tops  and  for  upholstery,  jinrikisha  tops,  furniture  covering, 
bookbinding,  and  novelty  manufacture.  Oilcloth  is  used  principally 
for  counter  and  chair  covers,  sweat  bands  for  hats,  jinrikisha  seats 
and  backs,  and  uppers  for  cheap  Chinese  shoes. 

PHOTOGRAPHIC  MATERIALS 

The  United  States  supplied  398,000  taels’  worth  of  photographic 
materials  to  China  out  of  a  total  importation  having  a  value  of 
1,741,000  taels  in  1923.  A  well-known  American  manufacturer  of 
cameras  and  photographic  supplies  is  making  good  progress  in  this 
market,  and  China  is  considered  to  have  great  possibilities  in  the 
future  for  the  sale  of  this  class  of  material.  The  main  competition 
at  present  comes  from  Germany. 

Moving-picture  cameras,  films,  and  projectors  are  in  increasing 
demand  as  the  motion  picture  becomes  more  popular.  At  present 
there  are  about  100  motion-picture  theaters  showing  American, 
British,  German,  Italian,  and  French  film  plays,  while  there  are 
half  a  dozen  fairly  well  organized  companies  in  China  producing 
cinema  plays  and  educational  films.  The  principal  competition  in 
motion-picture  cameras  and  projectors  comes  from  France,  on 
account  of  far  lower  prices  of  the  French  product. 

STATIONERY 

The  United  States  sold  over  500,000  taels’  worth  of  stationery  out 
of  a  total  importation  valued  at  2,445,000  taels.  The  use  of  imported 


128 


COMMERCIAL  HANDBOOK  OE  CHINA 


stationery  is  confined  to  schools,  colleges,  foreign  firms  and  indi¬ 
viduals,  and  the  comparatively  few  Chinese  firms  who  use  foreign 
office  equipment.  Japan  supplied  the  largest  individual  share, 
amounting  to  878,000  taels,  while  Great  Britain  follows  the  United 
States  with  508,000  taels,  and  Germany  next  with  24,000  taels. 

POSTAL  PARCELS  AND  OTHER  ITEMS 

Under  this  heading  China  imported  articles  valued  at  2,157,000 
taels  from  the  United  States,  with  a  total  importation  of  such  articles 
valued  at  7,018,000  taels.  Numerous  items  are  included,  ranging 
from  personal  effects  to  light  goods,  such  as  cutlery  in  small  quan¬ 
tities,  jewelry,  wearing  apparel,  and  numerous  item's  of  various 
classifications. 

A  wide  range  of  material  falls  under  the  heading  of  “  Sundries, 
unenumerated, *'  but  there  are  no  statistics  available  from  which  any 
definite  idea  of  the  quantities  of  each  can  be  obtained.  Among  other 
things  included  are  advertising  matter,  newspapers,  bronze  ware, 
brass,  capsules,  cloisonne,  fan  handles,  fish  nets,  Japanese  matches, 
paper-making  materials,  cottonseed  cake,  skin  and  fur  sundries,  and 
certain  kinds  of  tobacco. 


MARKET  DEVELOPMENT 


Commercial  Attache  Julean  Arnold 

Indicative  of  the  growth  of  the  American  population  and  Ameri¬ 
can  business  in  China,  we  find  that  while  there  were  24  American 
firms  and  410  resident  Americans  in  China  in  1882  (compared  with 
32  firms  and  1,200  individuals  in  1890),  by  1925  the  numbers  had 
increased  to  600  American  firms  and  12,000  Americans.  American 
trade  with  China  has  increased  fourfold  during  the  past  20  years, 
constituting  in  1923  30  per  cent  of  China’s  total  exports  and  nearly 
20  per  cent  of  its  imports,  and  representing  about  8  per  cent  of  the 
foreign  trade  of  the  United  States.  China’s  total  foreign  trade 
(imports  and  exports)  now  aggregates  about  $1,300,000,000  gold, 
55  per  cent  of  which  represents  imports.  During  the  past  20  years 
China’s  foreign  trade  has  increased  threefold  and  during  the  past 
30  years  eightfold.  Thus  it  is  apparent  that  America  is  now  pro¬ 
portionately  a  greater  factor  in  China's  foreign  trade  than  it  was 
20  or  30  years  ago. 

Upward  of  90  per  cent  of  American  exports  to  China  are  em¬ 
braced  in  the  following  items:  Kerosene  and  petroleum  products, 
including  lubricating  oils ;  cigarettes  and  tobacco ;  wheat ;  flour ; 
metals  and  minerals,  including  silver  bullion  and  copper;  machinery; 
dyes;  colors  and  paints;  raw  cotton;  timber;  tin  foil;  paper;  motor 
cars;  electrical  materials  and  fittings;  canned  fruits  and  vegetables; 
condensed  milk.  It  is  well  also  to  take  cognizance  of  the  fact  that 
certain  American  houses  in  China  supplement  their  trade  in  Ameri¬ 
can  commodities  with  certain  noncompetitive  lines  from  other  coun¬ 
tries,  and  some  utilize  Chinese  products  and  increase  the  value  of 
their  own  business  through  the  addition  of  Chinese  labor.  For  in¬ 
stance,  some  of  the  motor-car  bodies  are  built  in  China,  as  this 
type  better  meets  the  needs  of  the  Chinese  market  than  would  the 
bodies  imported  from  the  United  States.  In  the  sales  of  machinery 
and  equipment  requiring  installation,  Chinese  materials  and  labor 
contribute  to  the  transactions  of  the  American  houses.  In  some 
cases  manufacturing  plants  under  American  capital,  equipped  with 
American  machinery  and  operated  under  American  supervision, 
contribute  to  the  sum  total  of  American  trade  with  China. 

Items  which  do  not  enter  into  the  totals  of  imports  into  China  but 
which  contribute  to  the  success  of  American  effort  in  China  are 
American  shipping  companies,  insurance  companies,  banks,  and  pro¬ 
fessional  firms.  Other  classes  which  sell  American  ideas  and  con¬ 
tribute  in  a  substantial  way  to  the  general  success  of  American  en¬ 
terprise  in  China  are  the  vast  Christian  missionary  agencies  and  the 
Rockefeller  Medical  Schools,  manned  by  three  or  four  thousand 
American  workers  and  financed  to  the  extent  of  about  $10,000,000 
gold  a  year  from  friends  in  the  United  States. 

Much  has  been  said  and  written  within  recent  years  about  the 
Chinese  importers  dealing  directly  with  the  manufacturer  abroad, 

129 


100020°—  26 - 10 


130 


COMMERCIAL  HANDBOOK  OF  CHINA 


thereby  eliminating  intermediary  agencies,  whether  they  be  com¬ 
mission  houses,  foreign  establishments  in  China,  or  foreign  sales¬ 
men.  The  American  manufacturer’s  attention  is  called  to  the 
developments  in  Japan,  and  he  is  then  reminded  that  China  is 
about  prepared  to  follow  suit.  Cognizance  must  be  taken  of  the 
fact  that  Japan  and  China  are  as  different  as  are  England  and 
America,  in  a  foreign-trade  sense.  Until  China  has  made  very 
much  further  advancement  in  its  internal  developments,  we  need 
not  expect  Chinese  capital  and  Chinese  business  organizations  to 
engage  in  direct  foreign  trade.  In  other  words,  the  country  will 
during  the  next  few  decades  offer  greater  inducements  for  its  capital 
and  energy  in  internal  developments  than  will  be  offered  in  foreign 
trade.  Hence  China’s  foreign  trade  will  for  some  time  be  handled 
through  foreign  organizations  rather  than  by  native  concerns. 

OPENING  A  HOUSE  IN  CHINA 

For  those  lines  in  which  sales  or  market  possibilities  warrant,  it  is 
advisable  to  open  a  house  in  China.  With  the  recent  amendments 
to  the  China  trade  act,  it  is  now  possible  to  incorporate  for  busi¬ 
ness  in  China  under  the  China  trade  act,  with  exemptions  from 
corporate  taxes  for  business  done  in  China.  As  Americans  in 
China  enjoy  extraterritorial  treaty  rights  they  are  not  subject  to 
Chinese  laws  or  courts  as  regards  either  their  persons  or  property. 
During  the  European  war  certain  American  interests  opened  estab¬ 
lishments  in  China  on  a  very  pretentious  scale  only  to  close  down 
with  a  slump  following  the  war.  While  the  conditions  in  China 
did  not  have  all  to  do  with  their  failure  to  succeed — in  fact,  in 
several  cases  the  larger  contributing  factors  were  external  to  this 
field — yet  the  methods  pursued  by  some  of  these  concerns  were 
such  as  to  invite  disaster.  Probably  the  greatest  weakness  among 
these  mushroom  concerns  was  the  development  of  an  overhead 
out  of  all  proportion  to  the  business  turnover.  Instead,  they 
should  have  begun  in  a  modest  way  and  branched  out  as  a  trained 
personnel  and  increased  business  warranted. 

IMPORTANCE  OF  PERSONNEL 

Personnel  constitutes  70  per  cent  of  success  in  China.  In  Amer¬ 
ica  the  individual  is  far  more  a  part  of  a  vast  machinery  of 
organization  than  in  China.  The  bulk  of  China’s  foreign  trade 
is  handled  through  foreign  or  non-Chinese  concerns  in  the  field. 
The  1,500  men  who  comprise  the  aggregate  of  America’s  male 
mercantile  population  in  China  hold  relatively  more  responsible 
positions  and  are  individually  greater  factors  to  success  or  failure 
than  would  be  a  similar  number  holding  positions  of  corresponding 
importance  in  the  United  States  for  the  following  reasons: 

1.  The  superimposition  of  extraterritoriality  upon  Chinese  society 
by  certain  treaty  powers  places  the  nationals  of  these  powers  and 
the  properties  which  they  control  beyond  the  scope  of  Chinese  law 
and  courts,  thereby  creating  a  situation  pregnant  with  responsi¬ 
bilities  and  opportunities. 

2.  China  is  now  in  process  of  transition,  passing  from  an  indi¬ 
vidualistic  or  family  unit  to  a  modern  corporate  society.  Until 


MARKET  DEVELOPMENT 


131 


a  modern  economic  society  becomes  an  accomplished  fact,  the  inge¬ 
nuity  of  foreigners  having  relations  with  the  Chinese  will  con¬ 
tinue  to  be  taxed  in  meeting  the  adjustments  necessary  to  the 
situation. 

3.  The  success  of  the  individual  American  is  affected  by  the 
general  success  of  American  interests  in  China ;  hence  the  bigger 
and  more  effective  the  individual,  the  greater  his  contribution  to 
the  American  community  in  China.  On  the  contrary,  if  his  con¬ 
cern  is  headed  by  a  man  of  small  caliber  or  is  under  the  direction 
of  a  foreigner  out  of  sympathy  with  America  and  American  ideals, 
not  only  does  the  concern  employing  such  a  man  suffer,  but  it 
reflects  unfavorably  upon  all  American  interests  in  China. 

4.  With  the  great  distance  between  the  head  office  of  a  company  in 
America  and  its  representative  in  China,  it  becomes  even  more  neces¬ 
sary  that  this  representative  be  a  high  quality  of  individual,  as 
the  home  office  must  depend  upon  his  judgment  in  matters  which 
can  not  advantageously  be  decided  by  men  not  on  the  ground  or 
not  thoroughly  familiar  with  conditions  in  a  field  so  different  from 
the  United  States  as  is  China. 

5.  American  trade  in  China  must  meet  international  rather  than 
national  competition,  hence  the  representative  in  China  must 
familiarize  himself  with  the  methods  of  his  international  competi¬ 
tors,  and  must  be  prepared  to  attack  problems  arising  out  of  this 
international  competition. 

6.  Many  American  concerns  destroy  the  usefulness  of  their  repre¬ 
sentatives  in  China  by  unduly  restricting  their  powers  of  attorney. 
Mr.  Brown,  of  the  International  Bank  of  Shanghai,  has  the  follow¬ 
ing  comment  to  offer  on  this  important  subject : 

In  sending  representatives  to  the  Far  East,  the  firm  or  individual  in  America 
should  see  that  its  representative  is  supplied  with  a  power  of  attorney  cover¬ 
ing,  as  fully  as  possible,  any  eventuality  which  may  arise  in  conducting  the 
firm’s  business.  It  has  been  the  experience  of  bankers  in  the  Far  East  to 
find  that  even  large  firms  at  home  send  out  representatives  who  carry  with 
them  powers  of  attorney  which  have  only  the  most  limited  scope  and  which 
in  some  instances  hamper  their  activities  to  a  considerable  extent.  Not  only 
does  this  reflect  upon  the  representative,  who  when  carrying  a  very  limited 
power  of  attorney  can  not  be  looked  upon  as  representing  his  firm  as  fully 
as  he  should,  but  also  causes  doubts  in  the  mind  of  anyone  wTho  actually 
sees  the  power  of  attorney,  and  reflects  on  the  firm  itself  for  sending  out  a 
representative  whom  they  apparently  trust  only  to  a  very  limited  extent. 

It  would  appear  wise  for  any  firm  in  America  which  is  sending  out  a 
representative  and  which  is  supposed  to  do  actual  business  to  supply  him 
with  a  power  covering  the  following  items :  Opening  of  bank  accounts ;  the 
ability  to  borrow;  the  ability  to  take  and  defend  legal  actions;  the  power 
of  substitution  and  revocation ;  the  power  to  buy  and  sell  merchandise,  rent 
offices,  employ  and-  dismiss  assistants ;  and  in  all  ways  to  give  to  the  repre¬ 
sentative  a  document  which  will  enable  him  to  carry  on  the  firm’s  business 
without  embarrassment  to  him  or  his  employees. 

SALESMANSHIP 

During  the  past  10  years  important  changes  have  been  in  progress 
in  breaking  down  the  old  system  of  the  comprador  and  substituting 
therefor  closer  working  contacts  between  the  foreign  trader  and 
Chinese  dealers.  At  one  time  the  Chinese  comprador  guaranteed 
all  of  the  firm’s  transactions  with  Chinese  dealers.  To-day  many 
of  these  compradors  guarantee  no  more  than  25  per  cent.  It  is 


132 


COMMERCIAL  HANDBOOK  OF  CHTNA 


contended  that  the  old-time  Chinese  merchant  whose  word  was  as 
good  as  his  bond  is  no  longer  the  general  rule,  and  that  greater 
vigilance  is  required  of  the  foreign  trader  in  his  relations  with 
Chinese  dealers.  The  foreigner  must  become  acquainted  with  the 
firms’  customers  and  must  arrange  for  inspection  trips  over  terri¬ 
tory  coArered  by  his  Chinese  salesmen.  Conditions  now  require  closer 
working  contacts  between  the  foreign  trader  in  China  and  the 
Chinese  customer.  Unfortunately  there  is  a  tendency  among  some 
of  the  American  and  British  merchants  in  Shanghai  to  cling  too 
strongly  to  the  old  traditions  and  old  ideas  of  dealing  with  the 
Chinese,  shutting  themselves  off  from  contact  with  the  Chinese, 
through  the  perpetuation  of  institutions  and  ideas  which  are  rapidly 
becoming  antiquated.  Those  who  persist  in  these  old-time  ideas 
and  methods  are  bound  to  suffer  from  the  competition  of  those 
who  cultivate  a  closer  working  contact  with  the  Chinese  business 
public. 

SELLING  SERVICE  WITH  GOODS 

One  of  the  promising  opportunities  for  the  American  trader  in 
China  is  the  opening  which  is  presented  in  the  selling  of  service  with 
goods.  During  the  war  years  American  plate  glass  captured  the 
market  in  China.  Had  the  American  who  controlled  the  bulk  of  this 
plate-glass  trade  during  the  war  years  accepted  the  situation  he 
might  have  returned  to  the  United  States  thoroughly  convinced  that 
China  was  no  longer  any  place  for  him.  In  the  transition  from  the 
old  to  the  new  order  among  the  Chinese  in  the  great  commercial 
metropolis,  he  saw  his  opportunity  in  selling  service  with  goods. 
Thus,  instead  of  continuing  in  hopeless  competition  with  European 
plate  glass  he  offered  to  the  Chinese  shopkeepers  of  Shanghai  the 
complete  store  front.  He  furnished  plans  and  contracted  to  put  in 
the  finished  product. 

The  time  has  not  yet  come  when  service  in  itself  will  command  a 
market,  but  salesmanship  which  combines  the  idea  of  service  stands 
a  better  chance  to  succeed  than  salesmanship  without  service.  The 
Chinese,  reared  in  a  nonscientific  environment  and  unaccustomed  to 
modern  industrial  machinery  and  organization,  while  still  unappre¬ 
ciative  of  the  money  value  of  engineering  and  organization  counsel, 
finds  that  if  foreign  manufactured  products  are  to  give  him  satisfac¬ 
tion  he  must  understand  their  use,  hence  the  goods  without  the 
method  of  setting  them  up  or  of  using  them  or  keeping  them  in  good 
running  shape  may  be  of  little  value  to  him.  Furthermore,  there 
are  not  as  yet  in  China  the  facilities  such  as  are  developed  in  a 
western  industrial  society  for  repairs  and  for  the  furnishing  of  parts, 
or  for  the  securing  of  independent  expert  advice,  so  that  the  Chinese 
buyer  is  obliged  to  depend  upon  the  foreign  salesman  for  advisory 
assistance. 

REPRESENTATIVES 

The  American  manufacturer  would  do  well  to  proceed  with  care 
in  intrusting  the  handling  of  his  business  in  China  to  young  Chinese 
who  have  not  already  succeeded  in  establishing  themselves  in  busi¬ 
ness  in  their  own  country.  Although  China  is  in  transition,  yet  it 
will  for  some  time  continue  to  be  recognized  as  the  land  of  fathers 


MARKET  DEVELOPMENT 


133 


and  grandfathers  rather  than  as  the  country  of  young  men.  Cer¬ 
tainly  it  will  be  some  years  before  the  family  system  in  China  will 
be  so  adjusted  as  to  accord  the  young  men  a  position  of  independent 
responsibility,  free  from  the  entangling  alliances  of  obligations  to 
relatives.  Furthermore,  a  man  from  one  Province  in  China  experi¬ 
ences  difficulties  in  doing  business  with  natives  of  other  Provinces,  a 
difficulty  which  does  not  confront  the  foreigner.  Under  the  direc¬ 
tion  of  a  competent,  experienced  American,  concerns  in  China  are 
able  to  utilize  the  services  of  trained  Chinese  salesmen  to  an  increas¬ 
ing  extent. 

Much  good  time  and  money  have  been  wasted  by  American  manu¬ 
facturers  in  sending  to  China  men  whose  main  object  in  making 
the  trip  was  their  own  personal  satisfaction  and  enjoyment  in  visit¬ 
ing  the  field.  The  opportunity  of  seeing  something  of  the  Orient 
is  often  sufficiently  enticing  to  prompt  individuals  to  undertake  the 
work  of  representing  the  American  manufacturer  on  a  tour  through 
the  Far  East  at  what  appears  to  be  very  reasonable  terms  to  the 
concern  represented.  Through  false  promises,  through  superficial 
knowledge  of  conditions  under  which  business  is  done,  or  through 
carelessness  in  attending  to  the  details  of  individual  transactions, 
such  representatives  often  do  more  damage  than  good.  In  some 
cases  the  good  name  of  a  particular  manufacturer  has  been  ruined 
in  a  certain  foreign  field  through  the  irresponsible  acts  of  men  ill 
qualified  to  represent  an  American  concern.  It  is  equally  necessary 
to  avoid  the  unscrupulous  individual  who  solicits  a  number  of  con¬ 
nections  with  different  manufacturers,  especially  the  small  manu¬ 
facturers,  to  pile  up  sufficient  retaining  fees  to  give  him  an  easy 
livelihood  at  the  expense  of  others. 

The  properly  qualified  man  in  China  or  the  man  who  makes  the 
tour  over  the  F ar  East  in  a  successful  way  several  times  deserves  far 
more  consideration  than  some  of  the  good  men  receive.  To  the  man 
who  is  bent  upon  serving  his  house  faithfully,  what  novelty  he  may 
have  experienced  upon  the  first  tour  rapidly  falls  into  the  background 
with  repeated  visits,  and,  in  fact,  some  of  the  trips  are  taken  under 
distinct  discomfort.  A  representative  of  a  manufacturer  of  pharma¬ 
ceutical  supplies  recently  made  his  fifth  tour  over  China,  visiting  a 
number  of  mission  hospitals  and  native  drug  dealers  in  places  in  the 
interior  reached  only  by  primitive  methods  of  transportation  and 
under  much  discomfort,  involving  days  to  cover  distances  which  rail¬ 
ways  in  America  make  in  a  corresponding  number  of  hours.  The 
results  of  this  energetic  and  faithful  representative’s  labors  in  China 
built  up  for  the  concern  he  represented  a  splendid  name,  and  a  busi¬ 
ness  netting  many  thousands  of  dollars  annually.  The  house  could 
well  afford  to  pay  this  man  a  bonus  in  addition  to  his  salary  and 
regular  commission,  for  he  has  built  for  the  future  in  his  employer’s 
opportunities  in  China. 

The  American  manufacturer  or  jobber  is  often  too  hasty  in  placing 
his  agency  for  China.  Ordinarily  speaking,  China  is  for  foreign- 
trade  purposes  divided  into  three  general  sections — North  China, 
with  headquarters  at  Tientsin ;  Central  China,  with  headquarters  at 
Shanghai ;  and  South  China,  with  headquarters  at  Hongkong. 
While  some  of  the  Tientsin  firms  cover  Manchuria,  yet  if  there  is 
reason  to  work  that  territory  more  intensively,  it  would  be  well  to 


134 


COMMERCIAL  HANDBOOK  OF  CHINA 


operate  through  houses  in  Dairen  or  Mukden  for  South  Manchuria, 
and  in  Harbin  for  North  Manchuria.  In  Central  China,  the  great 
upper  Yangtze  region  can  best  be  covered  from  Hankow  rather  than 
from  Shanghai,- although  under  ordinary  circumstances  Shanghai 
houses  generally  cover  the  Yangtze  region  and  sometimes  also  North 
China.  South  China  is  quite'  a  distinct  territory  and  is  generally 
supplied  from  Hongkong,  although  for  more  intensive  purposes 
houses  at  Canton  can  reach  the  trade  in  that  populous  and  wealthy 
section  more  effectively.  As  for  the  coast  ports,  for  special  com¬ 
modities  more  direct  connections  can  be  made  by  dealing  with  con¬ 
cerns  located  at  Swatow,  Amoy,  and  Foochow. 

Care  should  be  taken  to  refrain  from  granting  a  house  an  agency 
for  a  greater  extent  of  territory  than  its  facilities  will  permit  it  to 
cover  effectively.  Through  inquiries  directed  to  the  Bureau  of  For¬ 
eign  and  Domestic  Commerce  at  Washington  helpful  information 
may  be  secured  as  to  the  general  reputation  of  firms.  It  is  also  well 
to  ascertain  the  standing  of  the  concern  in  the  estimation  of  the 
Chinese  trade,  for  in  most  cases  the  commodities  handled  must 
eventually  find  their  way  to  Chinese  dealers  and  consumers.  For 
some  unaccountable  reason,  some  American  manufacturers  seem  to 
labor  under  the  delusion  that  in  foreign  trade  the  best  method  of 
procedure  is  to  secure  a  foreign  rather  than  an  American  house  to 
handle  an  agency.  Unless  there  are  good  reasons  for  doing  other¬ 
wise,  American  manufacturers  and  jobbers  would  do  well  to  make 
their  connections  in  China  through  American  houses  alreadv  estab- 
lished  there,  or  houses  in  the  United  States  possessed  of  good  market¬ 
ing  facilities  in  China. 

The  third  question  of  importance  in  selecting  an  agent  is  the  man¬ 
ner  in  which  the  commodity  to  be  marketed  fits  in  with  those  which 
this  concern  is  already  handling.  Cases  are  known  in  which  houses 
of  presumably  good  reputation  have  accepted,  in  fact  sought,  sole 
agency  rights  for  certain  products  with  the  sinister  idea  in  view  of 
keeping  those  products  out  of  the  market.  There  are,  however,  com¬ 
mission  houses  which  handle  quite  effectively  a  number  of  different 
manufacturers’  commodities  of  similar  lines;  for  different  Chinese 
dealers  of  the  same  lines  of  commodities  often  prefer  to  stock  prod¬ 
ucts  carrying  different  trade-marks  from  those  of  their  competitors. 
Some  houses  in  China  have  taken  on  more  agency  connections  than 
they  can  effectively  operate.  It  is  surprising  how  well  some  estab¬ 
lishments  apparently  succeed  in  concealing  the  names  of  the  Ameri¬ 
can  companies  which  they  are  presumed  to  represent.  If  the  market 
possibilities  warrant  and  the  commodity  in  question  is  of  such  a 
character  as  to  justify  the  arangement,  it  may  be  best  to  have  the 
agent  take  into  his  employ  a  salesman  trained  under  the  American 
manufacturer  or  with  the  jobber,  as  such  a  person  will  devote  his 
energies  to  the  sales  of  this  particular  product  or  set  of  commodities 
concerning  which  he  is  thoroughly  familiar. 

There  are  a  number  of  houses  in  China  which  prefer  to  work  on 
the  basis  of  big  profits  on  a  small  turnover  rather  than  small  profits 
on  a  large  turnover,  particularly  so  if  it  appears  that  a  certain 
amount  of  pioneering  work  will  be  required  to  develop  the  larger 
market.  American  automobile  accessories  are  in  some  cases  held  for 
much  higher  prices  than  should  obtain,  because  the  houses  handling 


MARKET  DEVELOPMENT 


135 


them  see  chances  of  making  big  profits  on  small  sales,  thereby  re¬ 
stricting  not  only  the  sales  of  these  accessories  but  injuring  the  mar¬ 
ket  prospects  for  the  cars  which  require  them. 

KEEPING  THE  AGENT  INFORMED 

If  the  American  manufacturer  or  jobber  would  get  the  most  from 
his  representative  in  China,  he  should  keep  him  fully  informed  as  to 
alterations  in  prices  or  commodities  and  as  to  other  details  important 
to  a  successful  prosecution  of  the  business  in  China.  The  manager 
of  the  export  department  of  an  American  manufacturer  of  motor 
cars  came  to  North  China  and  found  that  the  company’s  representa¬ 
tive  in  that  territory  had  not  been  on  the  company’s  mailing  list  for 
its  latest  catalogues  and  literature  descriptive  of  its  improved  prod¬ 
ucts.  Some  of  these  products  were  well  adapted  to  the  Chinese 
market.  Furthermore,  through  helpful  suggestions  as  to  sales 
methods  the  export  manager  was  able  to  increase  his  representative’s 
sales  very  considerably. 

A  common  cause  for  complaint  is  that  manufacturers  change  the 
specifications  of  commodities  ordered  or  substitute  others  without 
first  securing  the  consent  of  their  representatives  in  China.  The 
Chinese  buyer  becomes  accustomed  to  an  article  put  up  in  a  certain 
way,  and  unless  educated  to  understand  that  a  certain  substitute  is 
equally  good  or  better  or  that  the  same  product  appears  in  a  different 
sort  of  package  he  is  suspicious  that  some  one  is  trying  to  u  put  some¬ 
thing  over  on  him.”  Some  years  ago  an  American  firm  in  Shanghai 
built  up  a  nice  business  in  a  fancy  toilet  soap  made  in  cakes  of  a 
certain  specified  size.  Without  any  warning  to  the  Shanghai  firm, 
the  American  manufacturer,  in  response  to  an  order  for  several 
hundred  cases  of  this  soap,  took  the  liberty  of  shipping  a  lot  slightly 
larger  in  size,  justifying  himself  in  that  the  price  was  the  same; 
hence  the  firm  in  Shanghai  would  stand  to  gain  rather  than  lose. 
In  this  case  the  extra  size  did  not  appeal  to  the  Chinese  dealer,  for 
his  customers  for  this  particular  brand  of  soap  were  high-class 
Chinese  women,  who  were  more  concerned  in  securing  a  cake  of  soap 
which  fitted  their  small  hands  and  which  was  otherwise  attractive 
than  in  securing  more  for  their  money  at  the  expense  of  convenience 
in  use.  An  American  manufacturer  of  trunk  fittings  shipped  to  a 
China  firm  trunk  center  locks  instead  of  rights  and  lefts,  as  were 
ordered.  The  dealer  refused  to  take  the  center  locks  and  the  manu¬ 
facturer  refused  to  rectify  his  mistake,  which  he  admitted. 

.  SHIPPING  IN  ACCORD  WITH  INSTRUCTIONS 

One  of  the  very  common  causes  of  complaint  in  regard  to  Ameri 
can  import  trade  with  China  is  that  the  American  exporters  do  not 
conserve  the  interests  of  the  importer  in  China  in  complying  with 
shipping  instructions.  Many  a  transaction  which  should  have  netted 
a  neat  profit  to  the  Chinese  importer  terminated  in  an  actual  loss 
instead,  solely  because  of  the  failure  of  the  exporter  to  have  met  the 
shipping  requirements.  There  are,  unfortunately,  a  number  of  for¬ 
warding  and  express  companies  which  exact  charges  out  of  all  pro¬ 
portion  to  the  burden  the  goods  can  stand.  Cases  have  been  cited 
in  which  forwarders  falsified  weights,  measurements,  and  shipping 


136 


COMMERCIAL  HANDBOOK  OF  CHINA 


charges  or  added  one-eighth  to  one-half  of  i  per  cent  on  insurance, 
both  ordinary  and  marine.  Steamship  companies  should  be  required 
to  show  on  the  bill  of  lading  the  exact  weight  and  amount  of  freight 
charged,  or  bankers  should  refuse  to  accept  documents  in  which  the 
freight  measurements  and  charges  are  not  clearly  stated.  Some  for¬ 
warding  companies  exact  exorbitant  charges  where  transshipments 
are  involved.  It  is  exasperating  to  the  importer  in  China  to  order 
a  bill  of  goods  shipped  by  parcel  post  and  to  receive  this  shipment 
through  some  forwarding  or  express  company,  with  charges  assessed 
more  than  sufficient  to  eat  up  any  possible  profits  on  the  transaction. 
Arrangements  should  be  perfected  whereby  C.  O.  D.  parcel-post 
transactions  could  be  carried  between  the  United  States  and  China, 
the  shippers  paying  return  postage,  which  may  be  deducted  or  added 
to  the  C.  O.  D.  charge.  Other  countries  have  such  an  arrangement. 

An  importer  in  China  will  often  place  an  order  with  a  jobbing 
house  on  the  Pacific  coast  because  of  the  advantage  of  fast  ship¬ 
ping  connections,  only  to  be  disappointed  in  having  the  order  sent 
forward  on  a  sailing  subsequent  to  the  one  which  might  well  have 
carried  the  goods. 

The  old,  hackneyed  subject  of  packing  comes  up  constantly  in 
criticism  of  exporters  who  refuse  to  comply  with  special  instruc¬ 
tions  designed  to  bring  the  goods  to  the  Chinese  dealer  in  as  good 
condition  as  they  leave  America.  Of  course,  the  well-established 
concerns  give  careful  attention  to  the  essentials  of  shipping  and 
packing;  otherwise  they  would  never  have  achieved  the  distinction 
of  being  well  established  in  their  trade  abroad. 

A  large  American  mail-order  house  built  up  a  business  of  several 
hundred  thousand  dollars  a  year  in  China.  The  biggest  asset  of  this 
concern  was  the  scrupulous  care  which  it  gave  to  the  filling  of  its 
orders.  Each  satisfied  customer  became  a  volunteer  advertising 
agent  for  the  company,  and  it  must  be  said  to  the  credit  of  the  com¬ 
pany  that  it  had  very  few  dissatisfied  customers.  Invariably  goods 
were  sent  in  accord  with  the  specifications  of  the  buyers,  were  intelli¬ 
gently  packed,  and  were  shipped  at  the  lowest  possible  cost  to  the 
buyer.  Breakages  and  losses  in  transit  were  credited  to  the  cus¬ 
tomers. 

ADVERTISING 

There  are  certain  lines  of  goods  and  certain  commodities  which 
depend  for  their  successful  introduction  and  sales  in  foreign  Inar- 
kets  upon  an  intelligent  campaign  of  advertising.  The  successful 
marketing  of  these  products  in  competitive  fields  requires  some  ex¬ 
penditure  both  for  advertising  and  for  selling.  While  it  would  be 
folly  to  make  lump-sum  donations  for  advertising  in  China  unless 
one  were  fully  assured  as  to  the  expenditure  of  this  sum  for  the 
purposes  in  view,  yet  ways  and  means  can  be  so  devised  as  to  get  an 
effective  check  on  both  the  character  of  the  advertising  and  its 
effectiveness  in  the  market  where  it  is  done.  The  agent  in  China 
should  be  able  to  furnish  the  American  manufacturer  with  a  detailed 
bill  of  particulars  justifying  expenditures  made  for  the  introduction 
and  sales  of  the  products  of  the  company  he  represents.  It  is  advis¬ 
able  that  manufacturers  and  jobbers  make  reasonable  allowances  to 
their  agents  in  China  for  properly  advertising  their  goods. 


MAH  RET  DEV  ELOPM  EN  T 


137 

SILVER  EXCHANGE  AND  PRICES 

China  is  on  a  silver-copper  rather  than  a  gold-standard  basis. 
Furthertnore,  silver  and  copper  in  China  are  handled  as  commodities 
while  also  serving  as  mediums  of  exchange.  The  situation  is  further 
complicated  in  that  units  of  currency  vary  in  different  places. 
Theoretically,  the  silver  ounce  by  weight  serves  as  the  unit  in  silver 
transactions,  but  different  communities  have  different  scales — that  is, 
there  is  a  lack  of  uniformity  in  the  ounces.  Silver  exchange  enters 
very  prominently  into  every  import  transaction.  For  instance,  sup¬ 
pose  an  importer  offers  a  Chinese  dealer  an  American  motor  car 
at  $1,000  gold  c.  i.  f.  (cost,  insurance,  and  freight)  Shanghai.  At 
the  time  the  sale  is  made  suppose  that  the  Shanghai  silver  tael  is 
quoted  at  75  cents  United  States  gold.  This  means  that  the  Chinese 
buyer  must  produce  the  equivalent  in  silver  of  1,333.33  taels  to  cover 
the  $1,000  gold.  Suppose  that  three  months  later,  when  the  car  ar¬ 
rives  in  Shanghai,  silver  exchange  had  advanced  to  85  taels,  it  would 
then  be  necessary  to  put  up  only  1,176.47  taels  to  cover.  On  the 
other  hand,  suppose  silver  had  dropped  to  65,  then  it  would  require 
1,538.46  taels  to  meet  the  bill. 

It  is  thus  plainly  evident  that  silver  exchange  has  much  to  do  with 
fixing  the  prices  to  the  Chinese  consumers.  Where  possible  to  do  so, 
the  importer  would  do  well  to  arrange  to  sell  his  article  at  a  fixed 
price  in  silver  under  a  sliding  scale  of  discounts  to  the  trade  on  a 
basis  of  the  fluctuations  in  exchange.  In  the  main  these  discounts 
go  to  the  jobber,  but  the  retailer  gets  in  on  a  certain  share.  The  em¬ 
ployees  in  a  Chinese  shop  are  numerous  and  receive  little  by  way  of 
actual  wage  considerations.  At  the  end  of  the  Chinese  year  they, 
however,  receive  a  bonus  based  upon  the  profits  made  during  the 
year,  the  funds  from  the  sales  of  containers  and  samples,  and  dis¬ 
counts.  The  latter  are  distinctly  helpful  as  an  incentive  to  the  sales¬ 
man  to  boost  the  sales  of  the  commodities  carrying  special  discounts. 
Some  importers  have  hit  upon  the  happy  device  of  limiting  the 
number  of  jobbers  through  whom  they  deal  to  a  definite  number — 
say,  8  or  10.  They  contract  with  these  jobbers  to  handle  the  article 
in  question,  fixing  the  price  in  local  silver  ctirrency,  and  stipulating 
as  to  the  proportion  of  discounts  to  go  to  each  jobber.  The  agree¬ 
ment  carries  with  it  the  stipulation  that  the  retailers  agree  to  sell 
at  certain  fixed  prices  and  also  receive  a  certain  share  of  the  dis¬ 
counts.  In  some  cases  the  jobbers  employ  the  salesmen,  some  of 
which  are  specially  trained  under  the  direction  and  at  the  expense  of 
the  importer  or  manufacturer.  However,  the  nearer  one  can  come 
to  putting  his  article  into  the  market  at  a  price  which  will  permit 
its  being  retailed  over  a  given  territory  at  a  stated  price  in  local 
silver  currency,  the  better  are  his  chances  for  success. 

TRADE-MARKS 

One  brand  of  American  condensed  milk  sells  for  20  per  cent  more 
than  any  other  condensed  milk  in  the  market,  yet  holds  nearly  90 
per  cent  of  the  trade.  This  is  due  to  the  fact  that  it  established  its 
trade-mark  and  that  through  this  trade-mark  it  has  come  to  be  rec¬ 
ognized  as  a  superior  product,  in  spite  of  the  fact  that  other  equally 
good  brands  are  offered  at  20  to  25  per  cent  below  the  market  price 


138 


COMMERCIAL  HANDBOOK  OF  CHINA 


of  the  favorite  make.  The  manufacturers  of  this  brand  have  over 
a  period  of  many  years  zealously  safeguarded  their  trade-mark 
against  frequent  efforts  upon  the  part  of  others  to  imitate. 

Many  years  ago  a  certain  brand  of  American  underwear  was  sold 
to  the  extent  of  500  cases  a  week.  It  became  known  throughout  the 
length  and  breadth  of  the  land.  Because  of  the  failure  of  the  manu¬ 
facturers  to  protect  their  trade-mark,  an  imitation  gradually  dis¬ 
placed  the  original  American,  product.  The  Chinese  Government 
recently  enacted  a  trade-mark  law.  Although  not  formally  recog¬ 
nized  by  certain  of  the  treaty  powers,  yet  the  foreign  traders  in 
China  are  gradually  registering  their  marks  under  this  law.  Regis¬ 
tration  under  this  law  can  be  arranged  through  American  attorneys 
at  law  resident  in  China. 

SERIOUS  EFFORT  NECESSARY 

A  prominent  merchant  associated  with  a  very  large  concern  in 
China  maintaining  a  big  organization  throughout  the  interior  of 
the  country  made  the  statement  that  China  is  no  place  for  the 
“piker.”  On  the  other  hand,  he  stated  that,  provided  a  man  has  an 
article  or  idea  which  can  commend  itself  to  the  Chinese  people  or 
which  is  suitable  to  conditions  in  China,  there  are  big  opportunities, 
with  proper  financial  backing,  for  profitable  business.  As  he  stated, 
there  is  enough  new  about  the  field,  and  it  possesses  so  much  in  the 
way  of  development  potentialities,  that  with  the  proper  backing, 
coupled  with  a  carefully  selected  personnel,  it  is  possible  to  build  up 
a  business  with  greater  prospects  of  expansion  than  in  almost  any 
other  field.  One  strikingly  interesting  phase  of  China  is  the  increas¬ 
ing  consumption  of  the  Chinese  masses. 

However,  it  is  higlv  necessary  that  previous  to  embarking  upon 
any  enterprise  in  China  one  make  a  careful  and  intelligent  survey  of 
the  field,  utilizing  all  possible  agencies  which  may  be  helpful  in 
this  connection.  It  is  well  here  to  take  cognizance  of  the  fact  that 
the  United  States  Department  of  Commerce  maintains  an  organiza¬ 
tion  in  China,  under  the  direction  of  its  commercial  attache,  with 
offices  in  Shanghai,  Peking,  and  Canton,  and  that  this  service  is  at 
the  command  of  American  business  men,  who  would  do  well  to 
utilize  and  investigate  the  character  of  the  services  which  this  organi¬ 
zation  is  prepared  to  render.  Also  the  department’s  Bureau  of  For¬ 
eign  and  Domestic  Commerce  in  Washington,  D.  C.,  has  published 
much  materia]  concerning  China  and  is  prepared  to  answer  inquiries 
from  those  interested  in  marketing  in  this  field. 


INCORPORATION  OF  AMERICAN  FIRMS  IN  CHINA 


Assistant  Trade  Commissioner  A.  Viola  Smith,  Shanghai 

American  commerce  with  China  was  originally  carried  on  by 
supercargoes  traveling  aboard  clipper  ships  of  the  day.  Canton  was 
their  port,  and  with  the  development  of  the  trade  there  followed  as 
a  natural  sequence  the  establishment  in  Canton  of  resident  agents, 
commission  houses,  and  direct  representatives  of  firms  having  their 
headquarters  in  America.  By  1815  these  changes  in  the  development 
of  mercantile  channels  had  practically  eliminated  the  supercargo. 

AMERICAN  ENTERPRISES  IN  CHINA 

The  first  American  concern  established  in  Canton  to  engage  in 
the  commission  business  wras  inaugurated  by  Shaw  and  Randall,  both 
formerly  supercargoes.  The  death  of  Shaw  soon  dissolved  the  firm, 
but  other  American  enterprises  quickly  followed.  The  outstanding 
American  house  of  its  time  was  that  of  Samuel  Russell  &  Co.,  a  part¬ 
nership  established  in  1818  by  Russell,  Ammidon,  Edward  Carring¬ 
ton,  Cyrus  Butler,  and  B.  and  T.  C.  Hoppin,  of  Providence.  Later 
reorganized  under  the  name  of  Russell  &  Co.,  this  firm  came  to  occupy 
a  financial  position  in  China  comparable  with  that  of  famous  British 
firms  of  the  day. 

Tyler  Dennett  describes  this  period  of  American  enterprise  in 
China  in  his  Americans  in  Eastern  Asia  thus : 

Olyphant  &  Co.  at  Canton  was  organized  in  1828  out  of  the  ruins  of  the  firm 
of  Thomas  H.  Smith  by  D.  W.  C.  Olyphant,  who  had  served  an  apprenticeship 
in  New  York,  Baltimore,  and  then  in  Canton  as  the  supercargo  and  agent  of 
Smith.  This  firm  came  to  occupy  a  position  second  only  to  that  of  Russell  & 
Co.,  until  Augustine  Heard,  leaving  the  Russell  firm,  established  the  house 
which  long  bore  his  name.  The  only  other  important  firm  was  that  of  W.  S. 
Wetmore.  It  is  significant  that  out  of  the  much  larger  number  of  American 
merchants  who  came  to  and  departed  from  Canton  only  these  firms — Russell, 
Olyphant,  Heard,  and  Wetmore — survived  the  competition  of  decades.  Some, 
like  John  C.  Cushing,  retired  with  wealth;  others  failed  grandly  and  left  only 
pitiful  derelicts. 

The  effect  of  this  consolidation  of  American  interests  was  to  stabilize  business 
and  to  increase  the  influence  of  the  surviving  merchants  in  their  dealings  with 
both  the  Chinese  and  with  the  other  foreigners. 

What  has  become  of  the  firms  of  Russell,  Olyphant,  Heard,  and 
Wetmore,  which  played  such  an  essential  part  in  the  foundation  of 
American  trade  in  China?  Russell  &  Co.,  the  strongest,  survives 
to-day  in  the  form  of  a  British  partnership  operating  under  the  name 
of  Shewan,  Tomes  &  Co.  This  British  company  was  organized  in 
1891  out  of  the  ruins  of  Russell  &  Co.  when  the  American  firm  went 
on  the  rocks  overnight  in  a  huge  sugar-exchange  transaction.  An¬ 
other  split  off  from  Russell  &  Co.  is  the  Yangtze  Insurance  Associa¬ 
tion  (Ltd.),  a  British  company  with  its  head  office  in  Shanghai. 
Originally  founded  in  1862  by  the  American  firm,  it  changed  to 
British  registry  in  1883. 


139 


140 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  old  Canton  firm  of  Wetmore  &  Co.,  established  in  that  city 
during  1832,  had  branches  in  Valparaiso,  New  York,  and  Shanghai, 
trading  under  the  name  of  Wetmore,  Cryder  &  Co.,  and  owned  its 
own  line  of  clippers.  It  claimed  to  have  brought  the  first  ship¬ 
ment  of  American  petroleum  into  China  during  the  early  sixties. 
Its  present-day  descendant,  Frazar  &  Co.  (Ltd.)  assumed  British 
nationality  during  1924,  and  now  operates  as  a  British-China  com¬ 
pany  organized  under  the  Hongkong  companies  ordinances,  which 
are  extended  by  orders  in  council  over  British  persons  resident  in 
China  through  the  long  arm  of  extraterritorial  privileges. 

Olyphant  &  Co.  has  long  since  dropped  out  of  existence.  The  only 
trace  of  it  to-day  is  found  in  the  British  firm  of  Wisner  &  Co.,  orig¬ 
inally  established  by  two  American  employees  of  Olyphant  &  Co. — 
Wisner  and  Seamon — after  the  parent  company  had  suffered  reverses 
and  had  gone  out  of  business. 

Heard's  enterprise,  so  highly  spoken  of  by  Tyler  Dennett,  seems 
to  have  been  lost  in  the  vicissitudes  of  those  ever-changing  conditions 
through  which  mercantile  interests  in  China  have  passed  from  the 
opening  of  trade  with  Canton. 

The  strength  of  America’s  position  in  the  trade  of  these  earlier 
days  is  cogently  brought  out  by  Dennett  in  these  words : 

American  trade  with  Asia  was  begun  without  the  direct  assistance  of  any 
others  than  Americans  and  made  its  way,  needless  to  say,  in  the  face  of  no 
inconsiderable  opposition  from  British  competitors,  notably  the  East 
India  Co. 

British  interests  in  the  Far  East  have  enjoyed  a  continuity  of 
commercial  policy  which  American  interests  have  not  possessed. 
During  the  World  War  years  of  1911—1919  American  interests  were, 
owing  to  the  favorable  position  of  the  United  States  as  a  producing 
nation,  able  to  operate  without  feeling  too  severely  the  burden  of 
home  taxation.  The  postwar  years  of  readjustment  and  the  reentry 
into  the  China  field  of  products  from  Great  Britain,  France,  Ger¬ 
many,  and  other  European  countries,  coupled  with  Japan’s  increas¬ 
ing  activities,  brought  about  such  strong  competition  that  American 
interests  were  forced  to  analyze  from  every  angle  the  advantages 
held  by  their  competitors.  They  found  that  their  British  competi¬ 
tors,  for  instance,  organized  and  operated  under  the  provisions  of 
the  Hongkong  companies  ordinances,  were  free  from  the  burden  of 
home  taxation  other  than  the  payment  of  a  nominal  annual  license 
fee.  In  the  “  language  of  the  dollar  ”  this  meant  that  a  British 
company  in  China  holding  an  American  agency  could  sell  American 
products  for  1  y2  per  cent  less  than  the  identical  products  could  be 
quoted  upon  by  an  established  American  trading  company  in  China. 
The  difference  proved  entirety  attributable  to  the  disparity  between 
the  home  taxations  exacted  by  the  respective  Governments  of  these 
nationals. 

No  other  nationals  operating  in  China  have  been  so  taxed  by  their 
home  Governments  as  Americans.  Japanese  business  interests,  for 
example,  are  free  from  home  taxation  so  long  as  they  reinvest  their 
profits  in  enterprises  outside  of  Japan.  This  accounts,  in  a  large 
measure,  for  the  enormous  industrial  investments  which  the  Japa¬ 
nese  have  made  in  recent  years  in  various  parts  of  China,  notably  at 
Shanghai,  in  the  cotton  and  weaving  industries.  The  Germans, 
French,  and  other  European  nationals  operating  in  China  are  like- 


INCORPORATION  OF  AMERICAN  FIRMS  IN  CHINA 


141 


wise  lightly  taxed  and  are  particularly  free  from  home-taxation 
burdens. 

China’s  income  tax  law,  promulgated  by  presidential  mandate,  on 
January  11,  1914,  effective  January  1,  1921,  applies  to  companies 
organized  under  Chinese  law,  and  as  such  is  not  a  taxation  liability 
with  which  foreign  interests  are  concerned  so  long  as  they  are  organ¬ 
ized  under  their  own  laws  and  enjoy  the  privileges  of  extraterri¬ 
toriality. 

The  first  measure  of  relief  accorded  American  interests  from 
Federal-taxation  burdens  was  in  the  passage  of  the  China  trade  act 
of  1922.  Unfortunately  the  act  fell  short  of  its  contemplated  aims, 
and  it  was  not  until  the  passage  of  certain  amendments  during  Feb¬ 
ruary,  1925,  that  it  provided  American  interests  in  China  with  a 
favorable  incorporating  medium  which  would  somewhat  equalize 
their  position  in  competition  with  other  nationals. 

AMERICAN  CORPORATIONS 

American  corporate  entities  have,  for  the  most  part,  conducted 
their  business  in  China  under  the  laws  of  the  respective  States  in 
which  the  parent  organization  in  America  was  incorporated  or  by 
forming  in  China  a  corporation  under  the  laws  of  a  particular 
State.  This  procedure  was  made-  possible  by  the  acts  of  Congress  of 
1848  and  1860,  which  extended  the  laws  of  the  United  States  of 
America  over  all  American  persons  resident  in  China,  in  pursuance 
of  the  treaties  granting  to  American  citizens  extraterritorial  rights 
in  China. 

Before  going  into  the  methods  of  incorporation  which  have  been 
and  are  now  open  to  American  companies  desiring  to  operate  in 
China  clear  distinction  should  be  drawn  between  “  China  ”  and 
“  Hongkong.”  The  term  “  China  ”  includes  the  18  principal 
Provinces  and  Manchuria,  Mongolia,  Chinese  Turkestan,  and  Tibet. 
It  does  not  include  the  territory  of  Hongkong,  the  latter  having 
been  ceded  by  China  to  Great  Britain  in  1841.  Hongkong,  therefore, 
is  a  British  Crown  colony,  quite  apart  from  China.  As  a  British 
Crown  colony  Hongkong  has  its  own  set  of  incorporation  laws 
(known  as  the  Hongkong  companies  ordinances),  its  own  trade¬ 
mark  and  copyright  laws,  and  is  in  every  way  governed  distinctly 
apart  from  China. 

Congress,  in  enacting  the  China  trade  act  of  1922,  defined  China 
as  meaning  “  (1)  China,  including  Manchuria,  Thibet,  Mongolia, 
and  any  territory  leased  by  China  to  any  foreign  Government; 
(2)  the  Crown  colony  of  Hongkong;  and  (3)  the  Province  of 
Macao.”  A  recent  case  in  the  United  States  Court  for  China  may 
or  may  not  be  significant,  if  at  some  future  time  this  court  should 
be  called  upon  to  determine  judicially  the  application  of  the  China 
trade  act  of  1922  in  the  territory  of  the  “  Crown  colony  of  Hongkong, 
the  Province  of  Macao,  or  any  other  territory  leased  by  China  to  any 
foreign  Government.”  In  the  case,  United  States  v.  Arthur  W, 
Smith,  the  United  States  commissioner  ruled,  during  the  latter  part 
of  1923,  that  the  United  States  Court,  for  China  had  jurisdiction  over 
American  persons  in  the  Japanese  leased  territory  of  Dairen,  on  the 
principle  that  China,  once  having  granted  within  the  limits  of  her 
sovereignty  extraterritorial  privileges  to  the  United  States,  could  not 


142 


COMMERCIAL  HANDBOOK  OF  CHINA 


at  some  subsequent  date  enter  into  a  contract  with  a  third  party  as  a 
result  of  which  the  contractual  obligations  to  the  United  States  could 
be  modified  without  the  consent  of  the  latter.  On  March  2,  1925,  the 
ruling  of  the  commissioner  was  reversed  by  Judge  Milton  D.  Purdy, 
of  the  United  States  Court  for  China,  who  granted  a  motion  to 
quash  the  case,  the  court  taking  occasion  to  state  that  “  the  basic 
reason  for  American  extraterritoriality  in  China  was  to  overcome 
the  necessity  of  American  citizens  appearing  before  Chinese  tribunals. 
Hence,  with  the  withdrawal  of  China  from  the  Dairen  area,  the 
need  for  extraterritorial  rights  for  American  citizens  in  the  Kwan- 
tung  leased  territory  automatically  ceased.” 

This  reversal  of  the  commissioner’s  decision  by  Judge  Purdy, 
while  perhaps  disposing  of  the  issue  in  the  case  considered,  can  not 
be  said  to  settle  definitely  the  general  principle  involved.  In  view 
of  the  complexity  of  the  entire  extraterritorial  situation  in  China, 
it  is  probable  that  the  principle  involved  in  the  above  case  may  have 
eventually  to  be  carried  to  the  United  States  Supreme  Court  for  de¬ 
termination. 


COURSES  OPEN  TO  AMERICAN  INTERESTS 

The  following  courses  have  been  or  are  now  open  to  American 
interests  for  the  formation  of  companies  to  operate  in  China: 

State  law,' ?. — Organizing  under  the  incorporation  laws  of  what¬ 
ever  State  of  the  American  Union  the  company  might  elect.  This 
method  of  organization  is  still  available. 

Alaskan  Code. — The  incorporation  provisions  of  the  Alaskan 
Code,  known  as  the  act  of  Congress  of  March  2,  1903,  were  recognized 
as  being  applicable  to  this  jurisdiction  by  the  United  States  Court 
for  China  during  March,  1917.  This  method  of  incorporation  was 
availed  of  by  163  American  firms.  A  court  order  of  July  5,  1924, 
temporarily  discontinued  this  method,  and  an  amendment  to  the 
China  trade  act  passed  during  February,  1925,  prohibits  further 
incorporation  under  the  act  of  Congress  of  March  2,  1903,  which 
has  been  used  as  the  Alaskan  Code  incorporating  law. 

Hongkong  companies  ordinances. — During  1911-1919  a  certain 
amount  of  American  capital  found  it  advantageous  to  operate  under 
these  ordinances.  Subsequent  amendments  during  1919  and  1921, 
making  it  mandatory  that  such  companies  should  be  British  con¬ 
trolled  and  managed,  tended  to  discourage  this  form  of  organiza¬ 
tion  for  American  interests.  However,  considerable  American 
capital  to-day  is  using  this  method  of  incorporation. 

China,  trade  act. — Incorporation  under  the  provisions  of  the  China 
trade  act  of  1922,  enacted  by  Congress  during  September  of  that 
year,  and  amended  during  February,  1925,  for  the  special  purpose  of 
giving  to  American  enterprises  a  Federal  incorporation  law  for  the 
incorporation  of  American  companies  to  operate  “  within  China.” 

There  exists  in  China  a  corporation  law  known  as  “  China’s  cor¬ 
poration  regulations,”  which  were  promulgated  by  presidential  man¬ 
date  on  January  1,  1914.  A  prominent  Chinese  attorney  of  Shang¬ 
hai  with  western  education,  in  commenting  upon  this  piece  of  Chi¬ 
nese  legislation,  stated :  “  It  is  very  unsatisfactory  as  a  piece  of  legis¬ 
lation,  as  it  contains  so  many  contradictions  and  cites  so  much 
detail,  while  the  broad  principles  of  corporation  or  partnership  law 


INCORPORATION  OF  AMERICAN  FIRMS  IN  CHINA 


143 


as  we  know  it  in  the  West  are  not  properly  stressed  and  are  indis¬ 
tinctly  defined.  While  the  English  translation  calls  it  ‘corporation 
regulations,’  it  is,  strictly  speaking,  of  much  broader  application,  as 
it  purports  to  govern  partnerships  and  joint-stock  companies,  as  well 
as  limited  companies,  and  the  title  is  better  rendered  4  Chinese  com¬ 
panies  ordinances.’  " 

The  law  itself  makes  no  reference  to  investment  by  foreigners 
in  Chinese  companies,  but  the  rules  of  enforcement  state :  “Accord¬ 
ing  to  law  only  Chinese  subjects  are  allowed  to  form  limited 
companies  with  shares.”  It  might,  therefore,  be  inferred  that  if 
papers  relating  to  a  proposed  company  formed  wdiolly  or  in  part 
by  foreigners  were  presented  to  the  Chinese  authorities  they  would 
refuse  to  register  the  company.  On  the  other  hand,  there  appears 
to  be  nothing  to  prevent  foreigners  from  taking  shares  in  a  Chinese 
company  when  it  is  once  established. 

The  Chinese  mining  law  prohibits  foreign  participation  to  a 
greater  extent  than  50  per  cent.  Japanese  mining  interests,  as 
well  as  several  other  nationals,  have  organized  companies  with  part 
Chinese  ownership,  which  permits  them  to  operate  outside  of  the 
treaty  ports  under  special  charters  or  concesssions.  Theoretically, 
foreigners  can  not  hold  land  in  China  outside  of  the  treaty  port 
limits.  In  actual  practice  this  problem  is  solved  in  several  ways. 
Willoughby’s  “Foreign  Rights  and  Interests  in  China  ”  presents  an 
excellent  outline  of  landholding  both  by  Chinese  and  by  foreigners 
for  anyone  who  desires  specific  details  on  this  point. 

Generally  speaking,  however,  foreign  capital  has  not  organized 
under  the  provisions  of  China’s  corporation  law  owing  to  the  advan¬ 
tages  which  the  respective  foreign  nationals  enjoy  by  organizing 
under  their  own  national  laws  so  long  as  extraterritoriality  pre¬ 
vails.  Chinese  interests  also  have,  in  some  instances,  organized 
under  the  provisions  of  various  foreign  laws  in  order  to  be  relieved 
of  the  exactions  of  their  own  laws. 


INCORPORATION  UNDER  STATE  LAWS 

This  method  is  still  in  vogue  and  the  majority  of  American 
corporations  in  China  to-day  are  either  operating  as  branch  offices 
of  their  respective  parent  organizations  or  have  organized  in  China 
under  the  laws  of  some  specific  State  of  the  Union.  The  States 
in  which  such  companies  are  usually  incorporated  are,  of  course, 
Delaware  and  New  Jersey;  yet  we  find  American  interests  trading 
under  charters  from  practically  every  State  in  the  Union,  as  well 
as  the  laws  of  the  Philippine  Islands. 

American  interests  in  China  desiring  to  incorporate  under  a  par¬ 
ticular  State  law  proceed  through  appropriate  legal  counsel  in  a 
similar  manner  to  which  they  would  go  about  the  formation  of  such 
a  company  in  xCmerica. 

INCORPORATION  UNDER  ALASKAN  CODE 

The  United  States  Court  for  China,  which  was  established  by 
act  of  Congress  in  1906,  ruled  in  March,  1917,  that  the  Alaskan 
Code  incorporation  provisions,  known  as  the  corporation  act  of 
Congress  of  March  2,  1903,  were  applicable  in  this  jurisdiction. 


144 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  first  charter  under  the  provisions  of  the  Alaskan  Code  was 
granted  to  the  American  Sales  Co.  on  March  28,  191 T.  The  legality 
of  the  application  of  this  act  of  Congress  of  1903  was  tested  in 
the  case  of  the  United  States  ex  rel.  Haven  et  al.  v.  Paul  McRae, 
brought  during  June,  1917.  The  court  not  only  held  that  the  law 
was  applicable  through  the  extension  of  the  United  States  laws 
by  the  acts  of  Congress  of  1848  and  1860,  but  further  stated  that 
this  corporation  act  of  Congress  of  March  2,  1903,  appeared  to 
be  suitable  to  conditions  in  China  and  necessary  to  execute  the 
treaties.  Subsequently,  163  companies  were  granted  charters  under 
this  act  of  1903  by  the  United  States  Court  for  China. 

On  July  5,  1924,  the  Hon.  Milton  D.  Purdy,  judge  of  the  United 
States  Court  for  China,  issued  the  following  order : 


On  and  after  this  date  all  applications,  and  a  draft  of  the  articles  for 
the  incorporation  of  American  companies  under  the  provisions  of  the  Dis¬ 
trict  of  Alaska  Code,  will  be  submitted  to  the  court  for  its  inspection  and 
determination  prior  to  any  tiling  thereof. 


Although  no  official  announcement  has  been  made  as  to  the  reason 
for  this  order,  it  is  generally  understood  that  this  step  was  taken 
owing  to  the  fact  that  during  September,  1922,  Congress  had  enacted 
a  special  law  for  the  incorporation  of  American  companies  to  operate 
in  China,  known  as  the  China  trade  act.  The  order  was  therefore 
tantamount  to  forcing  a  test  case  on  mandamus  proceedings,  which 
would  once  and  for  all  determine  whether  the  act  of  March  2,  1903, 
was  correctly  construed  as  applicable  to  this  jurisdiction  to  meet 
the  exigencies  of  American  commerce;  and  if  so,  whether  it  was 
repealed  by  the  enactment  of  Congress  of  the  China  trade  act  of 
1922,  when  the  latter  act  failed  to  contain  a  specific  repealing  clause. 

Suffice  it  to  say  that  since  this  order  of  July  5,  1924,  was  made  no 
further  applications  have  been  filed  for  incorporation.  Three  in¬ 
stances  are  known  in  which  American  interests  desirous  of  incor¬ 
porating  under  these  provisions  approached  the  court  with  the  idea 
of  incorporating,  but  in  view  of  the  above  order  they  did  not  care 
to  make  a  test  case  and  made  other  plans.  Two  of  these  cases  went 
no  further  with  their  plans  for  incorporation,  and  the  third  per¬ 
fected  its  organization  under  the  form  of  a  common-law  trust. 

Amendments  to  the  China  trade  act  passed  during  February,  1925, 
provided  that : 

Sec.  29.  Hereafter  no  corporation  shall  be  created  under  any  law  of  the 
United  States  extended  over  citizens  of  the  United  States  in  China,  for  the 
purpose  of  engaging  in  business  within  China. 

This  amendment,  in  effect,  limits  and  discontinues  further  incor¬ 
poration  of  concerns  in  China  under  the  act  of  Congress  of  March 
2,  1903,  commonly  termed  the  Alaska  Code.  In  effect  it  amounts 
to  the  same  as  a  repealing  clause,  which  was  olnitted  from  the 
original  China  trade  act  of  1922. 


INCORPORATION  UNDER  HONGKONG  COMPANIES  ORDINANCES 


From  1911  to  1919  a  considerable  amount  of  American  capital 
took  advantage  of  the  incorporation  provisions  of  the  Hongkong 
companies  ordinances.  Subsequent  amendments  to  these  ordinances, 
first  in  1919,  requiring  that  a  majority  of  the  directors  must  be 
British  subjects,  and  a  later  amendment  in  1921,  providing  that  the 


INCORPORATION  OP  AMERICAN  FIRMS  IN  CHINA 


145 


managing  director  must  also  be  a  British  subject,  tended  somewhat 
to  discourage  American  interests  from  extensively  using  this  ‘means 
of  incorporation  for  business  in  the  Orient. 

By  the  exercise  of  extraterritorial  treaty  rights  these  Hongkong 
companies  ordinances  have  been  extended  through  British  orders  of 
council  over  British  persons  resident  in  China,  thereby  permitting 
the  formation  of  what  are  known  as  British-China  companies.  There 
is  still  a  certain  amount  of  American  capital  finding  its  way  into 
these  British  companies,  owing  to  the  more  favorable  and  flexible 
facilities  which  these  ordinances  provide  for  the  conduct  of  mer¬ 
cantile  business  in  China,  but  primarily  because  of  their  tax-exemp¬ 
tion  features. 


THE  CHINA  TRADE  ACT 


Agitation  for  a  Federal  incorporation  law  was  begun  early  in 
1918  by  American  commercial  organizations  in  China,  using  as  their 
medium  of  expression  the  American  Chamber  of  Commerce  of  China 
and  the  Seattle  Chamber  of  Commerce.  A  committee  of  the  former 
chamber,  in  cooperation  with  the  Hon.  Charles  Denby,  then  a  mem¬ 
ber  of  the  United  States  War  Trade  Board,  who  was  touring  China 
on  a  special  investigation  of  conditions  affecting  the  development  of 
American  trade,  prepared  the  first  draft  of  a  bill  which  later  be¬ 
came  the  foundation  for  the  present  China  trade  act. 

Through  the  energetic  interest  of  Congressman  L.  C.  Dyer,  the 
first  bill  (H.  R.  7204)  was  introduced  in  Congress  during  July,  1919. 
Legislative  procedure  consumed  the  greater  part  of  two  years  before 
the  final  enactment  by  Congress  of  the  Cliina  trade  act  of  1922, 
approved  September  19,  1922,  gave  to  American  interests  a  uniform 
Federal  incorporation  law  for  the  purpose  of  engaging  in  business 
within  China. 

The  primary  purposes  contemplated  by  the  original  draft  of  this 
legislation,  in  addition  to  securing  a  uniform  Federal  incorporation 
law,  were : 

(a)  To  place  American  interests,  from  the  standpoint  of  home 
corporation  and  individual  income  taxation,  on  an  equality  of  oppor¬ 
tunity  with  other  nationals  doing  business  in  China. 

(b)  A  means  of  inducing  Chinese  capital  to  participate  with 
American  capital  in  undertakings  in  China  under  American 
management. 

The  original  draft  was  designed  to  give  corporate  as  well  as  in¬ 
dividual  income-tax  relief  to  American  interests  operating  in  China. 
The  various  legislative  stages  through  which  the  original  passed 
before  enactment  by  Congress  succeeded  in  modifying  its  primary 
intent  to  such  a  degree  that  the  final  law  of  September  19,  1922,  fell 
short  of  according  the  relief  originally  designed  to  put  American 
interests  in  China  upon  an  equal  footing  with  their  competitors. 
This  deficiency  was  succinctly  brought  out  in  an  editorial  appearing 
in  the  November,  1922,  issue  of  the  British  Chamber  of  Commerce 
Journal,  which  is  the  authoritative  organ  for  British  interests  in 
China. 

*  *  *  and  while  the  effect  is  not  to  bring  about  the  same  complete  free¬ 

dom  from  income  tax  which  British  firms  carrying  on  business  in  China  enjoy, 

100020°— 20 - 11 


146 


COMMERCIAL  HANDBOOK  OF  CHINA 


American  concerns  carrying  on  business  in  China  which  are  in  a  position  to 
avail  themselves  of  the  provisions  of  the  act  will  be  relieved,  partially  at  least, 
from  a  handicap  to  which  they  have  hitherto  been  subject  in  competing  with 
British  firms. 

In  addition  to  making  the  act  more  workable  and  useful  from  the 
standpoint  of  administration,  the  amendments  as  enacted  by  Con¬ 
gress  in  February,  1925,  correct  to  a  considerable  extent  the  taxation 
deficiencies  of  the  original  law  of  1922. 

Although  a  number  of  suggestions  were  made  for  widening  the 
scope  of  business  in  which  China  trade  act  corporations  might 
engage,  no  amendments  were  recommended  to  Congress  along  these 
lines.  It  was  felt  that  a  sounder  policy  would  be  to  recommend 
only  such  amendments  as  would  correct  the  deficiencies  of  the  original 
act.  Such  procedure  would  afford  an  opportunity  to  demonstrate 
the  merits  of  the  primary  purposes  of  this  legislation.  If  the  future 
shows  it  desirable  and  permissible  to  widen  the  scope  of  business, 
this  can  be  done,  based  on  practical  experience  by  the  actual  working 
of  the  law. 


SYNOPSIS  OF  REQUIREMENTS 

The  brief  outline  given  below  of  the  requirements  of  the  China 
trade  act  of  1922  as  amended  February  26,  1925,  is  intended  for  the 
layman  as  a  matter  of  quick  reference.  Persons  desiring  to  organize 
under  the  provisions  of  this  law  are  advised  to  make  a  detailed  study 
of  the  full  text  of  the  law,  which  will  be  found  in  the  appendix. 

Character  of  business. — A  District  of  Columbia  corporation  may 
be  organized  under  the  provisions  of  the  China  trade  act  for  the 
purpose  of  engaging  in  business  within  (1)  China,  including  Man¬ 
churia,  Tibet,  Mongolia,  and  any  territory  leased  by  China  to  any 
foreign  Government;  (2)  the  Crown  colony  of  Hongkong;  and  (3) 
the  Province  of  Macao,  except  that  such  corporations  are  not  per¬ 
mitted  to  engage  in  any  form  of  («;)  banking  business;  (b)  insurance 
business;  ( c )  shipping  business,  unless  controlling  interest  is  owned 
by  citizens  of  the  United  States,  within  the  meaning  of  section  2  of 
the  shipping  act,  1916,  as  amended. 

Purpose. — The  corporation  must  “  aid  in  developing  markets  in  China  for 
goods  produced  in  the  United  States.” 

Incorporators. — Three  or  more  individuals,  a  majority  of  whom  must  be 
American  citizens,  may  incorporate. 

Directors. — Directors  are  of  two  classes: 

(a)  Temporary.  Incorporators  must  name  at  least  three  individuals,  a 
majority  of  whom  af  the  time  of  designation  and  during  their  term  of  office  are 
citizens  of  the  United  States,  to  serve  as  temporary  directors. 

(&)  Permanent.  Not  less  than  three,  a  majority  of  whom  and  the  president 
and  treasurer  must  be  American  citizens  resident  in  China. 

Offices. — Offices  must  be  located  as  follows : 

(a)  The  principal  office  must  be  located  in  Washington,  D.  C.,  which  may 
be  accomplished  by  maintaining  an  accredited  agent  in  that  city  to  accept 
service. 

(&)  Head  or  branch  offices  may  be  located  in  such  places  in  China  as  cor¬ 
porations  deem  advisable. 

Name  and  seal. — The  name  of  the  corporation  must  end  with  the  legend 
“  Federal  Inc.,  U.  S.  A.”  No  individual,  partnership,  association,  or  corpora¬ 
tion  not  incorporated  under  the  China  trade  act  or  under  a  law  of  the  United 
States  shall  engage  in  business  within  China  under  a  name  in  connection  with 
which  the  legend  “  Federal  Inc.,  U.  S.  A.”  is  used.  Any  person  violating 
this  provision  shall  upon  conviction  be  fined  not  more  than  $1,000  gold  for  each 
violation  thereof. 


INCORPORATION  OF  AMERICAN  FIRMS  IN  CHINA  147 

A  corporate  seal  is  mandatory,  and  may  be  altered  only  upon  the  approval 
of  the  Secretary  of  Commerce. 

Shares. — Shares  shall  be  issued  at  not  less  than  par  value;  25  per  cent  of 
the  authorized  capital  must  be  paid  in  cash  or  real  or  personal  property  placed 
in  the  custody  of  the  directors  before  certificate  of  incorporation  will  be 
granted. 

Taxes. — China  trade  act  corporations  are  now  completely  exempt  from  the 
Federal  income  tax  of  12  Yj  per  cent  on  their  taxable  income.  This  exemption 
takes  the  form  of  a  special  dividend,  which  must  be  declared  and  distributed 
prior  to  March  15  after  the  close  of  the  calendar-year  business  on  December 
31.  Alien  shareholders  (other  than  Chinese)  who  do  not  reside  in  China,  the 
United  States,  or  possessions  of  the  United  States  are  not  entitled  to  this 
special  exemption  dividend. 

China  trade  act  corporations  pay  in  full  the  capital-stock  tax  of  $1  gold 
on  $1,000  gold  of  the  capital-stock  value. 

Stockholders  of  China  trade  act  corporations  are  exempt  from  income  taxes 
on  dividends  from  China  trade  act  corporations  when  such  stockholders  are 
resident  in  China. 

Fees. — The  following  fees  are  required:  (a)  Certificate  of  registration  (sec. 
5),  $100  gold;  (&)  certificate  of  property  value  (sec.  8),  $300  gold,  maximum; 
$25  gold,  minimum;  (c)  certificate  of  amendment  of  articles  of  incorporation, 
$100  gold;  (d)  certificate  of  authority  for  dissolution,  $100  gold. 

Registration  fees  shall  accompany  each  application,  except  that  for  property 
value,  which  is  payable  before  issuance  of  certificate.  Fees  are  collectible  by 
the  registrar  or  the  Secretary  of  Commerce.  All  fees  are  payable  in  United 
States  gold  currency,  either  at  Shanghai,  China,  or  Washington,  D.  C.  Drafts 
are  to  be  made  payable  to  Treasurer  of  the  United  States. 

Documents  to  be  filed  on  registration. — There  must  be  filed  copies  of  the 
application,  in  triplicate,  supported  by : 

(a)  Minutes  of  meeting  adopting  articles  of  incorporation. 

(b)  Certificate  by  secretary  of  meeting  regarding  adoption  of  articles  of 
incorporation. 

(c)  Certificate  of  naturalization  from  all  incorporators  who  are  naturalized 
American  citizens. 

(d)  Certified  copy  of  articles  of  incorporation  signed  by  and  acknowledged 
by  incorporators. 

(e)  Certificate  of  property  value,  when  shares  are  paid  for  in  real  or  per¬ 
sonal  property  in  accordance  with  section  8. 

Applications  originating  in  China  shall  be  filed  with  the  Registrar  of  the 
China  Trade  Act  at  Shanghai,  China.  Applications  originating  in  the  United 
States  may  be  filed  direct  with  the  Secretary  of  Commerce. 

Permanent  organization. — A  majority  of  the  directors  shall  call,  within  six 
months  after  the  issuance  of  the  certificate  of  incorporation,  a  stockholders’ 
meeting,  for  which  90  days’  notice  has  been  given,  for  the  purpose  of  adopting 
a  code  of  by-laws  and  effecting  a  permanent  organization. 

Stockholders ’  .meetings. — The  following  questions  shall  be  determined  only  by 
the  stockholders  at  a  stockholders’  meeting : 

1.  Adoption  of  by-laws. 

2.  Amendments  to  the  articles  of  incorporation  or  by-laws. 

3.  Authorization  of  the  sale  of  the  entire  business  of  the  corporation  or  of  an 
independent  branch  of  such  business. 

4.  Authorization  of  the  voluntary  dissolution  of  the  corporation. 

5.  Authorization  of  application  for  the  extension  of  the  period  of  duration 
of  the  corporation. 

The  adoption  of  any  such  amendments  or  authorization  shall  require  the 
approval  of  at  least  two-thirds  of  the  voting  shares.  No  amendment  to  the 
articles  of  incorporation  or  authorization  for  dissolution  or  extension  shall  take 
effect  until  (1)  the  corporation  files  a  certificate  with  the  secretary  stating 
the  action  taken  *  *  *  ;  (2)  such  amendment  or  authorization  is  found  and 

certified  by  the  Secretary  of  Commerce  to  conform  to  the  requirements  of 
the  act. 

Subsequent  documents  to  be  filed  with  registrar. — Other  documents  to  be 

filed  are: 

(a)  Certified  copies  of  all  by-laws  and  amendments  thereof. 

(b)  Certified  copies  of  minutes  of  all  stockholders’  meetings  of  the  cor¬ 
poration. 


148 


COMMERCIAL  HANDBOOK  OF  CHINA 


(c)  Annual  report  subscribed  under  oath  by  secretary  of  corporation,  sup¬ 
ported  by:  (1)  Minutes  of  stockholders’  meeting  approving  balance  sheet; 
(2)  certified  copy  of  balance  sheet;  (3)  detailed  statement  of  profit  and  loss; 
(4)  statement  of  the  distribution  of  profits;  (5)  changes  in  list  of  stockholders 
during  the  year. 

Powers  of  the  registrar. — The  Secretary  of  Commerce  is  authorized  to  desig¬ 
nate  as  Registrar  of  the  China  Trade  Act  an  officer  of  the  Department  of 
Commerce,  whose  official  station  shall  be  located  in  China. 

The  registrar  has  the  power  to : 

( a )  Investigate  the  affairs  of  any  corporation  organized  under  the  act. 

(&)  Institute  proceedings  in  the  United  States  Court  for  China  for  the 
revocation  of  the  certificate  of  incorporation  issued  to  a  China  trade  act  cor¬ 
poration. 

(c)  Subpoena  witnesses  to  appear  before  him  and  produce  any  books,  papers, 
or  documents  relating  to  the  business  of  the  corporation. 

(d)  Require  the  taking  of  depositions  relating  to  a  corporation  organized 
under  the  act  before  any  designated  person  having  power  to  administer  oaths. 

(e)  Administer  oaths. 

(f)  Examine  and  copy,  or  cause  to  be  examined  and  copied,  any  book,  ac¬ 
count,  record,  or  paper  or  correspondence  relating  to  the  business  or  affairs 
of  a  China  trade  act  corporation. 

Any  person  who  upon  demand  refuses  the  registrar  or  any  duly  authorized 
officer,  employee,  or  agent  such  access  or  opportunity  to  copy,  or  who  hinders, 
obstructs,  or  resists  him  in  the  exercise  of  such  right,  shall  be  liable  to  a 
penalty  of  not  more  than  $5,000  gold  for  each  such  offense. 

Trustees. — In  the  case  of  voluntary  dissolution  of  a  China  trade-act  corpora¬ 
tion  or  revocation  of  its  certificate  of  incorporation,  the  directors  of  the  cor¬ 
poration  shall  be  trustees  for  the  creditors  and  stockholders  of  the  corporation, 
except  that  upon  application  to  the  United  States  Court  for  China  by  any 
interested  party,  *  *  *  the  court  may  in  its  discretion  appoint  as  trustees 

such  persons,  other  than  the  directors,  as  it  may  determine.  Trustees  may  sue 
and  be  sued  in  the  name  of  the  corporation  and  are  jointly  and  severally  liable 
to  the  stockholders  and  creditors  of  the  corporation  to  the  extent  of  the  prop¬ 
erty  coming  into  their  hands. 

Penaltg  for  false  statements. — No  stockholder,  director,  officer,  employee,  or 
agent  of  a  China  trade  act  corporation  shall  (1)  make  any  false  statement  as 
to  the  financial  condition  of  the  corporation,  or  (2)  publish  any  written  state¬ 
ment  or  advertisement  in  any  form  stating  the  amount  of  the  authorized  stock 
without  also  stating  as  the  amount  actually  paid  in  a  sum  not  greater  than  the 
amount  paid  in.  Any  person  guilty  of  violating  these  provisions  is  subject  to 
a  fine  of  not  more  than  $5,000  gold  or  to  imprisonment  for  not  more  than  10 
years,  or  both. 

Suits. — Suits  may  be  brought  against  a  China  trade  act  corporation  in  the 
United  States  Court  for  China,  or  in  the  Supreme  Court  of  the  District  of 
Columbia,  or  in  the  Federal  district  court  for  any  district  in  which  the  corpora¬ 
tion  has  an  agent  and  is  engaged  in  doing  business. 

[For  further  requirements  of  the  China  trade  act,  1922,  as  amended  February 
26,  1925,  refer  to  the  appendix.] 

UNINCORPORATED  COMPANIES 

American  business  is  also  carried  on  in  the  nature  of  sole  proprie¬ 
torships  and  partnerships.  The  operation  of  such  businesses  are  gov¬ 
erned  by  the  laws  of  the  United  States.  That  is  to  say,  if  an 
individual  or  a  partnership  were  sued  on  a  breach  of  contract  and 
brought  before  the  United  States  Court  for  China,  the  procedure 
and  decision  of  the  court  would  be  controlled  by  the  laws  of  the 
United  States  on  contracts,  as  extended  over  American  citizens  in 
China  by  treaty. 

CONSULAR  REGISTRATION 

Although  not  compulsory,  the  Department  of  State  urges  all 
American  citizens,  institutions,  and  corporations  to  register  annually 


INCORPORATION  OF  AMERICAN  FIRMS  IN  CHINA 


149 


with  the  American  consular  officer  in  whose  district  they  live  or 
operate.  The  object  of  this  registration  is  to  facilitate  the  protection 
of  American  interests  on  the  part  of  the  agents  of  the  United  States 
Government.  Forms  for  registration  may  be  had  upon  application 
to  the  nearest  America  consulate. 

Registration  of  American  citizens. — American  citizens  should 
appear  personally  at  the  nearest  consulate  to  register,  submitting 
proof  of  citizenship.  If  residence  is  outside  of  the  city  in  which 
the  consulate  is  located,  application  for  registration  may  be  made  by 
mail,  and  the  necessary  forms  will  be  sent  for  execution. 

Registration  of  American  'partnerships  and  corporations  ( other 
than  China  trade  act  corporations) . — Prescribed  regulations  of  the 
Department  of  State  require  the  following : 

1.  Partnerships.  An  authenticated  copy  of  the  partnership  agree¬ 
ment  and  a  sworn  statement  showing  the  names,  nationality,  and 
residence  of  the  members  of  the  partnership  and  the  extent  of  their 
respective  financial  interests  must  be  filed  with  the  American  con¬ 
sular  officer. 

2.  Corporations.  Applicants  for  registration  of  an  American  cor¬ 
poration  are  required  to  furnish  an  authenticated  copy  of  the  article 
of  incorporation  and  a  statement,  under  oath,  showing  the  names, 
nationality,  and  residence  of  the  officers,  directors,  and  stockholders, 
and  the  extent  of  their  respective  financial  interests. 

Applicants  for  registration  must  show  to  the  satisfaction  of  the 
consulate  that  a  substantial  American  financial  interest  exists;  that 
a  corporation  maintains  an  American  officer  or  agent  in  China;  and 
that  a  partnership  is  represented  in  China  by  an  American  partner 
or  agent  for  purposes  of  service  of  judicial  process. 

The  mere  fact  of  registration  has  no  significance  as  to  the  na¬ 
tionality  of  the  enterprise  but  is  merely  a  recording  of  alleged  facts 
as  to  the  nationality  of  the  persons  concerned  in  the  registered 
enterprise,  and  does  not  necessarily  imply  that  the  enterprise  is 
entitled  to  diplomatic  protection  or  the  intervention  of  the  United 
States  Government.  The  measure  of  protection  to  be  accorded  in 
such  cases  is  to  be  determined  in  each  case  as  it  arises. 

Registration  of  China  trade  act  corporations. — The  regulations 
of  the  China  trade  act,  1922,  provide  that  copies  of  the  certificate 
of  incorporation  when  issued  by  the  Secretary  of  Commerce  are 
to  be  filed  with  the  American  Legation  at  Peking,  and  with  the 
consular  officers  for  the  districts  in  which  its  main  and  branch 
offices  or  agencies  in  China  are  situated.  These  copies  are  filed 
through  the  office  of  the  registrar,  located  at  Shanghai,  China. 
Such  certificates  of  incorporation  are  accepted  by  consular  officers  in 
lieu  of,  and  as  the  equivalent  of,  the  particulars  mentioned  above, 
which  are  required  for  the  registration  of  other  American  business 
enterprises. 

BIBLIOGRAPHY 

Alaskan  Code. 

American  Chamber  of  Commerce  of  China.  Various  pamphlets,  as  well  as 

its  archives. 

British  Chamber  of  Commerce  Journals.  Issued  by  British  Chamber  of 

Commerce  at  Shanghai. 

China  Year  Book.  Issued  yearly  by  the  Tientsin  Press. 

Dennett,  Tyler.  Americans  in  Eastern  Asia.  New  York,  1922. 


150 


COMMERCIAL  HANDBOOK  OF  CHINA 


Department  of  Commerce : 

Conduct  of  Business  with  China.  Miscellaneous  Series  No.  70.  1919.  By 

Julean  Arnold  and  others. 

Commercial  Handbook  of  China.  Miscellaneous  Series  No.  84.  2  vols. 

1920. 

China  Trade  Act,  1922.  Trade  Information  Bulletin  No.  74.  (Reprint, 
May,  1925,  with  amendments  as  of  February,  1925.) 

Extraterritorial  Corporation  Manual.  Far  Eastern  Bar  Association.  Bulletin 
IV. 

Hearings  before  the  Committee  on  the  Judiciary  of  the  House  of  Representa¬ 
tives,  Sixty-eighth  Congress,  first  session,  on  H.  J.  Res.  149,  January  30, 
1924,  serial  8. 

Hubbell's  Legal  Dictionary,  1924.  New  York. 

Lobinger,  Charles  S.  Extraterritorial  Cases,  United  States  Court  for  China. 
1920.  Vol.  I. 

MacMurray,  J.  V.  A.  Treaties  and  Agreements  with  and  Concerning  China. 
1919.  Vols.  I  and  II. 

North  China  Daily  News  and  Herald.  Annual  files. 

Report  No.  321  of  the  House  of  Representatives,  Sixty-eighth  Congress,  first 
session,  to  accompany  H.  R.  7190. 

Toller,  W.  Stark.  Handbook  of  Company  Law,  Being  the  Hongkong  Com¬ 
panies  Ordnances.  Shanghai,  1923. 

Willoughby,  W.  W.  Foreign  Rights  and  Interests  in  China.  Baltimore,  1920. 


CURRENCY,  EXCHANGE,  AND  BANKING 1 


By  Commercial  Attache  Julean  Arnold 

CURRENCY 

Except  for  comparatively  brief  periods  in  its  long  history,  China 
has  adhered  to  a  specie  basis;  even  during  the  World  War  the  coun¬ 
try  did  not  resort  to  fiat  money.  The  metallic  currency  of  China 
serves  as  both  a  commodity  and  a  medium  of  exchange.  Efforts 
toward  making  subsidiary  coinage  token  have  not  yet  met  with  suc¬ 
cess.  China’s  currency  is  probably  the  most  complicated  in  the 
world.  Some  of  the  factors  contributory  to  this  condition  are: 
(1)  Lack  of  a  strong  centralized  system  of  government,  and  a  lais- 
sez  faire  policy  permitting  separate  communities  to  develop  actual 
standards  of  weights  and  measures  different  from  those  of  other 
communities;  (2)  a  family  or  clan  system  of  social  organization, 
with  the  people  rooted  to  the  soil,  thereby  making  for  immobility 
among  the  masses  and  encouraging  local  provincialisms;  (3)  bad 
internal  communications  in  a  country  of  vast  areas  and  distances, 
discouraging  internal  intercommunication;  (4)  a  system  of  trade 
and  provincial  guilds  which  developed  distinctive  customs  and 
practices  among  certain  trades  and  peoples  of  certain  sections;  (5) 
the  persistence  up  to  the  beginning  of  the  twentieth  century  of  a 
medieval  economic  condition  in  agriculture,  industry,  and  trade; 
(6)  a  lack  of  appreciation  by  the  Chinese  Government,  until  after 
the  establishment  of  the  Republic,  of  the  underlying  principles  of  a 
national  system  of  legal-tender  currency;  (7)  following  the  revolu¬ 
tion  of  1911  the  breakdown  of  the  central  government  authority 
over  the  Provinces,  resulting  in  the  use  by  military  governors  of 
provincial  mints  for  issuing  debased  coins  for  the  production  of 
revenue. 

VARIETIES  IN  USE 

Brass  or  bronze  cash. — This  money  (Chinese  designation  “ch’ien,” 
meaning  1,000)  was  first  coined  in  1032  B.  C.  In  660  B.  C.  the  cash 
took  the  form  of  a  round  coin  about  1  inch  in  diameter  with  a  round 
hole  in  the  center;  in  220  B.  C.  this  round  hole  was  replaced  by  a 
square.  Each  succeeding  Emperor  minted  cash,  inscribed  upon 
which  were  the  names  of  his  reign  and  dynasty.  Theoretically  a 
string  of  1,000  cash  equals  a  Chinese  ounce  of  pure  silver,  but  ex¬ 
change  has  fluctuated  between  600  to  upward  of  2,000.  These  coins 
have  been  in  use  in  China  continuously  down  to  the  present  day,  but 
are  now  almost  entirely  replaced  by  copper  10-cash  and  20-casli 
pieces. 


In  view  of  the  importance  of  this  subject  the  Bureau  of  Foreign  and  Domestic  Com¬ 
merce  has  published  a  handbook  on  Currency,  Banking,  and  Finance  in  China,  prepared 
by  Dr.  Frederic  E.  Lee,  formerly  American  economist  consul  in  China  and  now  a  special 
agent  with  the  Bureau  of  Foreign  and  Domestic  Commerce, 


151 


152 


COMMERCIAL  HANDBOOK  OF  CHINA 


Copper  coins. — These  were  first  coined  in  1900  A.  D.  and  are  made 
in  denominations  of  10  and  20  cash,  also  in  some  places  200,  100,  50, 
and  5  cash.  They  were  first  intended  as  token  money,  with  one  hun¬ 
dred  10-cash  pieces  equivalent  to  a  silver  dollar,  but  they  soon 
dropped  to  intrinsic  values.  In  some  places  exchange  has  dropped 
as  low  as  300  to  the  dollar.  It  is  estimated  that  there  is  the  equiva¬ 
lent  of  more  than  60,000,000,000  of  these  coins  in  circulation. 

Silver  tael. — A  bimetallic  silver-copper  currency  system  was  offi¬ 
cially  decreed  about  TOO  A.  D.  The  tael  is  a  fictitious  unit  of  silver 
currency,  theoretically  a  Chinese  ounce  of  commercially  pure  silver. 
(Tael  is  a  word  of  Malay  origin,  the  Chinese  word  “liang,”  meaning 
ounce.)  Its  weight  ranges  from  510  to  590  grains,  depending  on  the 
scales  used,  also  with  varying  standards  of  fineness.  Over  200  dif¬ 
ferent  scales  are  known  to  be  in  use  in  silver-currency  transactions. 
The  tael  is  gradually  being  replaced  by  silver  coins  on  a  decimal 
basis. 

Silver  coins. — Dollars  and  subsidiary  coins  comprise  this  type  of 
currency.  Silver  dollars  were  first  introduced  into  China  from 
Spain  toward  the  end  of  the  eighteenth  century.  During  the  latter 
half  of  the  nineteenth  century  Mexican  dollars  were  more  extensively 
used  than  any  other  of  the  twelve  or  fifteen  varieties  in  circulation 
during  that  period.  In  1892  the  minting  of  Chinese  dollars  was 
begun.  In  1911  Chinese  currency  regulations  were  issued,  fixing 
the  Yuan  or  dollar  as  the  unit  of  national  currency,  with  token 
subsidiary  silver  and  copper  coins.  Since  1914  the  Yuan  Shih  Kai 
“  Yuan  ”  or  dollar,  minted  at  Tientsin  and  Nanking,  has  quite  largely 
replaced  the  Mexican  and  other  silver  dollars.  Subsidiary  silver 
coins  are  depreciated  and  are  accepted  at  eleven  to  thirteen  10-cent 
pieces  to  the  dollar. 

Paper  currency. — Chinese  money  changers’  notes  preceded  Gov¬ 
ernment  issues,  which  had  their  inception  about  810  A.  D.  The 
circulation  of  notes  of  foreign  banks  is  limited  for  the  most  part 
to  ports  in  which  these  banks  operate,  except  Japanese  bank  notes 
circulating  in  Manchuria.  Bank  notes  are  issued  by  numerous 
Chinese  banks  and  provincial  governments  as  dollar,  small-silver 
coin,  and  copper-coin  notes,  but  these  issues  are  not  always  backed 
by  adequate  reserves  for  redemption;  hence  fluctuations  in  discounts 
of  some  issues  have  been  very  marked. 

Gold  (mostly  bullion). — China  produces  but  little  gold,  and  gold 
coins  have  featured  in  a  very  limited  way  in  China’s  currency  system. 
Gold  occupies  an  important  position  for  hoarding  purposes,  par¬ 
ticularly  in  the  form  of  bullion,  and  often  in  the  form  of  jewelry 
and  gold  leaf.  Latterly,  through  a  gold-bar  exchange  at  Shanghai, 
heavy  transactions  in  gold  bars  have  become  an  important  feature 
of  China’s  financial  market.  These  transactions  are  mostly  specu¬ 
lative. 

COPPER  COINS 

Copper  has  been  the  standard  of  currency  of  the  masses  in  China 
for  upward  of  25  centuries.  As  early  as  700  A.  D.,  one  tiao  or 
complete  string  of  1,000  brass  cash  was  nominally  the  equivalent 
of  one  Chinese  ounce  of  commercially  pure  silver.  Silver  appre¬ 
ciated  later,  and  one  tael  became  the  equivalent  of  2,000  brass  cash, 


CURRENCY,  EXCHANGE,  AND  BANKING 


153 


but  the  first  Emperor  of  the  Manchu  Dynasty  in  1G44  inscribed 
upon  the  brass  cash,  minted  under  his  direction,  “  Equivalent  to 
T  Urr  liang,”  or  Chinese  ounce.  Since  then  theoretically  1  Chinese 
ounce  of  commercially  pure  silver  has  been  considered  the  equiva¬ 
lent  of  1,000  brass  cash.  In  (560  15.  C.  the- brass  cash  appeared  with 
a  round  hole  in  the  center,  and  a  few  centuries  later  with  a  square 
hole.  This  was  for  the  purpose  of  convenience  in  handling,  so  that 
they  might  be  strung.  Different  practices  developed  in  various 
communities;  instead  of  100  to  a  section  of  a  string,  99,  98,  97,  or 
96  would  be  accepted  as  100,  the  difference  being  allowed  as  a 
commission  to  the  exchange  shops.  Furthermore,  in  some  places 
small,  worn  cash  of  less  intrinsic  value  would  be  allowed,  within 
certain  limitations,  in  the  center  of  each  string,  these  depreciated 
coins  being  acceptable  for  the  purchase  of  certain  designated  com¬ 
modities  only.  In  spite  of  the  fact  that  the  Government  decreed 
tampering  with  the  nation’s  currency  a  capital  offense,  its  authority 
over  the  entire  country  was  not  so  administered  as  to  prevent  a 
considerable  amount  of  counterfeiting.  However,  the  low  profit 
from  manufacturing  coins  of  such  small  denominations  in  itself 
probably  assisted  to  prevent  operations  in  this  connection.  Toward 
the  close  of  the  nineteenth  century  the  expense  of  coining  brass  cash 
had  advanced  to  such  an  extent  that  when  Canton  Province  in 
1900  coined  copper  10  and  20  cash  pieces,  the  central  Government 
encouraged  other  Provinces  to  do  likewise. 

Shortly  after  the  outbreak  of  the  European  war  the  unprecedented 
demand  for  copper  led  to  the  melting  down  of  the  brass  or  bronze 
cash  of  China  and  to  its  being  shipped  out  in  huge  quantities.  This 
paved  the  way  for  very  considerable  operations  in  the  minting  of 
10-cash  and  20-cash  copper  coins.  The  weakening  of  the  central 
Government’s  authority  over  the  Provinces  after  the  revolution  in 
1911  gave  the  semiindependent  military  governors  ample  opporunity 
to  take  full  advantage  of  the  profits  which  might  accrue  to  them 
through  the  extensive  coinage  of  copper.  Depreciated  and  light¬ 
weight  coins  added  to  the  easily  acquired  wealth  of  military  over- 
lords;  furthermore,  they  were  able  to  take  advantage  of  the  market 
prices  of  copper.  The  country  has  been  so  flooded  with  copper  coins 
that  it  is  estimated  that  there  are  now  in  circulation  in  China  in 
copper  coins  the  equivalent  of  upward  of  60,000,000,000  copper 
10-cash  pieces.  They  have  superseded  the  brass  or  bronze  cash, 
except  in  the  more  remote  sections  of  the  country,  and  even  there 
their  influence  is  very  considerable.  This  has  resulted  in  reducing  their 
purchasing  value  to  such  an  extent  as  to  produce  a  serious  situation 
with  the  masses  who  receive  their  wages  in  this  currency,  and  prices 
in  China  have  advanced,  varying  in  different  parts  of  the  country 
from  50  to  300  per  cent,  because  of  this  reduction  in  the  purchasing 
power  of  the  currency  of  the  masses.  China’s  imports  of  copper 
slabs  and  ingots  for  the  five  years,  1918  to  1923,  aggregated  275,- 
000,000  pounds,  valued  at  48,000,000  haikwan  taels,  or  about  $38,- 
000,000  United  States  gold. 

SILVER 

To  a  considerable  degree  the  complexities  of  Chinese  currency 
are  due  to  the  position  occupied  by  silver.  For  1,300  years  the 
Chinese  unit  of  silver  currency  has  been  the  “liang,”  or  Chinese 


154 


COMMERCIAL  HANDBOOK  OF  CHINA 


ounce,  16of  which  equal  a  “  chin,”  or  “catty,”  of  1  y3  pounds  avoir¬ 
dupois.  To  the  foreigner,  the  liang  is  designated  a  tael.  It  is  not 
a  coin;  it  is  merely  a  unit  of  weight. 

For  practical  purposes  the  silver  bullion  is  cast  in  ingots  in  the 
shape  of  a  Chinese  shoe,  the  standard  size  being  approximately  50 
taels,  or  ounces,  Chinese  weight.  For  convenience  in  use  smaller 
sizes  are  cast,  ranging  from  1  to  10  taels  in  weight.  However,  in 
order  to  make  the  distinction  between  a  tael  of  silver  as  a  com¬ 
modity  and  a  tael  of  silver  as  currency,  the  latter  incorporates  the 
stipulation  as  to  fineness.  The  situation  would  be  comparatively 
simple  if,  in  the  currency  of  China,  a  tael  of  silver  were  a  uniform 
measure  of  weight  and  a  standard  of  fineness.  Theoretically,  the 
weight  does  not  change.  It  is  always  understood  to  be  an  ounce  of 
commercially  pure  silver.  The  scales  change.  Not  only  does  every 
commercial  community  have  its  own  scales,  but  many  of  the  different, 
trades  have  different  scales.  Those  who  are  obliged  to  have  transac¬ 
tions  involving  the  use  of  different  taels  carry  their  own  scales  for 
comparative  purposes.  The  scale  determines  the  ounce  rather  than 
the  ounce  the  scale.  In  some  communities  as  many  as  20  different 
scales  are  found  in  use.  Thus,  in  reality,  a  Chinese  ounce  of  com¬ 
mercially  pure  silver  may  range  from  510  to  590  grains  of  actual 
weight. 

A  further  complication  comes  with  different  standards  of  fineness, 
for,  after  the  weight  is  settled,  or  rather  scales  are  designated,  it  is 
then  necessary  to  fix  the  fineness.  Custom  here  also  decrees  certain 
qualifications  for  certain  transactions  or  communities,  but  the  vari¬ 
ations  in  this  direction  are  over  a  comparatively  small  range.  In 
fixing  exchange,  the  exchange  shop  marks  the  weight  and  fineness 
on  the  silver  put  out  and  stands  responsible  for  its  calculations.  In 
some  cities  in  South  China  silver  dollars  are  accepted  only  on  their 
individual  intrinsic  silver  value,  and  shops  through  whose  hands 
they  pass  chop  or  stamp  them  as  a  guaranty  of  their  acceptance. 
Banks  accept  deposits  also  on  this  basis.  These  are  known  as  “  chop 
dollars.” 

To  illustrate  the  method  in  actual  practice  in  regard  to  the  han¬ 
dling  of  silver  currency,  if  1  Tientsin  tael  is  specified,  it  means  1 
Hanping  tael  in  weight  of  silver  of  “  Hwapao  ”  standard,  0.992  fine. 
The  Hanping  ounce  simply  refers  to  certain  scales,  but  the  “  Hwa¬ 
pao  ”  standard  of  fineness  adds  the  qualification  necessary  to  its  serv¬ 
ice  as  a  medium  of  exchange  or  a  currency.  Thus  the  generally  rec¬ 
ognized  standard  of  Tientsin  for  commercial  purposes  is  the  Han- 
ping-Hwapao  tael,  which  contains  557.4  grains  of  silver  of  0.992 
fineness.  Chinese  exchange  shops  seem  to  be  trained  to  recognize  by 
the  touch  and  sight  the  fineness  of  silver  which  for  ordinary  purposes 
is  acceptable.  They  seldom  apply  the  stone  or  crucible  test. 

In  order  to  make  for  uniformity  in  the  payment  of  customs  dues 
at  the  different  ports  in  China,  the  foreign  powers  stipulated  by 
treaty  a  fixed  currency  for  customs  payments.  The  unit  is  the 
haikwan  or  customs  tael.  In  practice,  its  weight  varies  from  581 
to  589  grains,  and  theoretically  it  is  1,000  fine.  In  other  words,  the 
customs  banks  are  responsible  to  the  Government  for  a  silver  1,000 
fine;  hence  they  are  careful  that  the  rate  of  conversion  shall  fully 
cover  their  liabilities.  Singularly,  the  conversion  rate  for  paying  out 
customs  money  varies  from  one-eighth  to  one-half  of  1  per  cent  from 


CURRENCY,  EXCHANGE,  AND  BANKING 


155 


that  for  receiving  dues.  This  difference  is  considered  the  commis¬ 
sion  as  compensation  for  the  banks’  expert  knowledge,  its  risk,  and 
its  labor  in  handling  silver  of  different  degrees  of  fineness.  One 
hundred  haikwan  or  customs  taels  are  equal  to  111.4  Shanghai  taels. 
The  customs  publish  periodic  rates  of  exchange  for  various  cur¬ 
rencies  into  the  standard  haikwan  tael. 

Accounts  which  require  for  settlement  amounts  smaller  than  50 
taels  are  handled  with  smaller  ingots  of  silver  ranging  in  weight 
from  1  to  10  taels.  For  fractional  amounts  of  a  tael,  subsidiary  silver 
and  copper  coins  are  used.  Generally  speaking,  so  far  as  the  for¬ 
eigner  is  concerned,  tael  settlements  are  usually  bank  transactions; 
thus  he  is  not  concerned  with  the  details  of  payment  in  specie.  In 
those  sections  where  taels  are  in  standard  use  some  firms  carry  ac¬ 
counts  with  their  banks  both  in  taels  and  in  dollars. 

Gradually  the  fictitious  tael  unit  of  Chinese  currency  is  being 
replaced  by  silver  coins.  In  Canton  the  subsidiary  or  small-silver 
coin  and  the  Hongkong  dollar  are  current.  In  Peking  the  tael  is 
no  longer  in  use.  During  the  first  year  of  the  Republic  the  Chinese 
Government  abolished  the  tael  unit  from  all  Government  books  and 
transactions,  adopting  the  neAv  silver  dollar  throughout  the  country 
for  taxes,  for  salaries,  in  railways  and  post  offices,  and  for  Govern¬ 
ment  bond  issues.  The  Chinese  banks  in  Peking  now  carry  their 
accounts  in  dollars.  At  a  recent  revision  of  the  valuation  schedules 
for  duty-paying  purposes  in  the  Chinese  customs,  a  resolution  was 
passed  calling  for  the  payment  of  customs  dues  in  silver  dollars,  as 
soon  as  China  develops  a  standard  silver  dollar  coin.  Thus  it  is 
evident  that  the  cumbersome  and  uneconomic  fictitious  tael  unit  of 
currency  will  doubtless  be  replaced  by  a  silver  dollar  coinage  on  a 
decimal  basis. 

With  no  legal  ratio  between  copper  and  silver,  the  exchange  rate 
being  controlled  by  the  factors  of  demand  and  supply  and  by  the 
customs  of  different  communities  and  different  trades,  it  was  only 
natural  that  foreign  traders  in  their  relations  with  Chinese  mer¬ 
chants  should  find  it  necessary  to  resort  to  something  less  cumbersome 
and  less  complicated  than  silver  bullion  and  brass  cash.  Toward  the 
end  of  the  eighteenth  century  the  Spanish  Carolus  dollars  came  into 
China  from  the  Philippine  Islands  and  soon  became  current  in  Sino- 
foreign  trade  transactions  in  Canton  and  later  in  other  South  China 
ports.  As  soon  as  the  foreign  powers  could  do  so  they  fixed  by  treaty 
on  a  “  constant  ”  in  silver  currency  for  customs  transactions  in  desig¬ 
nating  a  customs  tael.  During  the  nineteenth  century  10  or  15  dif¬ 
ferent  foreign  silver  dollars  became  current  in  trade  circles  in  the 
treaty  ports  of  China.  Of  all  these  coins  the  American  trade  dollar 
naturally  became  the  most  popular,  owing  to  its  superior  silver  con¬ 
tent.  For  the  same  reason  it  was  soon  melted  down  or  hoarded  and 
thus  disappeared.  The  Mexican  dollar  became  the  most  generally 
used  of  all  foreign  coins  introduced  into  China.  In  fact,  in  popular 
use  it  held  the  premier  position  during  the  latter  half  of  the  nine¬ 
teenth  century. 

It  is  singular  that  as  early  as  1792  the  Emperor  Ch’ien  Lung 
ordered  the  minting  of  silver  dollars  in  Tibet.  Apparently  this  arose 
from  Tibet’s  contact  with  India.  At  all  events,  these  coins  were 
short  lived  and  did  not  become  current  in  other  sections  of  China. 
It  was  not  until  a  hundred  years  later  that  Chinese  provincial  mints 


156 


COMMERCIAL  HANDBOOK  OF  CHINA 


took  to  the  minting  of  silver  dollars  and  silver  subsidiary  coins. 
Several  of  these  provincial  silver  dollars  became  quite  common. 
However,  the  controlling  factor  in  the  use  of  all  silver  continued  to 
be  demand  and  supply.  In  other  words,  silver,  whether  in  the  shape 
of  shoes  or  coins,  was  handled  as  a  commodity  as  well  as  a  medium 
of  exchange.  Each  piece  was  accepted  on  the  basis  of  its  intrinsic 
worth  but  incidentally  influenced  by  the  inexorable  workings  of  the 
law  of  supply  and  demand.  Small  or  subsidiary  silver  coins, 
although  nominally  on  a  decimal  basis  of  ten  10-cent  pieces  to  the 
dollar,  also  followed  the  same  rules,  and  the  market  quotations 
ranged  from  10  to  13  to  the  dollar. 

In  1914  were  witnessed  the  first  serious  attempts  on  the  part  of  the 
Chinese  Government  to  establish  a  legal-tender  standard  system  of 
currency.  The  Yuan  or  silver  dollar  wTas  made  the  unit,  with  silver 
and  copper  sub^diar}^  coins  as  token  on  a  decimal  basis.  The  dollars 
which  became  known  as  Yuan  Shih  Ivai  dollars  were  coined  at  Nan¬ 
king  and  Tientsin.  Following  the  death  of  Yuan  Shih  Kai,  the 
weakening  of  the  authority  of  the  central  Government  over  the  Prov¬ 
inces  interfered  seriously  with  the  carrying  out  of  this  scheme  for 
currency  reform,  although  the  Chinese  dollars  have  gradually  forced 
the  others  from  the  market  ;  for  upwards  of  80  per  cent  of  the  silver 
dollars  in  circulation  in  China  to-day  are  undoubtedly  Yuan  Shih 
Kai  dollars.  These  dollars  are  89  per  cent  silver  and  11  per  cent  cop¬ 
per  alloy,  with  a  gross  weight  of  0.72  Chinese  ounce.  This  would 
mean  a  dollar  of  370  grains  of  commercially  pure  silver,  or  415.73 
grains  including  alloy.  The  American  silver  dollar  contains  371.25 
grains  of  silver  plus  41.25  grains  of  alloy,  making  the  total  412.5 
grains.  During  the  World  War  the  shortage  and  high  price  of  silver 
led  to  the  melting  down  of  huge  quantities  of  the  foreign  dollars  in 
circulation  in  China,  thereby  paving  the  way  for  their  easy  replace¬ 
ment  by  coins  of  the  Chinese  mints.  Thus  while  the  new  dollars  are 
supreme,  yet  there  are  not  sufficient  guaranties  of  stability  in  the 
maintenance  of  a  standard  of  weight  and  fineness  to  warrant  the 
elimination  of  the  tael  in  commercial  transactions. 

Military  governors  have  taken  advantage  of  the  opportunities  for 
adding  to  their  revenues  easy  money  through  coining  and  putting  on 
the  market  huge  quantities  of  depreciated  subsidiary  silver  coins. 
These  efforts  have  been  found  far  more  profitable  than  attempts  at 
putting  upon  the  market  depreciated  silver  dollars.  Thus  while  the 
standard  of  the  Yuan  Shih  Kai  dollar  has  been  fairly  well  preserved, 
the  subsidiary  currency  has  not  become  token,  nor  has  its  parity  been 
maintained.  In  this  connection,  the  Canton  Mint  has  been  the  worst 
offender. 

With  the  establishment  of  a  central  mint  at  Shanghai,  under  proper 
expert  management,  it  was  planned  to  prohibit  the  coinage  of  silver 
coins  in  other  mints  in  China.  A  plant  patterned  after  mints  in 
the  United  States  has  been  erected  at  Shanghai  for  this  purpose, 
which  would  assure  China  the  largest  and  most  modern  mint  in  the 
wTorld.  The  Chinese  bankers’  associations,  at  a  conference  in  1924, 
undertook  to  underwrite  a  loan  of  $3,000,000  silver,  with  the  salt 
surplus  and  the  mint  as  security,  to  provide  necessary  funds  for 
the  equipment  of  this  mint,  upon  which  $2,500,000  had  already  been 
spent,  also  covered  by  a  loan  from  the  Chinese  bankers.  The  Minis- 


CURRENCY,  EXCHANGE,  AND  BANKING 


157 


try  of  Finance  virtually  made  a  definite  promise  that  if  the  Chinese 
banking  group  would  take  up  this  $3,000,000  loan,  it  would  be  given 
full  powers  to  manage  the  mint,  including  the  appointment  of  a 
director.  Unfortunately,  the  civil  war  of  the  autumn  of  1924  inter¬ 
fered  with  the  consummation  of  these  plans. 

China  is  not  a  silver-producing  country,  and  yet  it  is  one  of  the 
principal  silver-using  nations.  During  the  past  12  years,  imports 
of  silver  have  exceeded  exports  by  the  equivalent  of  about  $400,- 
000,000  silver.  It  is  impossible  to  secure  reliable  estimates  upon 
the  amount  of  silver  in  circulation  in  China.  Some  bankers,  pre¬ 
sumably  well  informed,  estimate  the  amount  in  dollars  and  sycee 
(bullion)  at  a  minimum  of  $500,000,000  silver,  and  a  maximum  of 
$1,000,000,000  silver.  The  amount  hoarded  and  used  in  the  arts 
is  estimated  as  equivalent  to  the  quantity  in  circulation.  Following 
the  disturbances  of  the  autumn  of  1924,  hoarding  increased  very 
considerably;  in  fact,  Chinese  banks  have  felt  very  seriously  the 
strain  of  the  withdrawal  of  deposits.  The  Shanghai  banks’  normal 
silver  stocks  aggregate  about  the  equivalent  of  $70,000,000  silver. 
They  gravitate  between  a  maximum  equivalent  in  bullion  and  coins 
to  $110,000,000  and  a  minimum  equivalent  to  $35,000,000.  [The  sec¬ 
tion  devoted  to  Foreign  Exchange  describes  transactions  in  silver.] 

PAPER  CURRENCY 

During  the  past  decade  the  world  has  witnessed  wonderful  feats  in 
juggling  with  the  ciphers  of  paper  currency.  It  has  often  been  said 
that  no  matter  what  transpires  elsewhere  in  the  world,  its  counter¬ 
part  can  be  unearthed  from  the  pages  of  the  history  of  this  oldest 
civilization  now  extant.  Marco  Polo,  in  describing  his  wonderful 
discovery  of  the  secret  of  the  great  wealth  of  Kublai  Khan,  the 
romantic  Mongol  ruler  of  China  during  the  thirteenth  century, 
remarked : 

With  these  pieces  of  paper,  made  as  I  have  described,  he  causes  all  pay¬ 
ments  on  his  own  account  to  be  made;  and  he  makes  them  to  pass  current 
universally  over  all  his  kingdoms  and  provinces  and  territories,  and  whither¬ 
soever  his  power  and  sovereignty  extends.  And  nobody,  however  important 
he  may  think  himself,  dares  to  refuse  them  on  pain  of  death.  And,  indeed, 
everybody  takes  them  readily,  for  wheresoever  a  person  may  go  throughout 
the  Great  Kaan's  dominions  he  shall  find  these  pieces  of  paper  current,  and 
shall  be  able  to  transact  all  sales  and  purchases  of  goods  by  means  of  them 
just  as  "well  as  if  they  were  coins  of  pure  gold.  And  all  the  wdiile  they  are 
so  light  that  ten  bezants’  worth  does  not  weigh  one  golden  bezant.  *  *  * 

Now,  you  have  heard  the  ways  and  means  whereby  the  Great  Kaan  may 
have,  and  in  fact  has,  more  treasure  than  all  the  kings  in  the  world ;  and  you 
know  all  about  it  and  the  reason  why. 

Among  the  causes  which  are  cited  as  responsible  for  the  downfall 
of  the  century  of  Mongol  rule  in  China  were  the  evils  of  an  unredeem¬ 
able  and  depreciated  paper  currency  which  drove  the  people  into 
rebellion.  To  the  first  of  the  Emperors  of  the  Ming  dynasty,  fol¬ 
lowing  the  defeat  of  the  Mongols,  is  attributed  the  remarkable  feat 
of  having  placed  the  country’s  finances  upon  a  sound  foundation, 
through  the  resumption  of  specie  payments.  From  that  time  down 
to  1853,  a  period  of  four  and  a  half  centuries,  there  were  no  Gov¬ 
ernment  issues  of  paper  money.  About  the  middle  of  the  nine¬ 
teenth  century,  copper  cash  and  silver  tael  notes  were  issued  without 
adequate  reserves,  with  the  result  that  by  1861  they  fell  in  value 


158 


COMMERCIAL  HANDBOOK  OF  CHINA 


Fig.  5. — Hongkong  and  Shanghai  Banking  Corporation’s  building  at  Shanghai 


CURRENCY,  EXCHANGE,  AND  BANKING 


159 


to  3  per  cent  and  soon  thereafter  passed  out  of  circulation.  Since 
then,  and  up  to  quite  recently,  paper  instruments  of  credit  were  left 
to  private  banks  and  business  concerns. 

During  the  past  20  years,  and  more  especially  since  the  revolution 
of  1911,  provincial  note  issues,  with  inadequate  reserves,  have  not 
been  uncommon.  Military  governors  have  used  this  expediency  to 
tide  over  the  embarrassments  of  depleted  treasuries.  Invariably  the 
issues  soon  dropped  to  redemption  values.  Some  communities,  how¬ 
ever,  suffered  severely  upon  this  account.  Hunan  Province  in  Cen¬ 
tral  China,  has  probably  fared  worse  from  unredeemed  paper  cur¬ 
rency  than  has  any  of  the  other  Provinces. 

The  issues  of  notes  of  certain  Chinese  banks  have  increased  very 
considerably  during  the  past  10  years,  mainly  because  of  the  estab¬ 
lishment  or  the  branches  of  modern  Chinese  banks  in  the  interior 
cities,  where  foreign  branks  have  no  branches.  This  condition  ac¬ 
counts  also  for  the  decreased  popularity  of  the  notes  of  foreign 
banks,  the  circulation  of  which  is  confined  for  the  most  part  to  the 
cities  in  which  they  are  located.  In  fact,  these  notes  are  designated 
for  the  cities  in  which  they  are  issued,  and  when  presented  in  other 
towns,  even  where  the  banks  have  their  branches,  are  usually  subject 
to  a  discount.  On  the  other  hand  the  military  disturbances  during  the 
autumn  of  1924  shook  the  confidence  of  a  large  part  of  the  Chinese 
public  in  paper  currency  or  bank  credits,  and  silver  came  into  demand 
for  the  purpose  of  hoarding.  This  seriously  affected  the  available 
resources  of  the  modern  Chinese  banks. 

Of  foreign  bank  notes  in  circulation  in  Manchuria,  the  Bank  of 
Chosen  (Korea)  gold  yen  notes  are  in  circulation  to  the  extent  of 
probably  100,000,000  yen.  As  the  Japanese  authorities  operating 
the  Manchurian  Railway  consider  yen  the  only  legal  tender  for  rail¬ 
way  purposes,  this  has  done  much  to  popularize  Japanese  currency, 
especially  in  South  Manchuria.  In  1912  the  Japanese  Government 
authorized  the  Bank  of  Chosen  to  issue  its  notes  in  gold  yen  cur¬ 
rency  throughout  Manchuria.  These  notes  were  to  be  repayable 
either  in  bank  notes  issued  by  the  Bank  of  Japan  or  in  gold  coin. 
The  latter  stipulation,  however,  applied  only  so  long  as  Japan  per¬ 
mitted  the  export  of  gold.  Efforts  have  been  made  by  the  Japanese 
authorities  in  the  Ivwantung  leased  territory  to  establish  a  single 
gold  yen  standard,  and  the  transactions  of  the  Dairen  Produce  and 
Stock  Exchange  were  ordered  to  be  in  gold  yen.  The  Chinese  pro¬ 
tested,  and  finally  both  Chinese  silver  dollars  and  Japanese  yen  were 
admitted  as  acceptable  for  transactions  on  the  exchange.  Since 
September,  1924,  the  Japanese  yen  has  depreciated  about  20  per 
cent.  This  has  caused  the  Japanese  Government  to  abandon  for  the 
time  being  efforts  to  establish  a  single  yen  standard. 

The  greatest  havoc  in  connection  with  the  paper  currency  situation 
in  China  during  the  past  10  years  has  come  with  the  provincial 
issues  under  the  military  governors,  who  have  utilized  them  as  a 
means  of  extorting  revenues  from  the  people.  In  reality,  then,  they 
may  be  considered  a  kind  of  enforced  taxes.  They  are  put  out  gen¬ 
erally  as  copper-coin  notes,  so  as  to  get  the  widest  possible  circulation. 
In  fact,  the  people  pass  them  along,  retaining  no  more  than 
necessary,  so  that  when  a  crash  comes  no  one  is  caught  with  large 
proportionate  holdings,  but  in  the  aggregate  the  holdings  have  been 
such  as  to  net  considerable  profits  to  the  authorities  responsible  for 


160 


COMMERCIAL  HANDBOOK  OF  CHINA 


their  issue.  Until  an  effective  central  government  administration  is 
established  there  appears  to  be  but  little  hope  of  correcting  this  seri¬ 
ous  situation  as  developed  under  some  of  the  irresponsible  military 
governors. 

An  interesting  and  useful  instrument  in  trade  transactions  in 
China  is  the  native  bank  order.  This  subject  is  treated  in  the  section 
headed  “  Banking.” 

GOLD 

There  are  evidences  that  efforts  were  made  from  time  to  time  to 
embrace  gold  in  China’s  currency  system,  but  with  no  tangible  results. 
Probably  the  nearest  approach  "to  the  circulation  of  gold  coins  came 
with  the  effort  upon  the  part  of  the  military  governor  of  Yunnan 
in  October,  1919,  to  establish  a  gold  coin  in  his  Province.  At  first 
a  10-dollar  and  later  a  5-dollar  gold  coin  was  placed  in  circulation, 
and  $9,000,000  worth  of  these  coins  was  put  out.  The  gold  was  pur¬ 
chased  when  silver  was  at  its  high  peak.  When  silver  dropped, 
through  a  50  per  cent  range,  these  coins  became  so  valuable  that  they 
disappeared  from  circulation. 

When  the  price  of  silver  was  exceptionally  high  in  1919  and  1920, 
and  gold,  therefore,  cheap  from  the  Chinese  point  of  view,  gold  was 
imported  in  large  quantities.  On  the  other  hand,  when  the  silver 
price  and  exchange  dropped — that  is,  when  gold  became  dear  in  this 
silver-using  country — then  the  movement  was  reversed.  In  the 
latter  case  gold  investments  realized  handsome  profits  and  gold 
exports  increased.  Thus,  since  1920  gold  exports  have  exceeded 
imports.  During  the  years  1916  to  1919  inclusive,  China  imported 
gold  to  the  value  of  8*6,000,000  taels,  and  exported  26,000,000  taels, 
but  during  the  years  1920  to  1923,  inclusive,  the  imports  of  gold 
aggregated  100,000,000  taels,  and  exports  136,000,000  taels.  Thus,  in 
a  total  aggregate  trade  in  gold  of  328,000,000  taels,  the  imports  ex¬ 
ceeded  the  exports  by  only  24,000,000  taels,  or,  roughly,  $20,000,000 
United  States  gold. 

CURRENCY  REFORM 

The  question  of  currency  reform  in  China  is  apparently  not  so 
difficult  as  it  has  often  been  pictured.  With  the  establishment  of 
a  strong  central  government,  it  should  be  possible  to  operate  a  central 
mint  for  silver  coinage  and  certain  designated  mints  for  token  coins. 
With  coins  in  China  on  a  commodity  basis,  as  they  are  at  present, 
it  should  not  be  difficult  to  retire  those  now  in  circulation.  Great 
difficulties  will  attend  the  handling  of  the  paper-money  issues.  In 
some  cases  these  have  fallen  to  redemption  values.  Undoubtedly 
the  masses  in  many  sections  have  come  to  consider  their  holdings 
of  provincial  notes  as  valueless,  so  are  not  expecting  anything  by 
way  of  redemption  plans. 

BIBLIOGRAPHY 

Bouleau.  M.  Practical  Guide  to  Far  Eastern  Exchange.  150  pp.  1923.  This 
volume  is  probably  the  best  practical  guide  for  ready  use  for  those  who 
have  occasion  to  handle  transactions  in  Chinese  silver  exchange  or  other 
Far  Eastern  exchanges.  It  contains  splendid  conversion  tables  for  Chinese 
currencies. 

Chinese  Maritime  Customs.  Annual  publications  on  foreign  trade  of  China. 
The  report  and  abstract  of  statistics  and  the  ports  reports  contain  much 


CURRENCY,  EXCHANGE,  AND  BANKING 


161 


valuable  current  information  regarding  China’s  currency,  exchange,  and 
banking. 

Jernigan,  T.  R.  China  in  Law  and  Commerce.  400  pp.  The  Macmillan  Co., 
1905. 

Lee,  Frederic  E.  Currency,  Banking,  and  Finance  in  China.  Trade  Promo¬ 
tion  Series  No.  27.  United  States  Department  of  Commerce,  1926. 

Morse,  H.  B.  The  Trade  and  Administration  of  China.  1912.  This  work 
contains  a  splendid  chapter  descriptive  of  China's  currency. 

Spalding,  William  F.  Eastern  Exchange,  Currency,  and  Finance.  375  pp. 

Bath  Melbourne,  and  New  York,  Sir  Isaac  Pitman  &  Sons  (Ltd.). 

Spalding,  William  F.  Foreign  Exchange  and  Foreign  Bills  in  Theory  and 
Practice.  234  pp. 

Yissering,  G.  On  Chinese  Currency.  Amsterdam,  J.  H.  de  Bussy,  1912  and 
1915. 

Wagel,  S.  R.  Finance  in  China.  1914.  Published  by  the  North  China  Daily 
News  and  Herald,  Shanghai,  in  connection  with  other  literature  on  this 
subject. 

FOREIGN  EXCHANGE 

An  American  typewriter  selling  for  $100  gold  in  the  United  States 
might  have  cost  the  buyer  in  Shanghai  (exclusive  of  freight,  duty, 
and  other  charges)  during  the  past  10  years  anything  from  $85  to 
$250  silver,  according  to  the  fluctuations  in  silver  exchange  during 
this  period.  The  Chinese  dealer  makes  his  purchases  in  the  currency 
of  his  country,  which  is  silver.  The  higher  the  price  of  silver  in 
terms  of  gold,  the  cheaper  will  be  the  American  product  to  the 
Chinese  buyer;  thus,  high  silver  favors  American  exports  to  China. 
The  American  manufacturer  who  buys  Chinese  wood  oil  must  pay 
what  the  Chinese  market  dictates  in  Chinese  currency.  If  it  is  quoted 
in  20  taels  a  picul  and  exchange  is  at  65  cents  gold  to  1  tael,  then  he 
pays  $13  in  gold  for  133 y3  pounds ;  but  if  exchange  is  at  80  he  must 
pay  for  the  same  amount  $16  gold,  without  the  price  in  China  chang¬ 
ing  1  cent.  Thus  the  lower  the  price  of  silver,  the  better  is  the  export 
market  of  China  for  the  American  manufacturer.  It  is  patent,  then, 
that  silver  exchange  is  a  factor  of  commanding  importance  in  Ameri¬ 
can  trade  with  China. 

In  settling  exchange  transactions  it  is  not  necessary  that  both  sides 
draw;  one  may  draw,  the  other  remit.  Shanghai  may  draw  on  New 
York  for  its  exports  and  remit  to  New  York  for  the  cost  of  its 
imports.  The  importer  or  exporter  effects  payments  for  his  goods  in 
telegraphic  transfers  from  China  in  gold  or  in  bills  drawn  on  China 
in  gold.  The  merchant  in  China  who  sells  goods  to  America  on  a 
four  months’  gold  bill  would,  if  he  acted  entirely  upon  his  own 
responsibility,  chance  the  exchange  value  of  that  gold  at  the  end  of 
the  four  months.  Similarly,  if  he  purchased  goods  from  America 
on  a  four  months’  gold  bill  he  would  have  to  guess  the  amount  of 
silver  it  would  take  at  the  end  of  four  months  to  meet  that  gold  pay¬ 
ment.  If  his  transaction  were  on  a  basis  of  cash  against  documents 
it  would  be  equally  perplexing.  In  other  words,  he  would  find  his 
legitimate  business  transactions  involved  in  speculations  in  exchange. 
The  services  of  the  exchange  bank  come  to  his  assistance  in  quoting 
daily  exchange  rates  both  for  telegraphic  transfers  and  for  forward 
rates,  thereby  transferring  the  speculative  features  of  the  transaction 
from  the  merchant  to  the  banker,  who  is  in  a  better  position  to  cover 
his  transactions  in  exchange.  In  fact,  the  exchange  banker  is  not 
only  able  to  save  the  import  and  export  merchant  from  the  necessity 


100020°— 26 - 12 


162 


COMMERCIAL  HANDBOOK  OF  CHINA 


of  speculating  in  exchange  in  his  legitimate  import  and  export  trans¬ 
actions,  but  also  to  handle  his  own  business  in  such  a  way  as  to  make 
it  distinctly  profitable  to  the  bank.  Thus,  it  becomes  very  important 
that  the  American  having  trade  with  China  should  understand  the 
principles  controlling  foreign  exchange  as  they  affect  the  transactions 
in  trade  between  these  two  countries. 

EXCHANGE  QUOTATIONS 

Mr.  E.  E.  Kann,  manager  of  the  Chinese  American  Bank  of  Com¬ 
merce,  Shanghai,  has  prepared  an  excellent  article  on  China’s  foreign 
trade  and  transactions  in  silver  and  gold  bars.  For  lack  of  space  it 
is  possible  to  reproduce  here  only  a  resume  of  Mr.  Kann’s  article : 

For  international  trade  and  exchange  in  China,  silver  is  employed.  As 
silver  (in  quantity)  is  not  mined  in  China  it  has  to  be  imported  from  the 
world's  silver  markets,  New  York  and  London.  Until  recently  London  was 
the  principal  market  for  silver,  but  since  the  World  War  New  York  has  be¬ 
come  the  chief  center  of  distribution,  for  China  in  particular.  Practically  all 
the  tael  bars,  the  dollars,  and  the  small  coin  circulating  in  China  have  had 
their  origin,  directly  or  indirectly,  in  imported  bar  silver. 

China  is  therefore  obliged  to  derive  its  parity 2  quotations  from  the  price 
of  silver  in  an  important  bar  silver  market.  Such  markets  have  up  to  the 
present  existed  in  London  and  in  New  York  only.  It  is  therefore  immaterial 
whether  the  parity  of  the  Shanghai  tael  is  based  on  the  price  of  1  standard 
ounce  of  silver  (0.925  fine)  in  London,  or  on  the  price  in  New  York  of  1  troy 
ounce  of  silver  0.999  fine. 

The  theoretical  conversion  of  bar  silver  into  Shanghai  sycee  will  result  in 
constants  for  England  of  1.1752  and  108.228  for  America.  Multiply  these  con¬ 
stants  by  the  price  quoted  for  bar  silver  at  either  London  or  New  York  and 
add  charges  and  interest,  in  order  to  obtain  the  parity  quotations  for  1  Shang¬ 
hai  tael  in  shillings  and  pence,  respectively,  for  the  United  States  dollar. 

Having  any  one  of  these  two  rates,  all  other  currencies  are  brought  to  the 
tael  parity  by  introducing  into  the  problem  the  cross  rate.  This  means  that, 
in  order  to  issue  parity  rates  at  Shanghai,  one  has  to  receive  telegraphically 
the  price  of  bar  silver,  the  cross  rates  between  the  principal  trade  centers,  and 
the  discount  rates;  the  latter  only  whenever  a  change  occurs. 

It  needs  no  emphasizing  that  the  official  rates  of  exchange,  as  issued  every 
morning  at  9.30  by  the  Hongkong  A  Shanghai  Banking  Corporation,  are  not 
necessarily  corresponding  to  the  parity.  In  fact,  they  are  usually  above  or 
below  parity,  according  to  conditions  ruling  on  the  home  and/or  the  local 
money  markets.  It  must  also  be  clearly  understood  that  exchange  business 
in  Shanghai  is  done  at  widely  and  frequently  fluctuating  rates.  The  official 
quotations  are  likely  to  guide  or  influence  the  trend  of  the  market,  but  usually 
they  fail  to  check  activities  created  by  either  a  genuine  demand  or  by  specu¬ 
lators. 

The  official  exchange  bulletin,  as  issued  every  morning  at  Shanghai,  which 
is  an  important  factor  to  the  American  or  other  foreign  importer  or  exporter 
whose  transactions  must  pass  from  a  gold  into  a  silver  currency  or  vice  versa, 
appears  in  the  following  form : 


EXCHANGE  RATES 
Shanghai,  Friday,  October  17,  1924 


1.  Bar  silver,  spot - 35ie — S/Q-vs 

2.  Bar  silver,  forward _  35B 

3.  Chinese  dollars,  market  rate _  72.  975 

4.  Chinese  dollars,  buying  rate -  72.  75 

5.  Chinese  dollars,  selling  rate _  73.  25 

6.  Native  interest _  0.  05 


2  There  is  no  real  par  for  silver  in  terms  of  gold.  What  actually  exists  is  what  is 
termed  “  relative  par.”  Cf.  Spalding,  W.  F.,  “  Eastern  Exchange,”  p.  311, 


CURRENCY,  EXCHANGE,  AND  BANKING 

H.  &  S.  B.  C.  opening  quotations  9.30  a.  in. 
banks’  selling  rates 


163 


7.  London:  T/T _  3/5% 

8.  London  :  Demand _  3/5  t9g 

9.  London :  4  m/s -  3/5% 

10.  India:  T/T _  229 % 

11.  France  :  T/T _  1,  480 

12.  America:  T/T _ ' _  77% 

13.  Hongkong:  T/T -  70% 

14.  Japan  :  T/T _  49% 

15.  Batavia:  T/T _  204 

16.  Straits:  T/T _ 68 


banks’  buying  rates 


17.  London :  4  m/s  credits _  3/7% 

18.  London:  4  m/s  documents _  3/7% 

19.  London:  6  m/s  credits _ 1 -  3/7% 

20.  London:  6  m/s  documents - - 

21.  France:  4  m/s -  1,555 

22.  America:  4  m/s  L/C -  80% 

23.  America  :  Documents _  81% 


EXPLANATION  OF  QUOTATIONS 

For  the  sake  of  convenience  in  locating  the  individual  items, 
progressive  numbers  have  been  placed  at  the  left  side  of  the  above 
schedule,  but  these  do  not  appear  in  the  original  quotations,  and 
are  used  here  merely  to  facilitate  reference : 

1.  Bar  silver,  spot,  35rk,  parity  3/6ts. — This  is  the  bar  silver  quotation 
of  the  previous  date,  as  cabled  from  London,  for  1  standard  ounce  of  bar 
silver.  The  parity  of  3s.  6ied.  is  the  theoretical  parity,  based  on  the  con¬ 
stant  of  1.182  (H.  O.  White)  ;  it  includes  charges,  but  not  interest,  and  is 
based  on  111.20  Shanghai  taels  currency  being  equal  to  100  Canton  taels 
weight.  In  fact,  the  correct  ratio  is  now  110.90,  unless  the  bars  are  sold 
to  provincial  mints  at  a  premium. 

2.  Bar  silver  forward,  35\l. — This  is  the  London  official  quotation  for 
two  months’  delivery  of  bar  silver.  It  coincides  here  with  the  rate  for  spot 
delivery,  but  may  at  times  be  higher,  at  other  times  lower. 

3.  Chinese  dollars  (market  rate),  72.975. — The  quotation  is  fixed  and  issued 
twice  daily — in  the  morning  and  in  the  afternoon — by  the  Chinese  Native 
Banks  Guild.  It  is  the  proportion  of  Shanghai  taels  to  100  silver  dollars 
(local  currency).  Foreign  banks  have  very  little  influence  over  this  quotation. 

4.  Chinese  dollars  (buying  rate),  72.75. — This  means  that  the  Hongkong 
&  Shanghai  Bank  is  prepared  to  buy  resonable  amounts  of  dollars  and  to 
pay  for  every  $100  72.75  Shanghai  taels. 

5.  Chinese  dollars  (selling  rate),  73.25. — The  Hongkong  &  Shanghai  Bank 
is  prepared  to  sell  reasonable  amounts  at  the  price  of  $100,  equal  to  73.25 
taels.  If  large  sums  are  involved,  the  deviation  from  the  official  rate  is  usually 
0.10  points  only. 

6.  Native  interest,  0.05. — This  is  the  official  interest  rate,  issued  every  day 
anew  by  the  Native  Bankers  Guild,  uninfluenced  by  the  foreign  and  modern 
Chinese  commercial  banks.  It  is  a  good  barometer  to  the  state  and  tendency 
of  the  local  money  market.  The  quotation  refers  to  so  many  candareens 
per  1,000  taels  per  day.  The  maximum  rate  permitted  by  the  guild  is  70 
candareens.  In  order  to  compare  with  percentage  multiply  the  rate  by  365. 
Thus  20  candareens  equals  7.3  per  cent  per  annum. 

7.  London  T.  T.,  3/5%. — This  quotation  means  that  the  bank  is  prepared  to 
sell  telegraphic  transfer  on  London,  payable  there  on  the  same  day,  and  give 
3s.  5%d.  for  every  Shanghai  tael.  The  rate  in  this  instance  is  much  below 
silver  parity,  which  fact  does  not  favor  import  of  bar  silver.  However,  it 
must  not  be  overlooked  that  the  official  rate  is  not  necessarily  the  market  rate. 
In  fact,  on  October  17  business  has  been  done  at  quotations  considerably  above 
the  official  rate. 


164 


COMMERCIAL  HANDBOOK  OF  CHINA 


8.  London  demand,  3/5 us. — The  banks  sell  checks  at  a  slightly  higher  rate 
than  telegraphic  transfer,  the  difference  representing  about  30  days’  interest 
at  around  the  official  London  discount  rate. 

9.  London  5  months,  3/5%. — The  same  remarks  apply  here.  Five  months’ 
interest  have  to  be  added  to  the  telegraphic  transfer  rate.  In  this  case  the 
rate  of  interest  works  out  at  1%  per  cent  per  annum,  which  does  not  make  it 
favorable  to  remit  money  to  London  by  a  bank  draft,  payable  there  four  months 
after  sight.  As  a  matter  of  fact,  this  mode  of  remitting  is  very  rarely  used 
unless  the  difference  between  the  telegraphic  transfer  rate  and  for  four  months’ 
sight  is  much  wider. 

10.  India  T.  T.,  229y2. — The  quotation  for  India  (22914  rupees=100  Shang¬ 
hai  taels),  as  well  as  all  other  rates  following  here  (except  the  Hongkong 
T.  T.)  are  based  on  the  telegraphic  transfer  rate  on  London,  taken  in  conjunc¬ 
tion  with  the  cross  rates,  according  to  the  following  formula : 

?  rupees  =1  Shanghai  tael. 

1  Shanghai  tael  =41.50  pence. 

18.09375  pence  =1  rupee. 

X =2.2930 

The  London-Bombay  cross  rate  was  cabled  as  Is.  6^jd.  for  1  rupee. 

11.  France  T.  T.,  1,580. — The  quotation  is  for  100  taels=l,480  francs.  In 
order  to  ascertain  the  cross  rate  on  which  the  Hongkong  &  Shanghai  Bank 
has  based  its  calculation,  use  the  chain  rule. 

?  francs  =1  pound  sterling. 

1  pound  sterling =240  pence. 

41.5  pence  =1  tael. 

1  tael  =14.80  francs. 


240X14.80 

41.5 


=85.592 


The  London-Paris  cross  rate  in  this  instance  was  85.6  francs  to  the  pound 
sterling. 

12.  America  T.  T.  77%. — The  formula  in  this  instance  is  as  follows: 

?  gold  dollars  =100  taels. 

1  tael  =41.5  pence. 

240  pence  =4.49%  gold  dollars. 


X= 77.73 


The  Shanghai  telegraphic  transfer  rate  of  77%  United  States  dollars  for 
100  taels  is  based  on  a  New  York-London  cross  rate  of  4.49 %. 

13.  Hongkong  T.  T.,  70y2. — This  quotation  is  (contrary  to  most  others  on  the 
bulletin)  in  taels,  and  not  in  foreign  money.  It  means  that  the  bank  will 
sell  100  Hongkong  dollars  telegraphic  transfer  for  70 y2  Shanghai  taels.  The 
quotation  is  subject  to  demand  and  inquiry  and  may  fluctuate  up  to  the  shipping 
point,  always  provided  that  there  is  no  embargo  on  the  export  of  silver  dollars 
from  Hongkong.  As  the  Hongkong  &  Shanghai  Bank  is  the  principal  note¬ 
issuing  bank  in  Hongkong,  it  is  in  a  position  to  control  the  quotation  between 
Hongkong  and  Shanghai. 

14.  Japan  T.  T.,  59%. — As  in  the  previous  instance,  the  Japan  rate  is  quoted 
in  China  in  taels  per  100  yen.  It  is  obtained  by  applying  the  cross  rate  be¬ 
tween  London  and  Japan.  In  normal  times  the  mint  parity  is  24.576 
pence=l  yen.  In  1919  the  cross  rate  had  surpassed  2s.  10d.,  and  in  1924 
it  had  dropped  to  Is.  8%d.  per  yen. 

?  taels  =100  yen. 

1  yen  =20.4375  pence. 

41.5  pence=l  tael. 


100  yen =49%  taels 

15.  Batavia  T.  T.,  205. — There  is  very  little  direct  trade  between  the  Nether¬ 
lands  and  China,  but  a  good  deal  of  direct  business  is  done  between  the  Dutch 


CURRENCY,  EXCHANGE,  AND  BANKING 


165 


East  Indies  and  China,  notably  in  sugar.  Usually  the  rate  for  florins  payable 
in  the  Netherlands  is  somewhat  lower  than  the  quotation  for  florins  (guilders) 
on  the  Dutch  East  Indies.  Through  the  chain  rule  in  the  usual  manner  we 
can  ascertain  on  what  cross  rate  the  above  quotation  of  204  florins  for  100 
taels  is  based. 

?  florins  =1  pound  sterling. 

1  pound  sterling  =240  pence.  * 

41.5  pence  =1  tael. 

1  tael  =204  florins. 

1  pound  sterling=11.80  florins 

16.  Straits  T.  T.  68. — This  quotation  is  in  taels  for  100  Singapore  dollars. 
It  is  obtained  by  applying  the  cross  rate,  which  was  then  2s.  4% d.  for  1  Straits 
dollar. 

?  taels  =100  Straits  dollars. 

1  Straits  dollar  =28.25  pence. 

41.5  pence  =ltael. 

100  Straits  dollars=68.07  taels 

The  foregoing  quotations  have  been  banks’  selling  rates,  and  the  following 
are  buying  quotations.  These  are  obtained  by  adding  to  the  selling  rates  in¬ 
terest  for  the  period  during  which  the  drafts  are  en  route,  plus  interest  for 
the  time  the  draft  has  still  to  run.  The  official  buying  rates  are  far  too  high 
to  allow  business  to  be  transacted.  Therefore  they  may  be  considered  as 
nominal. 

In  making  calculations  for  buying  rates  the  bank  has  to  add  to  the  quotation 
at  which  it  can  actually  sell:  (1)  Brokerage,  (2)  interest  for  the  time  the  draft 
is  en  route,  (3)  interest  for  the  period  the  draft  has  to  run  (this  means  the 
rate  at  which  it  can  be  discounted  after  acceptance),  and  (4)  a  margin  of 
profit.  In  some  countries  there  are  also  revenue  stamps  and  collection  charges 
to  be  considered.  Let  us  consider  the  remaining  quotations  in  this  light. 

17.  London ,  4  m/s  credits,  3/ 7%. — The  quotation  refers  to  drafts  negotiated 
under  confirmed  banker’s  credit  and  therefore  easily  discountable.  Say,  on 
October  17,  1914,  a  Shanghai  bank  had  to  sell  T.  T.  on  London  at  3s.  6d.  per 


tael: 

Pence 

Selling  rate -  42.  0000 

Brokerage,  %  per  cent _  .  0525 

30  days’  interest  at  6  per  cent  (en  route) _  .2100 

120  days’  discount  at  4  per  cent _  .  5600 

Profit _  .  2500 

Bill  stamps,  postage,  and  petties _  .  0575 


Total _  43. 1300 


The  Shanghai  bank  will  therefore  be  in  a  position  to  buy  at  3s.  T%d.  per 
tael. 

18.  London,  4  m/s  documents,  3/7%- — The  rate  is  % d.  above  the  4-month 
credit  quotation,  partly  because  the  draft  is  either  not  discountable  or  only 
at  a  higher  rate  of  discount ;  therefore  the  interest  charge  is  above  the  cost 
discussed  in  the  previous  example.  Besides,  there  is  an  added  risk  in  nego¬ 
tiating  documentary  drafts  drawn  on  firms  or  individuals. 

19.  London,  6  m/s  credits,  3/7%. — The  extended  usance  and  the  higher  rate 
of  discount  for  6-month  drafts  are  the  principal  factors  for  an  increased 
quotation. 

20.  London,  6  m/s  documents. — No  quotation  is  given  here,  as  it  is  not 
customary  to  draw  six  months,  D/P.  However,  such  paper  is  sometimes  in 
the  market,  and  as  banks  are  not  keen  to  compete  for  this  class  of  bills  the 
drawer  will  have  to  accept  a  rather  high  rate. 

21.  France  4  m/s,  1,555. — It  is  not  customary  to  negotiate  drafts  on  France 
under  L/C.  Practically  all  export  drafts  from  China  are  drawn  on  firms 
(chiefly  against  shipment  of  raw  silk),  either  D/P  or  D/A.  Discounts  are 
usually  1  per  cent  below  the  official  Banque  de  France  rate,  but  no  standing 
rule  can  be  established  in  this  connection. 


166 


COMMERCIAL  HANDBOOK  OF  CHINA 


Say,  on  October  17,  1924,  a  bank  could  sell  telegraphic  transfer  on  Paris  at 


1,500  francs : 

Francs 

Selling  rate _  1,  500.  000 

Brokerage,  one-eighth  of  1  per  cent _  1.  875 

Profit,  one-fourth  of  1  per  cent _  3.  750 

Bill  stamps,  commissions _  3.  775 

150  days’  interest,  at  6  per  cent -  37.  500 


Total _ i _ i _  1,546.900 


The  hank  will  probably  he  pleased  to  buy  4-montli  documentary  drafts  at 
the  rate  of  1,550  francs  for  100  taels. 

22.  America,  4  m/s  L/C,  80%. — When  this  rate  was  issued  call  money  at 
New  York  was  2  per  cent  and  discounts  averaged  3  per  cent.  Therefore,  if 
the  bank  could  have  sold  telegraphic  transfer  on  America  at,  say,  78%,  it 
would  have  bought  4-month  credit  bills  at  80. 


T.  T.  selling  rate _ $78,500 

Brokerage,  one-eighth  of  1  per  cent _  .  098 

Profit,  one-fourth  of  1  per  cent _  .  196 

1  month’s  interest,  at  6  per  cent _  .  390 

4  months’  discount,  at  3  per  cent _  .  780 

Postage  and  petties _  .036 


Total _  80.  000 


23.  America,  J/  m/s  documents,  81%. — The  calculation  is  similar  to  the  pre¬ 
ceding  example,  except  for  a  higher  rate  of  interest,  as  the  draft  is  scarcely 
discountable.  Besides,  the  risk  is  greater. 

BAR  SILVER 

IMPORT  OF  BAR  SILVER  FROM  AMERICA 

The  United  States  is  producing  from  60,000,000  to  70,000,000  ounces  of  silver 
each  year,  which  is  about  one-third  of  the  world's  output.  The  consumption 
within  the  country  for  industrial  purposes  is  estimated  at  20,000,000  to 
30,000,000  ounces  annually,  and  the  remainder  is  exported  abroad.  In 
addition  to  the  surplus  production  of  the  United  States,  New  York  and  San 
Francisco  have  become  trading  centers  for  the  silver  produced  in  Mexico  and 
Canada.  New  York  is  fast  gaining  on  London  in  importance  as  the  world’s 
market  for  bar  silver,  all  the  factors  being  in  favor  of  the  former  place. 

China  and,  recently,  India  have  bought  the  bulk  of  their  requirements  in 
the  United  States  instead  of  in  London,  as  formerly.  The  arrival  of  bar  silver 
in  China  during  1923  amounted  to  71,318  bars  of  about  1,000  ounces  each,  out 
of  which  50,204  bars  were  imported  from  America. 

During  the  first  eight  months  of  1924  the  total  number  of  silver  bars  landed 
at  Shanghai  amounted  to  29,187,  and  of  these  22,251  bars  came  from  the  United 
States. 

Conditions  prevailing  on  the  American  silver  market  are  somewhat  peculiar ; 
they  differ  from  those  in  vogue  at  London  in  many  respects,  but  notably  in  the 
following  two  points : 

1.  The  New  York  official  silver  quotation  (per  ounce  fine)  is  hardly  ever 
the  price  at  which  business  is  done  in  America,  while  the  London  official  quo¬ 
tations  (per  standard  ounce)  represent  the  actual  market  price. 

2.  The  express  and  the  steamer  freight  rates  in  and  from  America  are  not 
uniform,  but  are  subject  to  reduction  in  the  same  proportion  as  the  quantity 
increases  in  value.  London  quotes  uniform  freight  rates  for  any  quantity 
instead  of  graduated  rates. 

CONVERSION  OF  AMERICAN  BAR  SILVER  INTO  SHANGHAI  TAELS 

If  the  bar  silver  imported  from  America  is  to  be  melted  down  in  Shanghai, 
in  order  to  be  converted  into  sycee  taels  the  local  smelting  shops  (called 
loofangs)  will  return  to  the  bank  111  Shanghai  taels  (currency)  for  every  100 
Canton  taels  weight  of  American  bar  silver  0.999  fine.  This  proportion  was 


CURRENCY,  EXCHANGE,  AND  BANKING 


167 


fixed  in  1020.  Before  that  year  the  outturn  would  have  been  111.30  Shanghai 
taels.  As  a  reason  for  the  difference  the  smelters  indicated  the  higher  cost 
of  labor  and  coal. 

It  has  happened  in  the  years  1922  to  1924  that  American  bar  silver  was  sold 
locally  at  premiums  varying  from  one-fourth  of  1  per  cent  to  1  per  cent.  In 
such  cases  the  bar  silver  was  not  wanted  for  conversion  into  sycee,  but  for 
coinage.  Some  of  the  provincial  mints  thought  that  they  could  afford  to  pay 
a  premium,  as  even  under  these  circumstances  they  made  sufficiently  large 
profits.  American  bar  silver  was  frequently  sold  at  Shanghai  during  the  period 
indicated  at  111.50  and  even  as  high  as  112  Shanghai  taels  for  each  100 
Canton  taels  weight. 

Formula  for  the  constant. — The  weight  of  1  Canton  tael  is  579.84  grains,  or 
1.208  ounces  troy ;  the  weight  of  100  Shanghai  taels  is  108.6212  ounces  troy. 

“Parity”  between  American  bar  silver  and  the  Shanghai  rate  for  telegraphic 
transfer  on  America  is  illustrated  by  the  formula  below : 

?  U.  S.  dollars.  =100  Shanghai  taels  currency. 

Ill  Shanghai  taels  currency  =100  Canton  taels  weight. 

1  Canton  tael  weight  =579.84  grains. 

480  grains  =1  ounce. 

1  ounce  =New  York  silver  price. 

100X100X579.84 

111X1X480  “ 108.828. 

The  figure  108.828  is  a  constant.  It  does  not  include  charges  and  interest, 
which  have  to  be  added  according  to  conditions  prevailing  at  the  time  of  mak¬ 
ing  calculations.  These  charges  vary  not  only  in  course  of  time,  but  their  total 
is  influenced  by  the  rate  of  interest  prevailing  on  the  money  market.  The 
total  is  furthermore  subject  to  a  graduated  scale  for  freight,  according  to  the 
quantity  shipped. 

In  the  autumn  of  1924  the  expenses  for  shipping  $100,000  (U.  S.)  worth  of 
bar  silver  from  San  Francisco  to  Shanghai  would  have  been  as  follows : 

Freight,  five-eighths  of  1  per  cent _  $625.  00 

Insurance,  one-eighth  of  1  per  cent _  125.  00 

Bank’s  commission,  one-sixteenth  of  1  per  cent _  62.  50 

Interest  for  25  days  at  5  per  cent _  340.  00 

Landing  expenses,  coolie  hire  at  Shanghai,  cables,  and  inci¬ 
dentals _  60. 00 

Cartage  at  San  Francisco,  25  cents  per  bar _  37.  50 

Total  charges  (equivalent  to  1 %  per  cent) _  1,250.00 

To  the  constant  108.828  add  1%  per  cent  charges,  or  1.360,  making  the  total 
110.188. 

In  order  to  obtain  the  “  parity  ”  of  telegraphic  transfer  at  Shanghai,  multiply 
the  constant  (plus  charges)  by  the  price  at  which  silver  is  actually  obtainable 
at  San  Francisco.  If,  for  example,  the  actual  price  per  ounce  0.999  fine  is  70 
cents,  the  “parity”  for  telegraphic  transfer  on  America  will  be  110.188X70= 
77.1316.  Provided  that  telegraphic  transfer  at  Shanghai  can  be  bought  at, 
say,  77y2  United  States  dollars  for  100  taels,  it  will  be  remunerative  to  buy 
bar  silver  at  San  Francisco  at  a  price  of  70  cents  an  ounce  and  have  it  shipped 
to  Shanghai. 

The  brokerage  on  bar  silver  amounts  to  one-sixteenth  of  1  cent  per  ounce  and 
is  payable  by  the  seller. 

?  U.  S.  dollars  =1  Shanghai  tael  currency. 

Ill  Shanghai  taels  =100  Canton  taels  weight. 

82.7815  Canton  taels  =100  ounces  fine. 

1  ounce  fine  =U.  S.  dollar  price. 

100X100 

111  X  82.7815  ~ i-08828' 7 

To  the  constant  1.08828  add  the  amount  of  charges  and  interest. 

If  turned  into  Shanghai  sycee,  100,000  ounces  of  American  silver  (0.999  fine) 
will  produce  91,887.27  Shanghai  taels. 


168 


COMMERCIAL  HANDBOOK  OP  CHINA 


LONDON  AND  AMERICAN  BAR  SILVER  COMPARED 


Until  the  outbreak  of  the  World  War  London  was  the  only  market  of  im¬ 
portance  for  bar  silver.  During  a  certain  period  of  the  war  exports  of  silver 
from  England  had  to  be  discontinued.  As  New  York  was  well  able  to  take 
care  of  the  silver  market,  it  was  natural  that  matters  developed  rapidly,  and 
since  that  time  New  York  has  not  only  held  its  own  hut,  conjointly  with  San 
Francisco,  has  taken  the  lead.  This  is  natural  if  one  considers  that  every  factor 
is  in  favor  of  the  United  States. 

Practically  all  of  America’s  silver  production  is  now  being  sold  in  the  United 
States.  India  and  China  since  the  beginning  of  1924  are  taking  the  bulk  of 
their  requirements  from  America  direct  instead  of  from  England,  as  was  done 
formerly.  About  seven-twelfths  of  America’s  silver  production  comes  to  New 
York  and  five-twelfths  to  San  Francisco. 

In  spite  of  these  facts  the  London  silver  market  undoubtedly  retains  a  good 
deal  of  its  old  glory  and  importance.  It  lias  served  as  a  basis  for  quotations  in 
silver-using  countries  for  many  decades,  and  it  continues  to  exercise  this  func¬ 
tion,  notwithstanding  the  limitation  of  supplies  and  the  depreciation  of  the 
pound  sterling. 

ENGLISH  BAR  SILVER  MARKET 


Silver  bars  have  the  shape  of  bricks  and  weigh  usually  from  SO1/}  to  37 
kilos,  i.  e.,  980  to  1,190  ounces  troy.  This  description  is  applicable  to  English 
as  well  as  American  bar  silver. 

English  bars  destined  for  export  abroad  are  0.998  fine,  but  bars  of  a  fineness 
of  0.996  and  0.997  are  admissible  and  do  occur,  though  in  small  proportions 
only. 

The  British  standard  for  silver  is  0.925,  which  means  that  in  240  parts  of 
alloy  222  parts  of  pure  silver  are  contained : 


222  37 
24  — 40 


or  0.925 


As  bar  silver  exported  from  London  to  China  and  India  is  usually  0.998  fine, 
it  is  17)4  better  than  the  English  standard: 


222  +  17^2301 

210  240  ays 

Bar  silver  is  a  commodity  in  London,  and  its  price  is  subject  to  the  relation 
of  demand  to  supply.  All  official  transactions  must  pass  through  one  of  the 
four  old  established  firms  of  bullion  brokers,  who  meet  daily  at  2  p.  m.  in  order 
to  fix  silver  quotations  in  harmony  with  orders  on  hand. 

There  are  two  official  silver  quotations  issued  daily  in  London,  one  for  spot 
delivery  (which  means  within  seven  days)  and  one  for  two  months  from  date 
of  making  the  contract ;  but  unofficially  it  can  be  arranged  that  delivery  be 
made  at  any  particular  day  within  two  months,  at  a  price  to  be  specially 
arranged. 

As  there  is  a  difference  of  eight  hours  in  time  between  Shanghai  and  London 
(Shanghai  being  earlier),  China  can  operate  only  on  London’s  quotations  of 
the  previous  day. 

Every  bar  of  silver  is  clearly  marked,  so  as  to  be  easily  identified.  It  shows 
the  weight  (within  *4  ounce),  the  fineness,  and  initials  with  numbers.  It  is 
accompanied  by  a  chip  (about  %  ounce  in  weight)  and  a  testimony  of  assay. 


ENGLISH  BAR  SILVER  AND  THE  CHINA  MARKET 

English  bar  silver  is  bought  by  China  either  for  export  to  China  or  for 
forward  delivery  as  cover  for  a  purchase  of  sterling  drafts  or  telegraphic 
transfer  with  the  idea  to  reverse  the  transaction  as  soon  as  the  parity  will 
permit. 

The  import  of  bar  silver  into  China  serves  purely  currency  purposes,  which 
means  that  the  silver  is  melted  after  arrival  and  then  converted  into  sycee 
taels  or  dollars  or  subsidiary  coins. 

Contrary  to  established  usage  in  America,  the  brokerage  in  England  on  bar 
silver,  amounting  to  one-eighth  of  1  per  cent,  is  payable  by  the  buyer.  Other 
charges  fluctuate.  So.  for  example,  the  freight  from  London  to  China  was 
reduced  in  September,  1924,  from  three-fourths  of  1  per  cent  to  five-eighths 
of  1  per  cent,  in  order  to  be  better  able  to  compete  with  New  York. 


CURRENCY,  EXCHANGE,  AND  BANKING 


169 


Interest  varies  greatly  and  depends  not  only  on  the  state  of  the  money 
market,  but  also  on  the  ability  of  the  importer  to  finance  the  shipment  (until 
arrival  at  Shanghai)  by  means  of  sterling  or  by  means  of  taels.  In  the  for¬ 
mer  case  the  rate  of  interest  will  be  much  lower,  as  money  at  Shanghai  com¬ 
mands  much  higher  rates  of  interest. 

Bar  silver  is  bought  and  sold  in  London  in  gross  ounces,  but  quotations  are 
in  standard  ounces  (0.925  fine).  One  can  have  orders  executed  in  standard 
ounces  just  as  easily,  but  this  would  have  to  be  distinctly  stated  when  placing 
the  order.  “  Buy  100.000  ounces  spot  delivery,  at  best  ”  means  100,000  ounces 
troy.  Orders  may  also  be  placed  for  a  specified  amount  in  sterling :  “  Buy 
at  a  limit  of _ pence,  £25,000  bar  silver,  forward  delivery.” 


CONVERSION  OF  ENGLISH  BAR  SILVER  INTO  SHANGHAI  TAELS 


There  are  two  questions  immediately  connected  with  the  conversion  of  bar 
silver  into  sycee  taels,  the  first  of  which  is  how  many  Shanghai  taels  currency 
are  100.000  troy  ounces  of  bar  silver  0.998  fine.  This  may  be  demonstrated 
by  the  following  formula : 

?  Shanghai  taels  =100.000  ounces  English  silver. 

1.208  ounces  =1  Canton  tael  weight.. 

100  Canton  taels’  weight  of  bar  silver=110.90  Shanghai  taels  currency. 


100.000X110.90 

1.208X100 


=91,804.64  Shanghai  taels 


The  second  problem,  which  is  of  more  importance,  resolves  itself  into 
establishing  a  basis  for  the  parity  of  the  pound  sterling  and  the  Shanghai 
tael. 

The  constant  derived  from  the  following  formulas,  multiplied  by  the  London 
price  per  ounce  standard  of  bar  silver,  will  give  the  theoretical  par  between 
London  and  Shanghai.  The  addition  of  charges  and  interest  will  produce 
the  actual  parity  between  the  Shanghai  tael  and  the  pound.  Charges  fluctu¬ 
ate  and  may  be  considered  (until  further  notice)  to  consist  of  the  following 
items : 

Per  cent 


Freight  London  to  Shanghai _ 0.625 

Insurance _  .  100 

Dock  charges,  marking,  and  landing _  .  250 

London  brokerage _  .  125 


1. 10 

Interest  for  45  days  is  to  he  added,  according  to  the  rate  at  which  one  is 
willing  to  invest  funds  or  at  which  one  can  borrow  money. 

The  origin  of  all  the  links  in  the  chain  constituting  the  following  formulas 
are  plain,  except  perhaps  the  presence  of  the  Canton  taels  weight.  The 
reason  the  Canton  tael  is  introduced  into  our  calculations  is  that  when  foreign 
banks  first  entered  the  field  at  Shanghai  they  brought  along  with  them 
Cantonese  compradors,  who  were  accustomed  to  the  Canton  taels  weight. 
To  this  day  the  original  standard  has  been  maintained. 

The  following  formula  may  be  used  in  making  the  desired  conversions : 

?  pence  =  1  Shanghai  tael  currency. 

110.90  Shanghai  taels  =  100  Canton  taels  weight. 

1  Canton  tael  weight  =  579.84  grains. 

480  grains  =  1  ounce  0.998  fine. 

222  ounces  fine  =  240  ounces  standard. 

1  ounce  standard  =  London  price  in  pence. 

579.84  X  99.8  X  240 

- — 1.175234 

110.90  X  480  X  222 

The  constant  is  1.175.  Say  the  price  of  bar  silver  in  London  per  ounce 
standard  is  35%d.  for  spot  delivery : 

Multiply  price  per  ounce  by  the  constant,  1.175.  (35.625  X  Pence 


1.175) _  41.859375 

Add  charges,  1  per  cent  (variable) _ — _ _  .460453 

Add  interest  for  45  days  at  4  per  cent  (variable) _  .  231472 


Parity  for  1  Shanghai  tael  (or  3s,  6xVd.) _ _ _  42.5513 


170 


COMMERCIAL,  HANDBOOK  OF  CHINA 


If,  for  example,  telegraphic  transfer  on  London  is  obtainable  at  Shanghai 
at  3s.  7d.  for  ready  delivery,  it  will  be  remunerative  to  buy  telegraphic 
transfer  in  Shanghai,  remit  to  London,  and  purchase  bar  silver  there  for 
ready  shipment.  If,  on  the  other  hand,  telegraphic  transfer  on  London  can 
be  sold  at  Shanghai  below  the  parity  just  demonstrated  (3s.  6tV1.),  say,  at 
3s.  6d.  for  forward  delivery,  it  will  prove  remunerative  to  sell  sterling  at 
Shanghai  and  cover  by  selling  simultaneously  silver  in  London  for  forward 
delivery. 

This  means  that  if  the  rate  for  telegraphic  transfer  is  above  parity  of  bar 
silver,  it  induces  purchase  of  silver  in  London  (import  into  China)  ;  if  below 
parity,  it  favors  sale  of  silver  in  London  (export  of  silver  from  Shanghai). 

GOLD  BARS 

DESCRIPTION 

Gold  in  the  shape  of  bars  plays  a  most  important  role  in  financial  trans- 
ations  in  China.  Gold  bars  are  derived  from  gold  articles,  and  to  a  larger 
extent  from  coins,  melted  down  and  refined  to  the  degree  required.  In  shape 
gold  bars  are  small  oblong  bricks  with  rounded-off  corners.  They  weigh 
as  nearly  as  possible  10  Shanghai  taels  (10  Shanghai  taels  weight  equal 
11.3593  ounces). 

In  North  China  still  may  be  found  gold  bars  weighing  from  5  to  10  taels, 
having  the  shape  of  sycee  and  being  as  nearly  as  possible  1.000  fine.  How¬ 
ever,  bars  of  this  shape,  which  are  used  to  hoard  savings,  are  seldom  en¬ 
countered. 

Gold  bars  handled  at  Shanghai  are  similar  in  shape  and  wreight  to  those 
produced  at  Tientsin  and  Peking,  but  not  in  fineness,  wdiich  is  as  follows  for 
these  three  types : 


Shanghai  bars _ 0.  978 

Tientsin  bars _  .  980 

Peking  bars _ _ _  .  985 


Each  bar  is  embossed  wfith  the  firm  name  of  the  smelter,  also  the  year  in 
which  it  was  manufactured  and  the  Chinese  characters  meaning  “  surface 
gold.”  that  is,  gold  containing  alloy. 

Gold  bars  are  for  the  most  part  gold  coins  melted  down  after  being  imported 
from  countries  where  there  is  a  free  circulation  of  gold,  wThich  means  that 
bank  notes  can  be  cashed  against  gold  coin  at  par  and  that  there  is  no  export 
prohibition  in  force  iri  China  relative  to  the  yellow  metal.  Banks  in  China 
very  rarely  import  gold  coins  for  their  own  account.  Invariably  the  imports 
are  made  for  Chinese  clients,  wTho  agree  to  a  certain  price  in  silver  taels  or 
in  telegraphic  transfer  of  the  same  gold  currency,  plus  charges  and  commission. 
The  Chinese  buyer,  upon  receipt,  wfill  invariably  melt  the  coin  into  gold  bars 
for  sale  in  the  local  market. 

The  weight  of  gold  bars  is  as  follows :  The  Shanghai  bar  equals  10  Chau- 
ping  taels  (366.71  grams)  ;  Tientsin  bars  are  1.35  per  cent  lighter  in  weight, 
which  means  that  1  Shanghai  gold  bar  equals  1.0135  Tientsin  gold  bars  in 
weight;  I  Shanghai  gold  bar  weighs  1.0183  Peking  bars. 

TRADING  IN  GOLD  BARS 

Gold  bars  have  become  of  enormous  importance  to  the  financial  markets  in 
China,  notably  for  Shanghai.  They  are  sold  for  actual  delivery  by  Chinese 
holders  to  banks,  who  wall  buy,  whenever  the  parity  permits  it,  for  export 
abroad.  The  bulk  of  transactions  in  gold  bars  is  made  for  delivery  on  settle¬ 
ment  day  (which  at  Shanghai  is  nowr  the  15th  of  each  month).  Contracts 
for  delivery  exceeding  two  months  are  not  permissible.  There  is  a  gold-bar 
exchange,  to  wThich  members  send  their  representatives. 

Already  in  the  beginning  of  the  present  century  there  existed  an  association 
of  gold  dealers  in  Shanghai.  The  members  dealt  in  gold  with  persons  having 
direct  use  for  gold  for  adornment  or  for  export  abroad.  But  there  was  no 
gold  exchange.  Such  an  institution  had  begun  already  to  take  root  before  the 
advent  of  the  European  war  and  developed  fully  during  that  memorable 
period.  To-day  it  commands  the  attention  of  the  world  by  means  of  its  huge 
transactions  and  through  its  powerful  influence  on  the  price  of  silver. 


171 


CURRENCY,  EXCHANGE,  AND  BANKING 
GOLD  BARS  FROM  PEKING  AND  TIENTSIN 

As  indicated  above,  Peking  gold  bars  are  of  a  fineness  of  0.985,  but  they  are 
below  the  weight  of  Shanghai  bars.  One  Shanghai  bar  equals  1.0183  Peking 
bars. 

In  order  to  buy  large  amounts  of  gold,  Peking  will  probably  have  either  to 
draw  on  Shanghai  or  demand  shipment  of  sycee.  In  the  former  case,  the 
actual  drawing  rate  (telegraphic  transfer  selling  for  Shanghai  taels)  will 
have  to  be  considered;  in  the  latter  instance,  the  outturn  of  sycee  actually 
shipped.  This  would  mean  that  107  Shanghai  taels  equals  100  Peking  taels. 
The  formula  is  as  follows : 

Shanghai  price  for  gold  bars  X  0.985 
1.0183  X  978  X  drawing  rate  on  Shanghai 

Gold  bars  in  Tientsin  are  0.980  fine  and  weigh  1.0132  for  every  Shanghai 
tael  weight.  If  Tientsin  buys  large  quantities  of  gold  bars  for  account  of 
Shanghai  such  purchases  will  be  paid  for  by  drawing  telegraphic  transfer  on 
Shanghai  (market  rate)  or  by  ordering  shipment  of  sycee  from  Shanghai;  the 
latter  will  turn  out  at  a  cross  rate  of  1,064  Shanghai  taels  to  1,000  Tientsin 
taels.  The  following  formula  demonstrates  : 

Shanghai  gold-bar  price  X  0.980 
1.0132  X  0.978  X  drawing  rate 

It  has  to  be  borne  in  mind  that  charges  and  interest  for  shipments  from 
Peking  and  Tientsin  to  foreign  countries  will  be  higher  on  almost  every  item 
as  compared  with  Shanghai.  The  gold  has  to  be  transshipped  at  Shanghai  and 
is  therefore  subject  to  extra  freight  and  additional  insurance  and  interest. 

EXPORT  OF  GOLD  Bx\RS 

When  exported,  gold  bars  are  wrapped  in  soft  paper  and  wadding  and  are 
either  packed  into  bamboo  tubes,  usually  10  bars  into  each  tube,  or  placed  in 
small  but  strong  wooden  boxes.  The  parcels  are  then  wrapped  with  Hessian 
cloth,  which  is  sewn  up  and  secured  by  thin  steel  wire.  Finally,  they  are  pro¬ 
vided  with  a  number  of  seals.  The  packing  is  inexpensive,  and  the  cost  is  from 
20  to  50  cents  per  parcel  weighing  between  4  and  5  kilos. 

The  export  of  gold  bars  is  made  possible  if  the  parity  permits  it.  The  parity 
is  based  on  yen.  Multiply  the  constant  4.7682  by  the  market  rate  for  telegraphic 
transfer  on  Japan  and  add  charges  and  interest  to  the  result.  If  gold  bars 
for  spot  delivery  (actual  bars)  are  obtainable  below  the  parity,  it  will  be  pos¬ 
sible  to  export  gold  and  obtain  a  profit.  The  theoretical  as  well  as  the  practical 
aspect  of  the  question  will  be  demonstrated  presently. 

In  principle,  gold  bars  may  be  exported  to  any  country  willing  to  buy  them  at 
the  seller’s  price.  There  are  no  restrictions  placed  in  the  way  by  the  Chinese 
Government,  and  there  is  no  duty  imposed  on  gold  shipments  inward  or  outward 
by  the  customs. 

Export  to  America. — Since  1920  very  large  quantities  of  gold  bars  have  been 
shipped  from  Shanghai  to  the  United  States  of  America.  There  was  a  total 
interruption  of  export  in  1922,  when  the  parity  did  not  allow  the  shipment  of 
gold  bars  from  China  to  the  United  States,  but  shipments  were  continued 
again  in  1923  and  1924. 

Here  a  warning  may  be  inserted  as  to  the  handling  of  gold  bars  from  Shang¬ 
hai.  The  fineness  of  gold  shipped  from  China  is  guaranteed  by  the  seller.  If 
it  exceeds  0.978,  a  refund  is  made  by  the  buyer  at  Shanghai,  but  if  it  is  below 
this  standard  a  refdnd  is  claimed  from  the  seller.  A  bank  at  Shanghai  often 
makes  a  large  shipment  of  gold  bars  to  the  United  States ;  such  shipments  con¬ 
sist  frequently  of  bars  contracted  for  with  sundry  sellers. 

It  is  true  that  the  bars  are  numbered ;  but  if  they  are  melted  together  and 
then  found  at  the  assay  to  be  deviating  from  the  fineness  of  0.978,  it  will  be 
impossible  to  ascertain  whose  bars  had  been  deficient.  In  such  an  event  it  will 
be  impossible  to  allocate  the  claim  to  the  party  concerned.  Therefore  it  is 
advisable  to  have  a  clearly  stipulated  lot  of  gold  bars  melted  separately. 

Claims  at  Shanghai  are  settled  according  to  the  actual  fineness,  on  the 
strength  of  the  mint’s  assay  certificate.  For  instance,  a  bank  at  Shanghai  buys 
70  gold  bars  with  a  guaranteed  fineness  of  0.978.  This  would  mean  68,460 
units  of  fine  contents.  After  assay  at  the  United  States  mint  it  was  ascer- 


172 


COMMERCIAL  HANDBOOK  OF  CHINA 


tained  that  some  bars  were  only  0.960,  others  0.945  fine.  The  total  difference 
was  certified  to  amount  to  1,220  units  of  fine  contents.  The  bars  were  origi¬ 
nally  purchased  at  Shanghai  at  282.50  taels  per  bar,  so  that  the  seller  will 
have  to  refund  to  the  bank  here  344.65  taels. 

After  these  preliminary  remarks  it  may  he  appropriate  to  turn  to  the  consid¬ 
eration  of  actual  shipments  of  gold  bars  to  America.  These  are,  owing  to 
proximity  of  that  port,,  consigned  to  San  Francisco,  but  may  just  as  well  be 
directed  to  any  other  of  the  four  remaining  mints  (Carson,  Denver,  Philadelphia, 
or  New  Orleans),  or  they  may  be  addressed  to  one  of  the  Government  assay 
offices  at  New  York,  Boise,  Charlotte,  Deadwood,  Helena,  Seattle,  or  St.  Louis. 

Charges  and  interest  fluctuate.  The  following  is  illustrative,  based  on  rates 
prevailing  at  time  of  computation : 

Per  cent 


Packing  and  postage _ 0.  030 

Brokerage  at  Shanghai _  .  050 

Insurance _  .  015 

Mint  charges _  .  040 

Correspondent’s  commission  and  other  incidentals  in  America _  .  250 


Total  charges _  .  385 

Interest.  30  days  at  5  per  cent _  .  415 


Total _  .  800 

The  equivalent  of  $100,000  is  4,196.9339  Shanghai  taels  (weight)  of  gold 
bars  (0.978  fine).  Consequently  the  value  of  1  gold  bar  of  10  taels  weight  is 
$238.2680. 

Constant  (United  States  currency) _ $238,268 

Deduct  charges  and  interest  (variable) _  0.800 


Remainder _  237.  468 

In  order  to  find  the  mint  parity  between  Shanghai  gold  bars  and  United  States 
dollars,  divide  the  constant  by  the  bank’s  buying  rate  for  telegraphic  transfer 
on  America  and  deduct  charges  and  interest.  If  gold  bars  are  obtainable  below 
the  figure  obtained  by  such  a  computation,  it  will  be  possible  to  ship  gold  to 
the  United  States. 

BANKING 


For  a  clear  understanding  of  banking  in  China  it  is  important  to 
mark  the  distinctions  between  foreign  banks  and  Chinese  banks.  Of 
the  foreign  banks  in  China,  there  are  4  American,  1  Belgian,  4 
British,  3  French,  2  Dutch,  1  German,  1  Italian,  35  Japanese,  3 
Russian,  and  1  Scandinavian.  Notwithstanding  the  restrictions  in 
business  imposed  upon  them  by  operation  of  the  treaty  laws,  the 
foreign  banks  have  become  powerful  institutions  in  the  principal 
trading  centers  of  the  country. 

FOREIGN  BANKS 

Foreign  banks  are  entitled  to  establish  themselves  only  in  treaty 
ports,  and  they  have  no  right  of  operation  in  nontreaty  port  cities. 
They  are,  for  the  most  part,  subject  to  the  laws  of  their  respective 
countries,  under  the  jurisdiction  of  the  duly  authorized  representa¬ 
tives  of  those  countries  in  China ;  hence  they  are  ordinarily  not  sub¬ 
ject  in  any  respect  to  the  laws  or  control  of  China.  Since,  except  in 
special  cases,  foreigners  other  than  missionaries  may  not  hold  land 
in  China  outside  of  designated  treaty  ports,  the  foreign  banks  may 
not  ordinarily  participate  in  financial  projects  which  would  involve 
securities  falling  outside  the  limits  of  the  treaty-port  areas.  There 
is  nothing  to  prevent  foreign  banks  from  financing  projects  within 
treaty-port  limits,  but  the  main  business  of  foreign  banks  in  China 


CURRENCY,  EXCHANGE,  AND  BANKING  173 

is  that  of  financing  foreign  trade.  The  life  of  their  business  is  the 
handling  of  bills  of  exchange. 

Working  through  the  fictitious  tael  units,  of  which  there  are  many, 
and  through  other  units  of  currency  differing  in  one  part  of  the 
country  from  those  in  another,  the  foreign  bank  in  China  probably 
has  a  more  lucrative  field  in  its  exchange  transactions  than  obtains 
anywhere  else  in  the  world. 

The  manager  of  one  of  the  foreign  banks,  when  asked  why  his 
bank  had  not  extended  greater  facilities  to  local  merchants  in  financ¬ 
ing  their  business  operations,  answered  that  his  bank’s  turnover  in 
exchange  transactions  could  net  the  bank  annual  profits  of  15  to  20 
per  cent,  which  was  more  acceptable  to  the  stockholders  than  “  com¬ 
mercial  banking,”  in  the  American  sense  of  the  phrase. 

The  largest  and  most  influential  of  the  foreign  banks  in  China  is  a 
British  institution  which  has  celebrated  its  seventieth  anniversary. 
Much  of  its  strength  lies  in  the  fact  that  it  is  an  indigenous  institu¬ 
tion,  with  its  head  office  in  Hongkong  and  not  in  London.  With  its 
board  of  directors  on  the  ground  and  with  their  knowledge  of  the 
details  of  the  bank’s  business  in  China,  they  can  act  with  quick  deci¬ 
sion  and  intelligence  on  all  matters  affecting  the  bank’s  interests. 
second  advantage  which  this  bank  possesses  is  the  wide  distribution  of 
its  shares  among  the  substantial  British  and  Chinese  business  public; 
hence  it  has  in  the  mercantile  life  of  China  a  considerable  clientele 
which  is  financially  interested  in  its  success  and  which  naturally  con¬ 
tributes  to  its  business.  Thirdly,  through  its  recognized  position  of 
strength  in  British  financial  circles  it  has  been  accepted  by  British 
financial  interests  as  their  natural  representative  in  transactions  in¬ 
volving  loans  and  other  finance  accommodations,  with  the  result  that 
this  bank  is  the  depository  for  certain  Chinese  railway  funds  pledged 
for  British  loans  and,  through  Great  Britain’s  predominant  position 
in  the  customs  and  salt  administrations,  for  a  portion  of  the  customs 
and  salt  revenues.  The  aggregate  of  all  these  probably  amounts 
to  an  average  balance  of  $10,000,000  silver  in  ready  resources,  some 
of  which  the  bank  holds  free  of  interest  charges.  Through  the 
strength  of  its  position  thus  developed  over  a  long  period  of  years 
this  bank  is  virtually  dictator  of  the  silver  rates  in  the  China  ex- 
i ,  change  market  as  they  affect  foreign  trade. 

Many  of  the  foreign  banks  have  their  notes  in  circulation  in  the 
'  principal  treaty  ports  of  the  country.  To  the  American  it  is  a 
curious  situation  which  permits  a  bank  in  one  locality  to  discount 
its  own  notes  issued  for  another  locality ;  but  the  currency-exchange 
situation  in  China  makes  this  possible,  for  the  reason  that  money 
is  always  a  commodity  while  serving  as  a  medium  of  exchange. 
Hence  the  banks’  buying  and  selling  rates  of  the  various  moneys 
in  circulation  differ  as  to  net  profits  to  the  banks  on  all  exchange 
transactions. 

CHINESE  BANKS 

Chines  banking  is  undergoing  a  transition.  It  was  the  failure  of 
Chinese  banks  to  meet  the  necessities  of  the  foreign  traders  which 
encouraged  foreign  banks3  to  expand  into  the  powerful  institutions 

- - - - — — - — 

3  A  detailed  description  of  foreign,  semiforeign,  and  native  banks  in  China  may  be  found 
in  Currency,  Banking,  and  Finance  in  China,  by  Frederic  E.  Lee,  published  by  the  Bureau 
of  Foreign  and  Domestic  Commerce,  Washington,  D.  C.,  as  Trade  Promotion  Series  No.  27. 


174 


COMMERCIAL  HANDBOOK  OF  CHINA 


they  have  become.  Gradually,  however,  the  Chinese  are  developing 
modern  banks  and  there  are  now  in  Shanghai,  Tientsin,  Hankow, 
Canton,  and  other  trading  centers  Chinese  banks  possessing  the 
facilities  and  discharging  functions  patterned  after  the  foreign  in¬ 
stitutions.  They  still  lack  an  effective  Government  control,  for 
China  has  still  to  develop  a  system  of  bank  inspection  and  the  effec¬ 
tive  administration  of  banking  laws  for  the  control  of  note  issues, 
reserves,  loans,  and  similar  functions  of  banks. 

Until  about  1890  the  Chinese  Government  showed  little  evidence 
of  interesting  itself  directly  in  business  enterprise,  and  prior  to 
1900  the  banking  of  the  country,  other  than  that  of  a  purely  local 
community  character,  was  for  the  most  part  in  the  hands  of  Shansi 
bankers.  The  Shansi  bankers  commanded  more  than  50  per  cent 
of  the  larger  banking  business  of  the  country.  They  had  branches 
throughout  the  country,  and  their  monopoly  of  the  Government 
business  and  the  resources  which  this  emolument  placed  at  their 
command  gave  them  great  strength.  But  they  disappeared  entirely 
as  a  corporate  body  in  1912.  Thus  native  banks,  even  in  Shansi, 
to-day  are  not  necessarily  Shansi  bankers  in  the  original  sense 
of  the  word.  An  interesting  sidelight  on  business  methods  in 
China,  as  practiced  by  the  Shansi  bankers  and  involving  the  mutual 
responsibility  of  individual  and  family,  is  shown  in  the  extract 
below  from  a  report  made  some  years  ago  by  Mr.  T.  W.  Wright, 
of  the  Chinese  Maritime  Customs : 

A  peculiar  feature  in  the  constitution  of  these  banks  is  the  extraordinary 
manner  in  which  the  employees  are  treated.  The  bankers  themselves,  being 
Shansi  men,  employ  only  natives  of  that  Province,  and,  when  possible, 
select  men  out  of  their  own  villages.  When  a  man  is  appointed  to  a  post 
at  one  of  the  branch  offices,  his  family  is  taken  charge  of  by  the  bank  and 
held  as  security  for  fidelity  and  good  behavior.  At  his  post  the  employee 
may  send  no  letter  to  his  family,  except  an  open  one  through  his  master; 
he  receives  no  pay  or  salary  of  any  kind  while  away ;  officials  are  enter¬ 
tained,  clothing  is  purchased  as  required,  and  sundry  expenses  are  incurred, 
and  every  item  is  met  with  the  bank's  money,  the  strictest  account  being 
kept  of  all  expenditures  on  behalf  of  the  individual.  A  man  holds  his 
appointment  for  three  years,  and  then  returns  to  his  employer’s  house, 
taking  with  him  the  account  of  the  money  expended  during  his  term :  he 
is  duly  searched,  and  the  clothing  he  has  purchased  undergoes  examination. 
Should  it  happen,  after  examination,  that  the  accounts,  etc.,  are  satisfactory 
and  the  affairs  of  the  bank  have  been  prospering  during  the  man's  tenure 
of  office,  he  is  handsomely  rewarded,  and  is  allowed  to  join  his  family, 
who  are  immediately  released.  If,  on  the  other  hand,  business  has  not 
prospered  under  the  man’s  management  and  he  has  presented  an  unsatis¬ 
factory  account,  clothing  and  everything  are  retained,  and  the  family  are 
held  in  bondage  until  a  suitable  fine  is  paid,  or  the  man  himself  may  be 
imprisoned. 

Following  the  settlement  of  the  Boxer  troubles,  the  Chinese  cus¬ 
toms  funds  became  a  pledge  for  foreign  loans,  and  gradually  the 
foreign  banks  became  the  depositories  of  the  funds  necessary  to 
meet  these  pledges.  Also  the  loans  pledged  on  the  salt  revenues 
and  the  loans  for  railway  construction  made  the  banks  of  the  for¬ 
eign  nationals  negotiating  these  loans  the  depositories  of  funds 
for  the  meeting  of  interest  and  amortization  charges.  Thus  the 
Shansi  bankers  lost  their  monopoly  of  the  Government  business. 
Moreover,  the  provincial  banks — which  have  sprung  up  since  1900 — 
absorbed  much  of  the  business  originally  given  to  the  Shansi  banks. 


1/ 


CURRENCY,  EXCHANGE,  AND  BANKING 


175 


In  1908  the  central  Government  effected  the  organization  of  a 
State  bank  (Bank  of  China)  and  a  special  bank  (the  Bank  of 
Communications)  for  the  handling  of  funds  for  the  Ministry  of 
Communications.  But  during  1916  the  disorganization  of  the 
central  Government  disrupted  the  management  ol  these  banks  as 
State  institutions.  Private  business  interests  affiliated  with  them 
o-radually  succeeded  in  wresting  them  from  Government  control 
and  saved  them  from  being  completely  wrecked.  The  Govern¬ 
ment’s  interest  in  both  the  Bank  of  China  and  the  Bunk  of  Com¬ 
munications  was  reduced  to  a  minority  interest,  and  these  banks 
are  now  more  private  than  public  in  character,  although  they  con¬ 
tinue  to  enjoy  certain  privileges  carried  with  their  original  charters. 

The  greatest  source  of  confusion  in  Chinese  banking  circles  is 
the  provincial  bank,  which  has  often  been  used  as  the  instrument  ot 
some  provincial  military  governor  who  utilized  it  for  the  issuance 
of  paper  currency  far  in  excess  of  the  bank’s  specie  reserves. 
Probably  no  other  agency  has  done  more  to  disrupt  Chinas  cur¬ 
rency  than  provincial  banks  under  the  domination  of  liiesponsible 
military  forces.  The  demoralization,  however,  has  not  proceeded 
as  far  ^as  might  be  surmised  by  those  unfamiliar  with  the  power 
of  the  Chinese  guild  and  other  private  agencies  to  combat  them. 
Moreover,  the  average  tenure  of  office  of  the  ordinary  military 
overlord  in  any  one  section  of  the  country  has  been  comparatively 
short.  These  factors  have  mitigated  in  some  degree  the  damaging 
effects  of  the  use  by  unscrupulous  military  governors  of  the  pro¬ 
vincial  banks.  .  .  _  _  ,  . 

In  all,  there  are  between  100  and  150  individual  modern  Chinese 

banks  with  an  aggregate  paid-up  capital  of  $150,000,000  to  $200,- 
000  000  silver.  The  Bank  of  China  and  the  Bank  of  Communica¬ 
tions,  which  figure  among  the  larger  of  these  "modem  banks,  have, 
respectively,  113  and  60  branches  throughout  the  country.  The 
Bank  of  China  has  in  circulation  in  China  its  notes  to  an  aggregate 
value  of  $90,000,000  silver,  secured  by  $50,000,000  silver  specie 
reserves.  Thus  it  may  be  said  that,  with  the  exception  of  the  pi  o 
vincial  or  semiofficial  banks,  the  modern-style  Chinese  banks  appear 
to  be  developing  along  sound  and  progressive  lines. 

The  bulk  of  the  actual  banking  business  in  China,  however,  is  still 

in  the  hands  of  the  old-type  native  banks. 

Banks  of  the  old  type  in  China  grew  up  without  Government  regu¬ 
lations,  registrations,  inspections,  or  assistance.  It  has  been  the 
policy  of  the  Chinese  Government  to  interfere  as  little  as  possible  in 
the  affairs  of  its  subjects.  The  old-type  native  bank  is  an  indi¬ 
vidual  or  partnership  concern,,  with  all  the  members  of  the  family 
and  all  the  partners  jointly  and  severally  responsible  to  the  limit  of 
their  liabilities.  Except  for  its  relations  with  the  bankers  guild, 
it  is  independent  of  all  other  banks.  Its  reputation  and  standing  in 
the  community  depends,  first,  upon  its  proprietor  and  then  upon  its 

manager.  These  two  are  all  supreme.  #  .  .  . 

The  prime  qualification  for  entering  a  banking  business  m  China 
is  evidence  of  a  good  financial  standing  among  one  s  neighbois,  coln- 
bined  with  sufficient  capital  to  insure  reasonable  success.  A  capital 
of  $50,000  silver  ($25,000  gold)  would  be  considered  very  substan- 


176 


COMMERCIAL  HANDBOOK  OF  CHINA 


Fig.  6. — Interior  of  one  of  the  leading  Chinese  banking  institutions  in  Shanghai 


CURRENCY,  EXCHANGE,  AND  BANKING 


177 


tial — in  fact,  is  the  usual  limit  for  the  old-style  native  bank.  The 
statement  has  been  made  that  one  of  the  peculiar  features  of  a 
Chinese  bank  is  that  it  does  not  work  for  the  account  of  outside 
funds,  but  that  its  asset  business  is  carried  out  exclusively  for  the 
account  of  the  proper  capital  of  the  banks  and  of  loans  made  with 
larger  credit  institutions.  (The  native  bank  does  not  finance  indus¬ 
trial  concerns,  nor  does  it  grant  long-term  loans. 

The  old  type  of  nature  bank  did  not  seek  palatial  quarters,  for 
officialdom  might  be  attracted  by  what  could  be  interpreted  as  evi¬ 
dence  of  prosperity,  and  tax  exactions  in  some  form  or  other  would 
be  sure  to  follow.  Some  protection  from  this  menace  could  be 
expected  from  the  bankers’  guild,  but  a  banker  would  have  himself 
to  blame  if  he  stepped  out  and  unnecessarily  gave  evidence  of  wealth. 

If  a  banker  is  known  to  lneet  his  obligations,  he  may  extend  the 
issuance  of  credit  to  his  dealers,  and  his  orders  will  be  accepted  with¬ 
out  question  by  other  native  bankers  or  dealers.  The  law  did  not 
require  the  banker  to  keep  on  deposit  a  certain  security  against 
\  notes  issued.  /  The  native  bank  receives  deposits,  for  which  it  pays 
interest  rates  up  to  10  per  cent.  These  are  on  fixed  deposits  with 
a  minimum  period  of  six  months.  The  Chinese  public  is  not  gen¬ 
erally  educated,  however,  to  depositing  its  money  in  banks,  nor  did 
these  banks  carry  current  checking  accounts.  There  were  no  legal 
restrictions  on  loans  made  by  banks  or  on  interest  charges  which, 
from  a  western  point  of  view,  are  often  usurious.  One  and  a  half 
per  cent  a  month  is  considered  a  reasonable  rate.  Some  of  the  native 
banks  maintain  warehouses  for  the  storage  of  grain  and  otherf  com- 
modities  offered  as  security  for  loans,  but  these  are  unusual.  Most 
loans  are  made  on  personal  security  backed  by  personal  guarantors. 
The  family  system,  whereby  a  person’s  responsibility  extends  to 
the  melnbers  of  his  family  (family  in  the  generic  sense  of  clan), 
made  this  a  more  practical  custom  than  it  would  otherwise  seem. 

Exchange  transactions  offer  to  the  native  banks  probably  the 
steadiest  source  of  income.  Some  of  the  merchant  organizations 
transact  their  own  exchange  business  through  a  special  class  of  native 
banks.  These  concerns  have  a  very  considerable  turnover  in  the 
interchange  of  commodities  between  different  places,  hence,  with  very 
little  shipment  of  coin  or  bullion,  are  able  to  pay  bills  drawn  in  one 
place  against  another  place. 

The  bankers’  guild  is  the  one  important  bond  which  holds  these 
native  banks  together  and  makes  possible  their  continued  operations 
along  the  lines  which  have  characterized  their  activities  over  so  many 
centuries.  Each  city  in  China  has  its  bankers’  guild;  in  fact,  in 
many  cities  it  is  the  most  important  commercial  organization.  The 
guild  fixes  the  rates  of  interest,  exchange  rates,  regulations  regard¬ 
ing  procedure,  and  a  multitude  of  details  concerning  the  conduct  of 
business.  Membership  is  not  obligatory,  but  it  is  of  such  advantage 
that  no  one  can  afford  to  remain  outside  the  guild.  One  of  its  im¬ 
portant  functions  is  the  adjudication  of  disputes.  The  guild’s  arbi¬ 
tration  committee  handles  matters  which  elsewhere  would  lie  within 
the  functions  of  a  court.  /  The  guild  also  provides  certain  clearing¬ 
house  facilities  for  members.  The  Shanghai  native  bankers’  guild 
provides  that  each  money  dealer  may  send  his  books  to  the  exchange 

100020°— 26 - 13 


178 


COMMERCIAL  HANDBOOK  OF  CHINA 


twice  a  day  to  square  accounts,  in  fact,  the  clearing-house  arrange¬ 
ment  in  Shanghai,  which  is  under  the  auspices  of  the  bankers’  guild, 
is  much  less  cumbersome  than  that  of  the  foreign  exchange  banks, 
which  are  obliged  to  make  their  settlements  each  day  in  specie,  neces¬ 
sitating  huge  quantities  of  silver  to  be  carted  around  the  streets  of 
Shanghai  every  evening  in  effecting  settlements,  which,  it  would 
seem,  might  be  handled  in  a  clearing  house. 

An  interesting  comparison  between  the  old-style  native  bank  and 
the  modern  Chinese  bank  of  the  capital  of  Shantung  Province,  a  city 
of  about  300,000  population,  is  given  in  the  November,  1924,  monthly 
report  of  the  Chinese  Bureau  of  Economic  Information : 

Notwithstanding  the  introduction  of  modern  banking  institutions  into  Tsinan, 
native  banks  continue  to  hold  sway  on  the  local  market.  Over  185  native  banks 
are  now  flourishing.  Forty  per  cent  of  these  have  been  in  existence  since  pre- 
Republican  days.  These  older  institutions,  as  a  rule,  are  well  managed  and 
financially  sound.  Their  proprietors  are  mostly  wealthy  merchants  of  Changkiu, 
a  hsien  (district)  in  Shantung  Province,  from  which  the  majority  of  the 
bankers  in  Tsinan  come.  Those  established  in  pre-Republican  days  are  very 
conservative.  They  retain  many  old-fashioned  practices.  Their  capital  is 
counted  by  the  string  of  cash  instead  of  the  dollar  or  tael.  A  string  of  cash  in 
Tsinan  is  equivalent  to  about  one-fifth  of  a  dollar.  The  amount  of  capital  pos¬ 
sessed  by  each  of  these  institutions  varies  from  20,000  to  100,000  strings  of  cash. 
These  banks  are  generally  run  by  men  who  thoroughly  understand  their  business, 
and  are  always  on  a  sound  basis,  notwithstanding  their  moderate  capitalization. 
Those  which  have  sprung  up  since  the  establishment  of  the  Republic  have  many 
new  features.  Their  capital  is  counted  by  the  dollar.  Fifty  thousand  dollars 
is  a  very  moderate  sum  for  the  capital  of  such  a  bank.  Invariably  they  have 
connections  with  certain  military  leaders  or  high  Government  officials,  who 
are  of  assistance  in  establishing  their  position,  and,  of  course,  benefit  from 
their  prosperity.  These  institutions  are  generally  housed  in  well-built  premises 
and  present  a  better  outlook  than  the  old  banks ;  but  from  the  business  point 
of  view,  they  are  considered  less  sound  financially.  Tsinan  native  banks  usually 
confine  their  activities  to  general  banking  business,  such  as  loans,  deposits,  and 
exchange.  They  are  seldom  engaged  in  business  of  a  speculative  nature. 

BUSINESS  OF  CHINESE  NATIVE  BANKS 

Mr.  E.  E.  Kann,  a  Shanghai  banker,  describes  the  business  of  the 
Chinese  native  banks  as  follows: 

The  native  banks  establish  the  official  rates  for  internal  exchange.  They 
determine  the  official  market  rate  for  local  dollars  in  relation  to  taels.  They 
likewise  fix  interport  quotations. 

The  native  banks  fix  the  daily  native  interest  rate.  This  latter  is  of  great 
importance  to  the  economic  life  of  China.  It  corresponds  to  the  interest  rate 
for  call  loans  in  the  Occident.  Native  interest  is  quoted  twice  daily  in  can- 
dareens  per  1,000  taels  per  diem.  According  to  existing  rules  the  upper  limit 
for  native  interest  is  70  candareens.  If  the  quotation  is  given,  for  example, 
as  20  candareens,  this  corresponds  to  an  interest  rate  of  7.3  per  cent  per  annum. 
(Multiply  the  native  rate  by  365.)  The  native  interest  quotation  is  subject 
to  factors  similar  to  those  determining  the  rate  for  call  money  in  Europe 
and  America,  yet  in  China  it  is  much  more  sensitive.  Generally  it  is  an 
excellent  barometer  for  the  state  of  the  local  money  market. 

Another  branch  of  local  exchange,  left  entirely  to  native  banks,  is  the  fixing 
of  daily  rates  of  exchange  for  small  coin  in  silver,  copper  cents  in  terms  of 
taels,  and  silver  small  coin  pieces  and  coppers  in  terms  of  the  Chinese  dollar 
and  vice  versa. 

All  the  quotations  given  out  by  the  native  banks  in  Shanghai  are  the  result 
of  regular  Bourse  proceedings,  held  twice  daily,  except  on  Sundays. 

The  following  are  some  of  the  other  categories  of  business  as  transacted 
by  Chinese  native  banks : 

Deposits. — Current  accounts  as  well  as  fixed  deposits  are  accepted,  the 
latter  carrying  interest  at  a  rate  to  be  specially  arranged.  Up  to  the  present, 
native  banks  have  not  been  catering  for  savings  accounts. 


179 


CURBENCY,  EXCHANGE,  AND  BANKING 

Current  accounts  are  opened  after  a  pass  book  lias  been  sent  to  the  depositor 
by  the  bank.  The  latter  employs  a  special  outdoor  staff  to  report  on  the 
standing  of  prospective  clients  and  to  acquire  new  customers.  All  deposits 
are  simultaneously  recorded  in  the  pass  book,  and  all  native  orders  issued 
by  the  bank  on  behalf  of  its  client  must  be  entered  at  once  in  the  pass  book. 

In  the  majority  of  cases  interest  on  current  accounts  is  subject  to  the  average 
monthly  native  interest  rate,  from  which  5  per  cent  is  deducted.  Some  of 
the  larger  institutions  refrain  from  paying  interest  during  the  first  and  also 
during  the  last  month  of  the  Chinese  year,  because  these  embrace  China’s 
great  settling  days  and  holidays. 

Inter  provincial  remittances. — Many  native  banks  have  branches  in  the 
principal  trade  centers  of  China  and  correspondents  in  others.  Transfers  are 
effected  by  means  of  drafts,  letters,  or  cables.  Drafts,  when  drawn  at  a 
usance  of  3  to  10  days  after  sight,  are  subject  to  previous  acceptance. 

Loans  and  overdrafts. — Most  of  a  native  bank’s  clients  receive  shortly  after 
the  Chinese  New  Year  a  pass  book,  on  the  first  page  of  which  is  written  a 
brief  by  an  authority  to  overdraw  up  to  a  given  limit.  In  time  of  war  or 
civil  commotion,  when  business  is  thrown  into  confusion,  the  native  banks 
are  likely  to  stop  granting  further  credits  to  clients,  notwithstanding  the 
written  authority  extended  to  customers  in  the  beginning  of  the  year.  They 
even  have  the  right  to  call  for  payment,  without  previous  notice,  of  an  over¬ 
draft  already  granted. 

The  rate  of  interest  on  loans  is  a  matter  of  arrangement.  Interest  rates 
on  overdrafts  are  calculated  and  debited  monthly. 

Issue  of  negotiable  documents. — In  place  of  money  Chinese  native  banks 
often  issue  a  sort  of  cashier’s  order  written  on  a  small  slip  of  native  paper, 
which  is  payable  on  demand  to  bearer,  is  negotiable  as  a  bank  note,  and,  like 
the  latter,  will  not  be  replaced  in  case  of  loss. 

In  the  lower  right-hand  corner  there  is  a  small  seal  meaning  “  clearing.” 
This  remark  corresponds  somewhat  to  the  foreign  custom  of  crossing  checks 
and  adding  “  &  Co.”  The  kind  of  document  just  referred  to  is  given  to  lending 
banks  by  native  banks,  whenever  the  former  grant  call  loans  (chop  loans)  to 
the  latter.  It  is  typical  that  this  kind  of  promissory  note  does  not  contain 
a  due  date,  nor  an  interest  clause,  notwithstanding  the  fact  that  both  have 
been  clearly  agreed  upon,  when  the  “  chop  loan  ”  was  negotiated.  The  inten¬ 
tional  omission  speaks  well  for  the  trust  which  the  native  banks  bestow  and 
obtain. 

Foremost  amongst  the  negotiable  instruments  issued  by  native  banks  is  the 
native  bank  order,  called,  in  short,  “  native  order.”  It  is  issued  by  the  bank 
at  the  request  of  its  clients,  to  whose  account  the  face  amount  is  debited  at 
the  time  the  native  order  is  issued ;  but  the  value  date  always  corresponds 
with  the  due  date  of  the  native  order.  The  latter  is  usually  payable  10 
days  after  date,  sometimes  5  days  and  sometimes  at  sight;  in  the  latter  case 
the  order  is  stamped  “  Tsi,”  meaning  immediate.  Other  usances  are  admis¬ 
sible,  but  not  common.  The  10-day  native  order  is  the  one  principally  employed 
for  purposes  of  trade.  All  orders  are  actually  payable  one  day  after  that  on 
which  they  are  due. 

FINANCING  BUSINESS  THROUGH  BANKS  IN  CHINA 

SETTLEMENT  OF  ACCOUNTS 

Among  the  Chinese,  trade  settlements  are  made  twice  each  month, 
monthly,  or  quarterly,  on  certain  festival  days,  and  at  the  end  of 
the  year.  Most  business  is  done  on  the  shorter-credit  terms.  The 
three  festival  days  are  very  important  for  the  clearing  up  of  out¬ 
standing  accounts,  and  the  end  of  the  year  is  the  great  settlement 
period  for  the  whole  mercantile  community  throughout  the  entire 
country.  It  is  a  custom  among  Chinese  to  settle  all  outstanding 
accounts  before  the  dawn  of  the  New  Year.  Chinese  merchants 
do  not  discount  bills  for  cash  at  any  certain  or  fixed  rates.  They 
do,  however,  make  deductions  for  cash  payments,  but  each  case 
is  considered  and  treated  individually.  The  rates  of  interest  on 
money  range  from  1  to  2 y2  per  cent  a  month. 


180 


COMMERCIAL  HANDBOOK  OF  CHINA 


PURCHASES  BY  CHINESE  DEALERS 

The  Chinese  dealer  handling  foreign  goods  generally  makes  his 
purchases  through  resident  importers,  who  are,  for  the  most  part, 
foreigners  (non-Chinese).  The  importer  opens  credit  at  home 
through  his  bank  in  Shanghai.  Bills  are  drawn  on  him  in  letter 
of  credit,  accompanied  by  shipping  documents.  He  accepts  them 
generally  on  90  to  180  days’  sight.  When  goods  arrive,  bills  of 
lading,  invoice,  and,  if  necessary,  shipping  papers  are  handed  over 
to  him  by  the  bank,  with  indorsement.  Goods  are  stored  to  the  order 
of  the  bank.  Landing  and  warehouse  receipts  are  sent  to  the  bank. 
The  importer  pays  all  charges.  The  Chinese  dealer  applies  to  the 
importer  for  the  delivery  of  part  of  the  goods,  giving  him  a  native 
bank  order  for  an  amount  proportionate  to  the  goods  taken.  The 
native  order  is  sent  by  the  importer  to  the  bank,  which  issues  a 
delivery  order  for  the  goods  and  at  the  same  time  credits  the  special 
account  of  the  importer  for  the  amount  of  the  native  order.  When 
all  goods  pertaining  to  a  certain  bill  are  delivered  and  all  the  pay¬ 
ments  credited,  the  bank  sends  out  its  account  for  the  original  bill 
in  local  taels  and  remits  the  face  amount  to  the  home  bank.  The 
importer  has  the  privilege  of  settling  the  exchange  whenever  he 
likes  before  the  due  date  of  the  bill.  Bills  are  generally  renewed  by 
the  banks  in  China  for  a  reasonable  period,  in  case  goods  have  not 
during  the  period  stipulated  been  all  delivered. 

NATIVE  BANK  ORDERS 

A  document  that  plays  an  important  part  in  trade  transactions 
between  foreigners  and  Chinese  is  the  native  bank  order.  The 
average  Chinese  business  house  carries  accounts  in  a  number  of 
Chinese  banks  and  pays  its  bills  in  orders  on  these  native  banks. 
The  orders  are  in  local  taels  and  are  postdated  10  days.  The  for¬ 
eign  banks  charge  a  small  fee  for  entering  all  native  orders  presented 
for  credit — 20  cents  on  each  order,  presumably  the  expense  of  sending 
a  messenger  to  cash  the  order. 

BANKS  OF  ISSUE 

In  Shanghai  there  are  two  classes  of  native  banks  (in  addition 
to  the  modern  Chinese  bank)  which  issue  money  orders  on  a  tael 
basis  that  are  known  to  foreigners  as  “  native  bank  orders  ”  and  to 
Chinese  as  “  chwang  piao  ”  (tickets  issued  by  banks).  The  two 
classes  of  banks  are  “  hwei  hwa,1'  or  registered  banks,  and  atiao 
t’ang,”  or  unregistered  banks.  The  registered  bank  is  recognized 
by  the  native  bankers’  guild,  the  committee  of  which  will  settle 
all  questions  of  dispute  between  banks  and  their  clients  or  other 
parties.  “  Hwei  hwa  ”  means,  literally,  “  to  transfer,”  and  “  tiao 
t’ang,”  “  to  jump  and  strike.”  They  are  simply  terms  manufactured 
by  the  bankers  themselves  and  convey  no  other  meanings.  The  bank 
that  registers  itself  at  the  guild  must  have  a  capital  of  at  least 
20,000  taels,  while  unregistered  banks  may  open  with  any  amount  of 
capital  and  are  not  subject  to  the  control  or  protection  of  the  guild. 

Notwithstanding  the  fact  that  “  tiao  t’ang,”  or  unregistered  banks, 
as  compared  with  “  hwei  hwa,”  or  registered  banks,  are  looked 


CURRENCY,  EXCHANGE,  AND  BANKING 


181 


upon  by  the  public  in  general  as  of  inferior  financial  standing,  they 
outnumber  the  hwei  hwa  and  circulate  their  orders  as  freely  as  the 
latter,  by  reason  of  the  fact  that  the  Chinese  mercantile  community 
investigates  the  personnel  represented  by  the  bank’s  capital.  Mere 
registration  carries  but  little  significance,  and  there  are  a  number  of 
banks  in  Shanghai  organized  by  men  of  wealth  but  unregistered 
because  they  prefer  to  save  the  1,000-tael  registration  fee.  From 
the  standpoint  of  the  Chinese  business  community,  it  is  the  financial 
standing  of  the  bank’s  proprietors  and  not  the  bank’s  stated  amount 
of  capital  that  determines  the  willingness  of  the  public  to  accept 
the  bank’s  orders  as  negotiable  paper.  For  instance,  one  of  the 
banks  enjoys  the  highest  public 
confidence,  though  its  stated  capi¬ 
tal  is  only  10,000  taels.  It  is 
owned  by  a  man  who  is  known  to 
possess  personal  and  real  property 
worth  several  millions. 

In  foreign  trade  it  is  the  obliga¬ 
tion  of  the  comprador  of  the  for¬ 
eign  firm  to  deal  with  only  those 
Chinese  banks  whose  proprietors 
are  known  to  have  a  good  financial 
standing,  for  in  case  of  liquidation 
the  personal  and  real  property  of 
the  proprietors  concerned  will  be 
realizable  assets.  Thus  the  com¬ 
prador  in  a  leading  firm  or  bank 
usually  keeps  a  list  of  banks  whose 
orders  are  acceptable,  and  it  is 
of  prime  importance  that  he 
should  from  time  to  time  reverify 
the  financial  condition  of  their 
proprietors.  The  foreign  business 
men  or  bankers  take  little  or  no 

trouble  to  investigate  the  financial  standing  of  native  banks  with 
which  they  deal,  relying  almost  entirely  upon  their  compradors. 

FORM  AND  NEGOTIABILITY  OF  BANK  ORDER 

In  form  the  native  bank  order  is  very  simple.  It  is  a  piece  of  yel¬ 
lowish  Chinese  paper,  usually  4  by  5 y2  inches  in  size.  There  is  no 
special  printing  distinguishing  it  from  any  other  document.  It  is 
made  out  in  the  same  manner  as  an  ordinary  Chinese  invoice,  con¬ 
taining  red  chop  impressions  and  black-ink  letters. 

Figure  7  is  an  illustration  of  such  an  order.  A  and  B  in  the 
squares  show  the  chops  of  the  banks  issuing  the  order,  but  in  the  case 
of  A  only  half  the  chop  impression  is  shown,  the  other  half  being 
impressed  on  the  page  of  a  stub  book.  In  the  space  C  are  two  Chi¬ 
nese  characters,  meaning  that  the  order  is  payable  by  transfer  at  the 
date  of  the  order,  and  payable  in  cash  one  day  after  the  date  of  the 
order.  D  gives  the  words  “  charges  for  collection  ”  and  the  hour 
after  which  cash  payment  is  not  possible.  A'  A'  in  dotted  lines  show 
the  numbers  of  the  order,  and  B'  B'  in  dotted  lines  the  amount  of 
the  order.  The  amount  is  usually  on  a  tael  basis,  but  may,  at  the 


Fig.  7. — Native  bank  order 


182 


COMMERCIAL  HANDBOOK  OF  CHINA 


request  of  the  client,  be  on  a  dollar  basis,  which  is  unusual.  C'  C' 
in  dotted  lines  show  the  date  of  payment.  The  lunar  calendar  only 
is  used.  A  merchant  when  receiving  a  bank  order  usually  sends  it  to 
his  own  bank  for  collection,  and  D'  in  dotted  lines  gives  the  chop 
impression  of  the  bank  to  which  the  order  is  sent  for  collection,  show¬ 
ing  the  words,  “This  order  is  payable  only  to - Bank;  anyone 

finding  it  can  not  realize  on  it.”  In  case  the  bank  of  collection  sends 
it  to  another  bank  for  collection,  the  bank  to  which  it  is  sent  usually 
cancels  with  dotted  marks  the  chop  impression  given  by  the  first 
bank  for  collections  and  chops  thereon  its  own  chop,  showing  similar 
words,  except  the  difference  in  chop  name.  The  half-circle  mark 
above  A  in  the  half  square  means  that  the  order  has  been  certified 
by  the  bank  of  issue,  the  other  half  circle  being  impressed  on  the  stub 
book.  This  circle  mark  is  made  with  bamboo-brush  pen  in  red  ink. 
A  bank  order  so  certified  carries  with  it  the  responsibility  of  the 
bank  of  issue,  the  responsibility  of  the  maker  toward  the  payee 
being  thereby  canceled.  It  is,  however,  important  that  certification 
of  bank  orders  shall  be  made  by  the  bank  or  banks  to  which  they  are 
sent  for  collection,  for  the  banks  of  issue  will  not  bind  themselves 
if  the  orders  are  sent  for  certification  by  individuals  or  corporations 
other  than  bankers.  When  others  send  an  order  for  certification  the 
bank  of  issue  will  simply  inform  the  bearer  or  holder  of  the  order 
that  it  was  issued  by  a  bank,  and  it  will  not  chop  the  circle  mark  as 
required.  This  circle  mark  is  the  essential  of  certification  and  is  not 
obtainable  by  any  person  other  than  the  banker.  Chinese  business 
men  sometimes  lose  because  they  are  ignorant  of  the  requirements 
of  this  procedure. 

TERMS 

Among  the  trade  in  Shanghai  the  prevailing  custom  is  to  pay  for 
goods  obtained  with  a  native  bank  order,  10  days  postdated,  with 
the  date  of  issue  and  the  name  of  payee  not  specified  thereon.  In 
a  few  exceptional  cases  bank  orders  are  issued  payable  at  sight. 
In  this  case  the  word  “  tsi,”  meaning  u  immediate,”  is  usually  written 
in  bold  writing  on  the  date  space  of  the  order.  The  bank  that  issues 
such  an  order  usually  charges  its  client  as  if  it  were  issued  one  day 
previously.  Foreign  merchants  who  are  newcomers  in  Shanghai 
often  require  bank  orders  of  this  description,  and  Chinese  merchants 
dislike  on  this  account  to  deal  with  them.  There  are  bank  orders 
that  are  issued  in  terms  of  3  or  15  days,  postdated,  but  the  pre¬ 
vailing  custom  among  the  business  community  is  10  days,  postdated. 

RESPONSIBILITY  FOR  PAYMENT 

As  explained,  a  bank  order,  once  certified,  must  be  paid  by  the 
bank  of  issue.  It  is  the  prevailing  custom  in  Chinese  banking  circles 
for  the  banks  of  issue  to  pay  their  own  orders,  whether  certified  or 
otherwise;  and  should  a  bank  be  unable  to  cash  its  own  orders,  it  is 
forced  into  bankruptcy  at  once.  Thus  the  orders  are  negotiable  and 
are  almost  as  good  as  cash.  Chinese  merchants  hesitate  to  take  for¬ 
eign  bank  checks  in  payment  for  their  merchandise,  as  they  do  not 
know  that  checks  can  be  certified  as  bank  orders. 

Another  advantage  in  the  use  of  the  native  bank  order  is  that  it 
can  not  be  cashed  by  strangers,  and,  except  for  small  amounts,  it  is 


CURRENCY,  EXCHANGE,  AND  BANKING 


183 


usually  collected  by  the  bank  to  which  it  is  sent  for  collection. 
When  a  bank  has  been  notified  to  suspend  the  payment  of  an  order 
already  issued,  it  is  the  usual  custom  of  a  registered  bank  to  place  in 
the  bankers’  guild  the  funds  necessary  for  payment.  These  funds 
will  be  released  only  after  all  questions  of  disputed  ownership  are 
settled.  Some  foreign  firms  issue  checks  to  their  compradors  for 
merchandise  purchased,  and  the  latter  change  them  into  native  bank 
orders,  10  or  15  days  postdated,  to  the  payee.  This  is  a  handsome 
source  of  profit  to  compradors  of  large  firms.  Some  merchants, 
however,  knowing  the  advantage  of  dealing  with  native  banks,  utilize 
this  system  of  paying  by  native  bank  orders  instead  of  by  check,  and 
they  effect  considerable  savings  thereby. 

However  the  case  may  be,  foreign  merchants  must  use  native 
bank  orders,  either  directly  or  through  their  compradors,  since  these 
native  orders  are  used  exclusively  by  Chinese  business  men  in  pay¬ 
ment  of  goods  or  for  redemption  of  mortgages.  All  the  leading  for¬ 
eign  banks  accept  native  bank  orders  through  the  guaranty  of  their 
compradors.  Many  well-established  foreign  business  houses  accept 
such  orders  without  certification  at  all  and  release  the  goods  so 
paid.  Especially  is  this  the  case  when  such  orders  are  given  by  a 
known  buyer  of  good  standing.  But  the  general  practice  among 
foreign  banks  is  to  have  the  order  certified  before  its  acceptance. 
Among  business  houses  acceptance  is  left  to  the  comprador,  who 
usually  accepts  without  certification  if  firms  or  merchants  are  of 
good  standing. 

CHINESE  BANK  CHECKS 

There  is  another  form  of  money  order  used  to  some  extent  by 
Chinese  merchants,  called  “  chih  tan,”  or  check,  for  which  the  bank 
against  which  it  is  issued  accepts  responsibility  limited  to  that  of 
the  person  against  whose  account  it  is  drawn.  The  check  book  of 
these  banks  is  in  three  parts — first,  the  stub;  second,  the  check 
proper ;  and,  third,  the  advice  for  sending  to  the  bank  by  drawer  as 
advice  of  issue.  The  bank  chops  across  a  portion  of  the  second  and 
third  parts  its  seal,  or  chop,  so  that  when  the  check  is  presented  for 
payment  it  may  agree  with  the  advice  already  received. 

The  customs  and  practices  above  outlined  have  developed  in  a 
country  in  which  a  body  of  law  and  legal  procedure  is  in  the  making, 
so  that  merchants  have  had  to  devise  ways  and  means  of  protecting 
themselves  in  business  transactions  and  in  documents  used. 

For  detailed  information  regarding  the  financing  of  imports  into 
China,  see  the  chapter  in  this  handbook  on  China’s  import  trade. 
For  information  regarding  financing  exports,  see  the  chapter  on 
Chinese  exports. 

[A  list  of  foreign  and  modern  Chinese  banks  in  China  may  be  secured  by 
application  to  the  Bureau  of  Foreign  and  Domestic  Commerce,  Washington, 
D.  C.] 

BIBLIOGRAPHY 

Bouleau,  M.  Practical  Guide  to  Far  Eastern  Exchange.  150  pp.  1923. 

China  Weekly  Review  (Shanghai).  Special  banking  and  financial  issue,  June 
30,  1923. 

China  Year  Book.  Issued  annually  by- the  Tientsin  Press. 

Chinese  Maritime  Customs.  Annual  reports  on  foreign  trade  of  China.  The 
report  and  abstract  of  statistics  and  the  ports  reports  contain  much  valuable 
current  information  regarding  China’s  currency,  exchange,  and  banking. 


184 


COMMERCIAL  HANDBOOK  OF  CHINA 


Easton,  H.  T.  Arbitrage.  London,  Effingham  Wilson,  1910. 

Jernigan,  T.  R.  China  in  Law  and  Commerce.  400  pp.  The  Macmillan  Co., 
1905. 

Lee,  Frederic  E.  Currency,  Banking,  and  Finance  in  China.  220  pp.  Trade 
Promotion  Series  No.  27.  United  States  Department  of  Commerce,  1926. 
Morse,  H.  B.  The  Trade  and  Administration  of  China.  Shanghai,  Kelly  and 
Walsh,  1912.  This  work  contains  a  splendid  chapter  on  China’s  currency. 
Spalding,  William  F.  Eastern  Exchange,  Currency,  and  Finance.  375  pp. 

Bath,  Melbourne,  New  York,  Sir  Isaac  Pitman  &  Sons  (Ltd.). 

Spalding,  William  F.  Foreign  Exchange  and  Foreign  Bills  in  Theory  and  Prac¬ 
tice.  234  pp. 

Otto.  Die  Arbitrage.  Berlin,  Haude  &  Spenerische  Buchhandlung, 
Dr.  G.  On  Chinese  Currency.  Amsterdam,  J.  H.  de  Bussy,  1912  and 
R.  Finance  in  China.  North  China  Daily  News  and  Herald,  1914. 


Swoboda, 
1921. . 

S</  Vissering, 
1915. 
Wagel,  S. 


CREDIT  CONDITIONS 


By  Consul  J.  C.  Huston,  Tientsin 

Credit  in  China  as  elsewhere  depends  on  many  varying  factors, 
such  as  local  conditions,  local  customs,  the  nature  of  the  goods,  and 
the  standing  of  the  buyer — this  latter  consideration  being  most  im¬ 
portant  in  China.  Very  few  Chinese  firms  ordinarily  have  direct 
dealings  with  foreign  countries,  partly  because  they  are  unfamiliar 
with  foreign  business  practice  and  do  not  understand  foreign  methods 
or  foreign  languages.  The  Chinese  system  of  local  finance  is,  how¬ 
ever,  the  determining  factor  which  acts  to  preclude  successful  direct 
dealings.  In  the  majority  of  cases  the  Chinese  prefer  to  deal  through 
a  local  foreign  firm  with  whose  personnel  they  are  acquainted. 

Where  a  Chinese  concern  has  direct  dealings  with  a  foreign  coun¬ 
try  it  is  generally  a  large  industrial  establishment,  the  manager  of 
which  is  experienced  in  foreign  procedure.  Such  concerns  occasion¬ 
ally  give  large  orders,  and  they  usually  expect  that  the  goods  will  be 
delivered  before  they  are  asked  to  pay  for  them,  a  point  of  view 
with  which  exporters  in  the  United  States  are  not  always  in  sym¬ 
pathy.  The  reluctance  of  the  American  manufacturer  to  accept  any 
of  the  risks  of  trade  abroad  sometimes  assumes  a  serious  aspect  in  the 
case  of  large  industrial  concerns. 

Despite  the  internal  credit  system  and  the  language  difficulty,  the 
local  foreign  firm  with  its  Chinese  staff  is  in  a  position  to  obtain 
up-to-date  information.  The  manufacturer  in  the  United  States 
can  not  compete  with  the  local  foreign  firm  in  this  regard  because 
of  his  lack  of  knowledge  of  local  conditions.  The  usual  procedure 
is  to  have  one  of  the  local  foreign  firms  experienced  in  handling 
general  lines  act  as  the  manufacturer’s  representative.  The  repre¬ 
sentative  then  handles  the  question  of  the  credit  to  be  extended  to 
the  local  Chinese  buyer  and  assumes  the  responsibility  therefor. 

Considered  from  a  credit  point  of  view,  foreign  firms  in  China  can 
be  divided  into  three  general  classes. 

1.  The  large  houses  which  have  branches  in  many  parts  of  the 
world  and  may  be  called  international  in  their  organization.  These 
firms  have  offices  in  the  United  States,  Great  Britain,  Germany, -and 
other  countries,  through  which  they  do  their  buying.  The  financing 
of  the  business  is  attended  to  by  the  head  offices,  which  are  usually 
situated  in  some  European  or  American  city  where  advantage  can 
be  taken  of  the  low  rates  of  interest  prevailing.  In  consequence,  the 
local  office  does  not  have  to  trouble  itself  with  questions  of  terms 
and  credit.  The  drafts  drawn  on  them  by  their  head  office  or  other 
branches  are  purely  an  internal  affair  of  the  company. 

2.  There  are  some  far  eastern  houses  which  work  more  or  less  in¬ 
dependently  and  arrange  their  own  financing.  They  usually  have 
relations  with  export  houses  in  the  United  States  or  Europe.  Such 
export  houses  act  as  agents  for  the  far  eastern  firm  and  attend  to  the 

185 


186 


COMMERCIAL  HANDBOOK  OF  CHINA 


buying,  paying  cash  to  the  manufacturers,  or  securing  such  credit  as 
the  local  custom  of  the  particular  trade  permits.  The  export  house 
frequently  grants  the  necessary  credit  to  the  firm  in  the  Far  East. 
In  some  instances  export  houses  in  Europe  send  goods  on  consign¬ 
ment  to  such  concerns. 

3.  The  small,  strictly  local  firms,  working  with  limited  capital  and 
with  no  correspondents  abroad.  Usually  the  manager  of  such  a  con¬ 
cern  has  had  a  long  and  varied  experience  in  dealing  with  the 
Chinese.  European  exporters  are  often  much  more  liberal  to  buyers 
of  this  class,  to  whom  the  American  exporter  rarely  gives  credit. 
The  Continental  and  British  export  houses  lay  more  stress  on  the 
personal  characteristics  of  the  manager  than  does  the  American 
manufacturer  or  exporter,  and  in  dealing  with  firms  of  this  type 
the  personal  equation  is  the  important  factor. 

The  local  banks  are  in  a  position  to  know  how  much  credit  to  ex¬ 
tend  to  foreign  firms.  The  head  offices  of  American  banks  having 
branches  in  Tientsin  can  furnish  or  obtain  credit  reports  on  any  local 
firm. 

Loans  and  overdrafts  are  granted  on  approved  securities,  on  goods 
in  the  bank’s  own  or  a  neutral  godown,  and,  on  imported  goods  that 
have  arrived  without  a  bill  of  exchange  or  have  been  paid  for.  The 
margin  ranges  up  to  60  per  cent,  depending  on  the  market  price  of 
the  goods  on  the  day  when  the  overdraft  was  granted,  as  well  as  on 
their  perishability.  Collection  of  bills,  either  in  China  or  other 
parts  of  the  world,  is  undertaken  at  a  commission  ranging  from 
to  1  per  cent. 

EXPORT  CREDITS 

Export  credits  are  given  in  the  form  of  export  overdrafts,  that  is, 
packing  credits;  while  the  banks  also  handle  deposits  and  exchange, 
and  obtain  credit  information.  When  a  foreign  bank  grants  a  pack¬ 
ing  credit  to  a  foreign  firm  it  allows  the  firm  to  draw  on  the  bank 
up  to  practically  the  full  value  of  the  goods  to  be  shipped.  In  this 
case  the  bank  generally  expects,  and  sometimes  insists,  that  an  equiva¬ 
lent  amount  of  exchange  be  settled  with  them  before  the  credit  is 
granted.  In  return,  the  firm  gives  a  letter  of  guaranty  in  which  it 
undertakes  to  hold  the  cargo  at  the  disposal  of  the  bank  fully  in¬ 
sured  against  all  risk.  The  interest  charged  is  from:  7  to  8  per  cent, 
and  the  goods  in  question  may  be  stored  in  the  firm’s  own  godown 
(warehouse),  or  in  a  godown  designated  by  the  bank.  The  arrange¬ 
ment  continues  for  a  period  long  enough  to  allow  the  firm  to  buy 
up  the  goods,  pack,  and  ship  them.  The  firm  obtains  the  bill  of 
lading,  insurance  policy,  consular  invoice,  and  other  documents, 
drawing  the  bill  at  90  days’,  four  or  six  months’  sight,  as  the  case  may 
be,  for  the  full  amount  of  the  invoice,  including  all  charges.  If  a 
credit  has  already  been  opened,  the  bill  will  be  drawn  in  accordance 
with  the  terms  of  credit.  If  no  credit  has  been  arranged,  the  bill 
will  be  drawn  on  the  firm  to  whose  order  the  goods  are  shipped. 
In  either  case,  the  firms  hand  over  to  the  bank  from  which  they  ob¬ 
tained  the  packing  credit,  their  bill,  accompanied  by  all  the  docu¬ 
ments.  When  the  local  bank  receives  the  bill  with  the  documents 
attached,  it  debits  its  bank  in  the  United  States  for  the  amount,  and 
credits  the  firm  in  taels,  against  the  packing  credit  originally  granted. 


CKEDIT  CONDITIONS 


187 


IMPORT  CREDITS 

It  was  formerly  the  practice  in  Tientsin  for  import  firms  selling 
merchandise  to  Chinese  dealers  to  quote  gold  prices,  in  order  to  avoid 
risk  in  the  fluctuations  of  the  rates  of  exchange.  In  recent  years, 
however,  the  Chinese  have  tended  to  insist  upon  c.  i.  f.  or  ex  godown 
quotations  in  local  (silver)  currency,  which  makes  doubly  evident 
the  advantage  to  the  American  exporter  of  dealing  through  a  firm 
on  the  ground.  In  the  new  standard  contract  forms,  the  Chinese 
Piece  Goods  Association  insists  that  prices  be  stated  in  Tientsin 
taels.  This  is  the  result  of  the  foreigner’s  demanding  that  exchange 
be  settled  at  the  time  the  contract  is  signed,  in  order  to  prevent 
gambling  on  exchange. 

When  goods  are  ordered  from  the  United  States,  the  import  firm 
may  or  may  not  open  a  credit.  The  usual  practice  is  to  open  a  credit 
in  favor  of  the  American  exporter  or  manufacturer,  as  the  majority 
of  American  exporters  and  manufacturers  demand  payment  against 
documents  in  America.  If  business  of  any  size  is  to  be  done,  the 
American  exporter  usually  insists  upon  a  confirmed  banker’s  credit, 
which  means  that  he  will  get  his  money  at  the  point  of  shipment, 
or  at  some  one  of  the  large  shipping  centers  in  the  United  States,  upon 
delivery  of  his  documents  to  the  designated  bank  and  without  further 
recourse. 

Insisting  upon  confirmed  banker’s  credit  is  really  equivalent  to  * 
demanding  that  cash  be  paid  across  the  counter,  without  recourse, 
and  leaves  the  purchaser  at  the  mercy  of  the  exporter.  It  is  equiva¬ 
lent  to  buying  at  “  sight  unseen.”  No  manufacturer  at  home  would 
think  of  requiring  that  the  wholesalers,  jobbers,  or  retailers  pay 
cash  with  their  orders,  for  business  could  not  be  done  on  this  basis 
at  home.  Yet  the  same  manufacturers  try  to  conduct  their  export 
business  on  a  cash-order  basis.  Competition  in  this  field  is  just  as 
keen  as  in  the  domestic  trade,  and  if  American  manufacturers  are 
to  develop  a  large  export  business  they  must  conduct  it  on  terms 
in  line  with  competing  foreign  manufacturers.  The  manufacturers 
of  other  nations  conduct  their  export  business  in  a  way  that  affords 
greater  elasticity  as  to  credits,  relying  largely  on  the  local  firms 
who  represent  them.  Before  business  is  booked  the  standing  of  the 
buyer  is  investigated  and,  if  satisfactory,  goods  are  sold  on  the 
equivalent  of  usual  domestic  trade  terms,  but  under  the  control 
afforded  by  secured  draft  for  acceptance  or  payment. 

When  a  British  or  Continental  exporter  ships  to  foreign  countries 
the  merchandise  is  sold  on  the  usual  credit  basis,  the  drafts  being 
drawn  from  90  to  120  days’  sight,  but  goods  are  not  deliverable  to 
the  buyer  until  he  has  paid  or  accepted  the  draft,  as  the  case  may 
be.  Manchester  houses  ship  piece  goods  to  China  under  wThat  is 
known  as  a  documentary  credit,  in  which  both  the  drawer  and  the 
drawee  are  responsible  until  the  draft  is  retired.  German  firms 
have  recently  issued  circulars  offering  to  ship  goods,  drawing  for 
50  per  cent  of  the  value,  balance  to  be  remitted  on  sale  of  goods. 

If  credit  risks  in  China  could  be  investigated  before  business  is 
booked  and  goods  shipped,  as  they  are  in  domestic  business,  a  large, 
safe,  and  remunerative  foreign  business  could  be  developed;  but 
this  is  not  possible  under  existing  conditions,  except  as  to  non- 
Chinese  firms.  The  main  reliance  as  to  Chinese  credit  risks,  there- 


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COMMERCIAL  HANDBOOK  OF  CHINA 


fore,  must  rest  in  the  foreign  (non-Chinese)  firm  on  the  ground.  A 
small  business  in  groceries  and  sundry  articles  is  done  by  the 
American  exporter,  who  draws  on  the  importer  here  at  90  or  120 
days’  sight,  documents  to  be  delivered  to  the  drawee  upon  payment; 
but  business  done  on  this  basis  does  not  run  into  any  large  figures. 

The  foreign  import  merchants  desire  from  Americans  who  inter¬ 
est  themselves  in  this  market  such  terms  of  credit  as  will  enable  them 
to  meet  terms  offered  by  European  exporters — terms  which  are  fre¬ 
quently  such  that  the  local  firm  can  sell  the  goods  before  paying  for 
them.  In  other  words,  if  liberal  credit  terms  are  granted,  it  allows 
for  a  larger  turnover,  since  any  one  given  firm  does  not  have  to 
tie  up  so  much  of  its  capital.  If  the  goods  are  sold  before  the  due 
date  of  the  draft,  payment  is  supposed  to  be  made  at  once,  though 
probably  in  actual  practice  there  is  frequent  delay  through  the 
desire  to  secure  more  favorable  exchange,  or  for  other  reasons. 

On  the  arrival  of  the  draft  and  documents,  the  bank  advises  the 
foreign  firm,  which  in  turn  communicates  this  information  to  the 
Chinese  dealer.  As  a  usual  thing,  documents  arrive  here  much  in 
advance  of  the  goods  themselves.  Upon  arrival  of  the  goods,  the 
firm  requests  the  bank  to  let  it  have  the  shipping  documents.  The 
firm  then  attends  to  clearing  the  goods  through  the  customs  and  to 
paying  the  duty  as  well  as  the  storage  in  one  of  the  public  go- 
downs,  which  issues  a  landing  account  to  the  order  of  the  bank.  This 
is  sent  by  the  importer  to  the  bank  to  be  held  pending  payment  of 
the  bill. 

When  the  transaction  is  first  entered  into,  if  it  is  in  a  gold  cur¬ 
rency,  it  devolves  upon  the  Chinese  dealer  to  decide  as  to  when  he 
prefers  to  settle  the  exchange  involved  therein.  Chinese  dealers  are 
usually  allowed  to  take  delivery  of  the  goods  in  installments,  paying 
the  equivalent  in  taels  to  the  import  firm.  The  dealer  usually  pays 
for  his  installment  by  a  native  order,  generally  due  in  10  days,  and 
regarded  as  the  equivalent  of  cash.  As  a  rule,  he  is  given  two  months 
in  which  to  clear  cargo  from  the  godown. 

The  import  firm,  upon  receiving  the  native  order,  will  give  a 
delivery  order  on  the  bank,  at  the  same  time  sending  the  native  order 
to  the  bank  to  be  credited  to  the  firm’s  account  on  due  date.  When 
the  bank  has  ascertained  that  the  native  order  is  correct,  it  gives  to 
the  importer  a  delivery  order  on  the  godown  company.  This  order  is 
taken  to  the  godown  company,  which  makes  the  necessary  entries  on 
its  account  books.  The  amount  due  on  the  bill  at  maturity  is  debited 
to  the  import  firm’s  account. 


THE  COMPRADOR 

Practically  every  foreign  firm  in  China  employs  a  comprador,  who 
guarantees  all  contracts  for  the  foreign  firm.  He  is  generally  some 
wealthy,  shrewd  Chinese  merchant  in  the  locality,  who  is  willing  to 
handle  the  firm’s  business  at  a  profit.  For  all  practical  purposes  he 
takes  all  the  responsibility  for  the  firm's  transactions  with  the 
Chinese  dealer.  It  is  a  basic  principle  that  the  comprador  of  a 
foreign  firm  guarantees  the  commercial  morality  and  financial  stand¬ 
ing  of  all  Chinese  firms  introduced  by  him  to  the  foreign  firm.  The 
usual  procedure  is  for  the  comprador  and  the  foreign  firm  to  enter 
into  a  written  agreement,  which  forms  the  basis  of  all  their  dealings. 


CREDIT  CONDITIONS 


189 


It  may  happen  that  the  fundamental  principle  underlying  all  com¬ 
prador  agreements — that  is,  that  he  shall  guarantee  the  financial 
standing  of  all  Chinese  firms — is  slightly  modified,  according  to  the 
desires  of  the  signatories.  The  agreement  stipulates  a  given  sum, 
which  is  usually  a  cash  guaranty  put  up  by  the  comprador  upon 
signing  the  agreement. 

One  might  think  that  where  the  comprador  is  responsible  to  the 
firm  under  contract  all  responsibility  is  taken  off  the  foreign  man¬ 
ager’s  shoulders,  but  this  is  not  the  case.  It  is  true  that  the  com¬ 
prador  is  bound  by  his  contract  and  puts  up  a  guaranty  either  in  cash 
or  land  deeds,  or  both,  but  he  may  handle  business  worth  $2,000,000 
or  $3,000,000,  while  his  security  is  only  $50,000  or  $100,000.  If  the 
market  goes  against  him  in  any  particular  deal  it  might  happen 
that  his  security  is  more  than  wiped  out.  Naturally  the  foreign 
manager  has  to  protect  himself  by  taking  certain  precautions. 

In  buying  native  produce  for  export  the  comprador,  with  his 
native  staff,  for  a  consideration  mentioned  in  the  agreement  (usually 
1  per  cent),  undertakes  to  quote  a  price  in  a  recognized  and  reliable 
local  currency,  there  being  many  currencies  throughout  the  interior 
where  the  goods  are  purchased.  This  commission  may  be  increased 
or  decreased  on  special  contracts  by  special  arrangement.  If  any 
of  the  dealers  whom  the  comprador  recommends  to  the  firm  refuse 
to  take  delivery  of  a  given  cargo  and  it  is  found  necessary  to  resell 
it,  no  commission  is  paid.  In  purchasing  export  cargo  the  foreign 
concern  may  buy  through  the  comprador  or,  if  expedient,  may  buy 
direct  from  the  dealers.  The  comprador  usually  signs  all  contracts 
between  the  firm  and  the  local  merchants  where  export  cargo  is 
purchased,  and  is  under  contract  to  make  good  in  case  of  loss. 

The  Chinese  dealer,  in  negotiating  with  the  firm  for  the  purchase 
of  imports,  deals  with  the  comprador  or  one  of  his  staff',  and  signs 
one  of  the  firm’s  contracts  in  Chinese  and  English.  In  addition 
to  commissions  the  comprador  receives  a  nominal  salary.  In  re¬ 
turn  he  must  employ  an  adequate  native  staff,  no  member  of  which 
can  be  engaged  or  dismissed  without  the  consent  of  the  foreign 
manager.  The  comprador  pays  the  salaries  of  all  his  native  staff. 
They  are  responsible  to  him  and  he,  in  turn,  is  responsible  to  the 
company  for  any  losses  suffered  through  any  of  their  acts. 

The  comprador  is  also  responsible  for  all  native  bank  orders  and 
for  the  safe  custody  of  all  goods  stored  in  company’s  godown.  The 
comprador,  in  his  turn,  demands  guaranties  of  all  the  members  of 
his  staff. 

EXCHANGE  PROBLEMS 

Probably  the  most  difficult  problem  connected  with  trading  in 
China  is  the  handling  of  foreign  exchange.  Skill  in  exchange  comes 
only  through  actual  practice,  and  it  is  the  one  difficulty  on  the  care¬ 
ful  handling  of  which  depends  the  success  of  every  foreign  transac¬ 
tion.  Rates  fluctuate  daily  and  hourly.  The  foreign  firm  finds  it 
very  difficult  to  persuade  the  Chinese  buyer  to  cover  his  exchange. 
If  he  does  not  cover  when  he  signs  his  contract,  it  may  happen,  in 
the  case  of  a  contract  entered  into  in  gold,  that  he  is  called  upon  to 
pay  double  in  local  currency  when  the  goods  arrive.  During  the 
late  war  Chinese  products  were  in  demand  and  business  was  brisk. 


190 


COMMERCIAL.  HANDBOOK  OF  CHINA 


When  the  boom  was  at  its  height,  the  value  of  the  local  silver  dollar 
suddenly  began  to  drop.  Chinese  merchants  had  placed  large  orders 
abroad,  especially  in  piece  goods,  and,  when  the  bottom  in  exchange 
was  finally  reached,  a  host  of  dealers  found  themselves  in  an  im¬ 
possible  situation,  with  all  their  reserves  wiped  out.  They  had 
neglected  to  cover  themselves  and  millions  were  lost  in  repudiated 
contracts.  This  risk  of  exchange  has  been  more  or  less  minimized 
by  the  present  practice  of  fixing  the  price  in  silver,  which  leaves  the 
settlement  of  exchange  in  the  hands  of  the  foreign  importer. 

The  Chinese  dealer  is  supposed  to  take  delivery  of  cargo  immedi¬ 
ately  upon  arrival;  but  under  ordinary  circumstances  no  more  than 
60  days  is  allowed  for  clearance  from  importer’s  godown.  Because 
of  present  business  conditions  in  China  most  of  the  more  responsible 
firms  demand  10  per  cent  bargain  money  on  the  signing  of  the  con¬ 
tract.  Other  firms  vary  this  by  demanding  10  to  25  per  cent,  de¬ 
pending  upon  the  commodity  imported.  If  it  is  a  standard  com¬ 
modity  which  is  imported,  and  if  upon  arrival  the  dealer  refuses 
to  live  up  to  his  contract  and  take  delivery,  the  importer  should  be 
able  to  sell  it  to  other  dealers  at  the  market  price  and  not  suffer  loss, 
as  he  is  covered  by  the  bargain  money.  If  the  commodity  imported 
is  classed  under  the  head  of  specialties,  bargain  money  to  the  extent 
of  25  per  cent  might  be  demanded. 


ADVERTISING  AND  MERCHANDISING 

By  Carl  Crow 


There  are  doubtless  more  different  brands  of  trade-marked  articles 
on  sale  in  China  than  in  any  other  country.  Probably  500  brands 
of  cigarettes  could  be  counted  in  the  stock  of  a  store  in  any  large  city, 
and  the  brands  of  toilet  soaps,  perfumes,  and  cosmetics  run  into  the 
hundreds.  Although  American  canned  goods  are  the  most  popular, 
it  is  possible  to  buy  in  Shanghai,  Hankow,  Tientsin,  and  other  large 
cities,  not  only  all  the  leading  American  brands,  but  many  French, 
Italian,  Japanese,  Australian,  Indian,  and  Chinese  products  as  well. 
Even  in  the  small  interior  cities  one  will  find  in  the  general  stores  a 
surprising  variety.  In  a  small  grocery  store  in  a  market  town  in 
Shantung  were  counted  six  American  brands  of  canned  meats,  four 
English,  and  one  Australian.  The  same  shop  sold  two  kinds  of 
French  canned  butter  and  several  American  and  Australian  brands 
of  cooking  butter  and  oleomargerine. 

This  great  variety  of  goods  is  due,  first,  to  the  low  import  tariff. 
In  most  tariff  countries  there  is  a  rather  high  import  duty  on  pro¬ 
prietary  articles,  but  in  China  the  duty  forms  so  small  a  part  of  the 
retail  selling  price  as  to  be  negligible,  and  does  not  prevent  the 
speculative  importation  of  brands  for  which  there  is  a  doubtful 
market.  The  second  reason  is  the  retarded  development  of  Chinese 
manufacturing.  To-day  many  articles  of  world  commerce  are  manu¬ 
factured  in  China,  but  with  a  few  exceptions  they  are  inferior  to  the 
imported  article,  although  steadily  improving.  At  any  rate,  the 
competition  of  goods  of  Chinese  manufacture,  except  the  coarser 
piece  goods,  matches,  flour,  and  a  few  other  articles,  does  not  inter¬ 
fere  with  the  sale  of  imported  goods,  for  the  Chinese  consumer  of 
high  purchasing  power  recognizes  the  superiority  of  the  imported 
over  the  domestic  article. 

If  the  history  of  any  of  the  more  modern  brands  of  foreign  goods 
in  the  Chinese  market  be  studied,  it  will  be  found  that  all  the  suc¬ 
cessful  ones  have  been  established  by  sound  merchandising  methods, 
usually  backed  up  by  advertising.  Any  manufacturer  of  com¬ 
modities  dependent  for  their  success  upon  a  large  consuming  public, 
who  hopes  to  succeed  in  this  highly  competitive  field  to-day,  must 
be  willing  to  make  a  thorough  study  of  the  problems  involved  and 
be  ready  to  adapt  his  ideas  to  conditions  which  are  peculiar  to 
China.  Without  a  carefully  worked  out  system  of  merchandising, 
backed  up  by  an  adequate  advertising  campaign,  he  may  expect,  at 
best,  mediocre  sales. 

PACKAGE  GOODS 

Before  placing  a  new  article  on  the  market  in  China  it  is  very 
important  to  make  sure  that  the  packaging  is  right.  This  does  not 
necessarily  mean  a  special  package,  for  as  a  rule  any  package 
successful  in  America  would  be  successful  in  China.  But  it  must 


191 


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COMMERCIAL  HANDBOOK  OF  CHINA 


not  be  forgotten  that  the  Chinese  attach  a  significance  to  colors, 
animals,  birds,  flowers — in  fact,  to  all  natural  objects — which  is  not 
shared  by  westerners.  Like  ourselves,  they  view  some  animals  with 
aversion,  but  not  the  same  animals.  Combinations  of  colors  which 
would  be  meaningless  to  us  might  create  a  distinctly  favorable  or 
unfavorable  impression  on  a  Chinese,  depending  on  their  meaning 
to  him.  With  this  generalization  in  mind,  the  four  main  considera¬ 
tions  with  respect  to  the  package  may  be  stated  as  follows : 

1.  The  package  should  be  one  that  can  not  be  easily  imitated. 
If  the  label  or  mark  can  be  easily  copied,  imitation  of  a  brand  is 
almost  certain  to  follow  the  success  of  the  original  in  China,  and 
imitation  should  therefore  be  made  as  difficult  as  possible. 

2.  The  package  should  bear  a  striking  picture,  design,  or  combina¬ 
tion  of  colors  which  will  enable  the  illiterate  consumer  easily  to 
identify  it.  Even  if  a  part  of  the  label  is  in  the  Chinese  language, 
the  picture  device  is  important,  for  comparatively  few  Chinese  have 
an  extensive  knowledge  of  their  own  language. 

3.  The  package  or  label  should  not  have  a  cheap  appearance. 
The  Chinese  are  close  observers  of  detail,  and  it  is  hard  to  convince 
them  that  an  article  put  up  in  a  shabby  package  has  any  superior 
merit. 

4.  Some  consideration  should  be  given  to  the  possible  utility  of 
the  empty  container.  Empty  bottles,  jars,  and  tins  of  all  kinds  have 
a  definite  value  in  China,  and  are  kept  and  used.  A  certain  brand 
of  American  breakfast  cereal  has  a  distinct  advantage  over  its 
competitors  because  the  lithographed  tins  in  which  it  is  packed 
have  a  value  of  10  to  20  cents  each.  For  the  same  reason  a  toilet 
cream  packed  in  a  jar  is  more  popular  than  one  put  up  in  a  collapsible 
tube. 

The  value  of  the  packing  case  itself  will  be  taken  into  considera¬ 
tion  by  Chinese  dealers.  It  is  said  that  in  the  case  of  one  widely 
distributed  and  very  popular  cigarette,  the  distributers,  who  break 
up  case  lots  to  supply  the  small  retailers,  sell  the  cigarette  for 
exactly  the  price  they  pay  for  it,  making  their  entire  profit  from 
the  sale  of  the  tin-lined  packing  cases.  Once  a  package  is  decided 
on  it  is  of  the  utmost  importance  that  no  change  be  made,  or  if  a 
change  is  necessary  that  it  be  made  very  carefully.  Many  instances 
might  be  given  in  which  a  prosperous  trade  in  an  article  has  been 
killed  entirely  by  an  arbitrary  change  in  the  packaging. 

BRAND  NAMES 

The  selection  of  a  Chinese  name  for  the  brand  is  as  important 
as  the  packaging.  Brand  names  can  seldom  be  translated  into 
Chinese  characters,  nor  can  the  sound  be  accurately  transcribed  by 
Chinese  phonetics,  except,  of  course,  the  names  of  flowers,  birds, 
animals,  or  other  objects  of  nature. 

The  size  of  the  shipping  case  also  deserves  consideration.  In 
general  the  small  case  is  preferable  to  the  large  one.  Goods  shipped 
into  the  interior  are  often  transported  on  the  backs  of  men,  pack 
animals,  or  on  wheelbarrows,  and  the  small  case  is  more  easily 
handled.  Customs  formalities  and  the  regulations  which  have  been 
described  elsewhere  make  it  both  troublesome  and  expensive  to  fill 
orders  with  broken-case  lots.  Moreover,  the  retailer,  even  the  very 


ADVERTISING  AND  MERCHANDISING 


193 


small  dealer,  invariably  wants  his  order  filled  with  goods  in  the 
original  cases.  Ever  suspicious  of  substitution,  he  demands  that 
the  goods  sold  him  bear  the  shipping  marks  on  their  containers  as 
proof  of  the  actual  fact  of  importation. 

DISTRIBUTION 

The  manufacturer  who  seeks  to  establish  a  market  in  China  should 
first  visualize  the  methods  through  which  his  goods  are  to  be  intro¬ 
duced  into  the  country.  The  average  Chinese  mercantile  house 
resembles  somewhat  the  old-fashioned  American  country  store — an 
establishment  which  stocked  all  kinds  of  goods,  bought  and  shipped 
country  produce,  and  often  did  a  flourishing  business,  with  no  adver¬ 
tising  and  little  selling  effort.  The  import  house  on  the  coast  of 
China  usually  handles  dozens  of  agencies — often  as  diverse  as  type¬ 
writers,  tooth  paste,  structural  steel,  motor  cars,  paints,  canned  fruit, 
pianos,  and  candy.  In  addition  it  is  not  unusual  for  the  firm  to 
handle  fire  and  marine  insurance  and  sometimes  a  steamship  agency. 
These  concerns,  like  the  old  country  store,  largely  depend  upon  the 
customers  coming  in  to  buy.  In  the  early  days  of  foreign  trade  in 
China  there  was  nothing  else  to  be  done.  With  the  barrier  of  lan¬ 
guage  between  the  merchant  and  his  customer  and  with  travel  in 
the  interior  difficult,  if  not  impossible,  the  importer  contented  himself 
with  attending  to  the  details  of  shipping,  finance,  and  customs  for¬ 
malities  in  connection  with  his  imports  and  left  the  selling  effort 
mainly  to  the  attention  of  his  Chinese  staff.  Of  recent  years  there 
has  been  a  tendency  toward  specialization,  and  there  are  a  few 
firms  now  which  handle  nothing  but  allied  lines,  such  as  printing 
machinery  and  supplies,  drugs  and  chemicals.  These  specialty  houses 
are  in  some  instances  building  up  selling  organizations. 

But  the  old-fashioned  import  house  still  predominates  in  China, 
and  it  is  this  kind  of  an  organization  which  will  usually  handle  the 
agency  of  the  American  manufacturer.  Ordinarily  it  will  have  no 
machinery  of  distribution  and  selling,  even  though  it  may  have 
branches  in  Tientsin,  Hankow,  Canton,  and  other  treaty  ports.  The 
bulk  of  the  distribution  to  the  retailers  of  the  interior  will  be  done  by 
groups  of  Chinese  jobbers  or  traders  who  order  the  goods  from 
the  import  houses.  Usually  the  jobbers  settle  their  own  exchange — 
that  is,  they  buy  at  gold  prices  and  arrange  a  rate  of  exchange 
which  they  believe  will  be  favorable  to  them.  Under  this  system 
most  import  houses  will  accept  orders  from  any  jobber  who  has  the 
necessary  cash  or  credit. 

The  system  has  several  obvious  defects.  As  the  jobbers  buy  at  gold 
prices  and  each  settles  his  own  exchange,  no  two  shipments  are 
likely  to  arrUe  at  the  same  silver  price.  Thus  the  jobber  who  pur¬ 
chases  under  an  unfavorable  exchange  may  be  forced  to  sell  at  a  loss 
if  obliged  to  compete  with  those  who  Avere  more  fortunate  in  their 
exchange  transaction.  The  retailer  buys  at  varying  prices,  and  as  a 
result  there  is  no  uniform  retail  price.  One  shop  may  be  able  to 
make  a  fair  profit  on  an  article  retailing  at  50  cents  while  a  neigh¬ 
boring  shop  would  lose  money  on  sales  at  that  price.  The  result  is 
that  the  second  shop  may  try  to  sell  a  substitute  and  hold  on  to  its 
old  stock  until  a  favorable  turn  of  exchange  will  make  it  possible 

100020°—  26 - 14 


194 


COMMERCIAL  HANDBOOK  OF  CHINA 


to  sell  at  a  profit.  Another  unfavorable  aspect  of  this  system  is 
that  when  exchange  is  unfavorable  jobbers  will  not  order  and  the 
market  runs  out  of  stock,  while  when  exchange  is  favorable  the  mar¬ 
ket  may  become  flooded,  and  dealers  who  are  unable  to  sell  dump 
the  goods  on  auction. 

The  most  successful  importers  now  make  an  arrangement  to  sell 
at  a  fixed  silver  price,  absorbing  the  fluctuations  in  exchange.  This 
is  usually  arranged  by  fixing  the  silver  price  at  a  rate  favorable 
to  the  importer  or  manufacturer  and  then  granting  a  sliding  scale 
of  discounts  as  exchange  moves  up  or  down.  These  discounts  are 
given  to  the  jobber,  and  a  part  of  them  at  least  are  passed  on  to 
the  retailer,  but  they  have  little  or  no  effect  in  changing  the  price 
charged  to  the  consumer.  The  Chinese  retail  shops  have  what 
appears  to  an  American  to  be  an  extraordinarily  large  number  of 
salesmen.  They  receive  very  low  wages,  but  once  a  year,  just  before 
the  Chinese  New  Year,  they  receive  a  substantial  bonus  from  a  fund 
made  up  in  part  from  the  profits  of  the  shop,  the  sales  of  empty  cases, 
the  proceeds  of  special  discounts  and  free-goods  allowances,  and  from 
the  sale  of  samples.  The  discounts  therefore  have  the  effect  of  stimu¬ 
lating  the  retail  salesman  to  great  efforts  to  dispose  of  goods  on 
which  discounts  are  granted. 

In  order  to  secure  a  still  greater  control  over  distribution,  the  modern 
importer  is  inclined  to  restrict  the  number  of  jobbers  to  whom  he 
will  sell.  In  one  case  which  has  been  a  very  conspicuous  success  the 
importer  has  limited  the  number  of  accepted  jobbers  to  10.  The}7 
have  entered  into  a  contract  whereby  the  importer  agrees  to  sell  only 
to  them  at  a  certain  fixed  price  in  local  currency,  subject  to  certain 
discounts.  The  jobbers,  on  the  other  hand,  agree  to  sell  to  the 
retailer  at  a  fixed  price  and  to  pass  on  to  him  a  certain  proportion  of 
the  special  discounts.  Under  a  complete  development  of  this  plan 
the  whole  sales  territory  is  divided  into  districts  in  each  of  which 
there  is  one  distributer,  or  a  group  all  bound  by  similar  contracts. 
The  importer  protects  each  distributer  by  absorbing  transportation 
costs,  so  that  the  landed  cost  to  the  distributer  in  the  interior  will  be 
the  same  as  to  the  distributer  at  the  port  of  entry. 

Having  arranged  the  method  of  distribution,  the  question  of  the 
employment  of  special  salesmen  is  one  which  depends  on  the  article 
and  the  margin  of  profit  which  is  allowed  the  jobber.  In  some, 
perhaps  in  most  cases,  the  jobbers  employ  the  salesmen  and  pay  their 
wages;  in  others,  the  importer  or  manufacturer  trains  and  employs 
special  salesmen  whose  orders  are  turned  over  to  the  jobbers  for 
execution.  This  is  more  often  done  when  the  manufacturer  is  rep¬ 
resented  in  China  by  his  own  factory  representative,  a  man  who  takes 
complete  charge  of  the  advertising  and  selling,  leaving  to  the  import¬ 
ing  house  only  the  details  of  caring  for  shipping,  insurance,  banking, 
credits,  and  such  matters. 

ADVERTISING  METHODS  AND  MEDIUMS 

The  mediums  and  mechanics  of  advertising  in  China  do  not  differ 
materially  from  those  of  America  or  any  other  country.  Newspapers, 
periodicals,  posters,  painted  bulletins,  circular  letters,  calendars, 
dealer  helps,  window  displays,  and  samples  are  all  used,  much  as  in 
America.  It  is  in  the  preparation  of  copy  and  in  detail  that  a  wide 


ADVERTISING  AND  MERCHANDISING 


195 


divergence  from  American  methods  is  necessary.  No  matter  what 
the  article  may  be,  the  Chinese,  with  different  tastes  and  different 
customs,  will  look  at  it  from  a  different  point  of  view — just  as  a 
child  will  often  put  a  new  toy  to  uses  for  which  its  makers  never 
intended  it.  Some  years  ago  an  American  manufacturer  noted  that 
there  was  an  extraordinarily  large  sale  in  China  for  the  small  hot- 
water  bags  which  are  usually  known  as  “  neuralgia  ”  bags.  On  in¬ 
vestigation  it  was  found  that  Chinese  girls  were  buying  these  bags 
and  carrying  them  in  their  muffs  as  hand  warmers,  and  to  hold 
against  their  faces  to  give  them  red  cheeks.  In  certain  cosmetics  the 
odor  outweighs  all  other  considerations.  Toilet  soap  is  known  in  the 
Chinese  vernacular  as  “  perfumed  ”  soap,  with  the  result  that  a  toilet 
soap  not  highly  perfumed  is  regarded  as  an  anomaly,  as  we  would 
regard  an  odorless  cologne.  In  the  matter  of  cigarettes,  the  Chinese 
have  a  very  decided  and  definite  taste.  The  tobacco  must  be  of  a 
light  yellow  color,  the  cigarette  perfectly  round  and  firmly  made. 
If  the  name  is  stamped  on  the  cigarette  in  gold,  it  is  all  the  more 
pleasing.  The  Chinese  are  most  discriminating  buyers,  paying  a 
great  deal  more  attention  to  all  the  details  of  an  article  than  do  other 
peoples. 

CAMPAIGNS 

It  follows,  therefore,  that  the  preparation  of  advertising  copy 
should  be  undertaken  only  by  one  who  is  familiar  with  Chinese 
psychology,  with  the  tastes  and  habits  of  the  people.  Advertising 
campaigns  which  are  worked  up  in  detail  in  America  are  nearly 
always  failures,  and  often  are  ludicrous.  A  few  years  ago  an  Ameri¬ 
can  company  spent  many  thousands  of  dollars  advertising  its  brand 
of  milk  in  the  Chinese  papers.  It  emphasized  the  use  of  its  milk 
with  coffee  and  tea  and  for  cooking  various  dishes.  The  Chinese  have 
not  yet  learned  to  produce  or  use  dairy  products.  Neither  milk  nor 
butter  is  a  constitutent  of  Chinese  dishes.  Coffee  is  unknown  to 
them.  Tea  is  the  national  beverage,  but  not  the  heavy  India  or 
Ceylon  teas  which  require  “  cream,”  to  make  them  palatable.  The 
Chinese  would  no  more  think  of  putting  cream  in  their  tea  than  we 
would  think  of  putting  it  in  lemonade. 

The  most  successful  advertising  campaigns  are  those  which  have 
been  worked  out  by  experienced  foreigners  resident  in  China,  with 
the  help  of  trained  and  educated  Chinese.  Even  in  China  the  prep¬ 
aration  of  copy  is  by  no  means  easy.  That  which  is  to  appear  in  all 
parts  of  the  country  needs  careful  checking  by  natives  of  the  differ¬ 
ent  Provinces.  While  the  written  language  is  the  same  all  over 
China,  and  while  three-fifths  of  the  population  speak  what  is  known 
as  the  Mandarin  tongue,  yet  with  the  remainder  the  spoken  language 
and  the  pronunciation  of  the  written  characters  vary  so  greatly  that 
natives  of  neighboring  Provinces,  sometimes  even  of  neighboring 
counties,  can  not  understand  one  another.  Moreover,  no  other  lan¬ 
guage  is  so  rich  in  opportunities  for  the  perpetration  of  puns,  and 
the  Chinese  are  inveterate  punsters.  It  will  often  happen,  unless 
the  matter  has  been  most  carefully  checked,  that  an  advertising 
phrase  or  brand  name  which  is  quite  suitable  and  effective  in  Shang¬ 
hai  is  turned  into  a  vulgar  or  ludicrous  pun  in  Canton. 

When  all  is  said  and  done,  there  is  only  one  rule  which  may  be 
laid  down  for  the  preparation  of  copy,  no  matter  whether  it  be  for 


196 


COMMERCIAL  HANDBOOK  OF  CHINA 


newspapers  or  posters,  and  that  is  that  a  picture  of  the  product  must 
be  shown  and,  if  possible,  its  uses  illustrated.  So  large  a  proportion 
of  the  population  being  wholly  illiterate,  the  ideal  advertisement 
would  be  one  complete  in  its  picture  without  one  word  of  text. 

Advertising  does  not  meet  the  quick  response  in  China  that  the 
American  advertiser  is  accustomed  to  in  his  own  land,  but  on  the 
ether  hand  the  effect  is  more  permanent.  In  America  it  is  customary 
to  plan  advertising  campaigns  on  an  annual  basis;  in  China  the 
period  should  be  longer,  probably  a  three-year  period.  Short  cam¬ 
paigns  in  China  rarely  have  been  successful,  and  many  American 
advertisers  have  made  the  mistake  of  discontinuing  their  campaign 
after  one  year,  because  of  poor  returns,  when  another  year  might 
have  brought  very  satisfactory  results.  British  advertisers  in  China 
have  shown  better  judgment,  for  they  plan  their  advertising  over  a 
term  of  years,  rather  than  of  months,  and  stick  doggedly  to  it  even 
when  the  early  returns  are  most  discouraging.  The  sum  of  $50,000 
spent  on  advertising  in  China  will  achieve  much  better  permanent 
results  if  spread  over  a  period  of  three  years  than  can  be  accom¬ 
plished  by  a  lavish  expenditure  of  the  entire  amount  in  one  year. 

MEDIUMS 

A7 ewspapers  and  magazines. — Chinese  newspapers  offer  the  most 
popular  and  in  many  ways  the  most  effective  advertising  mediums. 
Daily  newspapers  are  published  in  about  60  cities.  There  are  proba¬ 
bly  200  dailies  which  have  been  established  for  some  years  and  which 
are  on  a  fairly  permanent  basis.  In  Shanghai  there  are  two  papers 
with  circulations  above  50,000  each,  the  audited  statement  of  one 
showing  a  circulation  of  63,000.  No  other  Chinese  daily  has  a  cir¬ 
culation  of  more  than  25,000,  and  very  few  more  than  5,000.  These 
figures,  however,  mean  more  than  they  would  elsewhere.  Papers 
are  not  read  and  thrown  away  in  China,  but  are  passed  on  from  one 
family  to  another  so  that  a  single  copy  may  be  read  by  four  or  five 
families.  An  average  of  10  readers  to  a  copy  is  a  conservative 
estimate. 

Rates  in  all  Chinese  newspapers  are  very  low.  The  minimum  rate 
in  the  Shanghai  paper  with  a  circulation  of  63,000  works  out  to 
about  75  cents  (United  States  currency)  per  column  inch,  less  than 
one- fourth  of  the  rate  charged  by  the  average  American  newspaper 
with  the  same  circulation.  In  the  smaller  papers  rates  are  so  low 
that  they  are  not  figured  on  a  square  inch  or  column  basis,  but  there 
is  a  monthly  rate  for  quarter  pages,  half  pages,  etc.  Almost  all 
Chinese  newspapers  are  subsidized  by  a  political  party  or  an  indi¬ 
vidual  politician,  so  that  it  is  not  necessary  to  depend  on  advertising 
and  subscription  revenue  as  in  America.  The  number  of  newspapers 
published  in  any  city  will  be  found  to  depend  almost  entirely  on  the 
political  activity  of  the  place.  There  are  usually  about  40  dailies 
in  Canton  and  an  equal  number  in  Peking. 

Keyed  advertisements  in  the  leading  Shanghai  papers  have  often 
been  used  and  give  a  fairly  accurate  idea  of  the  pulling  power  of  the 
papers. 

A  sample  packet  of  a  liver  pill  was  advertised  in  a  Shanghai  news¬ 
paper,  one  full  page  and  two  half  pages  being  used  in  one  week,  at  a 


ADVERTISING  AND  MERCHANDISING 


197 


cost  of  approximately  $300  silver.  The  offer  was  to  send  samples 
in  return  for  a  3 -cent  stamp.  The  replies  received  numbered  5,240, 
at  a  cost  of  a  little  less  than  6  cents  each.  The  paper  at  that  time 
had  a  circulation  of  less  than  50,000.  An  identical  offer  of  samples 
of  a  nerve  pill  was  advertised  in  another  Shanghai  paper  and  brought 
4,817  replies  at  about  the  same  cost — 6  cents  each.  Replies  to  a 
small  advertisement  offering  to  send  a  sample  box  of  pen  points  for 
40  cents  cost  an  average  of  59  cents  each  in  one  Shanghai  paper  and 
65  cents  in  another.  Invariably  the  cost  per  reply  is  higher  when 
the  smaller  outport  papers  are  used. 

A  tabulation  of  returns  from  mail-order  advertising  in  the  leading 
Chinese  papers  of  Shanghai  shows  the  following  percentages  of 
replies  from  the  various  Provinces:  Anhwei,  4  per  cent;  Chihli,  8; 
Chekiang,  16;  Fukien,  7;  Honan,  4;  Hunan,  3;  Hupeh,  6;  Kansu, 
1;  Kiangsi,  4;  Kiangsu,  35;  Kwangtung,  1;  Manchuria,  2;  Shan¬ 
tung,  3 ;  Shensi,  1 ;  Szechwan,  6 ;  scattered,  2. 

Advertisers  who  plan  to  use  the  Chinese  newspapers  should  realize 
the  mechanical  and  other  limitations  of  the  publications.  With  the 
two  large  Shanghai  papers  *mentioned  it  is  possible  to  make  con¬ 
tracts  for  bulk  space  and  work  out  complicated  schedules  which  will 
be  fairly  well  carried  out.  With  papers  next  in  size  and  importance, 
as  in  Hongkong,  Hankow,  and  Tientsin,  it  is  possible  to  arrange 
for  a  fixed  space  to  appear  every  other  day,  once  a  week,  twice  a 
month,  etc.,  though  a  rate  proportionately  very  much  higher  than 
the  daily  rate  is  charged  for  this.  In  the  case  of  papers  in  smaller 
places  only  fixed  space  and  position  advertisements,  to  appear 
every  day,  are  accepted.  These  papers  will  not  or  do  not  take 
care  of  changes  of  copy.  It  is  customary  for  the  advertiser  to  send 
out  one  stereotype  plate  to  the  paper  and  allow  it  to  run  until  it 
begins  to  wear  out,  and  then  replace  it  with  a  new  plate.  This 
method  is  crude  and  unsatisfactory,  but  it  is  the  only  one  that  can  be 
used  until  Chinese  publishers  have  made  more  progress.  It  follows 
that  all  Chinese  papers  are  crudely  printed  and  that  only  coarse  line 
drawings  can  be  used.  Half  tones  are  out  of  the  question  except  in 
the  large  Shanghai  papers. 

Not  more  than  a  half  dozen  newspapers  issue  printed  rate  cards, 
but  every  paper  prints  its  rates  on  the  front  page.  These  rates  are 
based  on  different  scales  of  measurement,  but  are  usually  “per 
line  ”• — the  line  being  one  line  of  Chinese  type,  about  pica  size,  and 
extending  up  and  down  one-half  the  length  of  the  column,  usually 
10 y2  inches.  No  one  of  any  experience  ever  pays  these  published 
rates,  and  they  usually  have  a  very  remote  connection  with  the  rate 
actually  charged.  All  the  newspapers  in  any  one  city  usually  pub¬ 
lish  identical  rates,  no  matter  what  the  circulation  is.  Stnaller 
papers  feel  that  they  would  lose  “  face  ”  by  publicly  admitting  that 
they  accepted  advertising  at  a  rate  lower  than  that  of  the  leading 
paper.  Each  paper  has  an  elaborate  and  more  or  less  select  scale 
of  discounts,  but  usually  the  final  rate  is  determined  by  negotiation. 
With  the  exception  of  the  few  Shanghai  papers,  there  are  no  fixed 
rates,  and  the  only  way  to  secure  rates  which  are  at  all  reasonable 
is  either  to  place  the  advertising  through  some  reliable  agency  or  to 
employ  some  one  with  experience  in  dealing  with  the  papers  and  a 
knowledge  of  what  rates  should  be  paid. 


198 


COMMERCIAL  HANDBOOK  OF  CHINA 


There  are  a  few  weekly  and  monthly  magazines  which  have  a 
national  circulation,  blit  the  most  popular  has  a  circulation  of  less 
than  30,000.  The  trade  press  is  just  beginning  development.  There 
are  periodical  publications  devoted  to  electrical  engineering,  health, 
drug  trade,  cotton  milling,  banking,  and  mining,  all  of  very  limited 
circulation. 

The  various  foreign  mission  bodies  issue  evangelical  publications, 
some  of  which  “may  be  used  for  advertising.  Although  circulations 
of  these  papers  are  in  some  instances  large,  keyed  advertisements 
in  them  haATe  brought  very  poor  returns.  A  possible  explanation 
may  be  the  low  purchasing  power  of  the  average  convert  to  Chris¬ 
tianity. 

Besides  publications  in  the  Chinese  language,  there  are  a  number 
of  daily,  weekly,  and  monthly  publications  in  English,  French, 
Japanese,  Russian,  and  German.  Dailies  in  the  English  language 


Fig.  8. — Advertising  American  cigarettes 


are  published  in  Shanghai,  Hankow,  Harbin,  Tientsin,  Peking,  and 
Hongkong.  The  highest  circulation  is  about  5,000,  though  one 
American  paper  in  Shanghai  claims  a  Sunday  circulation  of  10,000. 
These  papers  reach  a  class  of  readers  of  very  superior  buying  power, 
the  foreign  communities  of  China  consisting,  with  the  exception  of 
the  missionaries,  largely  of  men  in  executive  positions. 

Outdoor  advertising. — Newspaper  advertising  must  be  supple¬ 
mented  by  outdoor  advertising  if  the  “masses  are  to  be  reached.  It 
can  be  easily  understood  that  with  a  proportion  of  80  to  90  per  cent 
of  the  population  illiterate,  outdoor  advertising  for  any  article  to 
be  used  by  the  public  plays  a  very  important  role.  The  forms  of  out¬ 
door  advertising  most  favored  are  posters,  painted  bulletins,  painted 
walls,  and  electrical  displays.  Posters  are  most  generally  used,  the 
most  popular  size  being  one  sheet  (30  by  40  inches).  These  are 
“  sniped  ”  on  dead  walls,  though  the  general  tendency  now  is  to 


ADVERTISING  AND  MERCHANDISING 


199 


abandon  “  sniping  ”  and  place  the  posters  on  permanent  boards  which 
are  erected  on  leased  locations.  One  advertising  company  in  Shang¬ 
hai  has  about  15,000  of  these  locations  in  75  cities  in  the  Yangtze 
Valley.  The  posters  are  changed  every  month,  and  the  boards  are 
rented  at  an  annual  charge  of  $6  per  board.  These  small  boards  are 
standard  for  the  greater  part  of  China,  for  the  narrow  streets  do  not 
allow  of  larger  displays  in  the  most  thickly  populated  parts  of  the 
cities.  A  similar  service  is  under  development  in  Hongkong  and  will 
probably  be  extended  to  cities  in  South  China. 

In  Shanghai  there  are  now  a  large  number  of  standard  24-sheet 
boards  and  painted  bulletins,  some  of  them  equal  in  appearance  to 
the  better  boards  in  America.  There  are  a  few  such  structures  in 
Hankow,  Tientsin,  Harbin,  and  Hongkong,  and  as  displays  of  this 
kind  are  popular  in  all  cities,  there  is  no  doubt  but  that  many  more 
will  be  erected.  Rates  for  displays  of  this  kind  are  rather  higher 
than  in  America.  All  the  materials  from  which  the  structures  are 
made  are  imported — lumber,  nails,  steel,  paint,  etc. — and  so  have  a 
higher  value  than  in  America.  Owing  to  climatic  conditions  a 
greater  ratio  of  depreciation  must  be  allowed.  Locations  are  scarce 
and  real  estate  values  high,  so  that  a  rather  high  rental  must  be  paid. 
In  addition,  there  are  municipal  taxes  on  all  outdoor  advertising,  in 
nearly  all  cities  ranging  from  0.05  tael  per  square  foot  upward. 
Rental  for  standard  size  24-sheet  poster  boards  or  painted  bulletins 
range  from  $35  to  $55  per  month.  Painted  bulletins  are  generally 
repainted  every  four  months. 

Painted  walls  and  painted  bulletins  are  of  odd  sizes,  10  by  10  feet, 
10  by  20  feet,  etc.  Some  of  the  bulletins  are  located  on  low  roofs, 
balconies,  or  walls.  In  Shanghai  the  average  monthly  rental  would 
be  about  12  cents  per  square  foot  per  month.  Few  bulletins  are  used 
outside  of  Shanghai.  In  the  smaller  places,  such  as  Nanking  and 
Ningpo,  there  are  many  painted  walls  available,  the  cost  being  about 
5  cents  per  square  foot  per  month.  These  walls  are  usually  repainted 
every  six  months. 

Chinese  officials  have  in  the  past  few  years  seen  an  opportunity  to 
secure  additional  revenue  through  the  taxing  of  outdoor  advertising, 
and  taxes  of  some  kind  are  levied  in  nearly  all  cities.  In  most  places 
the  tax  is  nominal  and  really  serves  a  good  purpose  by  eliminating 
cheap  advertising.  In  other  places,  such  as  Tientsin,  it  is  prohibitive. 

The  placing  of  outdoor  advertising  in  any  Chinese  city  must  be 
done  on  a  basis  quite  different  from  that  which  may  be  used  in  Amer¬ 
ica.  In  any  American  city  a  very  large  part  of  the  population  moves 
several  times  a  day  from  the  residence  to  the  business  section,  and  by 
placing  bulletins  along  the  main  arteries  of  travel  it  is  possible  to 
reach  practically  all  of  the  population  of  the  city.  In  a  Chinese  city 
there  is  no  residence  section  sharply  divided  from  the  business  sec¬ 
tion.  The  city  is  made  up  of  many  small  shops  and  factories,  and  the 
owner  with  his  family  and  apprentices  invariably  lives  over  the  busi¬ 
ness  premises.  His  teahouse  and  the  shops  which  he  patronizes  are 
all  in  the  immediate  neighborhood  and  his  activities  rarely  take  him 
outside  of  a  radius  of  a  few  hundred  yards.  This  means  that  out¬ 
door  advertising  must  be  so  placed  as  to  reach  all  the  individual  com¬ 
munities.  Instead  of  a  few  large  signs  it  is  necessary  to  tise  a  large 
number  of  small  ones. 


200 


COMMERCIAL  HANDBOOK  OF  CHINA 


Electrical  signs. — Electrical  displays  and  illuminated  bulletins  and 
posters  are  very  little  used  in  China.  Except  in  the  more  modern 
and  semiforeign  cities  there  is  very  little  night  life,  the  entire  Chi¬ 
nese  population  retiring  behind  closed  doors  with  nightfall.  Street¬ 
car  advertising  is  equally  unimportant.  There  are  street  cars  only  in 
Shanghai,  Tientsin,  Hongkong,  and  Peking,  and  the  type  of  cars 
used,  except  in  Hongkong,  does  not  lend  itself  to  the  display  of 
a  dvertising. 

Store  hangers,  tackers,  and  shop  signs  are  used,  though  their  use 
has  been  fully  developed  only  by  the  tobacco  and  proprietary  medi¬ 
cine  companies.  In  Shanghai  shopkeepers  with  good  show  windows 
in  the  busiest  parts  of  town  rent  their  windows,  some  rentals  running 
as  high  as  $75  gold  per  week  for  one  window.  As  elsewhere,  shop¬ 
keepers  are  sometimes  careless  about  giving  a  proper  display  to 
advertising  material  which  is  sent  them  instead  of  being  put  up  by 
the  advertiser’s  employees. 

Samples. — The  distribution  of  samples  is  a  very  effective  way 
of  introducing  a  new  article.  With  a  people  of  such  restricted 
purchasing  power,  however,  a  sample,  no  matter  how  small,  has 
a  certain  market  value;  and  unless  precautions  are  taken,  the 
samples  will  end  up  in  the  hands  of  those  whose  sole  desire  is  to 
sell  them.  If  the  samples  can  be  sent  through  the  mails,  the  most 
effective  method  of  distributing  them  is  by  means  of  newspaper 
advertising,  the  sample  being  sent  in  return  for  a  certain  value  in 
postage  stamps.  Free  offers  should  never  be  undertaken  because 
the  result  will  be  a  deluge  of  requests  from  irresponsible  people. 
An  American  manufacturer  once  advertised  free  samples  of  toilet 
articles  to  all  who  would  call  at  the  office  of  his  agent.  The  result 
was  that  the  street  was  so  blocked  with  small  boys  and  coolies 
that  the  agent  faced  a  police  court  charge  of  impeding  traffic. 

Mail  advertising. — Circulars  and  circular  letters  are  sent  by  mail 
in  China  at  a  very  cheap  rate.  The  Chinese  post  office  undertakes 
the  distribution  of  trade  circulars  and  handbills  at  a  price  of  10 
cents  per  hundred,  in  addition  to  the  bulk  postage  charge  on  the 
circulars  from  point  of  origin  to  the  point  of  distribution. 

Calendars. — Calendars  are  widely  used  for  advertising  purposes, 
and  some  of  the  calendars  distributed  at  Chinese  New  Year  are 
real  works  of  art.  The  calendars  are  in  great  demand,  as  some 
of  them  are  readily  salable  at  as  much  as  50  or  60  cents  each;  but 
considering  the  high  cost  of  calendars,  it  is  doubtful  that  their  dis¬ 
tribution  is  ever  justified  by  the  advertising  results  obtained. 


ADVANCING  TRADE  THROUGH  MOTION  PICTURES 


By  Commercial  Attache  Julean  Arnold 

In  the  motion-picture  film  American  manufacturers  have  an 
agency  which  can  be  used  in  a  very  effective  manner  for  the  fur¬ 
therance  of  their  business  in  China.  The  value  of  motion  pictures 
as  a  medium  of  publicity  and  education  in  developing  trade  with 
oriental  peoples  has  not  yet  been  fully  appreciated  by  business 
men,  but  there  can  be  no  doubt  of  the  effectiveness  of  the  film 
and  in  time  this  is  sure  to  be  realized  and  utilized.  The  motion- 
picture  film  serves  as  a  universal  language  in  communicating  the 
ideas  of  people  of  different  languages  to  each  other.  Language 
is,  after  all,  the  medium  of  expression  by  which  men  transmit  to 
each  other  mental  pictures,  and  the  more  nearly  one  reproduces 
the  picture  itself  the  more  effective  is  the  message  conveyed. 

THE  FILM  AN  EFFECTIVE  MEDIUM 

China  is  peculiarly  a  field  for  the  use  of  the  motion-picture  film 
to  convey  ideas  because  of  the  great  percentage  of  illiteracy  and 
because  of  the  large  numbers  who,  living  in  the  different  sections, 
speak  different  dialects,  although  they  use  a  common  written  lan¬ 
guage.  One  of  the  best  examples  of  the  practicability  of  the  use 
of  motion  pictures  in  China  was  supplied  by  the  campaign  under¬ 
taken  in  China  by  the  Silk  Association  of  America  to  educate  the 
Chinese  silk  producers  to  an  appreciation  of  the  needs  of  the  Amer¬ 
ican  silk  manufacturers.  Had  the  association  sent  even  the  best 
qualified  men  into  the  silk  districts  of  Canton  and  the  Yangtze 
Valley  to  explain,  through  interpreters,  the  modifications  necessary 
in  the  production  of  raw  silk  in  China  in  order  to  make  it  accept¬ 
able  to  the  uses  of  the  high-speed  machine  looms  of  the  United 
States,  their  efforts  would  have  been  futile.  But  the  association’s 
representatives  came  to  China  with  a  motion-picture  film  showing 
how  the  Japanese  silk  producers  made  their  silk  meet  American 
machine  requirements.  When  the  Canton  silk  producers  beheld 
on  the  screen,  before  their  eyes,  all  the  processes  of  raising  and  feed¬ 
ing  live  silk  worms  under  the  improved  methods  developed  in 
Japan,  they  understood  in  its  completeness  a  message  wdiich  could 
not  have  been  conveyed  through  the  medium  of  the  spoken  word 
or  the  written  page.  Seeing  is  believing  with  the  Chinese,  and  it 
was  not  difficult  after  this  exhibition  to  convince  even  the  most 
illiterate  silk  producers  among  them  of  the  changes  necessary  in 
their  methods  to  meet  conditions  in  America  which  would  open  up 
to  them  enlarged  markets  with  increased  profits. 

Had  the  Silk  Association  of  America  contented  itself  with  getting 
out  beautifully  illustrated  pamphlets,  setting  forth  their  require¬ 
ments,  even  though  printed  in  Chinese,  they  could  never  have 

201 


202 


COMMERCIAL  HANDBOOK  OF  CHINA 


aroused  the  interest  nor  achieved  the  results  which  followed  their 
motion-picture  display. 

China  is  in  a  state  of  transition.  In  the  modern  sense  it  has  no  old 
machinery  or  equipment  to  scrap,  but  it  is  scrapping  now  much  of  its 
old-fashioned  mental  and  social  machinery  and  is  endeavoring  to 
adjust  itself  to  new  conditions  that  have  been  set  up  through  the 
influence  of  western  ideas  and  methods.  Thus  the  people  are  at  a 
stage  to  take  in  from  the  west  those  ideas  and  institutions  which  may 
be  presented  to  them  in  the  most  favorable  light.  They  are  not  yet 
able  to  discriminate  in  every  case,  but  they  are  receptive;  and  once 
they  have  become  convinced  that  an  idea  or  an  article  meets  a  certain 
want  or  fulfills  a  certain  condition  they  will  not  be  easily  swerved  to 
the  acceptance  of  something  else.  Thus  it  is  important  at  this 
time,  when  these  people  are  laying  the  foundations  of  a  new  order, 
that  American  materials  and  American  methods  should  be  presented 
to  them  in  the  simplest  fashion  and  in  the  most  favorable  light.  In 
accomplishing  this  it  would  hardly  be  possible  to  develop  a  surer  and 
more  direct  method  than  the  use  of  the  motion-picture  film. 

METHOD  OF  PRESENTING  SUBJECT 

In  the  production  of  industrial  or  educational  films  for  use  in 
China  great  care  must  be  exercised  to  present  the  subject  in  a  manner 
understandable  to  the  Chinese.  The  Chinese  environment  is  non¬ 
technical  and  nonscientific.  The  films  should  present  a  compre¬ 
hensive  story  as  simply  as  possible,  and  under  ordinary  circumstances 
details  of  technique  should  be  avoided.  The  important  general 
phases  of  a  subject  should  be  accentuated. 

The  Chinese,  like  other  people,  are  much  impressed  by  those  insti¬ 
tutions  which  they  do  not  have  themselves.  For  example,  American 
industrial  and  business  organization  is  of  great  interest  to  them. 
One  of  the  great  assets  in  connection  with  American  industry  is 
quantity  production.  When  possible  to  do  so,  industrial  films  for 
Chinese  consumption  should  feature  something  of  the  size,  method  of 
organization,  and  number  of  laborers  employed,  as  well  as  to  exhibit 
the  methods  and  results  of  mass  output  in  the  industry  under  dis¬ 
play.  However,  a  film  showing  merely  heterogeneous  factory  build¬ 
ings  bunched  together,  devoid  of  the  human  element,  means  little  to 
the  Chinese  audience.  Groups  of  factory  or  office  buildings  for 
motion-picture  display  should  not  be  filmed  on  Sundays  or  holidays, 
when  there  are  no  signs  of  human  activity  about.  When  there  are 
railway  facilities  connected  with  the  plant  the  picture  should  show 
activity  in  loading  and  unloading  cars,  thereby  impressing  the  audi¬ 
ence  with  the  amount  of  shipping  required. 

Machinery  should  be  shown  in  operation  and  at  a  time  when  the 
laborers  are  working  at  full  capacity.  Nor  is  it  sufficient  to  exhibit 
merely  the  process  of  manufacturing.  A  film  showing  dye  works, 
for  example,  should  also  feature  in  an  attractive  and  impressive  man¬ 
ner  the  uses  to  which  the  dyes  are  put. 

In  exhibiting  road-making  machinery  a  picture  of  the  completed 
road  is  not  enough.  What  is  a  road  unless  it  serves  the  community  ? 
Chinese  audiences  want  to  see  the  movement  of  traffic  up  and  down 
the  road,  its  character,  and  the  people  that  use  it.  There  is  much 


ADVANCING  TRADE  THROUGH  MOTION  PICTURES 


203 


interest  in  China  now  in  the  construction  of  good  roads,  and  the 
people  are  inquisitive  as  to  how  such  roads  can  best  be  used  to  serve 
the  needs  of  economic  transportation. 

HUMAN  INTEREST 

The  Chinese,  in  the  long  course  of  their  civilization  and  devotion 
to  the  family,  have  become  very  gregarious.  They  have  developed 
a  keen  sense  of  humor,  and  human-interest  features  always  appeal 
to  them — but  not  necessarily  in  the  same  way  as  they  appeal  to  people 
in  America  who  are  brought  up  in  a  different  environment.  The 
usual  American  photoplay  exhibited  in  China  probably  does  more 
harm  than  good,  because  in  accentuating  certain  phases  of  our  social 
life  it  misrepresents  to  the  Chinese  mind  American  social  customs. 
One  of  our  manufacturers  of  electrical  equipment  made  an  effeort 
to  inject  the  human-interest  feature  into  a  picture  of  a  modern  Amer¬ 
ican  home  equipped  with  electrical  devices.  In  order  to  emphasize 
appreciation  of  these  electrical  conveniences,  as  utilized  in  the  home 
of  a  newly  wed  couple,  the  newly  weds  were  made  to  express  their 
delight  with  the  contrivances  by  embracing  and  kissing  each  other. 
This  demonstration  was  repeated  so  often  that  to  the  Chinese  audi¬ 
ence,  unfamiliar  with  American  social  customs,  it  appeared  to  be  a 
normal  American  custom. 

However,  it  is  very  desirable  to  incorporate  in  the  industrial  film 
something  of  the  human-interest  quality.  The  animated  cartoon  is 
one  of  the  best  means  of  introducing  humor  into  a  film  of  this  kind 
for  presentation  to  a  Chinese  audience.  A  firm  of  American  manu¬ 
facturers  of  agricultural  machinery,  in  its  film  entitled  “  The  Power 
Farm,”  illustrates  by  means  of  a  cartoon  the  advantages  of  the  tractor 
for  plowing.  A  man  is  shown  dripping  with  perspiration  in  walk¬ 
ing  from  Omaha  to  Chicago — the  same  distance  he  would  cover 
were  he  to  plow  60  acres  the  old-fashioned  way,  but  which  he  can 
plow  with  a  tractor  in  one  day.  This  cartoon  made  a  hit,  as  it  con¬ 
tained  both  essentials,  humor  and  fact ;  but  it  would  have  been  even 
more  effective  to  the  Chinese  audience  had  the  cartoon  represented  a 
Chinese  walking  from  Peking  to  Hankow. 

EXPLANATORY  MATTER 

It  is  very  necessary  in  the  production  of  an  industrial  film  to  in¬ 
corporate  such  visual  explanatory  matter  by  way  of  graphs,  car¬ 
toons,  or  otherwise  as  will  impress  the  essential  facts  upon  the  audi¬ 
ence  in  a  pleasant  and  yet  permanent  way.  Naturally  it  would  be 
more  effective  in  the  utilization  of  material  for  cartoons  if  Chinese 
personages  or  things  familiar  to  Chinese  audiences  could  be  utilized. 
In  one  of  the  films  of  the  Silk  Association  of  America  a  Chinese  dele¬ 
gation  of  silk  men  visiting  the  United  States  is  shown.  Naturally 
this  arouses  very  considerable  interest  on  the  part  of  Chinese  audi¬ 
ences.  The  introduction  of  a  bit  of  local  color  into  a  film  is  alwavs 
helpful. 

Industrial  and  educational  films  for  use  in  China  should  have  de¬ 
scriptive  matter  in  Chinese  as  well  as  in  English,  but  this  must  be 
done  carefully  by  translators  thoroughly  competent  to  handle  the 
special  subjects  involved.  There  may  be  among  the  Chinese  students 


204 


COMMERCIAL  HANDBOOK  OF  CHINA 


in  America  certain  ones  who  would  be  competent  for  certain  work 
of  this  character,  but  translations  should  be  carefully  checked  by 
independent  sources  to  avoid  committing  blunders  which  might  tend 
to  ridicule  the  subject.  Similarly,  in  displaying  these  films  in  China, 
whenever  possible  to  do  so,  arrangements  should  be  made  to  have 
competent  Chinese,  properly  coached  in  advance,  explain  to  the  audi¬ 
ences  the  significance  of  pertinent  phases  which  the  film  is  presumed 
to  emphasize. 

EXHIBITION  AND  DISTRIBUTION  OF  FILMS 

Care  should  be  exercised  in  the  use  of  films  in  China  not  to  cheapen 
their  value  through  indiscriminate  display  to  promiscuous  audi¬ 
ences.  Success  in  the  use  of  a  film  does  not  always  depend  upon  the 
number  of  persons  before  whom  it  is  exhibited.  It  is  far  better  to 
reserve  the  films  for  display  before  selected  audiences,  unless  it 
happens  to  concern  a  product  which  might  commend  itself  to  the 
large  consuming  masses.  Even  then,  better  results  would  undoubt¬ 
edly  be  obtained  with  especially  selected  audiences  than  otherwise. 
Fortunately  the  Chinese  business  man,  the  Chinese  official,  and  the 
educated  classes  generally  in  China  are  keenly  interested  in  indus¬ 
trial  and  educational  films,  so  that  one  experiences  very  little  diffi¬ 
culty  in  securing  select  audiences  of  good  character. 

The  initial  cost  in  producing  a  film  is  considerable.  By  the 
addition  of  a  few  hundred  dollars  in  this  initial  outlay  the  char¬ 
acter  of  the  film  may  be  improved  several  fold  in  its  effectiveness  for 
the  objects  in  view. 

As  for  the  agencies  through  which  the  American  industrial  and 
educational  films  may  be  advantageously  distributed  and  exhibited, 
the  American  manufacturer  may  depend  upon  the  offices  of  the 
American  commercial  attache  at  Peking,  Shanghai,  and  Canton  and 
upon  American  consulates  in  important  commercial  centers  of  China 
for  assistance  in  arranging  to  secure  audiences  for  exhibitions  under 
most  favorable  circumstances.  This  includes  the  use  of  the  films 
by  American  and  Chinese  chambers  of  commerce  and  such  other 
organizations  as  guilds,  bankers’  associations,  and  educational  insti¬ 
tutions  for  exhibits  and  demonstrations  effectively  put  on. 

BRINGING  AMERICA  TO  CHINA 

One  of  the  very  helpful  effects  of  the  use  of  well-worked-out  Amer¬ 
ican  industrial  and  educational  films  during  this  period  of  transi¬ 
tion  in  China  is  the  general  popularization  of  things  American.  It 
is  not  to  be  expected  that  many  Chinese  will  be  able  to  visit  the 
United  States  and  there  inspect  ^American  institutions  at  first  hand ; 
but  in  a  sense  America  can  be  brought  to  China  through  the  motion- 
picture  film,  so  that  men  of  influence  and  position  may  come  to 
know  American  civilization  in  its  more  favorable  aspects  and  may 
appreciate  those  things  which  have  made  for  the  economic  and  indus¬ 
trial  development  of  the  United  States  and  which  in  turn  may  be  of 
service  to  the  people  of  China  in  developing  their  resources.  For¬ 
tunately  America  and  China  are  physically  very  similar.  In  ter¬ 
ritory  the  countries  are  about  the  same  extent.  China  has  its 
Yangtze  Valley,  which  is  comparable  to  our  Mississippi  Valley. 


ADVANCING  TRADE  THROUGH  MOTION  PICTURES 


205 


China’s  agricultural  problems  are  similar  to  those  of  America.  In 
transportation  problems  the  similarity  between  the  two  countries  is 
very  marked.  Thus  there  is  probably  no  other  country  which  has 
so  much  to  offer  of  a  helpful  nature  to  the  development  of  this  great 
oriental  Republic  as  has  the  United  States. 

Through  the  educational  motion-picture  film  more  can  be  done 
to  present  America  to  China  than  through  any  other  means,  but  it 
must  be  done  with  material  thoughtfully  worked  out  and  well 
adapted  to  meet  the  situation  and  conditions  as  they  exist  in  China, 
with  the  incorporation  of  as  much  local  atmosphere  as  is  possible 
to  fit  the  film  to  Chinese  environment.  Whatever  one  American 
manufacturer  does  to  assist  in  this  work  will  redound  to  the  ad¬ 
vantage  of  others,  so  that  in  its  larger  aspects  the  industrial  film 
serves  to  further  all  American  trade.  This  therefore  is  a  subject 
which  should  commend  itself  to  manufacturers’  associations,  foreign- 
trade  organizations,  and  those  interests  generally  which  would  work 
for  the  extension  of  American  trade  abroad. 


CHINA’S  EXPORT  PRODUCTS 


By  Commercial  Attache  Julean  Arnold 

An  American  steel  manufacturer's  representative  at  Shanghai 
made  the  statement  a  few  years  ago  that  the  more  China  developed 
its  native  resources  in  iron  and  steel  the  greater  the  market  possi¬ 
bilities  for  American  steel  products.  The  industrial  developments 
which  would  follow  in  the  wake  of  the  building  of  modern  iron 
and  steel  plants  in  China  would,  he  thought,  offer  to  the  markets  in 
the  outside  world  more  than  China  itself  could  supply.  During  the 
past  two  decades  China  has  installed  several  scores  of  modern  flour 
mills,  but  its  imports  of  flour  and  wheat  for  the  past  two  years  were 
the  greatest  in  the  history  of  its  foreign  trade.  While  the  high  prices 
for  rice  and  the  poor  wheat  crops  in  centers  accessible  to  the  flour 
mills  contributed  to  this  factor,  yet  increased  consumption  of  wheat 
products  following  milling  developments  contributed  greatly. 

The  purchasing  power  of  the  great  masses  in  China  is  so  low  that 
any  improvement  in  economic  conditions  is  immediately  reflected  in 
an  increase  of  wealth  and  a  rise  in  the  purchasing  power,  hence  in 
the  per  capita  consumption.  Had  American  tobacco  interests  25 
years  ago  accepted  the  assumption  that  as  China  was  a  large  pro¬ 
ducer  of  tobacco  the  Chinese  people  would  continue  to  rely  upon 
domestic  production  to  supply  their  needs  for  pipe  consumption, 
China  would  not  to-day  be  their  second-best  customer  for  leaf  to¬ 
bacco,  and  by  far  their  best  customer  for  cigarettes.  That  the  Chinese 
had  been  trained  for  centuries  to  appreciate  the  use  of  tobacco  was 
sufficient  to  stir  the  enterprise  of  tobacco  merchants  in  the  United 
States.  With  American  salesmanship  and  American  initiative  it 
became  possible  to  convert  a  tobacco  producing  and  exporting  nation 
into  one  of  the  leading  importers  and  consumers  of  American  tobacco 
products. 

In  its  finality  all  trade  resolves  itself  into  barter.  This  is  as  true 
of  international  trade  as  it  is  of  domestic  trade.  The  more  China 
sells  the  more  China  can  buy.  In  other  words,  China  must  pay  in 
goods  or  services  for  what  it  buys.  The  more  the  American  manu¬ 
facturer  can  encourage  China’s  exports  the  greater  are  China's  im¬ 
porting  potentialities. 

China  is  a  great  storehouse  of  certain  raw  materials  which  are 
essential  to  industries  elsewhere.  For  instance,  silk  manufacture  in 
the  United  States  has  devekped  to  such  a  degree  as  to  represent  in 
the  aggregate  nearly  a  billion  dollars  in  capital  investment.  It  de¬ 
pends  for  much  of  its  prosperity  upon  raw  material  from  the  Far 
East.  The  Silk  Association  of  America,  in  appreciation  of  this  fact, 
is  lending  its  efforts  to  the  encouragement  of  China  as  a  larger  and 
more  economic  source  of  supply.  In  response,  China  now  sells  to 
the  American  silk  mills  about  $70,000,000  worth  of  raw  silk  each 
year.  Thus,  through  this  raw  material,  American  labor,  capital,  and 

206 


china's  export  products 


207 


machinery  find  lucrative  employment,  and  American  brains  and 
initiative  market  a  manufactured  product  which  adds  substantially 
to  the  aggregate  of  domestic  trade.  It  is  not  economically  possible 
to  produce  raw  silk  in  the  United  States. 

The  American  paint  and  varnish  manufacturers  have  found  in 
Chinese  wood  oil  a  product  superior  in  drying  qualities  to  linseed  oil. 
It  has  become  indispensable  to  the  success  of  the  industry.  American 
blanket  manufacturers  find  Chinese  cotton  peculiarly  adapted  to 
their  industry,  just  as  the  tire  manufacturers  find  Egyptian  cotton 
peculiarly  fitted  for  automobile  tires.  At  the  same  time,  China, 
through  the  sales  of  cotton  to  the  United  States,  finds  it  possible 
to  buy  the  longer  staple  American  cotton  for  its  finer  count  yarns. 
In  like  manner  the  more  of  China’s  vegetable  oils  the  United  States 
takes  the  more  kerosene  China  buys  from  the  United  States. 

In  order  that  American  trade  may  benefit  to  the  fullest  extent 
through  its  purchase  of  Chinese  products  it  is  necessary  that  as 
many  intermediary  agencies  as  possible  be  eliminated.  It  is  not 
yet  practical  for  the  United  States  manufacturer  or  importer  to 
purchase  direct  from  the  Chinese  producer,  nor  are  there  facilities 
whereby  he  may  purchase  through  Chinese  agencies,  except  in  a  very 
limited  way.  Thus  China’s  export  trade  is,  for  the  most  part,  in 
the  hands  of  non-Chinese  organizations  located  in  China.  Because 
native  industry  in  China  lacks  organization  in  the  modern  sense  of 
the  word,  it  is  necessary  to  maintain  foreign  organizations  in  the 
country  to  attend  to  the  details  of  the  export  trade  in  order  to 
insure  standardization  in  quality,  in  weights  and  measures,  in  mate¬ 
rials,  and  in  packing  and  shipping  methods.  If  his  business  is  of 
such  proportions  as  to  warrant  it,  the  American  manufacturer  or 
importer  should  have  his  own  representative  or  his  own  organiza¬ 
tion  in  China  to  facilitate  the  handling  of  his  business  in  such  a 
way  as  to  deriv.e  from  it  the  greatest  possible  profits.  If  the  busi¬ 
ness  is  not  of  such  proportions  he  would  do  well,  under  ordinary 
circumstances,  to  make  his  connections  with  American  exporting 
firms  or  with  firms  not  unfriedly  toward  the  utilization  of  American 
ships,  American  insurance  companies,  and  other  American  facilities 
in  the  handling  of  America’s  trade  with  China. 

HANDLING  BILLS  OF  EXCHANGE 

In  price  consideration  the  most  important  item  to  the  American 
buyer  of  Chinese  products  is  silver  exchange.  For  instance,  1,000 
taels  for  a  bale  of  Shanghai  silk  may  be  considered  a  reasonable 
price  in  China.  If  the  exchange  rate  of  the  tael  equals  80  cents 
gold,  it  would  cost  the  American  buyer  in  Shanghai  $800  gold.  If, 
in  the  fluctuations  of  exchange,  the  rate  should  change  to  95,  the 
American  buyer  would  be  obliged  to  pay  $950  a  bale  for  his  silk, 
while  the  Chinese  seller  would  get  no  more  for  his  product.  Hence 
cheap  silver  favors  China’s  export  trade,  and  vice  versa. 

This  subject  is  treated  as  follows  by  Mr.  Lynn  W.  Meekins, 
formerly  American  trade  commissioner  to  China: 

“  These  are  the  points  that  business  men  in  the  United  States  need  to  be 
told,”  said  a  prominent  American  exporter  in  Shanghai : 

“  First,  once  an  exchange  contract  is  made  it  can  not  be  canceled  and 
no  margin  is  allowed ;  neither  can  any  options  on  exchange  be  had,  and  rates 


208 


COMMERCIAL,  HANDBOOK  OF  CHINA 


are  often  subject  to  violent  fluctuations.  Therefore  it  is  difficult  for  Shanghai 
firms  to  quote  prices  to  importers  in  the  United  States  on  a  gold-dollar  basis. 
Many  risks  are  involved  besides  the  market  for  the  produce  itself. 

“  Secondly,  the  difference  in  exchange  rates  between  confirmed  credits  and 
documentary  credits  partly  offsets  the  cost  (from  one-half  to  1  per  cent)  of 
confirmed  credits  in  the  United  States.  Firms  in  China  generally  finance  their 
exports  by  means  of  confirmed  irrevocable  letters  of  credit,  under  which  the 
shipper  is  fully  protected.  A  better  rate  of  exchange  can  be  secured  in 
Shanghai  on  a  confirmed  credit  than  on  a  documentary  credit. 

“  Thirdly,  it  is  essential  to  employ  great  care  in  supplying  correct  par¬ 
ticulars  to  the  bank  in  the  United  States  at  which  the  credit  is  opened.  For 
instance,  it  should  be  distinctly  stated  whether  shipment  is  to  be  made  via  the 
Pacific  coast,  via  Panama,  or  via  Suez.  If  one  route  is  specified  and  the  goods 
are  forwarded  by  another  route,  the  shipper  can  not  negotiate  his  documents. 
Nor  can  he  do  so  if  the  importer  specifies  a  health  certificate  for  products 
for  which  such  a  certificate  is  not  customarily  issued.” 

FINANCING  THROUGH  CONFIRMED  CREDITS 

Most  of  the  exports  from  .China  to  the  United  States  are  now  financed  by 
means  of  irrevocable  confirmed  credits.  Some  shipments  are  forwarded  under 
documentary  credits,  but  these  are  said  to  be  used  very  little  except  by  some 
large  firms.  After  the  exporter  has  concluded  the  sale  of  his  merchandise  to 
the  importer  in  the  United  States,  he  settles  exchange  with  the  bank  offering 
the  best  rate  for  his  bills,  the  contract  usually  being  for  delivery  from  one  to 
two  months  forward,  depending  upon  the  time  of  shipment.  Then  the  mer¬ 
chandise  is  purchased  from  native  dealers,  and  if  it  originates  in  the  interior 
it  is  shipped  to  a  treaty  port  and  delivered  to  the  exporter’s  godown  or  ware¬ 
house,  where  it  is  re-sorted  and  packed  for  export  shipment.  The  exporter 
now  arranges  for  a  packing  credit  which  provides  him  with  funds  to  finance 
the  shipment  up  to  the  time  it  is  placed  on  board  the  vessel.  This  credit  is 
negotiated  usually  through  the  bank  with  which  the  exporter  has  contracted 
for  the  sale  of  his  bills  of  exchange.  The  packing  credit  constitutes  a  lien  in 
favor  of  the  bank  and  customarily  covers  about  80  per  cent  of  the  value  of  the 
goods. 

The  most  common  usance  on  export  credits  is  90  days,  although  in  some 
cases  it  is  30,  60,  or  120  days,  and  frequently  export  cargo  is  financed  by 
sight  drafts.  The  last-named  method  gives  the  exporter  the  benefit  of  the 
difference  between  the  demand  rate  and  a  rate  covering  interest  for  a  speci¬ 
fied  period. 

If  a  firm  in  Boston  wishes  to  import  a  quantity  of  hides  from  China,  it  opens 
a  credit  through  a  Boston  bank.  After  the  credit  has  been  arranged  in  the 
United  States,  banks  in  Shanghai,  Hankow,  or  Tientsin,  whence  hides  are 
usually  exported,  will  negotiate  bills  of  exchange  under  this  credit.  The  ex¬ 
porter  draws  against  it  in  gold  dollars.  Owing  to  the  growing  number  of 
American  banks  in  China,  the  market  for  bills  drawn  in  dollars  on  New  York 
is  increasing.  If  the  shipment  were  going  to  Great  Britain,  the  bill  of  exchange 
would  be  drawn  in  sterling.  In  the  case  of  exports  from  China  to  Scandina¬ 
vian  countries,  and  sometimes  those  to  France  and  the  Netherlands,  bills  are 
also  drawn  in  sterling.  On  the  other  hand,  shipments  from  China  to  South 
America  are  oridnarily  financed  by  bills  drawn  in  gold  dollars,  occasionally  in 
pounds  sterling. 

The  usual  method  of  opening  a  confirmed  credit  is  for  the  importer  in  the 
United  States  to  arrange  the  matter  through  his  local  bank.  He  fills  out  an 
application  blank  stating  the  name  and  address  of  the  China  exporter,  the  total 
amount  involved,  the  description  of  the  merchandise  to  be  imported,  and  the 
usual  agreement  to  effect  marine  and  other  insurance.  It  should  be  noted, 
however,  that  either  the  exporter  in  China  or  the  importer  in  the  United 
States  may  arrange  for  the  insurance.  Each  bill  drawn  under  a  letter  of 
credit  is  accompanied  by  the  following  shipping  documents :  Consular  invoice, 
invoice,  bill  of  lading,  and  insurance  policy.  Instructions  concerning  these 
documents  and  where  they  are  to  be  sent  are  always  contained  in  the  credit. 

BASIS  OF  NEGOTIATIONS 

Exchange  rates  are  quoted  in  Shanghai  in  a  daily  bulletin  issued  by  the 
Shanghai  Exchange  Brokers’  Association,  which  contains  the  rates  on  London, 


209 


china’s  export  products 


India,  France,  America,  Hongkong,  Japan,  Batavia,  and  the  Straits  Settle¬ 
ments.  These  are  the  opening  rates  of  the  Hongkong  and  Shanghai  Banking 
Corporation,  but  actual  business  is  often  negotiated  at  several  points  higher 
or  lower,  depending  upon  market  conditions.  Some  banks  may  he  short  of 
cash  and  offer  less  attractive  rates  than  others.  The  basis  of  the  rates  is  the 
price  of  bar  silver  in  London,  and  also  the  exchange  rates  between  London 
and  the  principal  commercial  centers  of  the  other  countries  involved — in  the 
case  of  the  United  States  this  would  be  New  York. 

DOMICILE  OF  BILLS 

The  domicile  of  bills  drawn  on  the  United  States  depends  upon  the  city 
in  which  the  importer  of  the  goods  is  located.  The  most  customary  domiciles 
of  China  bills  of  exchange  are  New  York,  Chicago,  San  Francisco,  Philadel¬ 
phia,  and  Boston. 

During  the  past  year  there  has  been  material  improvement  in  the  frequency 
of  mails  between  China  and  the  United  States,  and  at  present  there  is  a  mail 
at  least  fortnightly  and  often  weekly.  From  Shanghai  to  Seattle  the  mail 
time  is  16  days ;  to  San  Francisco,  22  from  the  sailing  date  of  the  steamer 
from  Shanghai.  According  to  a  ruling  of  the  Shanghai  Bankers’  Association, 
the  exporter  formerly  was  only  given  credit  for  the  proceeds  of  his  bills  the  day 
before  the  mail  closed,  but  recent  practice  is  to  give  him  credit  at  once  for 
his  bills.  Therefore  the  securing  of  quick  returns  depends  upon  the  frequency 
of  the  mails. 

EXCHANGE  QUOTATIONS 

New  York  rates  of  discount  and  exchange  are  regularly  and  accurately  quoted 
in  Shanghai  by  all  active  foreign-exchange  banks. 

Shanghai  banks  receive  daily  cables  from  New  York,  London,  and  other 
commercial  centers  giving  them  exchange  quotations  in  the  principal  markets 
of  the  world.  It  is  always  possible  to  obtain  quotations  in  Shanghai  for  bills  on 
New  York. 

Among  the  tables  of  exchange  rates  published  in  China  are  the  Far  Eastern 
Exchange  Tables,  compiled  by  F.  X.  Sequeira,  and  published  by  the  Commercial 
Press,  Shanghai.  The  Chinese-American  Publishing  Co.,  and  Kelly  &  Walsh, 
both  located  in  Shanghai,  have  also  published  standard  exchange  tables,  which 
are  in  wide  use. 

All  the  Shanghai  foreign-exchange  banks  receive  discount  quotations  daily 
from  New  York,  London,  and  other  centers.  Forward  rates  of  New  York  dis¬ 
counts  are  regularly  quoted  by  the  majority  of  the  foreign  banks  in  Shanghai. 

The  margin  of  profit  calculated  in  the  purchase  of  first-class  commercial  bills 
varies,  depending  upon  the  demand  for  such  bills  and  whether  or  not  money 
in  China  ports  is  easy.  When  money  is  tight  banks  will  not  tie  up  their  funds 
in  bills  unless  the  rates  are  very  attractive.  The  reverse  obtains  when  money 
is  easy.  The  discount  rate  on  New  York,  London,  and  other  centers  is  the  basis 
for  the  purchase  of  these  bills,  modified,  of  course,  by  the  local  conditions  affect¬ 
ing  the  market  at  the  time  of  negotiation.  Exchange  banks  in  China  usually 
discriminate  in  favor  of  bills  of  exchange  on  Great  Britain  and  the  United 
States. 

MINERAL  PRODUCTS 

According  to  the  findings  of  the  Geological  Survey  of  China,  coal 
ranks  first  among  China’s  mineral  resources,  the  contents  of  its  coal 
beds  being  estimated  at  40,000,000,000  to  50,000,000,000  tons.  The 
iron-ore  deposits  appear  to  be  much  less  than  has  been  generally 
supposed,  probably  aggregating  not  more  than  1,000,000,000  tons. 
Internal  disturbances  have  seriously  affected  the  iron-ore  output, 
although  the  prime  unfavorable  factor  has  been  the  high  rail  trans¬ 
portation  rates  on  coke  for  the  manufacture  of  pig  iron,  which  now 
costs  more  to  produce  in  China  than  in  the  United  States.  Consider¬ 
ing  the  reduced  values  which  followed  postwar  deflations,  the  present 
production  of  iron  can  not  be  regarded  as  on  an  economic  basis. 


100020°— 26 - 15 


210 


COMMERCIAL  HANDBOOK  OF  CHINA 


China  has  larger  deposits  of  antimony  than  has  any  other  nation. 
Antimony  production  rose  to  abnormal  heights  during  the  war. 
From  the  standpoint  of  world  production  figures,  China’s  most 
important  metals  are  antimony,  tungsten,  and  tin,  in  the  order  given ; 
but  from  a  more  restricted  standpoint,  tin  may  be  regarded  the  most 
important  of  the  three.  Tin,  which  comes  from  southwestern  China, 
is  the  only  metal  which  continues  to  expand  in  China’s  exports,  the 
exports  for  1923  amounting  to  about  9,000  short  tons. 

With  the  conclusion  of  the  war  tungsten  and  manganese  produc¬ 
tion  dropped  heavily.  Mercury  production  has  also  fallen.  Unfav¬ 
orable  conditions  in  Hunan  have  prevented  any  considerable  develop¬ 
ment  in  the  lead  and  zinc  industries.  Apparently  China  has  almost 
exhausted  its  known  resources  in  silver  and  copper,  although  there  are 
considerable  copper  deposits  in  Mongolia  and  Sinkiang,  where  silver 
also  may  exist.  In  North  Manchuria  and  in  Mongolia  are  gold 
deposits  which,  because  of  unfavorable  internal  conditions,  are  not 
being  worked.  As  a  whole,  China’s  mineral  progress  in  recent  years 
has  been  most  largely  in  the  mining  of  coal. 

The  matter  of  foreign  participation  in  the  development  of  China’s 
mineral  resources  remains  one  of  much  interest  to  Americans.  Ac¬ 
cording  to  the  mining  lawTs  enacted  in  1914,  mining  rights  are 
reserved  to  Chinese  citizens  and  to  citizens  of  treaty-power  nations 
when  doing  joint  business  with  Chinese,  but  under  the  provision 
that  foreigners  shall  not  hold,  more  than  half  the  total  number  of 
shares  in  the  mining  concern.  These  laws  have  never  been  accept¬ 
able  to  foreign  interests.  Under  the  present  disorganized  conditions 
of  government  in  China,  however,  they  serve  helpfully  in  preventing 
mining  properties  from  falling  into  the  hands  of  undesirable  interests. 
Through  negotiations,  first  with  the  provisional  authorities  and 
later  wTith  the  Ministry  of  Agriculture  and  Commerce,  agreements 
acceptable  to  foreign  interests  have  been  made  with  regard  to  mining 
operations.  These  negotiations  assure  sufficient  control  for  the  pro¬ 
tection  of  the  invested  foreign  capital.  Foreigners  also  make  loans 
to  mines  under  an  agreement  whereby  the  principal  and  interest 
are  repaid  in  deliveries  of  ore  on  contract.  However,  care  must 
be  exercised  in  regard  to  the  security  offered  by  native  mine  owners. 

For  detailed  information  regarding  China’s  mineral  resources, 
reference  is  made  to  the  publications  of  the  Geological  Survey 
of  China,  a  list  of  which,  with  prices,  may  be  secured  from  the 
office  of  the  Geological  Survey  in  Peking.  Rea’s  Far  Eastern 
Manual,  published  by  the  Far  Eastern  Review,  gives  very  full  data 
regarding  industrial  mining  companies  operating  in  China.  For 
mining  agreements,  interested  persons  are  advised  to  consult  Mac- 
Murray’s  Treaties  and  Agreements  with  China. 

ALUM 

China  produces  a  high  quality  of  alum.  The  principal  center 
of  production  for  the  export  trade  is  Chekiang  Province,  with 
Wenchow  as  the  port  of  export.  During  1923  there  were  exported 
from  China  12,000  short  tons.  American  imports  of  alum  were 
inconsiderable,  with  no  record  of  exports.  Thus  the  article  is  not 
one  of  interest  to  the  American  trade. 


china's  export  products 


211 


ANTIMONY 

China  dominates  the  antimony  situation  by  its  large  and  cheaply 
mined  deposits.  Antimony  is  used  principally  as  a  hardening 
agent  for  lead.  During  the  war  it  found  an  extensive  use  in  shrap¬ 
nel  bullets.  It  is  an  important  component  of  type  metal  and  in 
metals  used  for  bearings.  The  great  bulk  of  China’s  antimony 
comes  from  Hunan  Province,  which  possesses  the  purest  ores,  prac¬ 
tically  free  from  arsenic  and  carrying  from  20  to  64  per  cent  of 
antimony.  Smelting  is  done  at  Changsha  and  Hankow.  The  United 
States  is  the  principal  purchaser  of  China’s  antimony.  During  1923 
China  exported  13,000  short  tons  of  antimony  regulus,  3,200  tons 
of  crude  antimony,  and  2,300  tons  of  antimony  ore.  China  con¬ 
tributes  probably  60  per  cent  of  the  world’s  output  of  antimony. 

ARSENIC 

Arsenic  bisulphide  and  arsenic  pyrites  in  combination  with  tin 
are  found  in  Hunan,  and  arsenic  in  the  form  of  orpiment  occurs 
in  the  northwestern  part  of  Yunnan.  The  exports  for  the  last 
10  years  of  white  arsenic  from  Changsha,  Hunan,  averaged  about 
200  tons  per  annum.  A  very  complete  report  on  the  arsenic  indus¬ 
try  in  Hunan  was  made  by  Vice  Consul  Atcheson  in  August,  1923. 
[A  copy  of  this  report  is  on  file  in  the  Chemical  Division,  Bureau 
of  Foreign  and  Domestic  Commerce.]  The  exports  of  arsenical  com¬ 
pounds  from  Hankow  for  the  year  1923  were  about  700  short  tons. 

ASBESTOS 

Asbestos  is  found  in  various  sections  of  North  China.  It  does 
not  appear  to  be  of  high  tensile  strength.  It  is  probably  correct 
to  say  that  the  deposits  of  asbestos  in  China  have  not  been  sufficiently 
investigated  to  ascertain  definitely  whether  or  not  the  chrysotile  or 
serpentine  asbestos  abounds  in  sufficient  quantities  to  make  possible 
the  development  of  an  industry.  At  present  very  little  is  used 
for  manufacturing,  and  it  does  not  figure  as  an  article  of  export. 
America’s  imports  of  this  commodity  are  for  the  most  part  from 
Canada. 

COAL 

The^  Geological  Survey  of  China  makes  a  preliminary  estimate  of 
China's  coal  reserves  at  a  depth  of  1,000  meters,  and  for  seams  of  a 
thickness  of  more  than  1  meter  of  6,000,000,000  tons  for  anthracite 
and  17,000,000,000  tons  for  bituminous  and  lignite  coals.  Allowing 
for  greater  depths  and  narrower  seams,  the  probable  reserves  are 
from  40,000,000,000  to  50,000,000,000  tons.  This  amount,  if  calcu¬ 
lated  on  the  basis  of  the  American  consumption  of  500,000,000  tons 
a  year,  wrould  last  from  80  to  100  years  only.  China’s  present  con¬ 
sumption  may  be  estimated  at  20,000,000  to  25,000,000  tons  annually. 
With  the  exception  of  Russia  and  America,  China  is  the  only  country 
bordering  on  the  Pacific  possessed  of  considerable  coal  resources.  It 
is  interesting  to  note  that  while  the  proportion  of  anthracite  to  bi¬ 
tuminous  coal  in  the  world's  coal  reserves  is  1  to  8,  in  China  the  pro- 


212 


COMMERCIAL  HANDBOOK  OF  CHINA 


portion  is  1  to  3.  The  estimates  of  China's  coal  production  for  1922 
were  as  follows  for  mines  under  modern  methods  of  operation : 


Provinces 

Bitumi¬ 

nous 

Anthracite 

Manchuria _ _  _ _ 

Tons  1 

4, 000, 000 
4,  500, 000 
150, 000 
2. 000, 000 
250, 000 
900, 000 
200,  000 
200,  000 

Tons  1 

Chihli _ 

900, 000 
250, 000 

Shansi.  . . . .  _  ..  _ - _ _ _ -  ..  _ _ _ 

Shantung..  _ _ _  -  _  .  _ - _ _ _ _ _  ..  _  _ 

Honan.  _  _  ..  _  _ _  _  _ _  _  _  _ _ 

1, 000, 000 

Kiangsi  -----  _ _ ------  ..  .  _  .  -  ----- 

Kiangsu  ..  _ _ _  .  ----- _ 

Other _ _  --.  ------  _  . 

50, 000 

Total  _  _ _  _ _  _  _ _ _  .. 

12,  200, 000 

2,  200, 000 

1  Long  tons. 


Estimates  for  the  annual  output  of  native  small  mines,  bituminous 
and  anthracite,  amount  to  6,000.000  tons,  making  the  grand  total 
approximately  20,000,000  tons. 

It  is  estimated  that  about  50  per  cent  of  the  coal  production  of 
China  is  from  companies  financed  and  operated  jointly  by  Chinese 
and  foreign  interests,  the  principal  foreign  interests  being  British 
and  Japanese.  The  latter  control  the  coal  companies  in  Manchuria 
and  have  extensive  shares  in  those  of  Shantung,  while  the  British 
control  properties  in  North  and  Central  China.  The  Chinese 
Engineering  &  Mining  Co.  represents  the  largest  coal-mining 
properties  in  China  under  British  operation.  The  output  of  the 
Ivailan  Mining  Administration,  which  is  the  Chinese  company,  is 
about  4,000,000  tons  a  year.  Its  dividends  during  the  past  10  years 
have  ranged  from  10  to  30  per  cent.  Recently  the  British  company 
has  acquired  an  interest  in  the  Peking  syndicate,  these  two  con¬ 
cerns  now  controlling  about  one-third  of  the  coal  produced  in  China 
by  modern  methods. 

During  1923  China  exported  3,000,000  tons  of  coal,  the  bulk  of 
which  went  to  Japan.  During  the  same  year  China’s  imports 
netted  1,350,000  tons.  Figuring  exchange  at  $1  silver  equal  to  $0.50 
gold,  Shantung  bituminous  coal,  of  a  quality  comparing  favorably 
with  that  used  on  the  west  coast  of  the  United  States,  with  ocean 
freight  at  $4  a  ton,  should  cost  $8.50  gold,  alongside  dock  in  San 
Francisco. 

Probably  the  greatest  impediment  to  the  development  of  China’s 
coal  resources  has  been  the  lack  of  economic  transportation,  more 
particularly  railway  transportation.  With  improved  means  of 
communication  in  the  interior,  economically  administered,  the  poten- 
tialties  of  China’s  coal  resources  are  very  considerable. 

For  further  information  regarding  China’s  coal  deposits,  see 
publications  of  the  Geological  Survey  of  China,  a  list  of  which  may 
be  secured  by  addressing  the  Geological  Survey,  Peking.  For  de¬ 
tailed  descriptions  of  the  various  Chinese  coal-mining  companies, 
consult  Rea’s  Far  Eastern  Manual,  the  Industrial  Year  Book  of  the 
Far  East. 

COPPER 

Before  1911  copper  was  a  Government  monopoly  and  no  private 
mines  were  allowed  to  exist.  Since  the  revolution  the  largest  copper- 


china's  expoet  products 


213 


producing  district  in  China  at  Tungchwan  in  Yunnan  became  a 
private  company,  with  the  annual  production  varying  between  700 
and  800  tons.  The  Penghsien  of  Szechwan  are  the  property  of  the 
provincial  government.  The  mines  have  a  semimodern  smelting 
plant,  though  they  produce  less  than  200  tons  per  annum.  In  Kirin, 
in  northern  Manchuria,  there  is  also  a  provincial  copper  mine  pro¬ 
ducing  a  similar  amount.  On  the  whole,  however,  it  may  be  said 
that  China’s  actual  copper  production  is  negligible.  A  Russian 
authority  makes  the  statement  regarding  copper  in  Mongolia,  “  So 
far  five  deposits  have  been  investigated  and  surveyed.  *  *  * 

The  largest  deposit  as  to  area  and  the  stock  of  the  metal  is  the 
deposit  in  the  Aimak  Sainhain,  where  the  seam  of  copper  stretches 
over  35  kilometers  and  where  often  big  pieces  of  native  ore  are  found 
weighing  1  pound.” 

As  China  is  on  a  copper  rather  than  a  silver  basis,  so  far  as  the 
currency  of  the  masses  is  concerned,  and  as  there  are  probably 
60,000,000,000  copper  coins  in  circulation,  copper  is  an  important 
item  in  China’s  trade.  During  the  three  years  1921-1923  China’s  im¬ 
portation  of  copper  ingots  and  slabs  aggregated  90,000  short  tons, 
of  which  nearly  two-thirds  were  from  the  United  States. 

GYPSUM 

Gypsum  is  widely  found  in  China,  Hupeh  holding  the  largest  out¬ 
put,  with  Hunan  second  in  importance.  In  Hupeh  the  gypsum  is 
interstratified  in  the  sandstone  and  green  shale.  China’s  exports 
of  gypsum  average  about  8,000  short  tons  a  year.  During  1922  the 
United  States  produced  about  4,000,000  short  tons,  as  the  largest 
domestic  production  in  the  world.  The  deposits  are  close  to  the 
surface  and  are  mined  very  cheaply. 

IRON 

Gradually,  through  the  labors  of  the  Geological  Survey  of  China, 
information  is  being  obtained  regarding  China’s  resources  in  iron 
ore.  In  two  volumes  with  illustrations  and  charts  the  survey  gives 
under  date  of  1921-1924  an  excellent  presentation  of  the  iron  ores 
and  iron  industry  of  China.  To  quote  from  page  293  of  Part  II  of 
this  publication: 

It  is  at  once  evident  that  some  950,000.000'  tons  of  iron-ore  reserves 
is  by  no  means  much  for  such  a  large  and  populous  country  as  China,  and  even 
if  continued  investigations  would — which  seems  rather  improbable — in  the 
near  future  raise  these  known  resources  to  double  the  amount  the  general 
situation  would  not  be  essentially  altered.  One  thing,  therefore,  is  certain, 
China  can  no  longer  be  regarded  as  a  storehouse  of  inexhaustible  future  re¬ 
serves  of  iron  ore,  to  be  drawn  upon  when  the  supplies  of  other  countries  are 
beginning  to  give  out.  On  the  contrary,  her  iron-ore  resources  must  be  termed 
very  modest  or  even  scant,  when  her  potentialities  of  industrial  development 
are  taken  into  consideration,  and  the  strictest  economy  would  be  indispensable 
to  guard  against  future  unpleasant  contingencies.  By  way  of  illustration,  it 
may  be  pointed  out  that  the  total  quantity  of  iron  ore  (both  actual  and  poten¬ 
tial)  represented  by  the  figures  above  would  be  consumed  by  the  iron  industry 
of  the  United  States  within  less  than  nine  years.  And  then  it  lias  to'  be  noted 
that  the  bulk  of  these  resources  consist  of  the  low-grade  Manchurian  ores,  the 
exploitability  of  which  is  still  somewhat  problematical,  or  which  at  any  rate 
are  far  below  the  average  standard. 

But,  unfortunately,  a  comparison  with  the  conditions  of  the  United  States 
is  by  no  means  justified.  As  will  be  stated  in  a  later  chapter,  the  present  rate 


214 


COMMERCIAL  HANDBOOK  OF  CHINA 


of  consumption  in  China  is  still  so  immensely  low  that  the  resources  expressed 
above  in  figures  would  suffice  to  cover  the  demands  for  many  centuries.  Even 
if  the  low-grade  Manchurian  ores  are  excluded  the  remaining  high-grade  ore 
would  still  be  enough  for  the  domestic  requirements  for  about  200  years, 
according  to  the  present  rate  of  consumption,  and  perhaps  a  century  if  a  mod¬ 
erate  progressive  increase  is  assumed.  Since  there  seems  to  be  no  reason  to 
suppose  any  exceptionally  rapid  development  of  the  demand  for  iron  in  China, 
it  may  be  concluded  that  the  country’s  resources  in  iron  ore  must  be  con¬ 
sidered  sufficient  to  assure  a  moderate  growth  of  its  iron  industry  in  the  near 
future. 


Since  1896  it  appears  that  50  per  cent  of  China’s  aggregate  pro¬ 
duction  of  11,200,000  tons  of  iron  ore,  as  mined  by  modern  methods, 
has  gone  to  Japan.  In  addition,  a  considerable  quantity  of  China’s 
pig  iron  has  been  taken  by  Japanese  steel  plants.  The  estimate  of 
the  approximate  annual  output  of  the  native  iron  industry,  not  using 
modern  methods,  as  made  in  1916  by  the  Ministry  of  Agriculture  and 
Commerce  was  500,000  tons  of  ore  and  170,000  tons  of  pig  iron. 

Under  present  conditions  the  cost  of  production  of  pig  iron  is 
higher  in  China  than  in  Europe,  the  United  States,  and  India,  or 
even  higher  than  the  Pittsburgh  market  quotation  (April,  1924) 
of  $22  gold.  The  costs  of  iron  ore  and  direct  labor  are  considerably 
less  in  China  than  in  western  countries,  but  the  cost  of  coke  and  the 
expenses  of  manufacturing,  including  overland  transportation,  are 
higher.  Chihli,  Shengking  (Fengtien) ,  and  Shansi,  in  the  north,  and 
Kiangsi,  in  the  south,  are  the  only  Provinces  capable  of  supplying 
large  quantities  of  coal  suitable  for  metallurgical  purposes. 

Thus  the  main  factor  is  the  high  cost  of  coke  at  the  smelters,  due 
to  high  rail  costs.  This  is  particularly  true  of  the  Hanyang  Iron 
Works. 

Conditions  in  North  China  are  more  favorable.  In  fact,  with  the 
erection  of  steel  fabricating  plants  to  use  the  pig  iron  which  can 
be  manufactured  in  North  China  at  costs  comparable  with  those 
in  the  United  States  the  iron  and  steel  industry  could  be  made  an 
economic  success. 

In  recent  years  the  annual  production  of  pig  iron  has  not  exceeded 
800,000  tons,  of  which  two-thirds  have  been  exported,  mostly  to  Japan- 
Thus  China’s  domestic  consumption  is  estimated  at  lt0,000  tons  of  pig 
iron  from  native  furnaces,  plus  350,000  tons  of  imported  various 
iron  or  steel  manufactures,  or  about  500,000  tons  in  all.  This 
gives  China  a  per  capita  consumption  equal  to  one  one-hundred  and 
eightieth  of  that  of  the  United  States;  one  one-hundredth  of  that  of 
England  or  Germany;  one-tenth  of  that  of  Japan;  one-thirtieth  of 
that  of  the  average  for  the  world.  Probably  nothing  else  so  well 
illustrates  China’s  backwardness  in  a  modern  industrial  sense  as  do 
these  figures.  With  the  breaking  down  of  primitive  agricultural  and 
handicraft  industry,  great  strides  may  be  expected  in  increased  iron 
and  steel  production  and  consumption  in  China. 


KAOLIN 


Kaolin  is  largely  used  in  the  manufacture  of  white  earthenware 
and  chinaware  and  of  high-grade  tile,  and  as  a  filler  in  manufactur¬ 
ing  paper,  paint,  rubber,  and  oilcloth.  It  forms  20  to  30  per  cent 
of  the  body  of  chinaware.  The  domestic  deposits  in  the  United 
States  are  extensive,  but  generally  regarded  as  inferior;  hence  the 


china's  export  products  215 

imports  are  quite  considerable.  Over  50  per  cent  of  imports  of 
kaolin  into  the  United  States  come  from  England. 

It  would  seem  that  kaolin  from  China  might  find  market  oppor¬ 
tunities  in  the  United  States.  Some  of  the  deposits  are  regarded 
as  of  high  quality.  South  China  is  favored  with  a  wide  distribution 
of  the  types  of  rock  formation  from  which  kaolin  is  derived.  The 
most  valuable  deposits  are  said  to  be  those  at  Kingtehchen,  Kiangsi 
Province,  of  which  Kiukiang  is  the  port  of  shipment. 

LEAD  AND  ZINC 

According  to  the  report  of  the  Geological  Survey,  the  only  two 
mines  producing  these  metals  in  China  are  the  Skuikoushan  mine 
in  Hunan  Province,  which  is  controlled  by  the  provincial  gov¬ 
ernment,  and  the  Kunshan  mine  of  the  Tungchwan  Mining  Co. 
in  Yunnan.  In  the  former  the  average  zinc  concentrate  contains 
about  42  per  cent  of  zinc  and  the  lead  about  65  per  cent  of  lead 
with  10  ounces  of  silver.  In  Yunnan  the  ore  is  mostly  carbonates, 
but  sulphites  also  occur  with  a  silver  content  of  16  to  20  ounces  per 
ton.  Owing  to  the  unfavorable  political  conditions  obtaining  in  the 
interior  of  China,  combined  with  the  fall  in  market  prices  of  these 
metals  since  the  conclusion  of  the  war,  these  mines  are  not  working 
up  to  capacity.  The  exports  of  zinc  ore  for  1923  were  about  70,000 
short  tons,  the  bulk  of  which  wrent  to  Belgium.  The  exports  of  lead 
ore  for  1923  were  about  5,000  short  tons,  Germany  and  Belgium 
taking  practically  all. 

MAGNESITE  AND  TALC 

According  to  the  Geological  Survey,  in  1915  magnesite  was  found 
to  occur  together  with  talc  in  the  vicinity  of  Mukden.  It  is  found 
also  in  the  Wutsi  Series. 

MERCURY 

Kweichow  is  the  center  of  mercury  production  in  China.  It  is 
also  produced  in  Hunan,  Szechwan,  and  Kwangsi  Provinces.  Native 
methods  are  used  in  mining  and  in  metallurgy.  The  mercury  content, 
however,  is  seldom  more  than  5  per  cent.  China’s  exports  fell  from 
100  tons  in  1921  to  2  tons  in  1923. 

PETROLEUM 

The  Geological  Survey  of  China,  1921,  places  China’s  resources 
of  petroleum  next  after  iron  and  coal.  In  Yenchang,  Shensi  Prov¬ 
ince,  Government  wells  have  been  producing  oil  steadily  for  a  number 
of  years.  In  Szechwan  oil  is  known  to  occur  in  the  salt  wells.  The 
amount  produced,  however,  is  small.  Probably  the  wells  were  drilled 
principally  for  mining  salt,  and  the  driller  often  may  have  passed 
the  oil  stratum  without  oil  being  noticed ;  hence,  the  amount  obtained 
does  not  represent  the  actual  resources.  It  is  the  opinion  of  the 
Geological  Survey  that  Szechwan  is  likely  to  prove  rich  in  petro¬ 
leum.  It  is  also  their  opinion  that  the  prospecting  done  in  1916  bv 
American  interests  in  Shensi,  where  two  oil  wells  were  drilled,  each 
less  than  3,000  feet,  did  not  produce  conclusive  results.  Mongolia, 
also,  it  is  believed,  is  rich  in  petroleum.  However,  it  will  be  neces- 


216 


COMMERCIAL  HANDBOOK  OF  CHINA 


sary  to  do  more  prospecting  before  the  full  extent  of  China’s  petro¬ 
leum  resources  can  be  definitely  known. 

SALTPETER 

According  to  C.  E.  Kao,  of  the  Chinese  Institute  of  Mines  and 
Metals,  saltpeter  is  widely  distributed  .in  China,  especially  in  the 
eastern  area,  where  mountains  are  few.  Most  of  it  occurs  in  potas¬ 
sium  nitrate.  By  ancient  custom  saltpeter  may  be  manufactured 
only  under  Government  license.  The  local  officials  have  given  to 
certain  families  for  many  generations  the  right  to  manufacture  salt¬ 
peter.  The  production  varies  considerably  at  different  places.  It  is 
a  by-product  of  labor,  and  the  people  have  not  yet  come  to  appreciate 
its  importance  as  a  salt  for  agriculture  and  other  purposes ;  therefore 
the  production  exceeds  the  local  demand.  In  North  China  saltpeter 
deposits  are  reported  by  a  Russian  authority  to  be  of  exceptional 
value,  ranking  in  quality  with  the  best  deposits  in  Chile.  In  Kansu 
Province  the  deposits  are  said  to  be  300  kilometers  long  from  east  to 
west,  lying  under  a  seam  of  gypsum  which  in  some  places  changes  into 
anhydrite.  This  same  report  mentions  the  proximity  of  water, 
which  will  greatly  facilitate  the  working  of  these  deposits. 

SILVER 

It  appears  that  China  has  always  been  poor  in  silver  resources. 
The  country  has  been  on  a  silver  rather  than  on  a  gold  basis ;  hence, 
silver  is  an  important  medium  of  exchange.  As  with  copper,  it  forms 
the  metallic  currency  of  the  country.  During  the  past  10  years  the 
imports  of  silver  were  in  the  aggregate  about  400,000,000  haikwan 
taels  (approximately  $300,000,000  gold)  in  excess  of  exports. 

SODA 

Soda,  consisting  of  a  mixture  of  sodium  carbonate  and  bicarbonate, 
is  found  in  the  salt  lakes  in  Mongolia.  The  company  working  the 
deposits  produces  1,200  tons  per  year.  China’s  exports  for  1923 
amounted  to  about  1,000  short  tons.  With  better  methods  of  extrac¬ 
tion  and  improved  means  of  communication,  it  is  expected  that  the 
production  in  China  will  very  materially  increase. 

SULPHUR  AND  PHOSPHATE 

The  Geological  Survey  states  that  no  big  deposit  of  natural  sulphur 
has  yet  been  discovered  in  China,  but  the  chances  of  discovery  are 
fairly  good  in  regions  where  sulphides  occur.  Phosphate  is  known  in 
the  Pratus  Island  (not  far  from  Hongkong),  which  is  a  Chinese 
possession.  The  resources  of  these  two  products  of  importance  to 
industry  and  agriculture  are  still  problematical,  so  far  as  any  con¬ 
siderable  quantities  are  concerned. 

TIN 

Tin  represents  one  of  the  few  metals  not  found  in  the  United 
States  in  commercial  quantities.  Bolivia  is  the  chief  source  of  sup¬ 
ply  for  the  American  smelters.  During  1922  the  United  States 


china's  export  products 


217 


produced  about  1,400,000  long  tons  of  tin  plate,  being  the  largest 
producer  in  the  world,  with  England  second. 

Definite  data  as  to  China’s  tin  production  are  difficult  to  obtain. 
It  probably  runs  between  8,000  and  10,000  long  tons  annually. 
Malaya  produces  35,000  to  40,000  tons ;  Bolivia,  25,000  to  30,000  tons ; 
and  Banca  (Dutch  East  Indies),  12,000  to  13,000  tons.  Thus  China 
ranks  fourth.  The  bulk  of  China’s  tin  is  produced  in  Yunnan  Prov¬ 
ince  in  the  Kochiu  district.  The  mines  are  worked  by  native  meth¬ 
ods,  and  there  is  but  one  smelting  plant.  China’s  average  annual 
exports  of  tin  slab,  based  upon  the  six  years  1918-1923,  are  equivalent 
to  8,500  long  tons.  The  bulk  of  tin  exports  go  from  Yunnan  to  Hong¬ 
kong,  from  which  port  they  are  transshipped  to  other  sections  of  the 
world.  During  1922  the  United  States  took  6,500  long  tons  from 
Hongkong,  valued  at  $4,500,000  gold.  The  figures  for  1923  were j4, 000 
tons,  valued  at  $3,000,000  gold.  The  decrease  in  the  main  was  due 
to  disordered  conditions  in  Yunnan.  The  fact  remains,  however, 
that  the  United  States  is  China’s  heaviest  purchaser  of  tin,  taking 
about  two-thirds  of  its  exports. 

TUNGSTEN,  MOLYBDENUM,  AND  MANGANESE 

Of  all  the  tungsten  ore  now  produced,  90  to  95  per  cent  goes  into 
the  manufacture  of  tungsten  powder  and  ferrotungsten,  which  is 
used  in  the  manufacture  of  high-speed  tool  steels.  The  addition 
of  tungsten  to  steel  gives  it  the  property  of  retaining  its  temper  at 
a  much  greater  heat  than  that  at  which  simple  carbon  steels  and  most 
other  alloy  metals  crumble.  Tungsten  was  discovered  in  China  as  late 
as  1915.  The  country  has  now  become  the  second  largest  producer 
in  the  world.  The  production  of  tungsten  ore  in  the  United  States 
in  1917  reached  6,000  short  tons,  but  by  1920  it  had  dropped  to  200 
tons,  and  by  1922  production  had  ceased.  There  is  no  doubt  but  that 
China  will  be  a  continued  important  source  for  tungsten.  At  present 
most  of  it  comes  from  the  three  Provinces  of  Hunan,  Kiangsi,  and 
Kwangtung. 

Molybdenum,  which  has  somewhat  similar  properties  to  tungsten, 
is  generally  used  in  conjunction  with  tungsten,  which  it  replaces 
only  in  part.  Molybdenum  has  been  discovered  in  Fukien,  Che¬ 
kiang,  and  Kwangtung,  but  it  has  apparently  not  yet  become  an 
object  of  commerce. 

According  to  the  Geological  Survey,  manganese  is  found  princi¬ 
pally  in  Hunan,  Kwangtung,  and  Kwangsi.  During  the  war  the 
exports  of  manganese  were  very  considerable,  but  subsequent  low 
prices  have  resulted  in  the  closing  of  many  of  the  mines.  However, 
during  1923  about  60,000  short  tons  of  manganese  ore  were  exported, 
mostly  to  Japan. 

ANIMAL  PRODUCTS 

The  Chinese,  generally  speaking,  use  no  dairy  products,  nor  do 
they  eat  beef.  The  very  extensive  use  of  animals  for  farm  work  in 
the  south  and  for  both  farm  work  and  transportation  in  the  north  is 
in  interesting  contrast  with  developments  in  the  United  States.  Ab¬ 
sence  of  manufacturing  industries  for  utilizing  animal  by-products 
is  conspicuous.  China’s  very  large  exportation  of  egg  products  indi¬ 
cates  a  domestic  consumption  proportionately  far  less  than  that  of 


218 


COMMERCIAL  HANDBOOK  OF  CHINA 


the  United  States.  On  the  other  hand,  the  Chinese  consume  propor¬ 
tionately  more  fish  and  other  marine  products  than  are  consumed 
by  the  people  of  the  United  States.  Fishery  products  have  not  been 
included  in  the  list  given  hereafter,  as  they  do  not  figure  in  China’s 
exports,  nor  do  the  by-products  interest  foreign  markets.  Such  prod¬ 
ucts  are  of  interest  to  those  nations  with  a  surplus  for  export  rather 
than  to  those  who  would  look  upon  China  as  a  source  of  supply. 

BRISTLES 

Bristles  of  the  quality  required  in  brush  making  are  not  produced 
in  the  United  States.  The  best  qualities  come  from  the  cold  regions 
of  the  Temperate  Zones ;  hence  Russian  bristles,  chiefly  from  Siberia, 
are  considered  the  best.  Siberian  bristles  are  handled  through  a 
monopoly  held  by  a  Soviet  Russian  official  organization  and  a  Rus¬ 
sian  central  cooperative  organization. 

Bristles  from  China  are  used  in  the  United  States  mainly  for  paint 
brushes.  During  1923  China  exported  about  70,000,000  pounds  of 
bristles  valued  at  $6,200,000  United  States  gold.  These  figures  are 
10  per  cent  higher  than  those  for  1922  and  about  70  per  cent  above 
the  exports  for  1921.  Of  the  1923  exports  the  Chinese  customs  re¬ 
turns  credit  the  United  States  with  taking  48  per  cent,  Great  Britain 
34,  Japan  9,  France  4,  and  Hongkong  2  per  cent.  Exports  of  bristles 
to  the  United  States  for  1923,  as  declared  at  Chinese  ports,  indicated 
a  gold  value  of  $5,548,000  and  from  Hongkong  $107,000.  The  total 
imports  of  bristles  into  the  United  States  for  1923  from  all  countries 
were  valued  at  $10,000,000. 

Of  Chinese  bristles,  Tientsin  exports  between  40  and  50  per  cent 
and  Hankow  and  Chungking  each  between  15  and  20  per  cent.  Man¬ 
churian  bristles,  exported  from  Dairen,  Newchwang,  and  Tientsin 
are  of  particularly  good  quality.  The  average  hog  in  North  China 
produces  one-half  pound  of  spinal  bristles  and  one-fourth  pound  of 
side  bristles. 

China’s  bristle  trade  has  increased  because  of  the  inability  of  the 
American  and  European  buyers  to  secure  the  Russian  product.  In 
response  to  the  increased  demands  in  China,  prices  have  advanced 
very  materially,  although  certain  local  factors  have  been  in  part 
responsible  for  higher  prices.  Some  of  the  larger  firms  dealing  in 
bristles  have  their  purchasing  agents  in  the  interior  towns,  where 
bristles  may  be  advantageously  collected.  Buyers  and  peddlers  also 
go  about  through  the  country  making  purchases  in  small  lots,  often 
making  payments  in  kind.  The  bristles  are  collected  in  the  export 
centers,  where  they  are  assorted  in  accordance  with  length,  color, 
and  quality,  and  are  tied  in  bundles,  disinfected,  and  packed  accord¬ 
ing  to  sizes.  The  boxes  as  ready  for  shipment  contain  1  picul  (133% 
pounds)  net  of  bristles. 

The  United  States  tariff  of  1922  prescribes  a  duty  of  7  cents  gold 
a  pound  for  bristles,  sorted,  bunched,  or  prepared;  and  for  bristles 
crude,  not  sorted,  bunched,  or  prepared,  free. 

CATTLE 

The  dairy  industry  has  never  been  developed  in  China,  as  neither 
butter  nor  milk  are  in  general  use.  Bean  products  seem  to  give 


china's  export  products 


219 


the  Chinese  the  ingredients  of  milk,  and  with  the  exception  of  the 
Mohammedans,  who  number  about  20,000,000,  they  eat  very  little 
beef.  Except  in  Mongolia  and  certain  restricted  regions  of  North 
China,  cattle  are  raised  only  for  farm  animals.  The  European  war 
did,  however,  put  a  high  premium  on  cattle  in  China,  and  a  very 
considerable  export  trade  developed,  especially  from  Tsingtao  and 
Tientsin  and  through  Mongolia  and  northern  Manchuria  into 
Siberia.  The  development  of  beef  eating  among  the  Japanese  has 
created  a  definite  demand  for  Chinese  beef  in  Japan.  It  is  esti¬ 
mated  that  about  50,000  beeves  a  year  are  exported  from  Tsingtao 
to  Japan.  The  Mongolian  steppes  are  splendid  cattle  country.  A 
Russian  authority  estimates  the  number  of  horned  cattle  in  Mongolia 
as  nearly  2,000,000.  The  Chinese  Eastern  Railway  estimates  the 
number  in  the  regions  tributary  to  the  railway  as  5,000,000.  In  the 
former  figure  the  yearly  increase  is  estimated  at  200,000,  and  in  the 
latter  350,000.  The  winter  of  1923  in  Mongolia  was  extraordinarily 
severe  and  is  presumed  to  have  killed  off  a  very  considerable  number 
of  cattle.  Precautions  against  anthrax  and  rinderpest  are  of  a 
primitive  nature,  hence  the  death  toll  from  these  causes  is  at  times 
heavy.  The  Mongols  store  up  no  hay  or  other  feed  for  their  cattle 
for  the  winter ;  thus  a  heavy  snow  plays  havoc  with  grazing,  and  lack 
of  shelter  results  in  a  prevalence  of  epidemic  pneumonia  and  similar 
diseases.  The  Chinese  who  migrate  to  Mongolia  following  the  line 
of  the  railway  do  not  take  to  the  cattle  industry,  which  seems  to 
remain  with  the  nomadic  Mongols,  who  recede  with  their  flocks  into 
the  steppes  as  the  Chinese  advance  along  the  railway. 

In  South  China,  that  is,  below  35°  north  latitude,  the  water 
buffalo  is  universally  used  as  the  farm  animal,  because  of  its  adapta¬ 
bility  to  work  in  the  rice  fields.  Horned  cattle  (water  buffaloes, 
oxen,  and  steers)  are  estimated  by  one  authority  at  50,000,000  for 
the  whole  of  China;  25,000,000  or  30,000,000  is  probably  a  safer 
estimate.  Cow  and  buffalo  hides  comprise  a  very  important  item 
of  export. 

EGGS 

It  is  probably  safe  to  estimate  the  number  of  chickens  in  China 
as  about  600,000,000.  The  agricultural  department  of  the  Canton 
Christian  College  credits  the  Chinese  hen  with  laying,  on  the  average, 
72  eggs  a  year.  During  the  past  20  years  eggs  have  become  impor¬ 
tant  items  in  the  export  trade  of  China.  In  1923  China  exported 
egg  products  as  follows  (value  in  United  States  currency)  : 


Egg  albumen  and  yolk  (50,000,000  pounds') _ $10,000,000 

Eggs: 

Fresh  and  prepared  (1,000,000,000) _ _ _  9,000,000 

Frozen  (50,000,000  pounds) -  4,500,000 


Total  value -  23,  500,  000 


These  figures  do  not  differ  greatly  from  the  figures  for  egg  exports 
for  the  two  previous  years.  In  the  aggregate,  these  egg  products 
represent  upward  of  3,000,000,000  eggs  exported  annually  from 
China.  Forty-five  per  cent  of  the  albumen  and  yolk  was  taken  by 
England,  and  37  per  cent  by  the  United  States.  Most  of  the  remain¬ 
der  went  to  France  and  Germany.  Of  fresh  and  preserved  eggs, 
75  per  cent  was  taken  by  Japan;  of  cold-storage  eggs,  England  took 


220 


COMMERCIAL  HANDBOOK  OF  CHINA 


75  per  cent  and  the  United  States  20  per  cent.  The  principal  ports 
for  the  export  of  egg  products  are  Hankow,  Shanghai,  Tientsin, 
Tsingtao,  and  Nanking. 

Under  the  United  States  pure- food  laws  liquid  albumen  and  yolk 
must  be  denatured,  or  rendered  unfit  for  other  than  industrial  pur¬ 
poses;  hence  imported  liquid  eggs,  liquid  yolk,  and  liquid  and  dried 
albumen  are  in  the  United  States  used  in  the  industries.  Liquid 
eggs  and  liquid  37olk  are  used  in  tanning  leather,  and  albumen  is 
used  in  the  textile  industries  for  printing  cotton  cloths  which  do  not 
take  ordinary  pigments  naturally.  Albumen  is  also  used  in  finishing 
paper,  sensitizing  photographic  plates,  and  in  thickening  ink.  Dried 
whole  eggs  and  yolks  are  mainly  consumed  by  pie  and  pastry  bakers, 
in  cooking,  and  by  confectioners.  The  United  States  tariff  act  of 
1922  shut  out  Chinese  trade  in  eggs  in  the  shell. 

The  price  of  eggs  in  China  varies  with  the  accessibility  to  economic 
transportation.  In  Kansu  Province,  in  West  China,  away  from 
economic  transportation,  one  may  purchase  100  eggs  for  15  cents 
gold.  In  Peking,  100  eggs  will  cost  65  cents.  In  Shanghai  and 
Tsingtao  (which  are  ports  accessible  to  easy  transportation  from 
the  hinterland,  and  also  for  export)  the  price  at  the  end  of  1924 
was  100  eggs  for  $1.70  to  $1.90  silver,  or  from  85  to  95  cents  gold. 
The  average  weight  of  Chinese  eggs  is  about  10  eggs  to  the  pound. 

The  egg-products  industry  in  China  is  now  well  organized.  At 
Shanghai,  Hankow,  Tsingtao,  Nanking,  and  Tientsin  facilities  have 
been  developed  under  foreign  auspices  which  make  possible  the 
handling  of  eggs  in  a  sanitary  way  with  modern  methods  for 

desiccation,  drying,  and  refrigeration.  Thus  it  appears  that  the 

industry  has  become  established  on  a  permanent  basis. 

The  United  States  tariff  of  1922  prescribes  the  following  import 
duties  for  eggs  and  egg  products : 

Egg  albumen  or  yolk  :  Cents  per  pound 

Dried _  18 

Frozen  or  otherwise  prepared  or  preserved,  and  not  specially  pro¬ 
vided  for _  6 

Eggs : 

Dried _  18 

Frozen  or  otherwise  prepared  or  preserved,  and  not  specially  pro¬ 
vided  for _  6 

Shells  removed  (liquid) _  6 


FEATHERS 

China  exports  annually  about  10,000,000  pounds  of  feathers, 
roughly  valued  at  $1,000,000.  Prior  to  the  European  war,  Germany 
was  the  chief  purchaser.  Within  recent  years  the  United  States 
has  become  China’s  principal  customer,  with  Great  Britain  second 
in  importance.  The  principal  feathers  exported  from  China  are 
duck,  goose,  and  chicken.  They  are  graded  as  duck  down;  duck 
feathers,  gray  and  white,  cleaned  and  uncleaned;  goose  down  and 
goose  feathers,  the  latter  cleaned  and  uncleaned;  chicken  feathers, 
cleaned,  uncleaned,  and  hard.  The  principal  ports  of  export  are 
Shanghai  and  Hongkong. 

GAME 

China  abounds  in  wild  game,  even  throughout  the  densely  popu¬ 
lated  Yangtze  regions.  Good  feed  is  plentiful  in  the  cultivated 


china's  export  products 


221 


areas,  since  the  land  is  under  cultivation  just  as  long  during  the 
year  as  climatic  conditions  will  permit.  Geese  come  from  the  north 
in  vast  numbers  to  winter  in  China.  Ducks  are  most  numerous — 
in  fact,  China  may  be  said  to  be  the  duck-hunter’s  paradise.  The 
mallard,  yellow-nib,  sheldrake,  several  varieties  of  teal,  white-eyed, 
scaup,  tufted,  and  pintail  are  among  the  wild  ducks  found  in  China, 
the  teal  being  probably  the  most  common.  The  bustard,  pheasant, 
snipe,  quail,  partridge,  grouse,  plover,  and  sage  hen  are  also  found 
in  varying  abundance.  These  are  in  demand  by  a  British  cold- 
storage  company  that  has  erected  plants  in  various  parts  of  China 
and  operates  a  line  of  refrigerator  steamers.  Prices,  which  were 
ridiculously  low  before  the  inauguration  of  this  business,  have  in 
some  cases  and  localities  advanced  four  and  five  fold,  though  they 
are  still  low  from  an  occidental  point  of  view. 

Deer  are  plentiful  in  China.  Wild  boars  are  found  in  good  num¬ 
bers.  Tigers,  leopards,  foxes,  and  wolves  are  found  in  certain  parts 
of  the  country,  but  in  decreasing  numbers. 

HIDES,  SKINS,  AND  FURS 

China’s  exports  of  hides,  skins,  and  furs  for  1923  are  shown  in 
the  following  table,  with  the  values  expressed  in  United  States  cur¬ 
rency,  the  haikwan  tael  having  been  converted  at  the  rate  of  1  tael 
equivalent  to  80  cents  gold. 


Items 

Quantity 

Value 

HIDES  AND  SKINS 

.Undressed: 

Buffalo  and  cow_  _  _  _  _ 

_ pounds. . 

39, 000, 000 

$7, 300, 000 

Goat  _ 

_ pieces.. 

7, 360, 000 

4, 400, 000 

Horse,  ass,  and  mule _  _  _ 

_ pounds. 

2, 400,  000 

430, 000 

Sheep  .  _ 

_ pieces. . 

254,  000 

190, 000 

Dressed: 

Goat  (tanned)  _  .. 

_  ..do..  . 

1,  400,  000 

1, 570, 000 

Kid _ 

_ do _ 

515,  000 

100,  000 

Lamb  _ 

_ _  .  do  .. 

1,  030,  000 

1, 040,  000 

Skins,  dressed  and  made  up: 

Goat  (mats  and  rugs).  ...  .  ...  _  ..  . 

_  ...  ..do _ 

125, 000 

150,  000 

Lamb  (clothing) _ 

_ do _ 

103,  000 

400, 000 

Dog  (clothing,  mats,  and  rugs)  .  ..  _  _ 

_ do _ 

340,  000 

225,000 

FURS 

Dressed  and  undressed: 

Fox  _  ...  .  _  _  _ ...  ..  .. 

_ pieces.  _ 

120,  000 

890,  000 

Marmot _ _ 

_ do.  .. 

2, 900,  000 

1, 225,  000 

Raccoon _  _ 

_  ...do  ... 

67,  000 

65,  000 

Sable  _  _ 

_ do _ 

2,  865 

135,  000 

Weasel _ 

_  ..do _ 

1,  050,  000 

575,  000 

Unclassed  1  _  _  ..  ..  ...  . 

_  ...do _ 

3,  200,  000 

1,  550,  000 

1  Includes  cat,  rabbit,  squirrel,  badger,  antelope,  deer,  wolf,  etc. 


Of  the  buffalo  and  cow  skins  about  50  per  cent  are  exported  from 
Hankow,  15  per  cent  from  Shanghai,  and  10  per  cent  from  Tsingtao. 
Japan  took  about  30  per  cent,  the  United  States  20  per  cent,  and 
Italy  and  Germany  about  10  per  cent  each. 

Of  the  untanned  goatskins  about  40  per  cent  were  shipped  from 
Chungking,  22  per  cent  from  Hankow,  and  20  per  cent  from  Tientsin. 
The  United  States  took  85  per  cent.  The  bulk  of  the  undressed 
sheepskins  went  from  Tientsin  and  Shanghai,  and  the  United  States 
took  70  per  cent.  Of  the  tanned  and  dressed  goatskins  80  per  cent 


222 


COMMERCIAL  HANDBOOK  OF  CHINA 


were  shipped  from  Tientsin ;  the  United  States  and  Great  Britain 
each  took  about  40  per  cent  and  Belgium  about  12  per  cent.  Great 
Britain  took  60  per  cent  of  the  dressed  lambskins  and  the  United 
States  about  40  per  cent.  The  dressed  dogskins  were  nearly  all 
shipped  from  Tientsin  and  taken  by  the  United  States.  Of  the 
made-up  lambskins  TO  per  cent  were  shipped  from  Tientsin  and  20 
per  cent  from  Shanghai.  Forty  per  cent  of  these  were  taken  by  the 
United  States  and  35  per  cent  by  Great  Britain.  Tientsin  exported 
75  per  cent  of  the  foxskin  furs,  and  most  of  the  remainder  went  from 
Harbin.  Great  Britain  took  60  per  cent  and  the  United  States  about 
35  per  cent.  Practically  all  of  the  marmot  skins  were  exported  from 
Tientsin,  the  United  States  taking  40  per  cent,  Great  Britain  35  per 
cent,  and  Germany  22  per  cent.  Sable  skins  were  shipped  from 
Harbin  and  practically  all  were  taken  by  the  United  States.  Shang¬ 
hai  and  Hankow  each  shipped  about  40  per  cent  of  the  weasel  skins. 
The  United  States  took  65  per  cent  and  Great  Britain  about  30  per 
cent.  Of  the  unclassed  furs,  Harbin,  Tientsin,  and  Chungking  were 
the  principal  ports  of  export.  The  United  States  took  about  70  per 
cent  and  Great  Britain  about  25  per  cent. 

Foreign  establishments  are  maintained  in  the  principal  export 
centers  in  China  for  cleaning,  grading,  and  press-packing  hides  and 
skins  collected  from  the  centers  of  production.  The  tanning  and 
leather  industries  in  China  have  not  been  much  developed.  Technical 
skill  and  a  large  amount  of  organized  capital,  two  essentials  to  suc¬ 
cess  in  these  industries,  have  been  lacking.  China  imports  about 
$6,000,000  worth  of  leather  annually.  In  a  small  way  it  may  be  said 
that  the  tanning  and  leather  industries  are  developing,  and  as  time 
goes  on  it  is  more  than  likely  that  China  will  use  its  raw  material 
for  supplying  its  needs  in  leather. 

LIVESTOCK  OTHER  THAN  CATTLE 

In  addition  to  cattle,  the  other  livestock  of  importance  in  China 
are  horses,  mules,  donkeys,  camels,  sheep,  goats,  hogs,  and  poultry. 
In  the  absence  of  any  definite  or  reliable  statistical  data  on  any  of 
these  subjects,  one  can  treat  of  them  in  only  a  general  way. 

Horses,  mules,  donkeys,  and  camels  are  used  extensively  in  China 
north  of  35°  latitude;  that  is,  throughout  those  regions  where  dry¬ 
land  crops,  rather  than  rice,  predominate.  In  the  regions  north  of 
35°  there  are  roads,  whereas  in  the  south,  in  the  rice-growing  country, 
there  are  paths  rather  than  roads.  Except  for  wheelbarrows,  one 
finds  comparatively  few  carts  or  other  wheeled  vehicles  in  use  in 
the  Yangtze  Valley,  or  the  regions  south  of  the  Yangtze  River.  On 
the  other  hand,  among  the  150,000,000  people  of  North  China  wheeled 
vehicles  and  pack  animals  are  in  common  use  and  account  for  the 
employment  of  enormous  quantities  of  horses,  mules,  donkeys,  oxen, 
and  camels.  The  camel  is  the  only  animal  used  solely  for  pack  pur¬ 
poses,  and  its  use  is  restricted  to  the  desert  or  arid  regions.  The 
others  are  also  employed  as  work  animals  in  the  fields.  North  China 
is  poor  in  navigable  waterways  and  in  railways.  Furthermore, 
motor  transportation  is  only  in  its  beginning.  The  farmers  still 
use  the  implements  and  methods  of  2,000  years  ago.  This  combina¬ 
tion  of  circumstances  is  conducive  to  an  extensive  use  of  the  animals 
mentioned. 


china's  export  products 


223 


From  an  export  viewpoint,  horses,  mules,  donkeys,  and  camels  offer 
little,  but  horsehides  and  the  hair  of  horses  and  camels  are  exported 
in  considerable  quantity. 

Horses. — The  Chinese  horse  is  in  reality  a  pony  of  the  American 
broncho  type.  It  comes  from  Mongolia,  hence  is  commonly  known 
as  the  Mongolian  pony.  The  Mongols,  like  the  North  American 
Indians,  are  a  nomadic  people,  and  with  them  the  pony  is  indis¬ 
pensable. 

Mules  and  donkeys. — The  mule  and  the  donkey  are  used  exten¬ 
sively  in  China  as  draft  and  farm  animals.  In  West  China,  where 
they  are  raised  particularly  for  hauling  carts,  are  to  be  found  mules 
which  compare  well  with  the  American  mule.  During  the  World 
War  China  exported  considerable  numbers  of  mules. 

The  donkey  is  the  most  common  and  most  extensively  used  pack 
animal  in  China.  It  is  also  widely  used  as  a  farm  animal  and  for 
human  transportation.  To  the  farmer  of  North  China  the  donkey 
is  as  indispensable  as  his  plow. 

Sheep. — Sheep  are  raised  extensively  in  North  China  and  more 
particularly  in  northwestern  China — that  is,  in  Mongolia,  Kansu, 
Chinese  Turkestan,  Sinkiang,  Shansi,  and  Shensi.  From  estimates 
made  by  various  authorities  it  would  appear  that  40,000,000  sheep 
for  the  whole  of  China  is  a  fair  estimate.  These  figures  are  equiv¬ 
alent  to  the  number  of  sheep  in  the  United  States.  For  the  most 
part  the  sheep  of  northwestern  China,  including  Mongolia,  subsist 
on  grazing.  The  Mongolian  steppes  afford  excellent  grass.  Unfor¬ 
tunately,  the  Mongols  do  not  cut  the  grass,  hence,  in  winters  of 
unusual  snow,  such  as  the  winter  of  1923-24,  the  death  rate  is  high. 
Some  estimate  that  50  per  cent  of  Mongolia’s  sheep  died  of  starva¬ 
tion  during  the  winter. 

There  are  several  varieties  of  sheep  in  China,  one  of  which  is 
very  small  and  produces  poor  wool.  The  predominant  sheep  of 
northwest  China  is  large,  the  male  standing  30  to  32  inches  and 
weighing  70  to  100  pounds,  with  a  big,  broad  tail  which  weighs 
as  much  as  8  pounds.  The  wool  of  this  animal  is  coarse  and  long 
and  is  used  extensively  in  China  and  abroad  as  carpet  wool.  Sheep¬ 
skins  are  important  articles  of  winter  wearing  apparel  in  North 
China.  Sheep  intestines  are  exported  as  sausage  casings.  The 
Chinese  sheep  produce  good  mutton,  which  is  consumed  extensively 
throughout  the  sheep -producing  areas. 

Goats. — Associated  with  sheep  raising  in  China,  is  the  goat  indus¬ 
try.  Goats  are  not  so  numerous  as  sheep,  but  they  probably  aggre¬ 
gate  between  10,000,000  and  20,000,000.  Goatskins  and  goat  hair 
figure  prominently  in  China’s  exports. 

Hogs. — With  probably  80  per  cent  of  China’s  population  on 
farms,  it  is  reasonable  to  expect  the  production  of  hogs  in  China  to 
be  very  considerable.  Here  again,  no  statistics  are  available.  One 
authority  makes  an  estimate  of  100,000,000.  Compared  with  the 
60,000,000  in  the  United  States,  this  seems  a  reasonable  estimate. 
Generally  speaking,  the  white  and  black  swayed-back  hog  is  the 
prevalent  type.  The  Agricultural  Department  of  the  Canton 
Christian  College  makes  the  statement  that  the  average  hog  of  China 
is  raised  on  clean  food,  and  that  the  animals  are  free  from  disease, 
except  for  hog  cholera,  which  is  very  prevalent.  The  meat  of  the 


224 


COMMERCIAL  HANDBOOK  OF  CHINA 


Chinese  hog  is,  according  to  the  same  authority,  of  good  quality  and 
cures  fairly  well.  Yunnan,  Hunan,  and  Chekiang  hogs  are  most 
noted  for  their  ham  and  bacon  producing  qualities,  particularly  the 
former.  The  Yunnan  ham  is  famous  throughout  China  for  its 
sweetness  and  delicacy  of  texture.  Lard,  bristles,  and  pig  intestines 
(for  sausage  casings)  are  important  export  products  in  China’s 
foreign  trade.  During  the  European  war,  pork  was  exported  in 
considerable  quantities  to  England. 

Poultry. — Every  farm  and  every  family  in  the  country  in  China 
apparently  raises  a  few  chickens.  Custom  often  decrees  that  any 
one  family  or  household  can  raise  no  more  than  a  specified  number, 
as  the  fowls  are  allowed  to  roam  about  the  village  to  find  their  food. 
Estimates  as  to  the  chicken  production  in  China  is,  at  best,  guess¬ 
work.  The  statistics  for  the  United  States,  as  given  in  the  Agri¬ 
cultural  Yearbook,  places  the  number  on  January  1,  1924,  at 
475,000,000.  The  Ling  Nam  Agricultural  College,  Canton,  believes 
that  400,000,000  for  China  is  a  very  conservative  estimate.  Probably 
600,000,000  would  be  a  better  estimate.  The  greater  number  of 
chickens  in  China  are  hatched  in  native  incubators  of  a  very  economic 
type.  An  interesting  description  of  Chinese  incubators  for  poultry 
is  given  by  the  Ling  Nam  Agricultural  College,  Canton,  in  a  pam¬ 
phlet  on  the  subject. 

The  raising  of  ducks  in  China  is  an  extensive  industry,  particularly 
in  the  Yangtze  Valley,  and  in  the  south.  They  are  tended  by  duck 
herders  who  take  them  out  to  feed.  Cheap  and  good  feeding  is 
secured  through  the  numerous  waterways,  canals,  and  rice  paddies 
which  exist  in  China.  The  incubation  of  duck  eggs  is  a  thriving 
industry  in  the  south.  The  common  duck  in  South  China  weighs 
from  B  to  5  pounds,  whereas  the  white  Peking  duck  of  North  China 
weighs  6  to  10  pounds.  The  common  duck  of  the  south  is  often 
put  on  the  market  dried.  Chickens  are  also  often  treated  in  the 
same  way.  It  would  probably  be  correct  to  state  that  China  is  the 
largest  duck-producing  country  on  the  face  of  the  earth. 

Two  of  the  world’s  best  varieties  of  geese — the  Chinese  white, 
and  the  Chinese  brown — originated  in  China.  Chinese  geese  are  in 
demand  for  ornamenting  lakes  and  lagoons  in  parks  and  gardens  in 
the  western  world. 

MUSK 

China’s  exports  of  musk  for  the  year  1928  amounted  to  28,000 
Chinese  ounces,  valued  at  637,000  tael's  (about  $500,000  gold).  This 
is  the  usual  annual  export.  The  bulk  of  it  comes  from  Tibet,  the 
home  of  the  musk  deer,  from  which  musk  is  taken.  China  seems 
to  enjoy  a  monopoly  on  musk  from  the  musk  deer.  It  is  esti¬ 
mated  that  half  of  the  total  output  is  exported.  Its  principal  use 
abroad  is  as  a  basis  for  perfumes.  The  scent  is  the  most  penetrating 
and  persistent  of  any  known.  The  Chinese  Economic  Monthly, 
of  Peking,  for  June,  1924,  published  an  interesting  article  on  musk 
production  in  China.  This  article  states  that  20  musk  deer  are 
required  for  1  y3  pounds  of  musk,  and  that  prices  in  Shanghai  at  that 
time  were  1,000  to  1,150  taels  per  1%  pounds  ($750  to  $850  gold). 
It  is  necessary  to  be  on  guard  against  the  adulterated  product.  Dried 
blood,  sand,  and  the  like  are  used  as  adulterants.  The  sacs  or 


china's  export  products 


225 


“  pods  ”  containing  the  musk  are  cut  open,  a  quantity  of  the  adulter¬ 
ating  matter  inserted,  and  the  “  pods  ”  closed  with  needle  and  thread. 

SAUSAGE  CASINGS 

China’s  exports  of  sausage  casings  for  1923  were  valued  at  about 
$2,500,000  gold,  of  which  the  United  States,  took  75  per  cent. 
Tientsin,  Shanghai,  and  Hankow  are  the  principal  export  centers. 
The  casings  undergo  cleaning  with  salt  and  water  and  are  then 
assorted  into  four  grades — 26,  28,  30,  and  32  millimeters  in  diameter. 
The  smallness  of  the  diameter  of  the  casings  determines  the  rela¬ 
tive  value.  The  narrow  are  more  in  demand  than  the  wide.  Pig 
intestines  are  packed  with  moist  salt  as  a  preservative.  Sheep 
casings  are  assorted  into  sizes  of  15,  17,  18,  and  20  millimeters. 
Sun-dried  pig  intestines  are  packed  1,000  rings  to  the  case,  which 
is  tin  lined,  and  they  are  quoted  per  100  rings.  Sausage  casings 
are  generally  exported  in  barrels  with  a  very  considerable  quantity 
of  moist  salt  used  in  preparation.  According  to  the  United  States 
tariff  of  1922  sausage  casings  are  admitted  free  of  duty. 

SILK 

The  most  important  article  of  import  into  the  United  States 
from  China  in  point  of  value  is  raw  silk.  Raw  silk  is  not  pro¬ 
duced  commercially  in  the  United  States,  in  spite  of  numerous 
persistent  efforts  to  develop  the  industry.  The  raising  of  the 
cocoons  and  the  reeling  of  the  silk  require  an  amount  of  hand  labor 
which  makes  it  impossible  for  the  United  States  to  compete  with 
the  Orient. 

During  the  past  50  years  imports  of  raw  silk  into  the  United 
States  have  increased  from  1,000,000  to  50,000,000  pounds.  The 
value  of  the  annual  import  now  reaches  nearly  $350,000,000.  Of 
this,  Japan  contributes  about  70  per  cent  and  China  about  20  per 
cent.  China’s  raw  silk  may  be  divided  into  three  classes — white, 
yellow,  and  wild  silk.  There  are  several  producing  centers,  but 
the  best  known  are  Kiangsu  and  Chekiang  Provinces  in  Central 
China — the  latter  Province  being  especially  important — and  the 
Canton  region  in  South  China.  From  these  regions  white  raw  silk, 
which  forms  the  greater  part  of  the  silk  produced  in  China,  is 
chiefly  obtained.  Yellow  raw  silk  comes  mostly  from  Szechwan 
and  Shantung  Provinces,  while  the  wild  silk,  or  tussah,  is  produced 
chiefly  in  Manchuria,  Shantung,  and  Chihli. 

China’s  exports  of  raw  silk  for  1923,  figuring  exchange  at  1  tael 
equivalent  to  $0.80,  were  as  follows : 


Raw  silk 

Pounds 

Value 

White: 

Steam  filature.  . . .  .  ... _  .  .  _  _ 

9,  385, 000 

1,  690,  000 
415,  000 

1,  040,  000 
3, 914,  000 

17,  082,  000 

2,  575,  000 
7,  820,  000 

$73, 600, 000 
7, 950, 000 
1,750,000 
5,  970,  000 
15,  560,  000 
•  9,  250,  000 
1,  400,  000 
1,  700,  000 

Rereeled. _  .  _ _ _  ..  _ 

Not  rereeled,  not  steam  filature _  _ _ _ _  _ 

Yellow,  steam  filature  _ _ _  .  _ ...  . .  .  _ 

Wild,  filature.  _  _  .  _  ...  _  .  .... 

Silk  waste  .  _  _  _  _  _ 

Cocoons. .  _  _  .  _  ... 

Cocoons  (refuse)  .  _  .  ...  _  _ 

Total _ _ _  ...  .  . . .  .. 

43,  921,  000 

117, 180,000 

100020°— 26 - 16 


226  COMMERCIAL  HANDBOOK  OF  CHINA 

Of  the  white  steam-filature  silk,  the  Chinese  customs  returns  credit 
Shanghai  with  38  per  cent  and  Canton  with  nearly  60  per  cent. 
These  returns  show  all  of  Canton’s  exports  as  going  to  Hongkong, 
whereas  70  per  cent  actually  went  to  the  United  States.  The  returns 
show  17  per  cent  as  destined  to  France.  Of  the  yellow  steam- 
filature,  Chungking  (Szechwan)  exported  50  per  cent  and  Tsingtao 
40.  France  took  77  per  cent,  the  United  States  12,  and  Japan  10 
per  cent.  Of  the  wild  filature  silk,  Chefoo  exported  30  per  cent, 
Antung  (Manchuria)  50,  and  Dairen  18  per  cent.  Japan  took  52 
per  cent,  the  United  States  43  per  cent,  and  the  remainder  went  to 
France.  Of  silk  waste,  Canton  shipped  40  per  cent,  Shanghai  30 
per  cent,  and  Antung  8  per  cent.  Hongkong  is  credited  wTith  taking 
45  per  cent,  France  17,  Italy  12,  and  the  United  States  8  per  cent. 
As  the  United  States  takes  at  least  60  per  cent  of  Canton’s  silk 
waste,  America’s  share  of  China’s  waste-silk  exports  is  about  35 
per  cent.  The  Chinese  customs  returns  indicate  America’s  imports 
of  Chinese  raw  silk  to  be  less  than  50  per  cent  of  what  they  actually 
are,  Hongkong  receiving  credit  for  the  discrepancy  in  the  returns. 
Very  probably  the  United  States  takes  in  the  neighborhood  of  60 
per  cent  of  China’s  total  exports  of  raw  silk. 

During  the  past  six  years  exports  of  white  steam-filature  raw  silk 
have  increased  70  per  cent,  yellow  steam-filature  100  per  cent,  raw 
and  wild  filature  silk  100  per  cent,  and  silk  waste  60  per  cent.  These 
increases  were  due  in  the  main  to  increased  purchases  in  the  Ameri¬ 
can  market. 

In  an  address  before  China’s  first  National  Industrial  Conference 
in  Peking  in  September,  1924,  Mr.  C.  J.  Huber,  managing  director  of 
the  Shanghai  International  Testing  House,  attributed  the  low  value 
per  unit  of  Chinese  raw  silk  to  the  following  causes:  (1)  Inefficiency 
in  the  selection  of  the  mulberry,  and  poor  methods  of  cultivation, 
fertilization,  and  protection  from  disease;  (2)  inefficiency  in  the 
selection,  breeding,  feeding,  and  marketing  of  the  cocoons;  (3)  lack 
of  economic,  rapid,  and  direct  transportation,  unhampered  by  cumu¬ 
lative  internal  taxation;  (4)  inefficient,  primitive,  country  methods 
of  reeling  a  large  portion  of  the  cocoons  and  the  preparing  of  the  by¬ 
products  into  an  inferior  material  of  low  market  value;  (5)  the 
basing  of  prices  on  speculation  instead  of  on  cost  of  production 
figures. 

China’s  production  of  raw  silk  can  be  increased  400  per  cent 
through  the  elimination  of  silkworm  diseases.  The  Silk  Association 
of  America  is  cooperating  with  the  various  agencies  in  China  to 
assist  in  the  eradication  of  silkworm  diseases  so  as  to  improve  the 
quality  of  China’s  silk  and  at  the  same  time  lower  the  cost  of  pro¬ 
duction.  Mr.  Huber  contends  that  improvements  in  mulberry  rais¬ 
ing  will  have  to  be  accomplished  through  educational  work,  which 
is  now  being  inaugurated  for  this  purpose. 

The  result  of  the  lack  of  economic  transportation  in  its  bearing  on 
the  silk  industry  is  shown  in  the  case  of  Szechwan  Province,  which 
has  a  population  equal  to  that  of  Japan  and  a  raw-silk  production 
next  in  importance  after  the  eastern  Yangtze  Valley  and  Kwangtung 
Province,  yet,  because  of  expensive  transportation,  the  economic 
value  of  the  raw  silk  of  that  region  is  relatively  low. 


china's  export  products 


227 


Much  of  the  country-reeled  silk  is  not  salable  on  the  Shanghai 
market,  owing  to  primitive  methods  of  reeling.  This  means  that 
large  quantities  of  first-quality  cocoons  produce  a  low  quality  of  raw 
silk,  which  means,  in  turn,  a  distinct  and  unnecessary  economic  loss. 
To  remedy  this  the  extension  of  modern  steam  filatures  for  reeling 
purposes  is  imperative. 

Thus,  while  the  silk  industry  is  one  of  China’s  oldest  and  most 
important  industries  and  silk  the  most  important  item  in  China’s 
export  trade,  yet  China’s  position  in  the  American  market,  the  great¬ 
est  consumer  of  raw  silk  in  the  world,  is  relatively  low.  With 
changed  methods,  China’s  silk  should  become  a  factor  of  three  or 
four  fold  more  importance  in  the  American  market  than  it  now  is. 

WOOL 

With  the  sheep  of  China  probably  equivalent  in  number  to  those 
in  the  United  States — that  is,  about  40,000,000 — China  is  naturally 
a  large  producer  of  wool.  The  sheep  of  the  great  northwest  territory 
of  China,  which  produces  the  largest  number,  are  what  might  be 
termed  native  unimproved  stock.  It  is  estimated  that  an  average 
animal  produces  but  3  or  4  pounds  of  coarse  wool  from  4  to  5  inches 
long.  It  is  rated  as  carpet  wool  in  the  American  market  and,  as  the 
United  States  produces  no  carpet  wool,  it  is  admitted  free  of  duty 
if  proof  is  subsequently  furnished  that  it  has  been  used  in  carpet 
manufacture.  China’s  annual  exports  of  wool  amount  to  approxi¬ 
mately  50,000,000  pounds,  valued  at  about  $8,000,000.  Nearly  90  per 
cent  of  China’s  wool  production  is  taken  by  the  United  States.  China 
itself,  and  particularly  Mongolia,  uses  great  quantities  of  sheepskins 
for  clothing,  which  materially  cuts  down  the  wool  production. 

After  the  outbreak  of  the  World  War  the  Persian  and  Turkish  rug 
markets  wrere  in  distress,  wfith  the  result  that  Chinese  rugs  became 
popular  in  the  American  market.  This  has  lent  a  considerable  im¬ 
petus  to  rug  manufacturing  in  North  China.  Increasing  quantities 
of  Chinese  wool  are  now  being  consumed  in  the  Chinese  rug  industry. 

Wool  is  collected  in  the  important  commercial  centers  along  the 
Peking-Suiyuan  Railway  in  northwest  China,  and  also  along  the 
Yellow  River  regions  in  that  territory,  and  shipped  to  Tientsin,  the 
commercial  metropolis  of  North  China,  where  it  is  cleaned,  steamed, 
graded,  and  press-packed  in  preparation  for  export.  Wool  also 
reaches  Tientsin  from  other  points  in  North  China.  Within  the 
past  few  years  the  Chinese  Eastern  Railway  has  installed  a  modern 
cleaning  and  pressing  plant  to  handle  the  wmol  coming  from  eastern 
Mongolia  to  the  railway.  The  railway  charges  $13.90  gold  per  ton 
of  washed  wool  for  washing  and  sorting,  according  to  color.  It  esti  ¬ 
mates  that  the  wool  shipped  over  the  Peking-Suiyuan  Railway  to 
Tientsin  in  1922  was  34,000  tons,  compared  with  2,700  tons  over  the 
Chinese  Eastern  Railway. 

Over  90  per  cent  of  China’s  wool  exports  go  out  through  Tientsin. 
Presumably  Chinese  Turkestan,  Kansu,  and  Sinkiang  produce  nearly 
half  of  the  wool  of  commerce  in  China.  Sining,  in  Kansu  Province, 
is  the  center  of  the  best  wool. 

Nothing  could  be  written  on  this  subject  which  would  assist  the 
American  buyer  of  China’s  carpet  wool  to  make  more  direct  con- 


228 


COMMERCIAL  HANDBOOK  OF  CHINA 


tacts  with  the  producers  in  China.  Purchases  can  be  made  only 
through  reliable  export  houses  in  Tientsin  or  Harbin.  These 
houses  are  nearly  all  foreign — that  is,  of  non-Chinese  nationality. 
Chinese  buyers  collect  the  wool,  sometimes  in  outright  purchases, 
often  on  a  barter  basis,  exchanging  yarn,  cotton-piece  goods,  tea, 
etc.,  for  it.  In  recent  years,  buyers  have  had  to  use  silver  dollars 
and  bullion  in  purchases  of  wool  in  Mongolia.  The  business,  like 
much  of  the  trade  in  the  interior  of  China,  is  steeped  in  old  and 
established  customs,  which  vary  with  certain  sections.  All  are 
complicated  by  variations  in  the  mediums  of  exchange,  systems  of 
weights  and  measures,  official  taxations,  and  other  factors.  Further¬ 
more,  there  are  no  associations  or  Government  agencies  which  en¬ 
force  standardizations  in  quality  or  in  transactions,  so  that  the 
Tientsin  houses  often  find  themselves  obliged  to  clean,  grade,  and 
pack  wool  heavily  watered  and  full  of  dirt,  sticks,  and  other  for¬ 
eign  matter  used  by  producers  and  smaller  dealers  to  increase  the 
weight. 

During  1924  efforts  were  inaugurated  in  Tientsin  to  spin  woolen 
yarn  from  Chinese  wool  by  modern  machinery  in  order  to  give  the 
Chinese  rug  industry  a  uniform  grade  of  woolen  yarn.  There  are 
indications  that  spinning  yarn  by  modern  machine  methods  will 
develop  into  an  important  industry  in  North  China. 

According  to  the  United  States  Tariff'  Commission’s  report  of 
1921,  camel’s  hair  in  the  United  States  is  used  mainly  for  press- 
cloth  requirements  in  the  extraction  of  vegetable  oils,  particularly 
cottonseed  oil.  At  one  time  considerable  earners  hair  was  used  in 
China  in  the  manufacture  of  rugs.  It  is  doubtful  if  much  is  now 
used  for  that  purpose,  as  it  commands  a  considerably  higher  price. 
During  1923  China  exported  7,500,000  pounds  valued  at  $1,800,000, 
of  which  75  per  cent  went  to  Great  Britain  and  25  per  cent  to  the 
United  States.  Practically  all  was  shipped  from  Tientsin. 

China’s  exports  of  goat’s  hair  amount  to  about  2,000,000  pounds 
annually,  valued  at  about  $450,000.  Great  Britain  takes  the  bulk 
of  it  and  practically  all  is  shipped  from  Tientsin. 

The  United  States  tariff  of  1922  provides  that  wool  may  be  en¬ 
tered  under  bond  and  if  within  three  years  from  the  date  of  im¬ 
portation  or  withdrawal  from  bonded  warehouse  satisfactory  proof 
is  furnished  that  the  wool  is  used  in  the  manufacture  of  floor  cov¬ 
erings,  the  duties  shall  be  remitted  or  refunded. 

VEGETABLE  PRODUCTS 

To  those  who  think  of  China  as  a  land  of  rice,  tea,  and  silk,  it 
may  be  surprising  to  find  that  it  ranks  high  in  corn  production, 
third  or  fourth  among  the  nations  of  the  world  in  wheat  production, 
and  first  in  the  production  of  kaoliang  (kafir  corn),  millet,  wood  oil, 
beans,  sweet  potatoes,  peanuts,  and  walnuts.  It  is  third  in  cotton 
production,  and  is  noted  for  its  vegetable  oils,  such  as  bean,  peanut, 
sesame,  rapeseed,  castor  bean,  and  wood  oil;  also  for  its  production 
of  tobacco,  sugar  cane,  edible  bamboo,  ginger,  camphor,  cassia  bark, 
China  grass,  mushrooms,  vegetable  tallow,  licorice,  linseed,  gall- 
nuts,  vegetable  dyes,  and  medicinal  herbs.  Vegetable  gardening  is 
very  extensively  pursued  throughout  the  country.  China  is  rich  in 
fruits,  including  citrus  varieties,  as  the  plant  explorers  of  the  United 


china's  export  products 


229 


States  Department  of  Agriculture  have  discovered,  and  is  probably 
the  world’s  largest  producer  of  melons.  Buckwheat,  barley,  oats 
(some  of  the  huskless  type),  and  alfalfa  are  common  to  certain  sec¬ 
tions  of  the  country.  Thus  China  is  rich  in  variety  as  well  as  pro¬ 
ductivity  of  vegetable  products. 

BEANS  AND  BEAN  PRODUCTS 

In  the  past  two  decades  beans  and  bean  products  have  become 
very  important  items  in  China’s  export  trade,  the  aggregate  value 
of  these  products  amounting  in  1923  to  127,000,000  taels  ($101,600,000 
gold),  compared  with  42,000,000  taels  for  the  year  1910.  Thus  beans 
and  bean  products  rank  second,  following  raw  silk  in  importance,  in 
China’s  list  of  exports.  The  customs  returns  of  trade  for  1923  list 
exports  of  beans  and  bean  products  as  follows  : 


Beans  and  bean 
•products 

Short  tons 

Value 

Distribution 

Bean  cake _ 

Beans: 

1,  650, 000 

$45,  500,  000 

83  per  cent  to  Japan;  15  per  cent  to  Siberia. 

Black _ 

9,000 

350, 000 

Green _ 

40,600 

1,  557,  000 

60  per  cent  to  Japan;  the  remainder  to  Hongkong  and 
Straits  Settlements. 

White _ 

18,200 

571,  000 

Yellow _ 

1,  050,  000 

35,  734,  000 

40  per  cent  to  Japan;  35  per  cent  to  Siberia;  9  per  cent  to 
Dutch  Indies;  5  per  cent  to  Port  Said. 

Other... _ 

101,000 

3,  720,  000 

80  per  cent  to  Japan. 

Bean  oil.  ...  ... 

142,000 

14, 152,  000 

27  per  cent  to  Great  Britain;  18  per  cent  to  Siberia;  16  per 
cent  to  United  States;  15  per  cent  to  Netherlands;  12  per 
cent  to  Port  Said. 

The  vast  bulk  of  the  bean  products  is  from  soy  beans.  The  best 
variety  is  a  small,  round,  dull  type  about  the  size  of  a  dried  pea, 
which  contains  22  per  cent  crude  fat,  wdiile  the  ordinary  good-qual¬ 
ity  oil-producing  type  has  an  average  of  18  per  cent  crude  fat  con¬ 
tent.  The  yield  from  average  beans  is  from  10  to  13  per  cent. 
Green  soy  beans  are  rated  high  in  nutritive  qualities  and  are  used 
extensively  in  the  manufacture  of  bean  vermicelli. 

Bean  oil  is  used  very  extensively  in  China  for  cooking  purposes. 
Beans  are  used  to  manufacture  imitation-meat  foods  for  vegetarians. 
There  are  restaurants  in  China  which  serve  fried  chicken,  fried  ham, 
etc.,  made  of  bean  composition,  but  so  cleverly  done  as  often  to  de¬ 
ceive  the  palate.  Bean  milk  is  not  uncommon.  The  Chined  have 
developed  no  dairy  industry  but  obtain  their  needs  in  butter  and  fat 
from  bean  products.  Bean  oil  is  also  used  for  making  soaps,  as  an 
illuminant,  to  coat  waterproof  cloth  and  paper,  and  for  preparing 
paper  for  lanterns  and  umbrellas. 

In  other  countries  the  soy-bean  oil  is  used  principally  in  the  manu¬ 
facture  of  soap,  toilet  powders,  and  lubricants,  and  for  cooking  and 
salad  oils. 

In  the  United  States  the  soy  bean  is  becoming  a  crop  of  impor¬ 
tance.  It  is  still  used  mainly  as  a  forage  crop,  but  will  doubtless  be 
developed  to  produce  food  for  human  consumption  and  oil  for  in¬ 
dustrial  purposes.  In  1923,  452,000  acres  produced  6,500,000  bushels, 
grown  primarily  for  the  beans.  There  were  as  many  as  2,000,000 
acres  planted  in  soy  beans  for  hay  and  grazing.  During  1923  the 


230 


COMMERCIAL  HANDBOOK  OF  CHINA 


United  States  imported  19,000  tons  of  soy-bean  oil,  all  of  which 
originated  in  China. 

It  is  not  possible  to  secure  accurate  data  as  to  China’s  production 
of  soy  beans.  The  estimates  for  the  production  in  Manchuria,  which 
is  believed  to  produce  TO  per  cent  of  the  entire  output  of  all  China, 
as  made  by  the  Chinese  Eastern  Railway  and  the  Dairen  Chamber 
of  Commerce,  differ  considerably.  The  Chinese  Eastern  Railway 
estimated  the  1923  production  for  the  three  Provinces  of  Manchuria 


as  follows : 

Tons 

Heilungkiang -  1, 100,  000 

Kirin _  1,  500,  000 

Shengking  (Fengtien) -  1, 100,  000 


Total  (equivalent  to  125,000,000  busliels  of  GO  pounds  each) _  3,  700,000 


The  Dairen  Chamber  of  Commerce's  estimate  for  the  same  territory 
for  1923  was  75,000,000  bushels  of  60  pounds  each.  The  only  recourse 
under  such  circumstances  is  to  strike  a  mean,  which  would  be  100,- 
000,000  bushels,  or  3,000,000  short  tons.  On  this  basis  it  is  fair  to 
assume  that  the  total  production  of  China  is  about  140,000,000  bushels. 

The  Japanese  have  developed  in  Manchuria  special  facilities  for 
handling  the  bean  trade  of  that  region.  These  extend  from  agricul¬ 
tural  experiment  stations  for  improving  the  quality  of  beans  pro¬ 
duced,  to  the  most  modern  oil  mills  for  manufacturing  the  refined 
product.  Facilities  have  been  developed  on  the  South  Manchuria 
Railway  and  at  Dairen  for  tank  transportation,  storage  of  the  oil, 
and  for  bulk  storage  of  beans.  Special  warehouse  and  wharf  ac¬ 
commodations  facilitate  the  export  of  beans  and  bean  products.  It 
is  estimated  that  half  of  the  bean  production  of  Manchuria  goes  into 
the  manufacture  of  bean  oil  and  bean  cake.  Thus  it  is  that  Dairen 
has  become  the  principal  port  of  export  for  soy  beans  and  bean 
products. 

The  United  States  tariff  of  1922  stipulates  a  duty  of  2y2  cents  a 
pound  on  soy-bean  oil;  one-half  cent  a  pound  on  soy  beans;  35  per 
cent  ad  valorem  on  soy  beans  prepared  or  preserved,  including  soy¬ 
bean  sauce  and  bean  cake. 


CAMPHOR 

Natural  camphor  is  produced  by  a  process  of  distillation.  Trees, 
after  Teaching  about  50  years  of  age,  are  cut  down  and  chipped. 
The  chips  are  boiled  in  vats  and  the  distillate  is  collected  in  crystals. 
The  camphor  is  then  put  through  a  refining  process.  It  is  used 
mainly  in  the  manufacture  of  celluloid,  particularly  photographic 
films,  and  also  in  smokeless  powder  and  pharmaceutical  compounds. 
Shortly  after  Formosa  came  under  the  control  of  Japan  the  camphor 
resources  of  that  island  were  converted  into  a  government  monopoly. 
Subsequently  the  celluloid  industry  was  developed  in  Japan. 
Increasing  costs  of  production  in  Taiwan  (Formosa)  have  encour¬ 
aged  camphor  planting  in  Japan  proper  and  in  certain  other  sections 
of  the  world.  Taiwan,  however,  remains  the  principal  source  of 
supply  for  natural  camphor. 

At  one  time  China  possessed  very  considerable  resources  in  cam¬ 
phor  trees,  but  these  are  being  gradually  depleted,  with  little  indica- 


china's  export  products 


231 


tions  of  replanting.  However,  as  the  price  of  camphor  advances,  it 
is  found  profitable  to  go  farther  into  the  interior  for  resources 
hitherto  of  little  value  because  of  lack  of  economic  transportation. 
Kiangsi  Province  is  now  the  principal  source  of  supply,  although 
Fukien  and  Kwangtung  still  continue  to  figure  in  the  export  trade. 

In  1907  China  exported  the  largest  amount  of  camphor,  about 
3,400,000  pounds.  The  available  exports  for  the  three  years  1906-1908 
were  2,200,000  pounds,  whereas  the  exports  for  the  years  1904,  1905, 
1909,  and  1910  averaged  no  more  than  800,000  pounds.  The  average 
annual  exports  for  the  five  years,  1919  to  1923,  were  2,300,000  pounds. 
During  1923  China  exported  2,000,000  pounds,  valued  at  $1,130,000. 
The  customs  returns  for  1923  credit  the  United  States  with  taking 
57  per  cent  and  Hongkong  nearly  20  per  cent.  The  shipments  to 
Hongkong,  however,  were  ultimately  destined  to  the  United  States. 
Great  Britain  took  13  per  cent  and  France  9  per  cent.  The  total 
imports  of  camphor  into  the  United  States  for  1923  were  3,500,000 
pounds  of  natural,  crude,  valued  at  $2,215,000,  and  4,000,000  pounds 
of  refined,  valued  at  $2,280,000.  The  bulk  of  these  imports  were 
from  Japan.  The  1922  tariff  imposed  an  import  duty  of  1  cent  a 
pound  on  crude  camphor  and  6  cents  gold  a  pound  on  refined  and 
synthetic  camphor.  About  60  per  cent  of  China’s  camphor  is 
exported  from  the  port  of  Kiukiang,  near  Hankow;  30  per  cent, 
which  probably  originated  in  Kiangsi  Province,  from  Shanghai ;  and 
about  10  per  cent  from  Foochow.  There  are  no  available  estimates 
as  to  the  camphor  resources  in  China  and  no  present  indications  of 
replenishing  the  decreasing  supplies. 

COTTON 

China  ranks  third — following  in  importance  the  United  States  and 
India — as  a  cotton-producing  country.  The  Chinese  Cotton  Mill 
Owners’  Association  recently  compiled  a  pamphlet  on  China’s  cotton 
production,  according  to  which  the  average  annual  production  for 
the  five  years  1919-1923  was  2,130,000  bales  of  500  pounds  each. 
From  other  data  regarding  the  cotton  production  of  China  this 
appears  to  be  a  fair  estimate.  Owing,  however,  to  the  very  large 
consumption  of  raw  cotton  in  the  interior  of  China  for  cotton- 
padded  clothing  and  for  the  native  spinning  jenny  and  the  native 
loom,  it  is  impossible,  with  the  imperfect  facilities  thus  far  devel¬ 
oped  in  China  in  the  collection  of  statistical  data,  to  secure  assuredly 
accurate  production  figures.  The  figures  compiled  by  the  Chinese 
Cotton  Mill  Owners’  Association  show  that  Kiangsu  Province  pro¬ 
duces  about  30  per  cent,  Chihli  20,  and  Hupeh  18  per  cent.  The 
other  important  cotton-producing  Provinces  are  Shantung,  Honan, 
Shensi,  Chekiang,  Shansi,  Anhwei,  and  Kiangsi,  in  the  order  listed. 

In  the  study  of  Chinese  cotton  by  the  National  Southeastern  Uni¬ 
versity,  Nanking,  the  statement  is  made  that  80  to  90  per  cent  of  the 
total  production  of  raw  cotton  in  China  is  from  native  varieties. 
The  fiber  is  short  and  coarse,  producing  only  the  coarser  yarns.  Ex¬ 
periments  conducted  by  the  Nanking  University  have  demonstrated 
that  certain  strains  of  American  cotton  can  be  successfully  accli¬ 
mated  in  China.  Shensi  cotton  is  probably  the  most  successful 
American  cotton  in  China.  It  has  a  high  rating  and  commands  the 


232 


COMMERCIAL  HANDBOOK  OF  CHINA 


best  price.  In  Kiangsi  the  American  strain  known  as  “  Trice  ”  has 
been  developed  successfully. 

The  most  promising  results,  however,  in  connection  with  the  im¬ 
provement  of  cotton  in  China  have  to  do  with  the  experiments  made 
by  the  Nanking  University  in  developing  a  native  cotton  through 
the  process  of  selection.  Sir.  Griffing,  in  charge  of  this  work,  dis¬ 
covered  a  few  plants  of  superior  Chinese  cotton  which  are  now  being 
cultivated  under  the  name  “  Million  Dollar  ”  cotton.  In  a  report 
of  1923  the  Cotton  Mill  Owners’  Association  of  China  made  the  fol¬ 
lowing  comment : 

This  cotton  excels  our  ordinary  Chinese  cotton  in  texture,  length,  quality,  and 
color  and  enables  us  to  spin  much  finer  counts  with  increased  draft.  The  revo¬ 
lutions  of  the  front  roller  and  the  revolutions  of  the  spindles  were  greatly  in¬ 
creased,  producing  far  superior  yarns,  considerable  increase  in  production,  less 
waste,  and  economy  in  labor.  We  are  confident  that  if  it  were  possible  to  use 
this  quality  of  cotton  exclusively  it  would  reduce  our  labor  costs  50  per  cent. 

It  appears  that  the  native  Chinese  cotton  will  not  hybridize  with 
imported  varieties.  This  simplifies  considerably  the  work  of  improv¬ 
ing  the  native  strains.  It  appears  also  that  China  has  more  to  ex¬ 
pect  by  way  of  cotton  improvement  through  development  of  native 
cottons  than  through  imported  varieties. 

Owing  to  the  rapid  expansion  of  the  cotton  spinning  and  weaving 
industry  in  China,  it  is  becoming  necessary  to  develop  a  larger 
supply  of  raw  materials.  Because  the  individual  farmer  in  China 
cultivates  a  small  area  of  ground,  averaging  probably  2  acres  in  the 
cotton-producing  sections,  it  is  difficult  to  make  rapid  progress  in 
improving  cultivation  methods.  Poor  internal  transportation,  high 
internal  taxes,  the  lack  of  Government  agencies  for  improving  agri¬ 
cultural  and  economic  conditions  generally,  and  poor  marketing  sys¬ 
tems  are  some  of  the  factors  which  militate  against  rapid  improve¬ 
ment  in  the  native  cotton  industry.  There  are  over  3,000,000  spindles 
and  over  10,000  looms  in  China,  a  large  proportion  of  which  are 
financed  and  operated  by  Chinese.  These  cotton-manufacturing  in¬ 
terests  are  sensitive  to  the  imperative  need  in  improvements  and 
extensions  in  cotton  culture  and  are  lending  assistance  to  the  work. 

China  is  still,  however,  an  importer  of  raw  cotton.  Annual  im¬ 
ports  average  450,000  bales  of  500  pounds  each.  The  customs 
returns  credit  British  India  with  furnishing  about  65  per  cent, 
Japan  20,  and  the  United  States  about  10  per  cent.  It  is  probable 
that  the  bulk  of  the  cotton  furnished  by  Japan  is  of  American  origin, 
as  Japan  is  not  a  cotton-growing  country  and  is  one  of  America’s 
substantial  customers. 

During  1923  China  exported  260,000  bales  of  cotton  (valued  at 
$26,000,000),  of  which  Japan  took  80  per  cent  and  the  United  States 
12  per  cent.  In  1922  China  exported  224,000  bales,  of  which  Japan 
took  75  per  cent  and  the  United  States  16  per  cent.  China’s  exports 
of  raw  cotton  in  1910  were  334,000  bales;  in  1911,  234,000  bales; 
1912,  213,000  bales;  and  1913,  197,000  bales.  Thus,  roughly  speak¬ 
ing,  China  imports  450,000  bales  of  cotton  annually  and  exports 
about  one-half  as  much. 

HEMP 

Hemp  ( Cannabis  sativa)  is  produced  in  Szechwan,  Shansi,  Chihli, 
Kwangsi,  and  Honan,  and  also  in  smaller  quantities  in  certain  other 


china's  export  products 


233 


sections  of  the  country.  It  is  grown  mainly  for  domestic  consump¬ 
tion.  Probably  the  best  hemp  is  produced  in  Szechwan  Province. 
Concerning  this,  Wilson  makes  the  following  comment : 

Several  plants  yielding  fibers  valued  for  textile  and  cordage  purposes  are 
grown  in  China.  In  Szechwan  the  most  important  of  these  is  the  true  hemp 
( Cannabis  sativa),  colloquially  known  as  “  Hou-ma.”  This  crop  is  abundantly 
cultivated  around  Wenchiang  Hsien  and  P'i  Hsien.  It  is  a  spring  crop,  the 
seeds  being  sown  in  February  and  the  plants  harvested  the  end  of  May  and 
beginning  of  June,  just  as  they  commence  to  flower.  The  stems  are  allowed 
to  grow  thickly  together  and  reach  8  feet  in  height.  The  culms  are  reaped, 
stripped  of  their  leaves,  and  often  the  fiber  is  removed  there  and  then.  More 
commonly,  however,  the  stems  are  placed  in  pits  filled  with  water  and  allowed 
to  rot  for  a  few  days ;  they  are  then  removed,  sundried,  stacked  in  hollow 
cones,  surrounded  by  mats,  and  bleached  by  burning  sulphur  beneath  the 
heaps.  After  these  processes  the  fibrous  bark  is  stripped  off  by  hand.  The 
woody  stems  that  remain  after  the  bark  has  been  removed  are  burned,  and  the 
ashes  resulting,  mixed  with  gunpowder,  enter  into  the  manufacture  of  fire¬ 
crackers.  Hemp,  or  “  Hou-ma,”  is  the  best  of  the  fibers  produced  in  western 
China  for  rope  making  and  cordage  purposes  generally.  It  is  also  used  locally 
for  making  grain  sacks  and  coarse  wearing  apparel  for  the  poorer  classes. 
Quantities  are  used  in  the  city  of  Paoning  Fu  for  these  latter  purposes.  It  is 
in  great  demand  on  native  river  craft  and  is  largely  exported  down  river  to 
other  parts  of  China.  It  is  this  hemp  that  is  principally  exported  from  Sze¬ 
chwan.  True  hemp  {Cannabis)  is  an  annual  and  is  grown  as  a  summer  crop  in 
the  mountains  for  the  sale  of  the  oil-containing  seeds.  Hemp  oil  is  expressed 
and  used  as  an  illuminant  and  is  said  not  to  congeal  in  the  coldest  weather. 
In  Hupeh  it  is  known  as  “  T’ang-ma.” 

China  exports  annually  about  8,500  tons  of  hemp,  valued  at  $1,280,- 
000  gold,  40  per  cent  of  which  goes  to  Hongkong,  35  to  Japan,  5  to 
Belgium,  4  to  Germany,  and  3  per  cent  to  the  United  States. 

KAOLIANG  AND  MILLET 

Kaoliang  (sorghum)  and  millet  constitute  two  of  the  very  heavy 
grain-producing  cereals  of  North  China  and  figure  prominently  both 
for  human  and  for  animal  food.  The  cleaned  white  kaoliang  is 
used  for  porridge  and  the  uncleaned  grain  as  cattle  and  poultry 
food.  It  is  particularly  valuable  as  poultry  food.  The  plant  some¬ 
times  reaches  12  feet  in  height  and  is  known  to  contain  as  many  as 
5,000  seeds  to  the  stalk.  Fifty  varieties  of  the  plant  have  been  iden¬ 
tified  in  North  China.  The  stalks  of  the  plant  are  used  with  clay  for 
roofing,  for  building  walls  and  fences,  for  matting,  and  as  fuel.  ~  The 
green  blades  on  the  stalks  are  plucked  for  fodder.  The  seed  stalk 
is  used  for  making  brooms.  The  red  varieties  are  particularly 
adapted  to  the  manufacture  of  a  distilled  liquor  extensively  used 
throughout  China.  Some  varieties  are  used  in  the  manufacture  of 
glucose  and  for  brewing  purposes.  It  is  estimated  that  15  per  cent 
of  the  cultivated  area  of  Manchuria  is  planted  in  kaoliang. 

China’s  exports  of  kaoliang  and  millet  for  1923  were  equivalent 
to  225,000  short  tons,  valued  at  about  12,000,000  taels,  or  $9,600,000, 
nearly  all  of  which  went  to  Japan  and  Chosen. 

The  United  States  tariff  of  1922  imposes  a  duty  of  2  cents  a  pound 
on  sorghum  seed  and  1  cent  a  pound  on  millet  seed. 

LACQUER  VARNISH 

The  lacquer  industry  apparently  originated  in  China,  the  Japanese 
learning  the  art  from  the  Chinese.  Japan  imports  from  China  con¬ 
siderable  quantities  of  lacquer  varnish,  taking  practically  all  of 


234 


COMMERCIAL  HANDBOOK  OF  CHINA 


China’s  exports  of  about  2,500,000  pounds  annually,  valued  at  ap¬ 
proximately  $1,000,000.  Hankow,  Ichang,  and  Yochow,  in  the  order 
named,  are  the  principal  ports  of  export.  The  poisonous  properties 
which  this  varnish  possesses  have  prevented  it  from  finding  a  market 
in  occidental  countries. 

Foreigners  erroneously  designate  lacquer  as“  Ningpo  varnish,”  for 
the  reason  that  they  came  into  contact  with  it  for  the  first  time  at 
the  port  of  Ningpo.  It  is  produced  from  a  tree  grown  in  the  moun¬ 
tainous  regions  of  western  Hupeh  and  eastern  Szechwan.  Wilson, 
in  A  Naturalist  in  Western  China,  gives  an  excellent  detailed  account 
of  this  tree  and  its  product.  When  the  tree  has  attained  a  diameter 
of  about  6  inches,  tapping  commences  and  is  conducted  at  intervals 
until  the  tree  is  50  or  60  years  of  age.  The  tapping  operation  occu¬ 
pies  a  period  of  about  50  days,  after  which  the  tree  is  allowed  a 
period  of  5  or  7  years  to  recover.  To  prevent  contact  with  the  air, 
the  crude  varnish  is  covered  as  quickly  as  possible  with  layers  of  oil 
paper.  It  furnishes  only  one  color,  black,  and  is  considered  the 
most  indestructible  varnish  known.  According  to  Wilson,  brown 
varnish  is  obtained  by  adding  “  pei-yu,”  which  is  crude  wood  oil, 
boiled  for  an  hour  into  a  sirupy  oil;  and  red,  by  adding  cinnabar  to 
the  brown  in  equal  parts.  This  varnish  hardens  only  in  a  moist 
atmosphere,  and  in  China  is  applied  only  during  moist  or  cloudy 
weather.  In  indoor  work  drying  is  facilitated  by  hanging  about  the 
rooms  cloths  saturated  with  water.  Should  a  chemist  succeed  in  de¬ 
priving  the  lacquer  of  its  poisonous  qualities,  it  would  undoubtedly 
become  a  valuable  article  of  commerce  with  western  nations. 

LICORICE  ROOT 

Licorice  root  is  used  in  the  United  States  as  an  indispensable  in¬ 
gredient  of  chewing  tobacco,  in  certain  chewing  gums,  and  medici¬ 
nally.  Prior  to  the  European  war  the  American  supplies  were  ob¬ 
tained  from  Asiatic  Turkey.  Since  then  the  United  States  has 
become  an  importer  of  licorice  root  from  China,  but  in  a  small 
sporadic  way,  apparently  depending  upon  the  silver  exchange  fluc¬ 
tuations  as  they  influence  market  prices.  During  1923  the  United 
States  took  nearly  60  per  cent  of  the  exports  of  licorice  root  from 
China — about  10.000  pounds,  valued  at  $835,000  gold.  Tientsin  and 
Dairen  are  the  principal  ports  of  export,  as  the  product  is  confined 
to  North  China.  The  United  States  tariff  of  1922  imposed  a  duty 
of  one-half  cent  a  pound  on  licorice  root. 

LINSEED 

Flax,  as  an  article  of  commerce,  is  grown  in  northwestern  Chihli 
and  in  sections  of  Mongolia.  Undoubtedly  the  industry  could  be 
developed  to  considerable  proportions  if  it  proved  profitable.  Flax¬ 
seed  is  collected  at  Kalgan  and  sent  from  there  to  Tientsin  for  ex¬ 
port.  Exports  in  1922  amounted  to  37,000  short  tons,  of  which  13,000 
went  to  France,  8,000  to  Great  Britain,  6,000  to  the  United  States, 
3,500  to  Belgium,  2.000  to  Japan,  and  1,500  each  to  Netherlands  and 
Germany.  The  1923  exports  dropped  to  8,800  tons,  of  which  Japan 
took  6,000  tons  and  Great  Britain  and  the  United  States  about  1,000 
tons  each.  Of  the  5,000  tons  exported  in  1921,  the  United  States 
took  nearly  80  per  cent. 


china's  export  products 


235 


Linseed  oil  is  considered  the  best  oil  for  making  putty.  It  is 
used  also  in  making  so-called  “  vulcanized  oil.”  It  figures  in  the 
manufacture  of  linoleum,  oilcloth,  patent  leather,  lithographic  inks, 
soaps,  and  paints.  In  the  manufacture  of  certain  paints  and  of 
varnishes  it  has  been  largely  replaced  within  recent  years  by  wood 
oil,  which  possesses  superior  drying  qualities. 

Importers  of  Chinese  linseed  are  obliged  to  safeguard  themselves 
against  adulterations.  The  1922  United  States  tariff  provides  an 
import  duty  on  linseed  of  40  cents  per  bushel  of  56  pounds  and  3.3 
cents  a  pound  on  linseed  oil. 

NUTGALLS 

Nutgalls  are  not  produced  in  the  United  States.  They  are  the 
excrescences  caused  by  the  puncture  of  insects  (the  gall  wasp)  for 
laying  their  eggs,  usually  on  oak  trees.  The  green  galls  are  of  higher 
quality,  the  white  galls,  from  which  the  insect  has  escaped,  being 
considered  inferior.  Chinese  galls  are  produced  on  the  Rhus  semia- 
lota  and  contain  about  70  per  cent  tannin  or  tannic  acid. 

China’s  exports  of  nutgalls  steadily  increased  from  2,300  tons  in 
1912  to  5,900  tons  in  1923,  valued  at  $1,000,000  gold.  The  United 
States  took  30  per  cent,  Japan  30,  Belgium  15,  Great  Britain  13,  and 
Denmark  8  per  cent.  It  is  probable  that  a  considerable  quantity  of 
Japanese  imports  were  reexported  to  the  United  States.  Hankow 
and  Yoehow,  in  the  central  Yangtze  region,  are  the  principal  ports 
of  export.  Nutgalls  are  used  principally  for  tanning  leather,  in 
dyeing,  and  in  the  manufacture  of  ink.  They  are  admitted  into  the 
United  States  duty  free  for  tanning,  but  the  extracts  of  nutgalls  con¬ 
taining  less  than  50  per  cent  by  weight  of  tannic  acid  are  assessed  4 
cents  a  pound;  those  containing  more  than  50  per  cent,  10  cents  a 
pound. 

PEANUTS  AND  PEANUT  OIL 

China  has  become  one  of  the  greatest  of  peanut-producing  coun¬ 
tries.  As  with  other  agricultural  products,  it  is  possible  only  to  make 
estimates.  The  Chinese  people  themselves  consume  enormous  quan¬ 
tities  of  peanuts;  hence  we  are  not  to  consider  the  exports  as  indi¬ 
cative  of  the  country’s  production.  Shantung  Province  is  the 
principal  peanut-producing  center  of  China.  Chihli,  Honan,  and 
certain  other  Provinces  in  China  also  produce  peanuts  in  large  quan¬ 
tities.  Tsingtao,  in  Shantung,  has  developed  as  the  chief  exporting 
center. 

The  exports  for  the  years  1919-1923,  inclusive,  are  as  follows : 


Products 

1919 

1920 

1921 

1922 

1923 

Short 

tons 

Value1 

Short 

tons 

Value 1 

Short 

tons 

Value 1 

Short 

tons 

Value 1 

Short 

tons 

Value1 

Peanuts: 

In  shell..  .  .  .. 

Kernels..  _ 

Peanut  oil _ 

Total  . . 

9,200 
77,  700 
81,  600 

527 
5,  323 
13,  950 

7, 300 
77,200 
55,000 

439 
5, 610 
9,315 

27,  300 
76,600 
31,000 

1,667 
5, 460 
4,  513 

29, 300 
60.000 
25,  600 

1,987 
4,  806 
4,  340 

58,000 
91,  600 
31,000 

4,000 

8,000 

6,175 

168,  500 

19,  800 

139,  500 

15,  364 

134,900 

11,640 

114,900 

11, 133 

180,  600 

18, 175 

1  Thousands  of  haikwan  taels. 


236 


COMMERCIAL  HANDBOOK  OF  CHINA 


Roughly,  100  pounds  of  peanuts  in  the  shell  are  equivalent  to  75 
pounds  of  shelled  peanuts  and  to  about  30  pounds  of  peanut  oil. 
This  makes  exports  from  China  average  the  equivalent  of  at  least 
300,000  short  tons  of  peanuts  in  the  shell.  It  would  seem  conserva¬ 
tive  to  reckon  China's  entire  peanut  production  at  three  times  the 
amount  of  its  exports,  or,  roughly,  900,000  tons.  The  1923  United 
States  Agricultural  Yearbook  gives  America's  production  for  1923 
as  312,230  tons  and  shows  the  average  yield  per  acre  as  720  pounds, 
which  is  somewhat  higher  than  the  yield  per  acre  for  1922  and  1921. 
Vice  Consul  Milbourne,  at  Tsinan,  has  ascertained  that  the  Chinese 
in  Shantung  consider  2  piculs  a  mow — that  is,  1,600  pounds  to  the 
acre — as  a  fairly  low  average  yield  for  that  Province.  Shantung 
Province  produces,  it  is  estimated,  about  250,000  tons  of  peanuts 
annually,  or  probably  a  little  more  than  one-quarter  of  China’s 
entire  output. 

While  an  American  missionary  deserves  the  credit  of  introducing 
the  big  peanut  of  America  to  China  for  propagation  purposes,  the 
Germans  in  Tsingtao  and  Shantung  pushed  the  trade  itself  and  the 
facilities  which  opened  the  markets  of  the  world  to  China  as  a  source 
of  supply. 

China's  average  annual  exports  of  peanuts  in  the  shell  for  the 
four  years  1910-1913,  inclusive,  were  67,000  short  tons.  For  the 
four  years  1920-1923  the  average  was  30,000  tons,  although  for  the 
year  1923  the  exports  were  58,000  tons.  Of  peanut  kernels  the  trade 
had  apparently  not  developed  before  1914,  as  no  returns  are  given 
prior  to  that  year.  The  average  exports  of  peanut  kernels  for  the 
four  years  1920-1923  were  76,000  tons,  with  91,600  shipped  in  1923. 
Reckoning  100  pounds  of  unshelled  nuts  as  equivalent  to  75  pounds 
of  kernels,  the  average  of  76,000  tons  would  be  equivalent  to  103,000 
tons  of  peanuts,  which,  added  to  30,000  above,  gives  us  the  equivalent 
of  133,000  tons  of  peanuts  in  the  shell  as  the  average  for  the  four 
years  1920-1923.  Hence  the  trade  doubled  during  this  decade.  As 
for  peanut  oil,  the  average  annual  exports  for  the  four  years  1910- 
1913  were  16,500  short  tons;  the  average  annual  exports  for  the  four 
years  1920-1923  were  35,000  short  tons,  or  an  increase  of  more  than 
100  per  cent. 

The  commissioner  of  customs  at  Tsingtao,  in  his  1923  report,  states 
that  the  greater  part  of  the  15,000  tons  of  peanut  kernels  shipped  to 
Japan  subsequently  went  to  the  United  States.  The  United  States 
took  25  per  cent  of  the  peanut  oil  and  the  Straits  Settlements  nearly 
20  per  cent.  The  United  States  customs  returns  for  1923  show  im¬ 
ports  of  peanut  oil  of  about  4,000  tons.  It  may  be  surmised  that  the 
additional  4,000  tons  credited  to  the  United  States  probably  went 
to  Canada.  It  is  interesting  to  note  that  the  1923  customs  returns 
for  peanut  oil  showed  practically  no  exports  to  Great  Britain, 
whereas  during  1921  and  1922  Great  Britain  took  30  and  25  per  cent, 
respectively,  while  the  direct  exports  from  China  to  the  United 
States  for  those  years  were  inconsiderable. 

In  the  United  States  peanut  oil  is  used  as  a  salad  oil,  as  a  substi¬ 
tute  for  olive  oil,  as  an  ingredient  of  margarine,  and  for  soap  mak¬ 
ing.  It  is  contended  that  the  finest  oil  is  cold  pressed,  although  a 
much  larger  yield  can  be  obtained  by  hot  pressing;  but  the  cold- 


china's  export  products 


237 


pressed  oil  needs  no  refining  if  produced  from  clean  nuts.  The  pea¬ 
nut  cake  from  which  the  oil  is  expressed  makes  excellent  cattle  feed, 
and  if  selected,  high-grade,  well-blanched  nuts  are  used  the  cake 
can  be  ground  with  flour  for  certain  kinds  of  bread. 

In  view  of  the  United  States  import  duty  of  4  cents  a  pound  on 
peanut  oil,  it  is  not  likely  that  the  exports  for  succeeding  years  will 
be  maintained  at  the  figures  for  1923,  which,  when  the  tariff  is 
considered,  were  abnormally  high. 

The  United  States  tariff  for  1922  provides  a  duty  of  3  cents  a 
pound  on  peanuts  in  the  shell,  4  cents  a  pound  on  shelled  peanuts, 
and  4  cents  a  pound  on  peanut  oil. 

RAMIE  AND  GRASS  CLOTH 

Considerable  efforts  have  been  made  in  the  United  States  to  inter¬ 
est  communities  in  ramie  (China  grass)  and  ramie  fiber  for  high- 
class  fabrics.  It  appears  that  the  greatest  difficulty  incurred  is  that 
of  producing  a  machine  for  decorticating  the  grass.  In  China,  how¬ 
ever,  where  labor  is  cheap  and  plentiful,  this  work  can  still  be  done 
by  hand  in  a  profitable  way.  Wilson,  in  A  Naturalist  in  Western 
China,  says  of  ramie : 

The  most  important  textile  plant  in  China  is  the  much-discussed  China 
grass,  ramie,  or  rhea  ( Boehmeria  nivea).  This  member  of  the  nettle  family  is 
both  wild  and  cultivated  in  all  the  warmer  parts  of  the  Middle  Kingdom  up 
to  4,000  feet  altitude.  It  is  a  herbaceous  perennial  and  grows  3  to  6  feet 
tall ;  the  leaves,  broadly  ovate,  abruptly  cuneate  or  truncated  at  base,  have 
dentate  margins  and  are  silvery  on  the  under  side.  In  Hupeh  the  wild  plant 
is  called  “  Ch’u-ma,  ”  the  cultivated  plant  “  Hsien-ma.  ”  In  Szechwan  the  culti¬ 
vated  plant  is  also  known  as  “  Hsien-ma  ”  and  occasionally  as  “  Yuang-ma.” 
These  various  colloquial  names  are  most  perplexing  and  are  almost  hope¬ 
lessly  confused. 

In  Szechwan  small  patches  of  this  “  China  grass  ”  are  to  be  found  around 
nearly  every  peasant’s  home.  Southwest  of  Chungking  and  also  north  of 
Lu  Chou,  in  several  districts,  it  is  cultivated  on  a  very  extensive  scale.  Much 
of  the  fiber  is  woven  into  “  grass  cloth  ”  and  used  locally.  A  certain  amount 
is  also  exported  down  river.  Szechwan  “  grass  cloth  ”  is  rather  coarse  and 
very  much  inferior  to  that  produced  in  parts  of  southern  China. 

Kwangsi  Province  is  the  principal  center  of  production,  at  least 
so  far  as  concerns  the  trade  in  ramie  fiber,  although  it  is  also  culti¬ 
vated  in  Szechwan,  Hupeh,  Hunan,  Kweichow,  and  Kwangtung. 

China  grass  is  differentiated  from  hemp  in  that  it  is  never  irri¬ 
gated,  although  the  districts  in  which  it  is  produced  have  a  rain¬ 
fall  of  35  to  40  inches  a  year.  The  plant  lives  five  to  seven  years, 
and  as  many  as  three  cuttings  a  year  are  made.  The  stalks  are 
stripped  of  leaves,  bundled  according  to  size,  and  soaked  for  a  few 
days  in  solutions  prepared  for  the  purpose.  The  fiber  is  then  re¬ 
moved  by  a  beating  and  soaking  process,  while  at  the  same  time 
the  mucilaginous  substances  in  the  plant  are  scraped  off  with  dull- 
edged  knives  by  hand,  mostly  by  women  and  children.  The  fiber  is 
then  boiled,  sometimes  in  lime  water,  and  beaten  so  as  to  remove 
the  resin  and  gum  and  make  possible  the  separation  of  the  fibers. 
This  process  of  cleaning  the  fiber  as  carried  out  in  China  is  very 
crude. 

In  China  ramie  is  bought  according  to  quality,  crop,  and  length. 
The  longer  fibers  and  those  from  the  first  crop  realize  better 


238 


COMMERCIAL  HANDBOOK  OF  CHINA 


prices.  The  fiber  produced  has  a  silky  luster,  is  very  durable,  and 
is  less  affected  by  moisture  than  is  any  other  fiber.  It  is  one  of  the 
strongest  and  finest  of  fibers,  lacking,  however,  in  elasticity.  It  can 
be  spun  as  fine  as  flax,  but  is  stronger  and  possesses  a  more  brilliant 
luster.  In  combination  with  silk  it  is  sometimes  used  to  produce  an 
imitation  silk  fabric. 

The  average  annual  export  of  ramie  fiber  for  the  four  years,  1910 
to  1913,  was  11,700  tons,  valued  at  2,230,000  taels.  For  the  five  years 
1919  to  1923  the  annual  exports  averaged  12,500  tons,  valued  at 
2,800,000  taels  ($2,210,000  gold,  at  the  1923  rate).  Ninety  per  cent 
of  the  ramie  exports  from  China  are  taken  by  Japan. 

Exports  of  grass  cloth  from  China  during  the  four  years  1910  to 
1913  averaged  3,000  tons,  valued  at  1,450,000  taels.  Exports  for  the 
five  years  1919  to  1923  averaged  2,000  tons,  valued  at  3,200,000  taels 
($2,560,000  gold  at  the  1923  rate).  Sevent}^-five  per  cent  of  China’s 
grass  cloth  is  taken  by  Chosen  and  15  per  cent  by  Japan.  In  Chosen 
it  is  used  for  the  manufacture  of  men’s  clothing,  as  it  is  well  adapted 
to  the  national  costume  of  that  country.  Kiukiang,  Chungking,  and 
Swatow,  in  the  order  named,  are  the  principal  export  centers  for 
China  grass  cloth,  and  Kiukiang,  Hankow,  and  Yochow,  in  the  order 
named,  for  the  export  of  ramie  or  China  grass. 

The  United  States  tariff  of  1922  admits  China  grass  free  of  duty 
and  charges  a  40  per  cent  duty  on  grass  cloth. 

RHUBARB 

The  Materia  Medica  of  China  contains  a  wealth  of  plants  which, 
through  the  long  experience  of  many  generations  of  the  Chinese 
people,  have  proved  of  remedial  value.  Szechwan  Province,  which 
is  the  richest  source  of  Chinese  medicinal  products,  produces  the 
best  quality  of  rhubarb.  Wilson  mentions  the  rhubarb  plant  as 
occurring  in  the  highlands  of  the  borderland  between  China  and 
Tibet,  the  wild  plant  being  esteemed  the  best  drug.  He  states  that 
the  Chinese  rhubarb  is  obtained  from  the  plant  known  botanically  as 
Rheum  ydlmatum.  The  variety  known  as  “  tanghuticum  ”  is  most 
commonly  met  with  through  the  extreme  northwest  of  China.  The 
roots  are  dug  when  6  to  7  }7ears  old,  are  peeled  and  cut  in  pieces, 
placed  on  strings,  and  suspended  to  dry.  The  principal  Chinese 
ports  of  export  for  rhubarb  are  Chungking  and  Hankow.  China 
exports  about  500  tons  annually,  of  which  the  United  States  takes 
about  20  per  cent,  which  is  admitted  free  of  duty  as  crude  nonedible 
drug. 

RICE 

China  probably  ranks  next  after  India  in  its  rice  production. 
India’s  production  of  cleaned  rice  for  1922,  as  given  by  the  United 
States  Department  of  Agriculture  Yearbook,  was  about  75,000,- 
000,000  pounds,  or  an  average  of  70,000,000,000  pounds  for  the  years 
1917  to  1922.  The  figures  for  the  Japanese  Empire,  including 
Formosa  and  Chosen,  are,  for  1922,  roughly  25,000,000,000  pounds, 
which  represents  Japan’s  average  annual  production.  There  are  no 
reliable  figures  for  China’s  production.  However,  considering  the 
fact  that  about  150,000,000  people  of  northern  China  are  without 


china's  export  products 


239 


the  rice-producing  belt  and  consume  little  or  no  rice,  and  making 
allowance  for  the  fact  that  the  consumption  of  rice  by  the  people 
of  the  south  is  lower  per  capita  than  that  of  the  Japanese  because 
of  the  greater  poverty  among  the  masses  in  China,  many  of  whom 
subsist  on  cheaper  food  products  than  rice,  and  because  of  the  greater 
variety  in  the  dietary  of  the  wealthier  classes  of  Chinese  as  con¬ 
trasted  with  Japanese,  we  may  estimate  China’s  per  capita  con¬ 
sumption  as  between  one-third  and  one-fourth  of  that  of  Japan,  or, 
roughly  speaking,  we  may  credit  China’s  production  with  about 
40,000,000,000  pounds  (700,000,000  bushels)  of  cleaned  rice.  We  may 
assume  that  the  imports  and  exports  of  rice  in  Japan  about  counter¬ 
balance.  China’s  imports  of  rice  during  the  three  years  1921  to  1923 
•averaged  2,400,000,000  pounds,  which  is  6  per  cent  of  its  estimated 
production.  In  1923  the  imports  rose  to  8  per  cent  of  the  production. 
Poor  crops  during  the  past  few  years,  disturbed  internal  political 
conditions,  and  a  more  extensive  growing  of  opium  accounts  for 
the  lessened  production. 

China’s  exports  of  rice  are  nil.  In  fact,  the  exportation  of  rice 
is  prohibited,  although  permits  were  issued  during  1923  for  the 
export  of  about  2,000,000  pounds,  the  bulk  of  which  went  to  Japan. 
Imports  of  rice  for  the  four  years  1910  to  1913  averaged  16,700,000 
bushels,  or  800,000,000  pounds  a  year,  valued  at  1.32  taels  a  bushel. 
For  the  three  years  1921  to  1923  the  average  annual  imports  were 
2,400,000,000  pounds  (40,000,000  bushels),  valued  at  1.83  taels  a 
bushel,  an  increase  of  40  per  cent  in  value.  The  imports  for  1923 
were  3,000,000,000  pounds,  or  50,000,000  bushels,  valued  at  about 
$80,000,000  gold,  or  1.96  taels  a  bushel  ($1.57  gold),  or  nearly  50 
per  cent  advance  over  the  average  value  quoted  for  1910  to  i913. 
China’s  rice  imports  came  chiefly  from  Saigon,  Rangoon,  and  India. 

In  southern  China  two  crops  a  year  are  produced.  The  average 
production  per  acre  for  water  rice  is  about  30  bushels  of  60  pounds 
each,  although  in  many  places  40  bushels  are  produced.  Glutinous 
rice  is  raised  for  flour  production  and  is  baked  into  cakes.  Puffed 
rice  is  made  from  the  glutinous  variety.  The  rice  is  placed  in  a 
large  iron  kettle  along  with  finely  powdered  charcoal  and  is  heated 
while  being  constantly  stirred.  Rice  straw  is  extensively  used 
throughout  China  for  manufacture  into  paper.  It  serves  also  as 
thatch  for  houses,  as  bedding  for  cattle,  and  as  fuel.  Rice  wine  is 
the  most  commonly  served  alcoholic  beverage  in  China,  and  rice 
husks  are  used  for  preserving  eggs  and  fresh  fruits  and  as  fuel. 

SEASAME  AND  RAPESEED 

The  seeds  of  Sesamum  indicum  yield  from  30  to  50  per  cent  of  a 
thin  yellow  oil,  which  is  odorless,  is  possessed  of  a  pleasant  flavor, 
and  does  not  become  rancid  on  exposure.  The  best  qualities  are 
used  as  table  oils,  as  an  adulterant  for  olive  oil,  and  as  a  constituent 
for  oleomargarine,  while  the  poorer  qualities  are  used  in  the  making 
of  soap.  Owing  to  the  poor  facilities  in  China  for  expressing  and 
refining  the  oils  of  the  various  seeds,  sesame,  like  rapeseed,  is  sent 
abroad  and  the  oil  is  expressed  in  other  countries. 

Sesame  is  produced  extensively  in  the  Yangtze  Valley,  but  more 
particularly  in  the  Yellow  River  Basin,  where  light,  sandy  soil 


240 


COMMERCIAL  HANDBOOK  OF  CHINA 


favors  its  growth.  One  will  often  see  it  planted  in  cotton  fields,  but 
it  matures  slightly  ahead  of  the  cotton  bolls.  The  seeds  are  used 
extensively  as  a  food  throughout  North  China,  where  they  are 
sprinkled  on  sweetmeats  and  cakes,  but  the  plant  is  valued  chiefly 
for  its  oil.  The  oil  is  much  more  valuable  than  rapeseed  oil ;  hence 
there  is  a  tendency  to  adulterate  it  with  the  cheaper  oils. 

In  China  sesame  oil  is  used  for  cooking,  as  an  illuminant,  and  as 
a  lubricant.  China's  exports  of  sesame  seeds  for  1923  were  128,000 
short  tons,  valued  at  $9,600,000. 

Hankow  is  the  chief  center  of  export.  Italy  took  33  per  cent, 
Japan  and  Chosen  16,  Germany  15,  and  Netherlands  14  per  cent. 
The  1922  exports  were  85,000  tons;  1921,  100,000  tons;  1920,  137,000 
tons;  1919,  188,000  tons;  or  an  average  of  128,000  tons  a  year  for 
the  five  years  indicated. 

Rapeseed  oil  is  used  in  the  soap  industry,  for  lubricating  pur¬ 
poses,  and  for  quenching  steel.  In  China  it  is  used  in  cooking,  as 
an  illuminant,  and  in  making  candles.  The  leaves  and  the  young 
shoots  make  a  nutritious  food.  The  refuse  or  cakes  are  in  great 
demand  for  fertilizer.  The  stalks  are  used  as  a  screen  for  the 
protection  of  tobacco  seedlings  and  in  hurdles  to  serve  as  spinning 
ground  for  the  silk  cocoons.  Rapeseed  yields  about  32  per  cent  of 
oil.  It  is  an  important  product  of  the  central  Yangtze  Valley  region 
and  is  a  winter  crop.  Harvested  in  April,  it  does  not  interfere 
with  the  planting  of  rice,  cotton,  and  other  crops.  In  1923  China 
exported  33,000  short  tons  of  rapeseed,  valued  at  $1,600,000.  Ninety- 
five  per  cent  of  this  went  to  Japan,  where  it  was  probably  crushed 
into  oil,  part  of  which  was  exported,  some  undoubtedly  going  to 
the  United  States,  for  Japan  is  named  as  the  chief  source  of  supply 
for  American  imports  of  rapeseed  oil.  China’s  exports  of  rape- 
seed  for  1922  were  40,000  tons;  for  1921,  nearly  80,000  tons;  for 
1920,  15,000  tons;  and  for  1919,  about  50,000  tons,  nearly  all  of 
which  went  to  Japan.  Thus  the  average  annual  export  of  this 
product  for  the  10  years  was  40,000  tons. 

Sesame  seed  and  oil  are  admitted  into  the  United  States  free 
of  duty  by  the  1922  tariff.  Rapeseed  is  admitted  free,  but  a  duty 
of  6  cents  a  gallon  is  imposed  on  rapeseed  oil. 

TEA 

At  one  time  China  supplied  the  world  with  tea.  But  in  1838 
the  first  Indian  tea  reached  the  London  market,  and  by  1888  the 
English  people  were  consuming  as  much  tea  from  India  and  Ceylon 
as  from  China.  In  the  United  Kingdom  the  annual  per  capita 
consumption  of  tea  is  over  8  pounds,  while  it  is  slightly  less  than 
1  pound  in  the  Lhnited  States.  The  consumption  of  tea  in  the  United 
States  during  the  past  two  decades  has  not  kept  pace  with  the  in¬ 
crease  of  population. 

The  following  table  based  on  United  States  official  statistics  of 
imports  shows  the  total  number  of  pounds  of  tea  imported  by  the 
United  States  for  the  years  1911  and  1923 : 


china's  export  products 


241 


Imported  from— 

1911 

1923 

Pounds 

Value 

Pounds 

Value 

United  Kingdom  . 

12, 980, 000 
11,950,000 
18, 000,  000 

$3,  470,  000 
2,  000,  000 
2, 120,  000 

13, 800,  000 
22,  750,  000 
19,  800,  000 
10,  230,  000 
36,  200,  000 
4,  300,  000 

$5, 490, 000 
7,  950, 000 
3,  330,  000 
2,  930,  000 
9,  200,  000 
1,  000,  000 

British  East  India.  .  .  .  .  _  ... 

China .  . . . _ . . 

Dutch  East  Indies  ..  .  .  .. . . . 

Japan  _  __  .  . . 

57,  300,  000 
3,  970,  000 

9,  800,  000 
900,  000 

Other  countries . . . . 

Total. . . . . 

104,  000,  000 

18,  290,  000 

107,  080,  000 

30,  000,  000 

In  1923,  52  per  cent  of  the  American  purchases  of  tea  were  black 
teas;  13  per  cent  oolong  (a  half-fermented  tea,  neither  black  nor 
green)  ;  and  35  per  cent  green  teas. 

China’s  tea  exports  during  the  three  years  1921  to  1923  were : 


Kinds 

1921 

1922 

1923 

Black  tea _ _ _ _ _ 

Pounds 

18, 000, 000 
35,  700, 000 

Pounds 

35, 000, 000 
37,  700, 000 

Pounds 

60, 000, 000 
38,  000,  000 

Green  tea . . . . . . . 

The  average  exports  of  tea  for  the  years  1910-1913  were  as  fol¬ 
lows:  Black  tea,  95,000,000  pounds;  green  tea,  30,000,000  pounds; 
brick  tea,  71,000,000  pounds.  Since  the  Russian  revolution  the  trade 
in  brick  tea  has  become  negligible. 

While  China’s  export  trade  in  green  tea  during  1921-1923  remained 
practically  stationary,  exports  of  black  tea  for  1923  increased  60  per 
cent  over  those  of  the  previous  year  and  about  300  per  cent  above  the 
exports  of  1921.  However,  compared  with  the  exports  of  1919,  they 
show  an  increase  of  but  65  per  cent.  The  statistical  secretary,  in  his 
report  on  foreign  trade  of  China  for  1923,  attributes  the  increased 
exports  of  black  tea  to  poor  crops  in  India,  Ceylon,  and  Java,  and  to 
a  greater  demand  for  black  teas  from  markets  which  in  former  years 
consumed  small  quantities  only. 

Of  China’s  exports  in  1923,  Great  Britain  took  30  per  cent,  the 
United  States  18,  Hongkong  13,  Germany  6,  and  the  Netherlands  5 
per  cent.  The  American  imports  of  1923  were  double  those  of  the 
previous  year,  and  about  four  times  those  of  the  year  1920.  Great 
Britain’s  imports  in  1923  were  nearly  three  times  as  great  as  those  of 
1922,  but  in  1919  they  were  about  the  same  as  in  1923.  United  States 
imports  of  green  teas  from  China  for  1923  were  about  8,700,000 
pounds,  which  was  slightly  less  than  for  1922,  and  about  40  per  cent 
less  than  for  1921,  although  they  compared  favorably  with  the  im¬ 
ports  for  1920  and  1919.  Of  China’s  green  tea  exports  for  1923,  the 
Near  East  and  the  United  States  each  took  about  25  per  cent,  the 
Dutch  East  Indies  18,  and  Hongkong  12  per  cent.  In  1921  the 
United  States  took  15,000,000  pounds,  or  nearly  40  per  cent  of  China’s 
green  tea. 

Next  after  water,  tea  is  probably  the  most  extensively  used  bev¬ 
erage  of  the  human  race.  In  the  aggregate  the  Chinese  consume 

100020°— 26 - 17 


242 


COMMERCIAL  HANDBOOK  OF  CHINA 


more  tea  than  is  used  by  any  other  people.  A  Chinese  in  preparing 
a  cup  of  tea  places  a  pinch  of  leaves  in  the  cup  and  pours  boiling 
water  over  them,  then  places  the  cover  on  the  cup  to  allow  the  tea  to 
steep  for  a  minute  or  two.  He  uses  neither  sugar  nor  milk  with  his 
tea,  and  in  this  way  receives  the  fullest  benefit  of  the  delicate  aroma 
and  subtle  flavor.  Some  Chinese  teas  are  artificially  scented  with 
the  petals  of  the  jasimine  or  gardenia  flowers.  The  higher-grade 
teas,  however,  are  not  artificially  scented.  Some  of  the  exceptionally 
high-grade  Chinese  teas  command  prices  ranging  from  $10  to  $20  a 
pound. 

In  China  tea  is  not  grown  on  plantations.  The  individual  families 
cultivate  small  pieces  of  ground,  hence  control  but  small  holdings. 
There  has  been  a  tendency  in  recent  years  for  some  of  the  tea  pro¬ 
ducers  to  cultivate  tea  on  larger  plantations.  Up  to  the  present  no 
progress  has  been  made  in  China  in  the  use  of  machinery  for  pre¬ 
paring  tea,  as  is  done  in  India,  Ceylon,  and  Java.  The  absence  of 
large  plantations  which  would  furnish  uniform,  standard  quantities 
and  qualities  has  discouraged  efforts  toward  the  use  of  machinery. 
In  China  the  tea  leaves  are  picked  by  women  and  girls  three  or  four 
times  during  the  season.  The  leaves  are  withered  in  the  sun  after 
picking  and  then  fired  over  charcoal  fires.  In  the  case  of  green  teas 
the  leaves  are  roasted  almost  immediately  after  they  are  picked, 
rolled  into  balls  by  hand  to  crack  the  veins  and  set  the  acids,  and  then 
dried  quickly.  Black  teas  are  subjected  to  a  longer  process  of  firing 
and  drying.  The  oolong  teas,  which  are,  strictly  speaking,  neither 
black  nor  green,  require  a  very  elaborate  process  of  hand  rolling. 

The  principal  ports  of  export  are  Hankow,  Kiukiang,  and  Foo¬ 
chow  for  black  teas;  Hangchow,  Ningpo,  and  Kiukiang  for  green 
teas;  and  Foochow  for  oolong  teas. 

Tea  has  been  accepted  duty  free  in  the  United  States  since  the 
year  1833. 

TOBACCO 

Tobacco  was  introduced  into  China  as  early  as  1600,  and  to-day  the 
people  are  almost  universally  habituated  to  its  use,  principally  in 
the  form  of  pipe  and  cigarette  tobacco.  It  is  produced  extensively 
throughout  the  country,  Szechwran,  Hunan,  and  Fukien  probably 
being  the  largest  producers.  The  native  tobaccos  seem  to  be  well 
adapted  to  pipe  consumption.  During  the  past  two  or  three  decades 
the  Chinese  have  been  educated  by  a  very  enterprising  campaign  of 
advertising  to  the  use  of  cigarettes.  This  has  resulted  in  the  develop¬ 
ment  of  a  considerable  manufacture  of  cigarettes  in  China  by  the 
companies  responsible  for  the  marketing  of  cigarettes.  One  of  these 
firms  has  done  a  very  considerable  amount  of  pioneer  work  in  en¬ 
couraging  the  Chinese  to  produce  leaf  tobacco  suitable  for  cigarette 
manufacture.  Much  of  this  work  has  been  carried  on  in  Shantung 
Province:  The  company  contracts  with  the  growers  to  purchase 
tobacco  produced  from  seed  furnished  by  the  company,  provided,  of 
course,  that  the  seed  furnished  meets  certain  requirements  concerning 
quality.  It  has  been  demonstrated  that  China  can  produce  high-class 
leaf  tobacco.  In  certain  sections  soil  and  climatic  conditions  are 
excellent.  The  country  also  possesses  the  advantage  of  a  plentiful 


china's  export  products 


243 


supply  of  cheap  and  satisfactory  labor.  The  Chinese  farmer  is 
industrious  and  is  receptive  to  suggestions  for  improved  methods 
which  will  net  him  greater  profits  on  his  products. 

While  tobacco  is  grown  extensively,  the  industry  lacks  organiza¬ 
tion.  Tobacco  is  generally  grown  along  with  other  crops  on  small 
holdings.  There  have  been  no  governmental  or  other  organizations 
to  aid  the  growers  in  improving  methods  of  culture  or  of  marketing 
the  products. 

The  Province  of  Szechwan  probably  produces  more  tobacco  than 
is  produced  in  any  other  Province  in  China.  The  product,  which  is 
famed  for  the  excellent  flavor  of  its  leaf,  is  used  for  the  manufacture 
of  a  certain  type  of  cigar. 

Exports  of  leaf  tobacco  from  China  for  the  three  years  1921-1923 
averaged  14,000  short  tons,  valued  at  about  $2,800,000.  Exports  of 
prepared  tobacco  averaged  about  4,000  tons  a  year,  valued  at 
$1,800,000.  China  has  also  become  an  exporter  of  cigarettes.  The 
returns  for  the  three  years  mentioned  indicate  a  steady  increase  in 
cigarette  exports.  In  1921  they  amounted  to  about  11,000,000 
pounds,  valued  at  $10,000,000,  and  in  1923,  12,000,000  pounds, 
valued  at  $11,300,000.  Of  these  exports  50  per  cent  went  to  Singa¬ 
pore  and  the  Straits  Settlements  and  the  remainder  to  the  Dutch 
East  Indies,  Hongkong,  and  Japan.  It  is  quite  likely  that  the  bulk 
of  the  cigarettes  shipped  to  Hongkong  was  transshipped  to  South 
China.  The  trade  with  Japan  for  1923  was  unusually  large,  pos¬ 
sibly  owing  to  a  shortage  of  local  production  following  the  earth¬ 
quake  and  fire  disaster  of  September  of  that  year. 

China’s  imports  of  leaf  tobacco  for  1921  were  15,000  tons,  valued 
at  $10,000,000;  in  1922,  17,000  tons,  valued  at  $10,000,000;  and  in 
1923,  21,000  tons,  valued  at  $10,000,000.  The  variations  in  exchange 
account  for  the  uniformity  in  the  gold  valuation.  Eighty  per  cent 
of  the  leaf  tobacco  is  credited  to  the  United  States  and  10  per  cent 
to  Hongkong,  but  the  bulk  of  the  Hongkong  imports  originated  in 
the  United  States.  China  imported  8,530,000,000  cigarettes  in  1921, 
valued  at  approximately  $20,000,000.  The  imports  in  1922  were 
10,250,000,000,  valued  at  $24,000,000.  Estimates  as  to  China’s  pres¬ 
ent  consumption  of  cigarettes  range  from  40,000,000,000  to  60,000,- 
000,000  annually. 

TUNG  OIL 

Wood  (tung)  oil  has  become  indispensible  to  the  paint  and  var¬ 
nish  industries  in  America.  To  the  varnish  manufacturers  it  pos¬ 
sesses  superior  drying  qualities  to  linseed  oil.  Mr.  Williamson,  of 
Gainesville,  Fla.,  in  a  study  of  the  tung-oil  tree,  states  in  regard  to 
tung  oil: 

When  combined  with  southern  rosin  and  other  substances  into  a  varnish, 
it  makes  a  spar  varnish  much  more  satisfactory  than  copal  varnish,  which 
was  formerly  the  standard  in  varnishes.  When  this  varnish  is  properly  made 
and  applied,  a  piece  of  wood  covered  with  it  may  be  kept  in  boiling  water  for 
15  minutes  without  either  whitening  or  softening  the  film.  It  is  largely  used 
in  the  manufacture  of  paints,  as  well  as  varnish,  particularly  for  enamel, 
floor,  and  wall  paints.  It  is  used  in  the  place  of  linseed  oil  in  the  making  of 
lineoleum  and  oilcloth.  The  peculiar  properties  of  the  oil  make  it  highly 
important  to  the  paint,  varnish,  and  allied  industries  that  a  constantly  in¬ 
creasing  and  regular  supply  be  made  available. 


244 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  standard  test  for  tung  oil,  as  published  by  the  American 
Society  for  Testing  Materials  and  to  which  all  tung  oil  should  con¬ 
form,  is  as  follows: 


Items 

Maximum 

Minimum 

Specific  gravity  at  15.5°  C _ _  _  _  . . 

0.  943 
7.000 
195. 000 
.760 
1.520 

0.939 

Acid  number  (alcohol-benzol) .  _ _ _ _ _  _ 

Saponification  number. .  . . . . .  .  . 

190.  000 

Unsaponifiable  matter,  per  cent _ _ _ _ _ _ 

Refractive  index  at  25°  C _ _ 

1.515 
163.  000 

Iodine  number  (Wijs) _  _ 

Heating  test,  minutes _ _ - 

12.  000 

China's  exports  of  wood  oil  have  doubled  in  quantity  during  the 
past  10  years.  The  exports  from  China  to  the  United  States  during 
this  period  have  trebled.  For  the  year  1923  China  exported  836,900 
piculs,  or  14,300,000  gallons.  According  to  the  United  States 
statistics  of  imports,  the  United  States  during  1923  imported 
11,640,000  gallons  of  wood  oil,  all  from  China.  The  Chinese  customs 
returns  of  trade  for  1923  show  594,000  piculs  exported  to  the  United 
States  and  108,000  to  Hongkong,  the  latter  being  transshipped  to  the 
United  States,  thereby  making  a  total  of  12,000,000  gallons  exported 
to  the  United  States,  which  country  therefore  took  about  85  per 
cent  of  China’s  exports  of  wood  oil,  amounting  in  value  to  17,500,000 
taels  or  $14,000,000  gold. 

Over  90  per  cent  of  the  wood  oil  from  China  comes  from  the 
upper  Yangtze  regions  and  is  shipped  out  from  the  port  of  Hankow. 
The  industry  has  become  one  of  such  importance  that  tank  steamers 
take  the  oil  from  China  to  the  United  States.  It  is  collected  in  big 
storage  and  settling  tanks  in  Hankow,  where  it  is  prepared  for  export 
abroad. 

While  the  quantity  exported  from  China  during  the  past  10 
years  doubled,  the  valuation,  as  given  in  the  customs  returns  of 
trade,  increased  fivefold.  During  the  summer  of  1914,  a  picul  of 
wood  oil  could  be  purchased  at  Hankow  for  8.50  taels.  During 
the  spring  of  1924  the  price  rose  to  40  taels  a  picul,  but  toward  the 
end  of  the  year  fell  to  20  taels  a  picul,  which  appears  to  be  in  the 
neighborhood  of  the  present  normal  price. 

In  the  interior  of  China,  where  the  tung  trees  grow,  the  industry 
is  in  a  crude  state.  This  applies  to  gathering  the  nuts,  expressing  the 
oil,  and  shipping  it  to  export  centers.  Furthermore,  as  most  of 
the  oil  comes  from  the  upper  Yangtze  regions,  shipments  are  subject 
to  the  hazards  of  transportation  through  the  Yangtze  rapids.  Dur¬ 
ing  the  past  few  years  political  conditions  in  the  interior  of  China 
have  been  much  disturbed.  Semiindependent  military  chieftains 
have  assessed  taxes  on  commodities  to  the  limit  which  the  traffic 
would  stand.  These  exactions  have  added  heavy  burdens  to  the 
wood-oil  interests.  Chinese  dealers,  who  go  into  the  country  to  buy 
from  the  producers,  respond  very  quickly  to  speculative  influences,  so 
when  it  was  discovered  that  the  American  market  could  take  all 
the  wood  oil  that  China  could  produce,  prices  soared  to  speculative 
figures. 

One  of  the  greatest  handicaps  from  which  the  industry  suffers 
is  lack  of  organization  to  insure  standardization  of  quality.  The 


china's  export  products 


245 


use  of  the  various  cheap  oils,  such  as  bean,  rapeseed,  sesame  seed, 
etc.,  for  adulterization  is  difficult  to  combat.  The  superior  quality 
of  tung  oil  as  produced  in  the  United  States  by  nuts  grown  there 
indicates  clearly  the  difficulties  attendant  on  producing  uniformly 
high-grade  oil  in  China.  Like  most  other  native  industries  in 
China,  wood  oil  is  in  the  hands  of  many  individuals,  none  of  whom 
control  a  very  large  number  of  trees  or  extensive  facilities  for  press¬ 
ing  the  oil  from  the  nuts.  Foreigners  have  not  yet  been  able  to 
handle  the  business  by  modern  methods.  The  best  they  have  been 
able  to  do  up  to  the  present  is  to  provide  facilities  for  getting  to 
Hankow  the  oil  manufactured  by  native  processes  and  there  refine, 
store,  and  ship  it. 

The  best  producing  regions  in  China  are  the  central  and  upper 
Yangtze  sections.  Szechwan,  Kiangsi,  Hunan,  Hupeh,  Kweichow, 
Kwangsi,  and  Kwangtung  are  noted  for  tungyiu  trees,  but  the  latter 
two  Provinces  produce  a  variety,  the  Aleurites  fordi ,  which  is  not 
considered  equal  to  the  Aleurites  montana  produced  in  the  other 
Provinces  mentioned.  A  tree  bears  well  after  five  years  of  growth 
from  seed.  According  to  E.  H.  Wilson,  who  publishes  an  excellent 
account  of  the  tung  tree,  in  Volume  II,  of  A  Naturalist  in  Western 
China,  it  grows  best  where  the  rainfall  is  not  less  than  28  to  30 
inches,  and  the  temperature  does  not  drop  below  28°  F.  Mr.  Wilson 
gives  the  yield  per  tree  as  varying  from  1  to  5  bushels  or  more  of 
unhulled  fruit,  according  to  the  size  of  the  tree.  The  Chinese,  with 
their  crude  methods,  secure  only  about  20  per  cent  of  oil  from  the 
seeds.  Mr.  Williamson  states  that  American  tung-oil  seeds  properly 
handled  will  produce  34  per  cent  of  oil. 

The  Chinese  have  used  tung  oil  from  time  immemorial,  and  large 
quantities  are  employed  in  native  industries.  Junks  are  oiled  with 
tung  oil  and  calked  with  a  mixture  of  tung  oil,  lime,  and  chopped 
hemp.  It  is  an  ingredient  in  the  Chinese  lacquer  varnishes  and  is 
used  also  as  a  waterproof  covering  of  wood,  paper,  silk,  and  other 
materials.  The  soot  of  tung  oil  is  used  in  the  manufacture  of  high- 
grade  Chinese  inks. 

There  are  hill  lands  in  South  and  Central  China  which  are  well 
adapted  to  tungyiu  culture  and  which  could  easily  be  made  available 
for  a  more  extensive  planting  of  tung  trees.  The  Chinese  respond 
quickly  to  opportunities  for  producing  that  which  will  net  the  great¬ 
est  profits.  It  would  be  dangerous,  however,  for  American  paint 
and  varnish  interests  to  depend  upon  a  monopoly  of  supply  from 
China,  on  account  of  the  varying  factors  in  the  industry  which  mili¬ 
tate  against  standardization  and  modern  organization.  Thus  it  is 
highly  necessary  that  a  secondary  source  of  supply  be  assured. 
Wood  or  tung  oil  is  admitted  into  the  United  States  duty  free  by  the 
tariff  of  1922. 

VEGETABLE  TALLOW 

Among  the  plants  peculiar  to  China  is  a  tree,  a  member  of  the 
spurge  family,  which  yields  a  product  of  commercial  value  known 
as  vegetable  tallow.  Ernest  Henry  Wilson,  in  A  Naturalist  in  West¬ 
ern  China,  makes  the  following  statement  regarding  this  tree: 

Sapium  seMferum  occurs  in  all  the  warmer  parts  of  China,  and  is  remark¬ 
able  for  the  beautiful  autumnal  tints  of  its  foliage.  This  tree  is  known  by 
several  colloquial  names.  In  southern  China  it  is  the  “  Chiu-tsu  shu  ” ;  in 


246 


COMMERCIAL  HANDBOOK  OP  CHINA 


central  parts  the  “  Mou-tsu  shu  ” ;  in  the  west  the  “  Ch'uan-tzu  shu.”  It  is  a 
long-lived  tree,  growing  40  to  50  feet  tall,  and  having  a  girtli  of  5  to  6 
feet  at  maturity.  In  Hupeh,  where  the  industry  is  well  looked  after,  the  larger 
branches  are  kept  “  headed  in  ”  to  facilitate  the  gathering  of  the  fruits.  The 
fruits  are  three-celled,  flattened-ovoid,  about  15  millimeters  in  diameter. 
When  ripe  they  are  blackish-brown  and  woody  in  appearance,  and  are  either 
gathered  from  the  trees  by  hand  or  knocked  off  by  the  aid  of  bamboo  poles. 

After  being  collected,  the  fruits  are  spread  in  the  sun,  where  they  open, 
and  each  liberates  three  elliptical  seeds,  which  are  covered  with  a  white 
substance.  This  covering  is  a  fat  or  tallow,  and  is  removed  by  steaming  and 
rubbing  through  a  bamboo  sieve  having  meshes  sufficiently  small  to  retain 
the  black  seeds.  The  fat  is  collected  and  melted ;  afterwards  it  is  molded  into 
cakes,  in  which  state  it  is  known  as  the  “Pi-yu  ”  of  commerce.  After  the 
fatty  covering  has  been  removed  the  seeds  are  crushed,  and  the  powdered 
mass  undergoes  the  same  processes  as  described  for  extracting  wood  oil.  The 
oil  expressed  from  the  seeds  is  the  “  Ting-yu  ”  of  commerce.  Very  often  no 
attempt  is  made  to  separate  the  fat  and  the  oil.  The  seeds  with  their  white 
fatty  covering  are  crushed  and  steamed  together  and  submitted  to  pressure, 
the  mixed  product  so  obtained  being  known  as  “  Mou-yu.”  The  yield  of  fat 
and  oil  is  about  30  per  cent  of  the  weight  of  the  seeds.  In  China  all  three 
products  are  largely  employed  in  the  manufacture  of  candles.  The  pure 
“  Pi-yu  ”  has  a  higher  melting  point  than  the  “  Ting-yu  ”  or  the  mixture 
“  Mou-yu.”  All  Chinese  candles  have  an  exterior  coating  of  insect  white 
wax,  but  when  made  from  “  Pi-yu  ”  only  the  thinnest  possible  covering  of 
wax  is  necessary  (one-tenth  of  an  ounce  to  a  pound). 

Vegetable  tallow  is  used  in  America  and  Europe  for  the  manufac¬ 
ture  of  high-class  toilet  soaps  and  face  creams.  For  many  years 
America  received  considerable  supplies  from  China  through  Eng¬ 
land,  but  in  more  recent  years  the  trade  has  become  direct.  As  will 
be  noted  from  the  following  table  of  exports  from  China,  the  United 
States  took  70  per  cent  of  China’s  exports  of  vegetable  tallow  in  1923. 
The  tariff  of  1922  admits  it  duty  free.  The  principal  port  of  export 
in  China  is  Hankow. 


Years 

Tons 

Haikwan 
taels  1 

1910 _ 

10,000 

1,600,000 

1911 _ 

3,000 

480, 000 

1912. ... 

14,000 

2, 330, 000 

1913 _ 

15, 000 

2, 270, 000 

1919 _ 

11,000 

1, 980, 000 

1920 - 

4,600 

790, 000 

1921 _ 

4,  400 

760, 000 

1922 _ 

4,  300 

670, 000 

1923 _ 

6,500 

1, 090, 000 

Distribution 


Netherlands,  45  per  cent;  Great  Britain,  25  per  cent;  Germany,  15  per 
cent;  Italy,  8  per  cent. 

Great  Britain,  40  per  cent;  Italy,  30  per  cent;  United  States,  10  per  cent. 
Great  Britain,  30  per  cent;  Italy,  25  per  cent;  United  States,  15  per  cent. 
Great  Britain,  30  per  cent;  Italy,  13  per  cent;  Germany,  12  per  cent; 

Netherlands,  12  per  cent;  United  States,  8  per  cent. 

Great  Britain,  50  per  cent;  Italy,  18  per  cent;  United  States,  15  per  cent. 
Italy,  70  per  cent;  United  States,  15  per  cent;  Great  Britain,  9  per  cent. 
United  States,  40  per  cent;  Italy,  35  per  cent;  Great  Britain,  8  per  cent. 
Italy,  50  per  cent;  United  States,  40  per  cent. 

United  States,  70  per  cent;  Italy,  20  per  cent. 


i  Average  value  in  1923,  1  tael  equals  $0.80  United  States  gold. 

WALNUTS 


Walnut  trees  are  found  scattered  throughout  many  sections  of 
the  country.  The  greater  production,  however,  is  in  North  China. 
Walnuts  are  seldom  a  main  crop.  Owing  to  lack  of  economical 
transportation,  the  walnuts  of  Kansu,  Szechwan,  and  Shensi,  where 
they  are  grown  in  large  quantities,  do  not  reach  the  export  market. 
A  limited  quantity  of  walnuts  from  Shansi,  where  they  are  very 
extensively  grown  and  are  of  fine  quality,  reaches  Tientsin  for  export 
purposes.  The  greater  part  of  the  export  product  is  probably  pro¬ 
duced  in  Chihli  Province.  They  are  graded  as  double  shelled,  which 


-  CHINA  's  EXPORT  PRODUCTS 


247 


are  the  cheapest,  owing  to  the  difficulty  of  extracting  the  kernels; 
medium  hard  shelled,  which  constitute  the  bulk  of  the  crop;  and 
paper  shelled,  which  seem  to  be  confined  to  certain  districts  north¬ 
east  of  Tientsin. 

The  Chinese  do  not  allow  the  nuts  to  ripen  on  the  trees,  but  gather 
them  a  few  weeks  before  they  are  actually  ripe.  They  are  piled  in 
heaps  on  threshing  floors,  covered  with  straw,  and  hulled  after  a 
few  days.  Chinese  buyers  go  about  the  country  contracting  for 
walnuts  in  advance.  These  dealers  bring  the  nuts  to  the  Tientsin 
market,  where  they  are  sold  to  the  foreign  exporters.  Shelling, 
packing,  and  preparations  generally  for  export  purposes  are  done  in 
Tientsin  under  the  direction  of  the  exporters. 

The  export  trade  in  walnuts  is  a  development  of  the  past  decade. 
In  1919,  13,100,000  pounds  of  walnuts  in  the  shell  and  5,500,000 
pounds  of  walnut  kernels  were  exported.  In  1921,  14,800,000  pounds 
of  walnuts  in  the  shell  and  3,480,000  pounds  of  walnut  kernels  were 
exported.  Thus  during  each  of  these  years  there  were  exported 
from  China  the  equivalent  of  25,000,000  pounds  of  walnuts.  This 
represents  one-third  of  the  American  crop  and  but  a  fraction  of 
the  entire  Chinese  production.  The  larger  percentage  of  China’s 
exports  of  walnuts  have  gone  to  the  United  States.  Customs  returns 
show  considerable  exportation  to  Japan,  but  these  were  undoubtedly 
transshipped  to  the  United  States. 

Owing  to  the  imposition  of  a  duty  of  12  cents  gold  a  pound  on 
shelled  nuts  and  4  cents  a  pound  on  nuts  in  the  shell  by  the  United 
States  tariff  of  1922,  Cliina.’s  exports  to  America  have  materially 
decreased  since  1921.  Yet,  in  spite  of  these  high  duties,  China 
exported  3,200,000  pounds  of  kernels  during  1922,  and  2,600,000 
pounds  of  kernels  during  1923,  70  per  cent  of  which  went  to  the 
United  States.  In  1922,  4,000,000  pounds  of  nuts  in  the  shell  were 
exported,  and  in  1923,  3,800,000  pounds,  50  per  cent  of  which  went 
to  the  United  States.  The  fact  that  this  trade  with  the  United, 
States  has  continued,  even  at  these  proportions,  indicates  clearly  the 
great  difference  in  labor  costs  between  the  two  countries. 

WHEAT,  FLOUR,  AND  BRAN 

Wheat  and  flour. — There  is  a  tendency  in  China  to  increase  the 
consumption  of  wheat  products.  Many  Chinese  in  the  rice  pro¬ 
ducing  sections  include  wheat  products,  particularly  noodles,  in 
their  dietary.  In  the  regions  of  the  north,  which  do  not  produce 
this  cereal,  rice  is  served  at  a  feast  as  something  special;  whereas, 
in  the  southern  regions  which  do  not  grow  wheat,  noodles  are  served 
as  a  savory  dish.  In  other  words,  the  commonplace  dish  of  one 
section  becomes  the  entree  at  the  feast  in  the  other  section. 

It  is  difficult  to  estimate  the  wheat  production  of  China.  Through 
the  economic  section  of  the  Chinese  Eastern  Railway  in  Northern 
Manchuria,  and  the  South  Manchuria  Railway  in  South  Manchuria, 
it  has  been  possible  to  arrive  at  a  fairly  reliable  estimate  of  the  wheat 
production  of  Manchuria,  which  appears  to  be  about  40,000,000 
bushels  (60  pounds  to  the  bushel).  Considering  the  vast  quantities 
of  wheat  grown  and  consumed  in  Shantung,  Chihli,  Honan,  Shansi, 
and  Shensi,  and  the  substantial  quantities  grown  in  the  Provinces 


248 


COMMERCIAL  HANDBOOK  OF  CHINA 


bordering  on  the  Yangtze  River  and  in  the  south,  it  is  probable 
that  China's  annual  wheat  crop  would  be  between  300,000,000  and 
400,000,000  bushels. 

The  American  farmer  and  the  American  miTer  are  interested  to 
know  if  China  is  likely  to  become  self-sustaining  as  a  wheat  pro¬ 
ducing  and  consuming  nation,  or  an  exporter  of  wheat.  One  of  the 
problems  which  is  inextricably  interwoven  in  the  solution  of  this 
question  is  economic  transportation.  At  present  Shensi  Province 
and  the  region  westward  produce  wheat  at  about  one-third  the  cost 
of  wheat  production  in  the  United  States;  but  if  the  flour  mills  of 
Hankow  had  to  depend  upon  that  region  for  wheat,  even  at  these 
prices  they  could  better  afford  to  make  their  purchases  in  Seattle; 
for  the  transportation  rates  from  Shensi  and  West  China  bring 
the  costs  to  a  higher  figure  than  for  Pacific  wheat  landed  in  Hankow. 

It  may  be  that  China  will  never  become  a  substantial  exporter 
of  wheat  or  flour,  although  it  is  quite  likely  that  with  a  shortage 
of  wheat  production  in  the  world  generally  China  may  be  a  help¬ 
ful  source  of  supply.  China’s  trade  in  wheat  and  flour  is  shown  in 
the  following  tables : 


Years 

Exports  of  wheat 

Imports 

of 

wheat 

Total 

To  Siberia 

To  Japan 
and 
Chosen 

Bushels  1 

Per  cent 

Per  cent 

Bushels  1 

1910-1913  (average) . . . . 

4, 000, 000 

98 

2 

2  4, 000 

1917 . . - . - . 

3,  600, 000 

95 

80, 000 

1918 _ _ - . . . . 

4, 000, 000 

25 

70 

1919 _ _ _ 

10, 000, 000 

30 

65 

1920 . . - - - - 

3  18,  700, 000 

10 

25 

75, 000 

1921 _ _ - - - - 

3  11,400,  000 

25 

25 

165,  000 

1922 _ _ _ 

2,  500, 000 

90 

10 

*  2, 000, 000 

1923 - - - - - - 

1,250, 000 

90 

10 

3  5,  800, 000 

1  Of  60  pounds. 

2  From  Chosen. 

3  In  1920,  40  per  cent  went  to  Port  Said  and  14  per  cent  to  Great  Britain;  in  1921,  40  per  cent  went  to  Port 
Said  and  8  per  cent  to  Great  Britain. 

*  90  per  cent  from  United  States. 

5  From  United  States,  77  per  cent;  from  Canada,  12  per  cent;  from  Australia,  10  per  cent. 


Exports  of  flour 

Imports 

of 

flour 

Years 

Total 

To  Siberia 

To  Japan 
and 
Chosen 

To  Great 
Britain 

1910-1913  (average) . . . 

Barrels  1 

Per  cent 

Per  cent 

Per  cent 

Barrels  1 

1,  500, 000 
500, 000 
3, 000 
200, 000 
340,  000 
3  410,  000 
3  2, 450, 000 
3  3, 800, 000 

1917 _  ' _ . __ . . . 

586, 000 
1,400,  000 

1,  830, 000 

2  2,  680, 000 

2  1,400,000 
400, 000 
90,000 

75 

20 

1918 _ _ _ - . . 

20 

15 

45 

1919 _ _ _ _ 

12 

50 

14 

1920  . -  -  _ 

14 

50 

1921 . - _ _ 

22 

26 

1922 _ _ 

95 

1923 _ _ _ 

70 

30 

1  Of  196  pounds. 

2  In  1920,  8  per  cent;  and  in  1921,  16  per  cent  went  to  Port  Said. 

3  The  United  States  furnished  90  per  cent  in  1921,  80  per  cent  in  1922,  and  70  per  cent  in  1923. 


china's  export  products 


249 


What  appeared  by  the  returns  of  1919,  1920,  and  1921  to  be  evi¬ 
dence  of  China’s  becoming  an  exporter  of  wheat  and  flour  was 
merely  a  temporary  situation.  High  prices  abroad  and  the  silver- 
exchange  situation  in  China  favored  exports. 

During  1922  and  1923  China  suffered  from  poor  crops  of  wheat 
and  rice.  Wheat  prices  abroad  dropped  and  silver  exchange  fa¬ 
vored  imports,  hence  China,  during  these  years,  became  an  importer 
of  wheat  and  flour.  Siberia  has  proved  to  be  China's  steadiest  cus¬ 
tomer  for  both  wheat  and  flour.  The  United  States  was  the  source 
of  the  bulk  of  wheat  and  flour  imports  into  China.  There  are  no 
duties  on  wheat  or  flour  imports  into  China,  hence  the  trade  can 
follow  the  natural  lawT  of  supply  and  demand.  It  is  interesting 
to  note  from  the  Chinese  customs  returns  of  trade  that  during  1923 
there  were  imported  into  Manchuria  from  abroad  800,000  bushels 


Fig.  9. — Modern  Chinese  flour  mill  fully  equipped  with  American  machinery 


of  flour  valued  at  $4,600,000.  The  Manchurian  wheat  harvest  for 
both  1922  and  1923  was  only  about  50  per  cent  of  normal,  whereas 
the  1924  crop  has  been  about  75  per  cent  of  normal,  or  about 
30,000,000  bushels.  Imports  of  flour  into  Manchuria  in  1922  were 
680,000  bushels  and  in  1921,  83,000  bushels.  Thus  it  is  apparent 
that  the  consumption  of  flour  among  the  22,000,000  people  of  the 
three  eastern  Provinces  of  Manchuria  is  very  high.  Furthermore, 
Siberia  has  been  drawing  upon  Manchuria’s  wheat  and  flour  re¬ 
sources.  Thus,  unless  the  Manchurian  wheat  crop  is  good  or  prices 
elsewhere  are  abnormally  high,  Manchuria  is  not  likely  to  have  a 
surplus  of  wheat  or  flour  for  export  to  other  sections  of  China. 

The  modern  flour-milling  industry  has  been  developing  substan¬ 
tially  in  China  during  the  past  two  decades.  The  centers  of  the 
flour-milling  industry  in  China  in  order  of  their  importance  in 
output  of  flour  are  Shanghai,  Harbin,  Tsinan,  Tientsin,  and  Han¬ 
kow.  The  Shanghai  mills  have  an  aggregate  daily  capacity  of 


250 


COMMERCIAL  HANDBOOK  OF  CHINA 


32,000  barrels,  Harbin  25,000  barrels,  Tsinan  9,500,  Tientsin  9,000, 
Hankow  3,000;  or  an  aggregate  of  75,000  barrels.  It  is  probably 
safe  to  add  40,000  for  the  other  mills  scattered  throughout  the 
country,  which  would  give  us  115,000  barrels  as  a  daily  capacity. 
It  requires  about  4y2  bushels  of  wheat  to  make  1  barrel  of  flour, 
hence,  if  these  mills  ran  300  days  in  the  year  at  full  capacity,  it 
would  mean  they  would  produce  35,000,000  barrels  of  flour,  consuming 
about  160,000,000  bushels  of  wheat.  The  Chinese  mills  have  not 
been  able  during  the  past  few  years  to  secure  the  supplies  of  wheat 
essential  to  running  them  at  full  capacity  on  a  profitable  basis. 
Short  crops  in  China,  poor  internal  communications,  unfavorable 
political  conditions,  heavy  internal  tax  exactions,  the  lack  of  any 
standard  of  quality  in  wheat  production,  the  producing  of  small 
amounts  of  many  different  varieties  in  any  one  district,  and  the 
tendency  of  some  growers  and  middlemen  to  water  and  adulterate 
their  wheat,  have  all  operated  to  the  disadvantage  of  the  milling 
industry. 

The  fact  remains,  however,  in  connection  with  China’s  flour-mill¬ 
ing  industry,  that  the  bulk  of  the  flour  consumed  by  the  masses  is 
still  ground  between  stones  by  the  people  in  the  country.  The  con¬ 
sumption  of  wheat  products  among  the  Chinese  is  increasing.  With 
higher  purchasing  power  through  the  improvement  of  economic 
conditions,  the  per  capita  wheat  consumption  is  bound  to  increase. 
Railways  will  open  up  new  lands  for  wheat  cultivation,  but  it  is 
not  anticipated  that  China  will  become  a  regular  exporter  of  wheat 
and  flour.  It  appears  quite  likely  that  China  will  continue  to  im¬ 
port  flour,  but  silver  exchange,  crop  conditions  in  China,  and  prices 
of  wheat  abroad  are  essential  factors  in  this  trade. 

The  United  States  exports  annualty  about  15,000,000  barrels  of 
flour.  China,  in  1923,  imported  nearly  4,000,000  barrels,  in  addi¬ 
tion  to  nearly  6,000,000  bushels  of  wheat. 

Bran. — The  development  of  the  modern  flour-milling  industry  in 
China  naturally  results  in  the  production  of  considerable  quantities 
of  bran.  The  Chinese  flour  mills  do  not  make  an  effort  to  produce  a 
No.  1  baker’s  white  flour.  The  middlings  or  shorts  are  not  taken  from 
the  flour,  which  means  also  that  the  bran  holds  more  of  the  wheat 
content.  Since  the  country  has  no  dairy  industry,  Chinese  bran  does 
not  find  a  ready  domestic  market. 

Prior  to  the  European  war,  China  exported  each  year  about  75,000 
tons  of  bran,  some  of  which  went  to  the  Pacific  coast.  During  the 
past  five  years  the  average  exports  of  bran  from  China  were  about 
175,000  tons,  valued  at  4,600,000  taels,  which  (with  the  tael  valued  at 
80  cents  gold)  is  the  equivalent  of  $3,500,000  gold.  Dairen  exported 
30  per  cent,  Shanghai  25  per  cent,  Tsingtao  15  per  cent,  and  Hankow 
6  per  cent.  Japan  takes  practically  all  of  China’s  bran.  The  United 
States  tariff  of  1922  prescribes  a  7%  per  cent  ad  valorem  duty  on 
bran  imports. 

MISCELLANEOUS 

In  addition  to  the  vegetable  products  mentioned,  there  are  others 
which  enter  into  foreign  trade  and  still  greater  numbers  which  are 
confined  to  domestic  consumption.  Mr.  Walter  T.  Swingle,  of  the 
Bureau  of  Plant  Industry  of  the  United  States  Department  of  Agri- 


china's  export  products 


251 


culture,  refers  to  Wu  Ch'i  Chun’s  great  botany  “  Chi  wu  ming  shih 
t’u  K’ao,”  published  in  1848,  containing  beautiful  full-page  illustra¬ 
tions  of  1,714  economic  plants.  Explorers  from  the  United  States 
Department  of  Agriculture  have  discovered  in  China  fruits,  nuts, 
and  other  economic  plants  which  are  adding  materially  to  the  eco¬ 
nomic  wealth  of  the  United  States.  Some  of  these  are : 

Chinese  jujube. — These  are  the  so-called  Chinese  dates,  which  are 
grown  extensively  in  the  drier  regions  of  the  north.  They  are  put 
through  a  special  process  of  drying  and  sweetening,  in  some  cases 
with  honey,  thereby  producing  a  delicious  flavor.  Chinese  jujubes 
are  now  being  grown  in  California. 

Persimmons. — China  produces  a  great  variety  of  persimmons, 
some  of  which  are  seedless.  They  are  consumed  both  in  the  fresh 
and  in  the  dry  state.  The  fresh  varieties  in  North  China  are  refrig¬ 
erated  in  the  open  air  during  the  long,  dry,  cold  winters  of  the  north. 
Mr.  Dorsett,  of  the  United  States  Department  of  Agriculture,  has 
found  six  to  eight  millions  of  these  persimmons,  stacked  six  high,  on 
platforms  in  the  open  air  along  the  sides  of  river  beds,  with  ven¬ 
tilating  ditches  beneath  and  covered  over  with  matting,  suggesting 
the  idea  that  the  Chinese  persimmon,  as  now  being  produced  in  the 
United  States,  can  be  improved  through  refrigeration,  which  will 
also  help  its  marketing  possibilities. 

Chinese  chestnuts. — This  variety,  which  resists  the  chestnut-bark 
disease  and  which  is  larger  than  the  American  chestnut,  is  being  suc¬ 
cessfully  introduced  into  the  United  States. 

Red  hawthorne. — The  beautiful,  large-fruited,  red  liawthorne  of 
North  China  produces  jellies  and  preserves  which  might  find  an 
acceptable  place  in  the  American  dietary. 

Litchi. — This  fruit,  which  is  commonly  known  in  America  as 
the  China  nut  and  which  is  grown  in  southern  Provinces,  is  particu¬ 
larly  delicious  when  served  fresh.  Seedless  varieties  exist.  The 
fruit  is  well  adapted  to  canning  and  its  introduction  into  the  United 
States  is  viewed  with  interest. 

Citrus  fruits. — China  produces  a  great  variety  of  pomeloes  and 
oranges.  The  pomelo  is  somewhat  different  from  the  grapefruit. 
The  small,  sweet,  juicy,  seedless  varieties  are  distinctly  popular 
among  the  Chinese  people  and  may  find  a  place  in  the  United  States. 
A  few  years  ago  the  orange  crop  of  Florida  was  saved  by  securing 
from  China  the  seeds  of  the  wild  orange  indigenous  to  that  country. 
It  is  possible  that  the  stock  from  which  was  developed  the  Washing¬ 
ton  navel  orange,  which  constitutes  a  large  per  cent  of  the  Cali¬ 
fornia  orange  crop,  originated  in  China. 

Apricot  kernels. — One  of  the  interesting  articles  of  export  from 
China  is  the  edible  apricot  kernel,  which  is  similar  to  the  American 
almond.  It  is  produced  in  North  China  and  exported  from  the  port 
of  Tientsin.  Exports  during  the  three  years  1921-1923  averaged 
3,000,000  pounds. 

Pears. — China  produces  a  great  variety  of  pears,  which  are  in¬ 
digenous  to  the  country.  A  few  years  ago  the  Bartlett  pear  crop 
of  the  Pacific  coast  was  threatened  with  destruction  by  a  blight. 
Specialists  from  the  Department  of  Agriculture  went  to  China, 
secured  tons  of  seed  of  the  Chinese  wild  pear,  and  with  this  hardy 
stock  saved  the  Pacific  coast  Bartlett-pear  industry. 


252 


COMMERCIAL  HANDBOOK  OF  CHINA 


Velvet  bean. — The  Chinese  velvet  bean,  introduced  into  the  South¬ 
ern  States  but  a  few  years  ago,  has  already  demonstrated  its  value. 

Bamboo  sprouts. — The  Chinese  have  in  bamboo  shoots  a  valuable 
vegetable  product.  In  addition  to  the  food  value  of  the  sprouts,  the 
bamboo  industry  offers  much  in  other  directions.  In  China,  bamboo 
is  used  for  fences,  mats,  furniture,  hats,  sieves,  screens,  bird  cages, 
lunch  baskets,  traveling  bags,  penholders,  pipes,  brooms,  carrying 
poles,  scaffolding,  piping,  cooking  utensils,  musical  instruments,  and 
for  many  other  purposes.  It  possesses  a  remarkable  tensile  strength 
in  proportion  to  its  weight. 

Cassia. — C innamomum  cassia  is  a  useful  tree  found  in  the  borders 
of  Kwangtung  and  Kwangsi  Provinces.  The  bark  of  Cassia  lignea 
is  allowed  to  lie  for  24  hours  for  fermentation,  and  the  outer  skin 
scraped  off.  It  dries  in  a  quilled  shape.  This  dried  bark  is  less 
pungent  and  acrid  than  cassia  oil.  Cassia  oil,  which  is  obtained 
from  the  leaves  and  twigs  by  distillation,  is  used  in  medicine,  also 
in  perfumery  and  flavoring  condiments.  China  exports  annually 
about  5,500  tons  of  Cassia  lignea ,  valued  at  nearly  $500,000. 

Ginger. — Ginger  is  grown  in  the  West  River  region  and  hilly  dis¬ 
tricts  of  Kwangtung  and  Szechwan  Provinces.  The  preserving  of 
ginger  is  an  industry  of  Canton.  China’s  exports  of  ginger,  fresh 
and  preserved,  amount  to  about  6,000  tons  a  year,  valued  at  about 
$250,000.  Galangal  is  sometimes  mistaken  for  ginger  proper.  The 
root  is  smaller  than  that  of  ginger.  It  is  cultivated  in  the  island 
of  Hainan  and  off  the  Kwangtung  coast.  It  is  also  used  as  a  pre¬ 
servative  and  often  takes  the  place  of  ginger.  China  exports  about 
450  tons  of  this  product  a  year. 

NATIVE  MANUFACTURED  PRODUCTS 

In  this  section  are  included  only  those  commodities  which  are  a 
part  of  the  domestic  handicraft  of  the  old  economic  order  rather 
than  of  the  new.  Such  articles  as  beads,  old  tapestries,  brasses, 
carved  jades  and  ivories,  lacquer,  and  wood  carvings  are  omitted 
as  being  of  no  great  consequence  in  the  volume  of  trade  between 
China  and  the  United  States. 

China  is  still  a  source  of  supply  of  many  articles  that  are  valued 
because  of  their  individual  handicraft  characteristics.  Standardiza¬ 
tion  and  quantity  production  have  not  developed  in  the  making  of 
these  articles.  With  the  primitive  agricultural  conditions  and  small 
farm  holdings  which  exist  under  the  family  system,  the  great  bulk 
of  the  farming  people — men,  women,  and  children — frequently  have 
spare  hours  which  they  may  devote  to  other  crafts  than  that  of  tilling 
the  land.  Even  a  few  cents  a  day  in  extra  earnings  constitute  a 
welcome  addition  to  the  meager  family  income.  Economic  condi¬ 
tions  are  still  such  in  rural  communities  that  in  these  products  of 
the  hand  China  can  successfully  compete  with  the  machine-manu¬ 
factured  products  of  the  Orient.  This  accounts  for  such  (in  the 
aggregate)  important  domestic  industries  as  the  making  of  hair  nets, 
firecrackers,  hats  from  grass  and  rushes,  laces  and  embroideries, 
braids,  mattings,  and  many  similar  articles  well  known  to  commerce, 
that  are  almost  invariably  the  production  of  the  spare-moment  work¬ 
ers  in  the  homes  of  the  people,  rather  than  the  output  of  factories. 


china^s  export  products 


253 


CARPETS  AND  RUGS 

Rug  weaving  in  China  dates  back  many  centuries,  though  it  was 
not  until  the  World  War  that  Chinese  rugs  and  carpets  were  intro¬ 
duced  in  quantity  into  American  markets.  Like  all  oriental  rugs, 
Chinese  rugs  are  handmade,  but  the  process  differs  from  that  of 
western  Asiatic  countries. 

Chinese  rugs  are  made  of  knotted  pile  wool  on  a  cotton  warp, 
which  is  stretched  upon  a  heavy  wooden  frame  set  up  in  the  house. 
The  design  is  painted  with  black  ink  on  the  warp,  and  the  master 
craftsman  sketches  in  his  colors  on  white  paper.  Then  small  boys 
literally  build  the  rug  from  the  ground  up,  working  in  the  colors, 
as  the  pattern  demands,  with  the  yarns,  which  have  been  dyed  either 
with  native  vegetable  dyes  or  with  imported  artificial  dyes.  Gen¬ 
erally  the  rug-making  establishments  are  native  houses  only  large 
enough  to  accommodate  a  few  frames.  The  wool  pile  as  it  is  knotted 
about  the  cotton  warp  is  clipped  with  scissors  and  is  frequently 
trimmed  down  so  closely  as  to  make  details  in  the  design  stand  out 
as  though  carved. 

The  quality  of  the  rug  is  determined  by  (1)  the  quality  of  the  wool 
used,  (2)  quality  of  the  dj^es,  (3)  fineness  of  texture,  depending  on 
the  number  of  knots  to  the  square  inch,  and  (4)  character  of  work¬ 
manship.  Prices  vary,  in  accordance  with  the  variations  in  these 
qualities,  all  the  way  from  $0.90  to  $4  silver  per  square  foot.  In 
Tientsin  a  modern  American  spinning  mill  has  been  installed,  where 
standardized  machine-spun  wool  is  made  and  dyed;  but  until  quite 
recently  all  Chinese  rugs  were  woven  of  hand-spun  wool. 

The  exports  of  carpets  or  rugs  from  China  for  1923,  90  per  cent 
of  which  went  to  the  United  States,  were  valued  at  about  5,000,000 
taels,  or  $4,000,000  gold. 

In  making  purchases  of  carpets  or  rugs  from  China,  American 
importers  find  it  impracticable  to  deal  directly  with  the  native  manu¬ 
facturers,  as  the  carpets  and  rugs  are  made  in  hundreds  of  small 
establishments.  This  necessitates  making  purchases  through  prop¬ 
erly  accredited  exporters  at  Tientsin,  Peking,  or  Shanghai.  The 
exporters  will  guarantee  quality  and  workmanship  and  will  attend 
to  the  details  of  inspection,  packing,  and  shipping. 

The  United  States  tariff  of  1922  imposes  a  duty  of  55  per  cent 
ad  valorem  on  oriental  rugs  and  carpets. 

CHINA  WARE  AND  PORCELAIN 

Although  China  gave  to  the  world  these  two  products,  yet  the 
industry  in  China  is  not  in  the  flourishing  condition  which  marked 
its  position  during  the  days  of  the  monarchy.  Imperial  patrons  did 
much  to  encourage  those  who  took  a  pride  in  the  production  of  their 
porcelains.  There  were  a  number  of  imperial  potteries  in  China,  the 
principal  one  of  which  has  been  .located  at  Kingtehchen,  in  Kiangsi 
Province,  since  the  year  200  A.  D. 

Americans  visiting  China  often  become  charmed  with  the  beauti¬ 
ful  Canton  chinaware.  It  is  difficult,  however,  to  make  satisfactory 
purchases,  owing  to  the  limited  supplies  and  apparent  lack  of  enter¬ 
prise  in  the  industry.  China  produces  high-quality  kaolin  and  clays, 
and  hence  possesses  not  only  the  skill  but  also  the  raw  material  for  a 


254 


COMMERCIAL  HANDBOOK  OF  CHINA 


ceramic  industry  of  great  economic  value  to  the  country.  Internal 
disorders,  traditionally  conservative  ideas  of  the  professional  potters, 
and  lack  of  organized  capital  militate  against  the  development  of  a 
modern  chinaware  and  porcelain  industry.  These  conditions,  how¬ 
ever,  will  not  last  always.  China  is  sure  to  become  again  an  impor¬ 
tant  factor  in  the  ceramic  trade  and  production  of  the  world.  At 
present  the  exports  in  chinaware  and  porcelain  amount  to  about 
$3,000,000  gold  a  year,  of  which  40  per  cent  goes  from  Canton,  40 
per  cent  from  Kiukiang  (near  Kingtehchen ) ,  and  20  per  cent  from 
Swatow.  The  exports  of  chinaware  declared  at  Chinese  ports  as 
destined  to  the  United  States  in  1923  showed  a  value  of  $129,000. 

EMBROIDERIES 

From  time  immemorial  China  has  been  noted  for  its  beautiful 
embroideries,  mostly  on  silk.  Hence  it  was  not  difficult  to  introduce 
into  China  the  modern  embroidery  industry.  The  industry  is  con¬ 
fined  to  handwork.  At  Canton  considerable  quantities  of  embroid¬ 
ered  dress  patterns  and  lingerie  are  produced.  In  fact,  this  industry 
centers  at  Canton,  as  does  also  the  making  of  the  famous  Canton 
silk  shawls  produced  after  the  fashion  of  those  introduced  from 
Spain.  Swatow  embroidery  is  confined  to  grass  cloth  and  linen,  and 
Swatow  may  be  spoken  of  as  the  center  of  grass-cloth  embroidery. 
Peking  is  the  center  of  the  Chinese-style  silk  embroideries,  including 
Mandarin  coats.  Shanghai  is  the  transshipping  and  export  center 
for  the  larger  portion  of  Chinese  embroideries. 

The  customs  returns  of  trade  for  1923  show  silk  embroideries 
worth  900,000  taels  exported  from  China,  95  per  cent  of  which  wrent 
from  Canton.  The  export  returns  for  China  as  compiled  by  the 
American  consulate  general  at  Shanghai  show  the  value  of  exports  of 
laces  and  embroideries  to  the  United  States  for  the  year  1922  as 
$2,800,000  gold  and  for  1923  nearly  $2,000,000  gold.  So  much  of  this 
business,  however,  is  transacted  through  parcel  post  that  it  is  diffi¬ 
cult  to  estimate  its  actual  value. 

FIRECRACKERS 

China  invented  gunpowder  and  popularized  firecrackers.  The 
cheapest  kind  of  firecracker  is  made  of  gunpowder  rolled  in  coarsely 
made  bamboo  paper,  and  covered  with  red  paper,  red  being  re¬ 
garded  by  the  Chinese  as  significant  of  happiness  and  good  for¬ 
tune.  Alum  is  used  to  neutralize  the  smoke.  Nanning,  in  the  Can¬ 
ton  district,  is  the  center  of  the  industry.  Firecrackers  are  for  the 
most  part  shipped  to  Hongkong,  thence  to  other  countries.  The 
Chinese  seem  to  use  firecrackers  upon  every  occasion — to  speed  a 
parting  guest,  in  wedding  celebrations,  on  festivals  and  birthdays, 
and  to  dispel  evil  and  bring  good  omens.  China  exports  about 
$2,500,000  (gold)  worth  a  year.  Canton  sends  directly  to  the  United 
States  about  $350,000  (gold)  and  Hongkong  $150,000  worth  of  fire¬ 
crackers  annually.  The  United  States  tariff  of  1922  imposes  an 
import  duty  of  8  cents  a  pound,  including  weight  of  wrappers. 

FURNITURE  OF  RATTAN,  REED,  AND  SEA  GRASS 

These  products  are  for  the  most  part  shipped  from  Hongkong, 
where  the  industry  is  more  largely  developed  than  in  any  section  of 


china's  export  products 


255 


China.  Easy  shipping  facilities  for  a  light  but  space-consuming 
cargo,  also  lack  of  export  duties  and  proximity  to  the  markets  for 
raw  materials,  give  Hongkong  a  distinct  advantage  in  this  indus¬ 
try,  despite  higher  costs  of  labor  and  of  living  than  obtain  in  most 
places  in  China.  Consul  Leroy  Webber,  Hongkong,  reports  that 
$1,000,000  (gold)  worth  of  rattan  furniture  was  exported  from 
Hongkong  during  1922,  and  that  America  took  fully  50  per  cent, 
the  exports  of  the  United  States  having  increased  40  per  cent  since 
pre-war  years.  Rattan  furniture  is  handmade,  and  prices  are  fixed 
semiannually  by  local  manufacturers  and  exporters,  the  goods  being 
sold  on  terms,  cash  against  documents. 

The  wholesale  furniture  prices,  according  to  Consul  Webber,  aver¬ 
aged  at  Hongkong  $4  (Hongkong  currency)  a  piece,  about  $2.25 
(U.  S.  gold),  which  was  about  20  per  cent  higher  than  pre-war 
prices.  During  1923  the  exports  from  Hongkong  netted  $730,000 
(gold) ,  which  was  a  decrease  from  exports  of  the  previous  year.  The 
United  States  took  45  per  cent.  The  decrease  in  exports  is  attributed 
to  increased  costs  of  10  to  20  per  cent  on  wholesale  prices  as  a  result 
of  labor  strikes  and  to  the  increased  rates  of  the  United  States 
(1922)  tariff,  which  imposes  duties  as  follows:  Rattan  and  reed  fur¬ 
niture  with  frames,  60  per  cent,  and  without  frames,  45  per  cent ;  sea 
grass  furniture  with  wooden  frames,  60  per  cent.  Rattan  canes,  reed, 
and  sea  grass  are  admitted  duty  free  to  encourage  American  domes¬ 
tic  manufacture  of  furniture  and  other  articles  made  of  these  prod¬ 
ucts.  During  1923  sea-grass  furniture  valued  at  $247,000  (gold)  was 
exported  from  Hongkong  to  the  United  States.  According  to  the 
statistics  of  the  United  States  Department  of  Commerce,  the  United 
States  during  1923  imported  $1,520,000  worth  of  rattan  and  $758,000 
worth  of  chair  cane  or  reeds.  Hongkong  exported  to  the  United 
States  $107,850  (gold)  worth  of  rattan  and  $53,600  worth  of  reed, 
aggregating  about  50  per  cent  more  than  the  previous  year. 

HAIR  NETS 

After  the  revolution  of  1911  queue  cutting  in  China  gradually 
spread  over  the  country.  In  some  sections  the  queue  is  no  longer 
worn,  while  in  other  sections  the  parting  with  this  emblem  of  loyalty 
to  the  Manchu  regime  is  proceeding  more  slowly.  Thus  one  of 
the  by-products  of  the  change  from  a  monarchial  to  a  republican 
form  of  government  is  a  considerable  export  trade  in  human  hair. 
During  the  past  five  years  this  has  amounted  to  about  $700,000  (gold) 
a  year.  In  1923  the  exports  were  4,000,000  pounds  valued  at  about 
$800,000.  Shanghai  and  Canton  are  the  principal  export  points. 

The  Chinese  customs  show  about  30  per  cent  each  exported  to 
Hongkong,  Japan,  and  the  United  States.  It  is  possible  that  the 
ultimate  destination  of  both  that  exported  to  Japan  and  that  to 
Hongkong  was  the  United  States — at  least  it  is  certain  that  the 
United  States  took  75  per  cent  of  the  whole  trade. 

The  hair-net  industry  developed  as  the  result  of  cheap  labor  and 
a  plentiful  supply  of  human  hair.  The  hair  continues  for  the  most 
part  to  be  exported  abroad,  where  it  is  bleached  and  chemically 
treated  to  soften  it,  and  then  returned  to  China.  The  manufacture 
of  hair  nets  was  begun  before  the  war  by  the  Germans  in  Shantung 
Province,  and  Shantung  has  maintained  its  monopoly  in  this  in- 


256 


COMMERCIAL  HANDBOOK  OF  CHINA 


dustry.  Efforts  were  made  to  develop  it  in  Canton,  but  labor  costs 
there  could  not  compete  with  costs  in  Shantung.  The  industry 
reached  its  climax  in  1921,  when  China  exported  about  $10,000,000 
(gold)  worth  of  hair  nets,  the  bulk  of  which  went  to  the  United 
States.  With  the  bobbing  of  hair  in  the  United  States  the  trade 
has  since  declined.  Exports  of  hair  nets  from  China  in  1923  and 
1924  dropped  to  less  than  half  those  in  1921.  Should  the  custom  of 
bobbing  the  hair  be  discontinued,  it  is  possible  that  the  industry 
may  regain  its  former  position. 

Nets  and  netting  of  human  hair  pay  a  duty  of  35  per  cent  ad 
valorem  under  the  United  States  tariff  of  1922. 

HATS 

At  Ningpo,  south  of  Shanghai,  there  has  developed  an  interesting 
industry  in  the  manufacture  of  rush  hats.  The  sedge  from  which 
these  are  made  was  originally  wild,  but  is  now  cultivated,  somewhat 
after  the  fashion  of  rice.  After  being  cut  the  plant  is  carefully 
dried  in  the  sun  for  a  week  or  10  days  and  must  be  protected  from 
moisture,  as  dampness  discolors  it.  There  are  several  thousand 
people  engaged  in  the  industry,  most  of  whom  are  women.  From 
1910  to  1913  the  average  number  of  these  hats  exported  from  Ningpo 
was  6,000,000.  In  1922  there  were  10,200,000  exported,  and  in  1923, 
8,600,000.  Seventy-five  per  cent  of  these  went  to  the  United  States, 
where  for  the  untrimmed  and  unblocked  hats  a  duty  of  35  per  cent 
is  paid. 

LACE 

Foreign  missionaries  in  China  are  responsible  for  the  develop¬ 
ment  of  the  lace  industry  among  women  and  girls  in  certain  sections 
of  the  country.  It  is  centered  for  the  most  part  at  Chefoo,  Shanghai, 
Ningpo,  and  Swatow.  Assistant  Trade  Commissioner  A.  Viola 
Smith  states  that  Pootung,  in  the  vicinity  of  Shanghai,  and  Wusih, 
75  miles  north  of  Shanghai,  are  the  filet  lace  centers.  Swatow  has 
become  prominent  as  a  center  for  Irish  lace,  although  filets  are  made 
also  in  Swatow.  A  small  amount  of  Venetian  or  mosaic  lace  is 
made  in  the  Shanghai  district.  Miss  Smith  reports  that  the  Irish- 
lace  industry  was  introduced  into  Swatow  in  1920  and  that  it  has 
succeeded  in  producing  an  article  equal,  if  not  superior,  to  the  laces 
originally  made  in  Ireland.  This  lace  is  produced  by  crocheting 
designs  with  a  small  steel  needle. 

The  net  or  mesh  which  is  used  as  a  basis  of  filet  laces  is  handmade 
and  is  produced  principally  in  the  Ningpo  district.  The  nets  are 
collected  by  agents,  who  carry  them  to  the  lace-making  districts, 
where  skilled  workers  embroider  the  patterns.  The  threads  for 
these  laces  are  imported  and  are  furnished  to  the  workers  by  native 
brokers,  dealers,  or  buyers,  who  pay  the  laborers  upon  collecting  the 
finished  product.  According  to  Miss  Smith,  the  Shanghai  scale  of 
wages  runs  from  8  to  15  cents  silver  a  day  (in  gold  approximately 
one-half  these  rates).  The  filet  laces  are  purchased  upon  the  basis 
of  the  number  of  mesh  holes  to  the  width  of  the  lace,  in  contrast  with 
the  number  of  bobbins  in  torchon  and  Cluny  laces.  If  the  price  of 
1  y2  cents  per  hole  is  stipulated  and  the  lace  is  20  holes  wide,  the 
price  per  yard  would  be  30  cents. 


china's  export  products 


257 


Native  brokers  tour  the  lace  districts  and  buy  the  laces,  which  they 
dispose  of  to  the  exporting  concerns,  where  the  products  are  given  a 
rigid  inspection  and  graded  into  three  classes.  They  are  then  meas¬ 
ured,  carded,  and  labeled  for  shipment.  The  customs  returns  for 
lace  exports  probably  do  not  cover  the  entire  quantity,  for  the  reason 
that  considerable  amounts  are  sent  by  parcel  post  and  considerable 
purchases  are  made  by  travelers.  The  customs  returns  show  the 
exports  of  lace  from  China  as  amounting  to  about  5,000,000  taels 
a  year  ($4,000,000  gold).  Seventy-five  per  cent  of  these  exports  are 
taken  by  the  United  States;  Australia,  Canada,  and  Great  Britain 
take  the  remainder.  Shanghai  is  the  principal  port  of  export,  with 
Swatow,  Ningpo,  and  Chefoo  also  listed  in  the  trade.  The  United 
States  import  tariff  of  1922  imposes  a  duty  of  90  per  cent  on  most 
laces. 

MAH-JONGG  SETS 

The  Chinese  game  “mah-jongg,”  or  “sparrows,”  as  it  may  be 
translated  into  English,  rose  in  popularity  in  the  United  States  to 
such  proportions  that  during  the  year  1923  mah-jongg  sets  from 
China  to  the  value  of  $1,500,000  gold  were  shipped  to  the  United 
States.  The  exports  for  1924  will  probably  be  at  least  $1,000,000. 
This  trade  is  practically  all  from  Shanghai,  as  the  bulk  of  the  mah- 
jongg  sets  for  export  are  manufactured  in  the  Shanghai  district. 
It  is  estimated  that,  including  the  sets  taken  by  tourists  and  travelers 
and  those  sent  to  other  countries  as  well  as  to  the  United  States, 
China’s  exports  of  mah-jongg  sets  for  1923  probably  netted  the 
equivalent  of  $2,000,000  gold.  It  is  anticipated  that  with  the  year 
1925  the  business  will  show  a  distinct  decline.  The  popularity  of  the 
game  in  the  United  States  appears  to  be  on  the  wane,  and  imitation 
sets  in  the  United  States  can  be  made  at  a  lower  price  than  the  bone 
and  bamboo  sets  of  China. 

Mah-jongg  is  not  a  game  of  remote  origin  or  antiquity,  but  is  a 
development  of  comparatively  recent  times.  Mah-jongg  sets  are 
made  of  bone,  ivory,  ebony,  pyralin,  or  bamboo.  The  ivory  and 
ebony  are  imported  from  India  or  Siam,  and  the  pyralin  from  Japan 
and  the  United  States.  Some  of  the  bone  is  of  domestic  origin  and 
part  is  imported  from  America  (the  shin  and  leg  bones  of  cattle). 
The  bamboo  is  all  of  domestic  production.  The  importation  of 
bones  from  the  United  States  for  the  mah-jongg  industry  in  China 
rose  to  such  proportions  in  1923  as  to  require  the  bones  of  about  a 
million  cattle. 

The  tiles,  as  manufactured  in  China,  are  7t  by  1  y8  by  inch. 
Quality  in  the  bone  and  bamboo  sets  is  determined  by  (1)  quality 
of  bone  and  of  bamboo;  (2)  workmanship,  especially  in  making 
the  joint;  (3)  polish;  (4)  depth  and  care  of  carving  of  symbols 
and  number;  (5)  coloring  or  painting  of  symbols  and  numbers. 

A  complete  set  consists  of  144  tiles  (and  4  blank  tiles),  120  count¬ 
ers,  4  place  disks,  and  4  dice.  The  cases,  as  made  in  China,  vary 
from  ordinary  wood  or  tin  boxes  to  small  cabinet  cases  of  wood 
or  leather.  Prices  vary  from  the  equivalent  of  $1  gold  for  sets  of 
all-bamboo  tiles  to  $4  for  cheap  bone  and  ivory,  $25  for  pyralin, 
and  $75  for  ordinary  ivory  sets.  Cabinets  range  in  price  from  $1  up. 

100020°— 26 - 18 


258 


COMMERCIAL  HANDBOOK  OF  CHINA 


Mr.  Emens,  in  a  report  on  the  subject,  estimates  the  cost  of  labor 
in  Shanghai,  in  making  a  medium-price  set,  at  $6.30  silver  (approxi¬ 
mately  $3.15  gold),  the  process  involving  21  distinct  operations, 
with  10  additional  operations  in  making  the  small  wooden  cabinets. 

MATS  AND  MATTING 

In  the  lowlands  of  southern  Kwangtung  there  is  a  grass  ( Arundo 
mitis)  which  is  planted  from  seed  late  in  the  autumn  and,  after 
attaining  a  height  of  5  to  7  feet,  is  harvested  in  July  and  August. 
It  is  a  three-cornered  reed,  which  after  harvesting  is  stripped  by 
women  and  children  and  is  dried  in  the  sun.  The  dried  reeds  are 
disposed  of  in  the  open  market,  where  they  are  purchased  for  use 
in  manufacture  of  mats  and  matting.  Preliminary  to  weaving  on 
crude  native  looms  the  reeds  are  sorted  according  to  quality  and  size, 
and  sometimes  dyed.  The  warp  is  hemp  string.  The  reed  forming 
the  woof  is  put  through  by  hand  without  a  shuttle.  Unfortunately, 
these  looms  are  not  capable  of  being  adjusted  to  changing  demands 
in  markets  abroad;  otherwise  the  industry  would  have  witnessed 
far  greater  developments  in  trade  with  the  west.  Shipments  of 
mats  and  matting  are  made  to  South  Sea  countries  through  Hong¬ 
kong.  The  trade  with  America  shows  signs  of  reviving.  The  ex¬ 
ports  of  matting  from  Canton  to  the  United  States  in  1923,  as 
declared  at  the  port  of  Canton,  were  valued  at  $508,000  gold,  com¬ 
pared  with  $157,000  for  1922.  Canton’s  exports  of  mats  and  matting 
in  recent  years  were  as  follows : 


Years 

Mats 

Matting 

Number 

Haikwan 

taels 

Rolls 

Haikwan 

taels 

1910-1913,  average . 

24, 200, 000 
27, 200, 000 
29, 400, 000 

19,  300, 000 
24,  900, 000 

20,  800, 000 

2, 600, 000 
1, 870, 000 
2, 350, 000 
2, 150, 000 
3,  885, 000 
2,  916, 000 

336, 000 
125, 300 
184, 000 
98,  750 
231,400 
180,  500 

2, 600, 000 
1, 040, 000 
1, 600, 000 
784, 000 
1, 800, 000 
1,  588, 000 

1919 _ 1 . . . . 

1920 _ _ _ _ 

1921 . . . . . - . 

1922  . . . . 

1923 . . . . . . . . 

The  Chinese  customs  returns  show  no  exports  from  Canton  to 
the  United  States,  but  there  were  invoiced  at  the  consulate  general 
at  Canton  the  amounts  as  above  specified,  which  went  through  Hong¬ 
kong  for  transshipment  to  the  United  States.  The  United  States 
import  tariff  of  1922  imposes  a  duty  of  3  cents  a  square  yard  on 
Chinese  mats  and  matting. 

PAPER 


The  paper  industry  of  China,  like  many  other  native  industries, 
is  in  a  state  of  transition.  Modern  paper  manufacture  has  not  yet 
become  a  success,  principally  owing  to  the  lack  of  raw  materials 
adaptable  to  modern  machine  methods.  Economic  conditions  in 
China  do  not  permit  the  accumulation  of  large  quantities  of  rags, 
nor  is  the  country  possessed  of  accessible  resources  of  wood  pulp. 

China  is  supposed  to  be  the  first  nation  to  have  produced  paper. 
The  crude  process  of  manufacture  has  been  carried  down  through 


china's  export  products 


259 


many  centuries.  The  principal  materials  used  are  rice  straw,  bamboo, 
hemp,  and  mulberry.  The  paper-mulberry  tree,  or  “  kou  shu,”  ac¬ 
cording  to  Wilson,  occurs  all  over  China  up  to  4,000  feet  in  altitude, 
and  if  left  alone  forms  a  much  branched  tree  35  to  40  feet  tall,  with 
a  smooth,  dark-green  bark.  In  the  bush  form  it  is  abundant 
by  the  wayside  and  on  cliffs.  Eice  straw  produces  the  most  common 
paper  used  in  China.  It  is  sometimes  mixed  with  the  stems  of  a 
reed  known  by  the  Chinese  as  “  mao-ts’ao,”  which  is  also  used  in 
paper  manufacture.  Bamboo  is  used  for  making  better-class  papers 
which  will  carry  ink.  It  is  also  used  for  window  paper  and  abun¬ 
dantly  for  other  purposes.  The  so-called  “  rice  paper  ”  of  China  is 
in  reality  produced  from  the  pith  of  a  shrub  ( Fatsid  papyrif  era) . 
This  paper  is  used  in  the  manufacture  of  artificial  flowers  and  by 
Chinese  artists. 

In  the  customs  returns  paper  is  classified  as  first  quality,  second 
quality,  and  joss  paper.  The  exports  of  first  quality  average  about 
5,000  tons,  of  the  second  quality  6,000,  and  of  the  joss  paper  5,000 
tons  annually. 

Nearly  all  of  this  paper  is  destined  for  use  by  the  Chinese  popula¬ 
tions  abroad. 

PONGEES 

Pongee,  or  Shantung  silk,  is  produced  from  the  fiber  of  the  so- 
called  wild  cocoon,  or  the  cocoon  which  feeds  on  oak  leaves  instead 
of  mulberry.  This  gives  the  silk  a  peculiar  natural  color  and 
greater  strength  but  less  luster  than  that  produced  by  the  mulberry- 
fed  cocoon.  These  cocoons  are  produced  in  Manchuria,  where 
Antung  is  the  center  of  the  trade;  in  Shantung,  where  Chefoo 
serves  as  the  port  of  export;  and  in  Szechwan,  where  Chungking  is 
the  center.  China’s  exports  of  pongee  during  the  years  1919  to  1923 
have  fluctuated  between  a  valuation  of  7,500,000  and  13,000,000  taels. 
The  exports  for  1923  were  about  7,800,000  taels,  equivalent  in  United 
States  gold  to  $6,240,000.  Of  this  quantity  the  United  States  took 
25  per  cent,  Hongkong  22  per  cent,  Great  Britain  20  per  cent, 
British  India  10  per  cent,  and  Spain  8  per  cent.  Chefoo  is  credited 
with  about  75  per  cent  of  the  export  trade,  Hankow  15  per  cent,  and 
Tsingtao  5  per  cent.  The  United  States  tariff  of  1922  admits  raw 
silk  duty  free,  but  imposes  a  duty  of  55  per  cent  ad  valorem  on 
imports  of  silk  pongee. 

The  United  States  Department  of  Commerce  Trade  Information 
Bulletin  No.  283  of  November,  1924,  entitled  “  International  Trade 
in  Eaw  Silk,”  contains  much  interesting  data  regarding  the  silk  trade 
of  Japan  and  China  with  the  United  States. 

* 

STRAW  BRAID 

From  the  standpoint  of  modern  economics,  the  Chinese  might 
be  considered  a  wasteful  people  because  of  their  ignorance  of  the 
meaning  of  modern  economics  and  because  of  their  lack  of  organiza¬ 
tion.  They  do  not,  as  individuals,  intentionally  permit  anything  to  go 
to  waste.  Of  interest  to  Americans  is  the  combination  of  the  by¬ 
product  of  their  wheat  and  of  their  farm  labor,  which  has  been  de¬ 
veloped  in  certain  sections  of  Chihli  and  Shantung  Provinces  as 
the  straw-braid  industry.  After  the  wheat  harvest,  while  awaiting 


260 


COMMERCIAL  HANDBOOK  OF  CHINA 


the  ripening  of  the  fall  crops,  men,  women,  and  children  strip,  cut, 
sort,  bleach,  plait,  and  join  together  the  wheat  straws,  and  bundle 
their  products  ready  for  the  small  buyers  who  go  about  collecting 
them  to  offer  to  the  larger  purchaser.  Eventually  the  product  finds  its 
way  to  the  foreign  export  merchants  at  Tsingtao,  Tientsin,  or  Chefoo, 
from  whence  it  is  shipped  abroad  for  final  bleaching.  It  then  enters 
the  markets  of  the  world,  principally  for  manufacture  into  straw 
hats,  but  also  for  fancy  mats,  workbaskets,  and  other  articles.  It 
is  purchased  from  the  native  workers  by  the  Chinese  foot  (equiva¬ 
lent  to  14.1  English  inches).  It  is  bought  in  lengths  varying  from 
a  few  feet  to  several  yards.  According  to  the  Far  Eastern  Products 
Manual,  it  is  sorted  and  standardized  as  to  quality  and  made  into 
pieces  of  30,  60,  or  120  yards  in  length,  then  rolled,  cased,  and  baled 
ready  for  shipment.  An  ordinary  bale  contains  240  pieces,  but  the 
split  braid  and  the  more  expensive  qualities  are  packed  in  cases  of 
480  pieces. 

China's  exports  of  straw  braid  for  1923  amount  to  11,200,000 
pounds,  valued  at  5,444,000  taels,  or  $4,355,000  United  States  gold. 
The  United  States  took  30  per  cent,  Japan  30  per  cent,  Great  Brit¬ 
ain  16  per  cent,  Germany  10  per  cent,  and  France  8  per  cent.  The 
exports  for  the  year  1922  were  about  the  same  in  quantity  and  dis¬ 
tribution.  Exports  for  1911,  1912,  and  1913  were,  respectively, 
17,000,000,  16,000,000,  and  14,000,000  pounds.  Sixty  per  cent  of 
China’s  straw  braid  is  exported  from  Tientsin,  30  per  cent  from 
Tsingtao,  and  4  per  cent  from  Chefoo. 

The  United  States  tariff  of  1922  imposes  a  duty  of  15  per  cent  ad 
valorem  on  straw  braids  not  bleached,  colored,  dyed,  or  stained, 
and  20  per  cent  if  bleached,  dyed,  or  stained. 

UMBRELLAS 

The  Chinese  umbrella  with  bamboo  frame,  covered  with  oiled 
paper  on  which  are  painted  flowers  or  landscapes,  has  become  popu¬ 
lar  in  the  American  market.  During  the  past  few  years  the  Chinese 
exports  have  averaged  about  5,000,000,  valued  at  $800,000  gold. 
Foochow  and  Canton  furnish  this  trade,  over  half  of  which  goes  to 
the  United  States.  The  United  States  tariff  of  1922  imposes  a  45 
per  cent  ad  valorem  duty  on  painted  paper  umbrellas,  in  part 
of  bamboo. 

VERMICELLI 

For  want  of  a  better  name,  Chinese  flour  strings  are  designated 
by  the  Maritime  Customs  as  vermicelli  and  macaroni.  Strictly 
speaking,  these  terms  do  not  apply  to  the  Chinese-manufactured 
flour  strings  or  noodles,  for  they  are  solid  rather  than  of  pipe  form. 
In  the  southern  part  of  China  the  proportion  of  flour  strings  and 
noodles  to  the  other  flour  products  is  higher  than  in  the  north.  It  is 
estimated  that  wheat- flour  noodles  and  flour  strings  constitute  no 
more  than  50  per  cent  of  the  entire  flour  consumption  in  northern 
China,  where  flour  products  are  consumed  rather  than  rice.  Flour 
strings  are  also  made  of  beans  and  rice,  and  sometimes  the  latter  are 
mixed  with  sweet  potatoes  and  kaoliang. 

The  only  flour  strings,  however,  which  enter  into  China’s  foreign 
trade  are  those  produced  in  the  northwestern  section  of  the  Shantung 


261 


china's  export  products 

promontory  at  Lungkow  and  Chefoo.  These  are  made  of  small 
green  beans,  rich  in  starch  content,  imported  from  Manchuria.  By 
a  process  of  boiling,  the  skin  is  separated  from  the  meat,  after  which 
the  latter  is  ground,  cooked  in  cloth  bags,  and  sun  dried.  It  is  then 
crumbled  into  powder,  mixed  with  water,  and  beaten  into  a  gelatinous 
mass,  after  which  it  is  placed  in  boiling  water,  and  later  the  starchy 
mass  is  mixed  with  pulverized  bean  meal  and  kneaded  into  a  dough. 
The  dough  is  then  thrown  into  a  colander  which  is  held  over  boiling 
water,  and  the  strings,  as  they  are  forced  through  the  holes,  drop  into 
the  water.  After  this  process  they  are  taken  out,  placed  upon  a 
frame  and  given  a  further  stretching,  and  then  dried  in  the  sun. 
These  strings  are  from  15  to  25  feet  in  length.  They  are  then  ready 
for  the  market. 

The  Cantonese  prize  the  Lungkow  bean-flour  strings  very  highly. 
The  exports  from  Lungkow  and  Chefoo  amount  to  17,500  tons  a 
year,  valued  at  about  $2,400,000  gold,  and  are  all  sent  to  Hongkong, 
and  thence  they  are  exported  to  Cantonese  populations  in  South 
China,  South  Sea  colonies,  Philippines,  and  other  places. 

BIBLIOGRAPHY 

Bureau  of  Foreign  and  Domestic  Commerce,  United  States  Department  of 
Commerce,  Washington,  D.  C.  The  files  of  the  Bureau  are  available  to  the 
American  public  for  current  information  on  this  and  other  subjects  pertaining 
to  American  trade  relations  with  China.  [A  list  of  official  publications  and 
material  regarding  China’s  products  may  be  obtained  upon  application  to 
the  Department  of  Commerce  or  through  the  district  offices  of  the  Bureau 
of  Foreign  and  Domestic  Commerce.] 

Chinese  Eastern  Railway.  Current  publications  of  the  Economic  Bureau  of  the 
Chinese  Eastern  Railway,  Harbin,  give  much  useful  information  regarding 
the  products  of  northern  Manchuria  and  eastern  Mongolia. 

Chinese  Eastern  Railway.  North  Manchuria  and  the  Chinese  Eastern  Railway. 
454  pp.  Harbin,  1924.  This  economic  review  of  the  territory  tapped  by  the 
Chinese  Eastern  Railway  gives  the  fullest  and  most  accurate  account  of  the 
resources  and  products  of  northern  Manchuria  and  eastern  Mongolia  yet 
compiled. 

Chinese  Government  Bureau  of  Economic  Information  (20  Museum  Road, 
Shanghai)  publishes  a  monthly  economic  bulletin  and  also  weekly  bulletins. 
This  bureau  also  furnishes  to  the  business  public  information  regarding 
trade  and  economic  conditions  in  China. 

Chinese  Maritime  Customs.  Annual  analysis  of  China’s  exports.  These 
reports  are  for  sale  by  Kelly  &  Walsh,  Shanghai. 

Chinese  Maritime  Customs.  Annual  trade  reports  for  each  of  the  ports  at 
which  customs  offices  are  maintained.  These  contain  descriptive  matter 
regarding  the  trade  of  the  port,  as  well  as  statistical  data. 

Finance  and  Commerce.  The  Far  Eastern  Products  Manual.  Shanghai,  1921. 

Abounds  in  useful  detailed  information. 

Geological  Survey  of  China  (Peking).  The  survey  publishes  material  on 
China’s  mineral  resources.  [A  price  list  of  its  publications  may  be  secured 
upon  application.] 

King,  F.  H.  Farmers  of  Forty  Centuries.  An  excellent  description  of  farming 
conditions  in  China,  Japan,  and  Korea. 

Rea’s  Far  Eastern  Manual,  1923.  Shanghai,  Far  Eastern  Review.  Contains 
excellent  descriptive  data  regarding  names,  location,  capital,  capacity,  etc., 
of  industrial  plants  in  the  Far  East. 

South  Manchuria  Railway  (Darien).  The  current  economic  reports  contain 
useful  data  regarding  the  products  of  South  Manchuria. 

Wilson,  Ernest  Henry.  A  Naturalist  in  Western  China.  2  vols.  London, 
Methuen  &  Co.  (Ltd.),  1913.  Gives  much  first-hand  authoritative  informa¬ 
tion  ;  has  excellent  illustrations  of  the  many  interesting  products  of  the  great 
Upper  Yangtze  region,  particularly  such  products  as  wood  oil,  musk,  and 
gallnuts. 


MODERN  CHINESE  INDUSTRIES 

BY  COMMERCIAL  ATTACHE  JULEAN  ARNOLD 

The  Chinese  are  often  spoken  of  as  a  nation  of  shopkeepers.  This 
expression  is  likely  to  be  misleading,  for  the  retailer  in  China  is 
often  the  manufacturer  of  the  goods  he  places  on  sale.  The  ordi¬ 
nary  Chinese  city  is  a  beehive  of  industry.  Numerous  small  retail 
shops  line  the  thoroughfares,  and  in  many  of  these  shops  the  goods 
offered  to  the  public  have  been  manufactured  by  the  establishment. 
China  is  still  essentially  a  land  of  domestic  handicraft,  primitive 
agricultural  methods,  and  individual  rather  than  corporate  business. 
The  farmers  till  their  small  holdings  from  their  villages,  and  they 
or  parts  of  their  families  engage  also  in  some  other  productive 
enterprise  in  the  nature  of  household  handicraft.  Often  in  addition 
to  the  weaving  of  cloth  on  hand  looms  other  articles  are  produced 
solely  for  marketing.  Among  such  wares  are  straw  braid,  hair 
nets,  hemp  string,  and  bamboo  or  reed  mats.  There  are  no  clear 
demarcations  between  the  farmer,  the  manufacturer,  and  the  busi¬ 
ness  man,  although  there  are  those  who  devote  the  bulk  of  their 
time  to  farming,  some  who  are  industrial  laborers,  and  some  who 
concern  themselves  only  with  trade.  That  the  ordinary  craft  and 
trade  guilds  are  merged  into  single  organizations  for  employers  and 
employees  indicates  the  close  relationship  between  industry  and 
trade. 

In  most  Chinese  cities  a  number  of  blocks  on  a  street — sometimes 
a  whole  street — are  given  over  to  a  certain  industry,  the  street  or 
quarter  of  the  town  taking  the  name  of  the  industry.  The  shops  are 
generally  small,  about  12  feet  in  width,  and  often  have  the  whole 
front  open  upon  the  street.  They  usually  are  20  or  30  feet  deep, 
with  a  bit  of  open  space  or  courtyard  behind  and  with  living  quar¬ 
ters  above.  Often  the  whole  family,  which  always  includes  children 
and  sometimes  relatives,  lives  here.  The  apprentices,  when  the  es¬ 
tablishment  carries  any,  live  with  the  family.  A  dog,  a  few  chick¬ 
ens,  and  a  pig  may  also  be  part  of  the  household.  If  the  establish¬ 
ment  is  large  enough  to  employ  additional  labor,  the  laborers  are 
generally  fed  as  part  of  their  remuneration.  If  the  articles  made 
by  the  family  are  finished  products,  they  are  retailed  in  the  shop. 
As  a  rule,  shops  which  complete  articles  only  in  part  occupy  back 
streets,  or  the  work  is  done  in  households  which  present  no  ap¬ 
pearance  of  shops. 

The  family  being  the  unit  in  Chinese  society,  industry  and  trade 
are,  for  the  most  part,  family  affairs.  The  American  in  a  Chinese 
city  marvels  at  the  large  number  of  small  shops  adjoining  one 
another,  making  and  selling  the  same  lines.  He  is  puzzled  to 
understand  how  these  numerous  small  shops,  independent  of  each 
other,  can  exist  with  the  severe  competition  which  they  must  offer 
one  another.  The  answer  is  found  in  the  trade  and  craft  guilds, 

262 


MODERN  CHINESE  INDUSTRIES 


263 


which  grew  up  as  necessary  institutions  of  protection  for  these 
small  producers  and  retailers.  The  guild  is  about  the  only  coordi¬ 
nating  element  which  industrial  and  mercantile  China  has  developed. 
It  has  made  possible  the  perpetuation  of  a  system  which  otherwise 
would  be  fraught  with  ruinous  competition.  The  breakdown  of 
the  partitions  between  the  numerous  small  concerns  and  the  substi¬ 
tution  therefor  of  great  organized  establishments,  amassing  in  larger 
quantities  capital,  raw  materials,  and  mechanical  devices,  ushers  in 
the  elements  of  a  modern  organized  economic  society. 

CONDITIONS  ESSENTIAL  TO  INDUSTRIAL  DEVELOPMENT 

China  is  now  at  the  inception  of  this  transition.  The  replacement 
of  the  domestic  handicrafts  by  modern  industrial  plants  will  require 
a  certain  measure  of  time.  It  will  be  attended  with  less  friction  if 
not  unduly  hastened.  Some  of  the  conditions  essential  to  this  devel¬ 
opment  are : 

1.  Stable  political  conditions  to  insure  capital  reasonable  safe¬ 
guards  against  the  depredations  of  brigands  or  rapacious  military 
organizations.  That  the  internal  disturbances  of  the  past  few  years 
have  not  more  seriously  affected  China’s  trade  is  due  to  the  absence 
of  a  highly  organized  economic  society  with  its  huge  concentrated 
sums  of  capital  in  plant  equipment.  The  extensive  foreign  interests 
invested  in  China  are  safeguarded  by  being  mostly  in  special  areas 
designated  as  concessions,  or  in  international  settlements  which  enjoy 
the  protection  of  foreign,  or  partially  foreign,  administration. 

2.  There  will  have  to  be  a  distinct  line  drawn  between  Government 
and  private  enterprises,  and  the  latter  must  be  assured  immunity 
against  undue  interference  from  official  sources.  The  participation, 
since  about  1890,  of  Chinese  Government  officials  and  certain  Gov¬ 
ernment  departments  interested  in  direct  or  personal  promotion  of 
industrial  and  commercial  projects  has  been  prejudicial  to  the  en¬ 
couragement  of  private  enterprises,  although  to  them  must  be  given 
credit  for  inaugurating  some  of  the  large  modern  industrial  projects. 
But  when  applied  to  business  enterprise,  the  same  loose  methods 
which  have  characterized  official  administration  have  resulted  dis¬ 
astrously  in  many  cases,  and  most  of  the  projects  have  not  been  at¬ 
tended  with  financial  success. 

3.  Institution  of  a  body  of  laws  and  the  machinery  of  judicial 
administration  adequate  to  insure  stockholders  protection  against 
unscrupulous  promoters  and  manipulating  directors  or  managers. 
There  is  needed  in  China  a  larger  understanding  of  the  responsibility 
of  trusteeship  in  corporate  enterprise. 

4.  Reforms  in  the  system  of  internal  taxes  upon  trade,  so  as  to  re¬ 
lieve  industry  of  impositions  which  tend  to  throttle  its  development. 

5.  Willingness  on  the  part  of  Chinese  capital  to  await  dividends 
until  the  industry  has  had  an  opportunity  to  put  itself  upon  a  solid 
foundation.  In  China  instances  are  not  uncommon  in  which  newly 
promoted  projects  have  declared  dividends  from  capital  advances. 
A  still  more  common  but  equally  disastrous  practice  is  that  of  pay¬ 
ing  out  all  net  profits  in  dividends,  with  no  consideration  for  de¬ 
preciation,  repairs,  maintenance,  or  emergency  demands. 

6.  An  adjustment  of  the  responsibilities  of  the  members  of  a 
family  to  their  relatives,  in  order  to  overcome  the  vicious  practice  of 


264 


COMMERCIAL  HANDBOOK  OF  CHINA 


padding-  the  pay  rolls  of  corporate  concerns  with  nonproductive 
units;  the  substitution  of  individual  for  group  responsibility,  using 
group  in  the  family  sense. 

7.  A  change  upon  the  part  of  the  Chinese  public  toward  the  in¬ 
stitution  known  as  44  face,”  which  discourages  young  men  of  educa¬ 
tion  from  engaging  in  pursuits  involving  manual  labor  or  from  ac¬ 
cepting  positions  of  a  subordinate  character;  in  other  Avords,  the 
recognition  ky  society  that  a  young  man  may  start  at  the  bottom  of 
the  ladder  and  Avork  up  without  entailing  loss  of  44  face.” 

8.  An  adjustment  in  the  trade  and  craft  guilds  that  will  admit  of 
graduates  of  educational  institutions  qualifying  as  assistants  in  in¬ 
dustrial  and  commercial  organizations  without  encountering  the  op¬ 
position  of  the  guild  apprentice  system. 

9.  The  development  of  Amcational  education  to  train  men  in  the 
applied  sciences,  to  furnish  an  educated  personnel  capable  of  supply¬ 
ing  the  technical  skill  and  supervision  necessary  to  the  success  of 
modern  corporate  industry  and  business.  China  suffers  from  a 
surfeit  of  academic  environment.  Chinese  students  in  American 
colleges  are  constantly  criticized  because  of  their  ultraacademic  at¬ 
titude  toward  their  work.  They  need  more  contacts  of  a  distinctly 
practical  nature. 

10.  Improvements  in  internal  communications,  particularly  in  the 
ATast  regions  out  of  contact  with  waterways. 

11.  The  creation  of  the  necessary  machinery  of  finance  for  assem¬ 
bling  the  capital  essential  to  corporate  industry  and  -commerce. 
China  possesses  much  actual  Avealth,  but  a  large  proportion  of  it  is 
not  productively  employed.  There  are  reputed  to  be  hundreds  of  mil¬ 
lions  of  dollars  of  silver  in  the  interior  of  the  country  buried  for 
safe-keeping.  Usury  also  cripples  Chinese  industry.  Banks,  for 
the  encouragement  of  commercial  and  industrial  development,  and 
bond  and  trust  companies,  for  the  handling  of  securities  represent¬ 
ing  in\7estments  of  surplus  capital  in  productive  enterprise,  are  im- 
peratAe  necessities. 

CORPORATE  INDUSTRY 

Fortunately  the  Chinese  are  learning  to  appreciate  the  handicaps 
which  militate  against  successful  corporate  enterprise,  and  are  deeply 
interested  in  Avays  and  means  of  correcting  their  shortcomings.  Al¬ 
ready  a  number  of  successful  corporate  industries  have  appeared 
on  their  horizon.  It  is  a  mistake  to  assume  that  because  they  have 
not  already  deATeloped  the  counterparts  of  modern  economic  society 
the  Chinese  are  incapable  of  making  a  success  of  organized  com¬ 
merce  and  industry.  They  have  shoAvn  themseUes  to  be  possessed 
of  much  business  ability;  have  demonstrated  through  the  guilds 
their  capacity  to  work  together  in  an  organized  way;  are  by  nature 
industrious;  possess  good  mechanical  instincts;  are  endowed  with 
the  heritage  of  a  rich  civilization,  which  carries  with  it  sound 
ethical  ideals ;  are  keenly  alert  to  the  advantages  of  education ;  have 
remarkable  physical  endurance,  as  demonstrated  by  their  ability  to 
hold  up  under  distinctly  adverse  and  trying  conditions;  and  possess 
a  cheerful  temperament,  with  a  sense  of  humor  and  reasonableness. 
They  are  of  a  philosophical  temperament,  and  the  time  element  is 
not  as  yet  a  matter  of  concern  to  them  in  the  sense  that  it  influences 


MODERN  CHINESE  INDUSTRIES 


265 


the  conduct  and  attitude  of  mind  of  the  westerner.  But  this  may 
be  accounted  for  in  part  by  the  fact  that  the  nation  has  not  yet 
been  keyed  up  to  factory  schedules  or  railway  time-tables.  Even 
under  the  unfavorable  conditions  which  have  existed  in  China, 
Chinese  capital  and  energy  have  done  much  toward  the  development 
of  modern  industrial  plants  and  corporate  business  houses,  the  latter 
including  a  very  considerable  number  of  modern  banking  institu¬ 
tions. 

The  larger  number  of  the  Chinese  enterprises  of  a  corporate 
nature,  however,  are  located  in  treaty  ports,  in  close  contact  with 
similar  organizations  financed  and  controlled  by  foreign  interests. 
It  has  been  often  stated  that  Chinese  capital  prefers  to  operate  under 
foreign  incorporation.  It  is  true  that  Chinese  abroad — some,  in 
reality,  the  citizens  or  subjects  of  other  countries — do,  as  a  matter 
of  preference,  frequently  operate  business  enterprises  in  China  under 
foreign  incorporation. 

China  has  a  corporation  law,  but  it  is  incomplete  and  is  inade¬ 
quately  administered.  If  a  group  of  Chinese  wish  to  organize  a  cor¬ 
porate  enterprise  they  may  make  application  through  the  local  magis¬ 
trate  for  registration,  setting  forth  in  the  application  particulars  as 
to  capital,  nature  of  business,  names  of  directors,  and  a  list  of  share¬ 
holders  with  the  stocks  held  by  each.  The  magistrate,  after  investi¬ 
gation,  transmits  the  application  to  the  provincial  industrial  bureau, 
which  in  turn  passes  it  on  to  the  governor,  who  transmits  it  to 
Peking — to  the  Ministry  of  Agriculture  and  Commerce,  if  a  busi¬ 
ness  or  industrial  enterprise;  to  the  Ministry  of  Finance,  if  a  bank¬ 
ing  corporation ;  or  to  the  Ministry  of  Communications,  if  a  railway 
or  communication  project — where  registration  is  effected.  A  regis¬ 
tration  fee  is  paid  upon  the  basis  of  the  capital  stock,  and  no  further 
corporation  taxes  are  assessed,  nor  are  any  annual  statements  or 
other  reports  called  for. 

ENCOURAGEMENT  BY  GOVERNMENT 

In  order  to  encourage  the  manufacture  in  China  of  foreign-type 
products,  the  Chinese  Government  grants  to  factories  and  mills, 
foreign  or  Chinese,  in  China,  which  manufacture  articles  falling 
under  the  category  of  nonluxuries,  privileged  treatment  whereby 
these  products  pay  a  single  duty  once  and  are  thereafter  free  from 
any  further  taxation.  Foreigners,  in  accordance  with  their  treaty 
rights  in  China,  are  privileged  to  incorporate  and  to  operate  in 
China  under  the  laws  of  their  respective  countries,  and  so  are  exempt 
from  the  jurisdiction  of  Chinese  laws  and  courts.  Thus,  an  Amer¬ 
ican  or  any  foreign  company  may  incorporate  under  the  laws  of  its 
own  State,  erect  a  factory  in  any  one  of  China’s  treaty  ports  or 
trade  marts,  employ  Chinese  labor,  and  operate  under  considerably 
more  advantageous  circumstances  than  can  the  Chinese  themselves. 

JAPANESE  INTERESTS 

It  is  significant  that  within  the  past  few  years  much  Japanese 
capital  has  been  invested  in  new  industrial  projects  in  China.  The 
Japanese  Government  encourages  Japanese  business  establishments 
in  China  by  permitting  tax  exemptions  to  the  amount  invested  in 


266 


COMMERCIAL*  HANDBOOK  OF  CHINA 


real  property  in  the  country.  Japanese  cotton  mills  and  Japanese 
factories  are  multiplying  rapidly,  being  installed  with  the  idea  of 
taking  advantage  of  the  better  labor  conditions,  better  sources  of 
supplies  of  raw  materials,  and  superior  markets  for  the  finished 
products  obtaining  in  China  over  those  in  the  home  country.  The 
most  noteworthy  contribution  made  by  the  Japanese  during  their 
occupation  of  Tsingtao  was  in  the  development  of  manufacturing 
industries  at  that  port  and  along  the  Shantung  Railway.  This 
region  is  particularly  favored  for  industrial  purposes.  It  has  one 
of  the  best  harbors  in  China ;  economic  transportation  tapping  a 
rich,  populous  region;  a  plentiful  supply  of  cheap  labor;  a  climate 
well  adapted  to  factory  conditions;  and  cheap,  easily  accessible  coal 
and  iron  ore.  A  customs  report  states  that  along  the  Shantung  Rail¬ 
way  Japanese  capital,  exceeding  50,000,000  yen,  is  invested  in  200 
factories  representing  GO  different  lines  of  manufacture,  among  the 
principal  industries  being  cotton  mills,  iron  foundries,'  cement  mills, 
peanut  oil  mills,  salt  refineries,  match  factories,  egg  albumen  and 
yolk  factories,  cold-storage  plants,  flour  mills,  breweries,  silk  fila¬ 
tures,  and  brick  and  tile  factories. 

In  South  Manchuria,  in  the  leased  territory  of  Kwantung  and 
in  the  railway  zone,  probably  several  billion  of  yen  have  been  in¬ 
vested  under  Japanese  auspices  in  industrial  and  commercial  proj¬ 
ects,  including  the  South  Manchuria  Railway  and  its  extensive 
ramified  interests.  The  Anshan  Iron  and  Steel  Works  and  the 
F ushun  coal  mines,  which  are  under  the  control  of  the  South  Man¬ 
churia  Railway,  represent  capital  outlays  aggregating  more  than  a 
hundred  milion  yen.  The  bean  oil  industry  of  Manchuria  represents 
also  extensive  Japanese  vested  interests.  One  of  the  great  advantages 
which  industry  and  trade  enjoy  in  that  region  is  the  freedom  from 
likin  or  internal  tax  exactions  on  goods  carried  over  the  South 
Manchuria  Railway. 

Japanese  capitalists  have  within  the  past  decade  loaned  millions  to 
Chinese  industrial  plants,  thereby  securing  mortgages  on  these  plants, 
or  operating  them  as  Sino- J apanese  enterprises.  Of  3,000,000  cotton 
spindles  now  in  operation  in  China,  nearly  40  per  cent  represent  mills 
owned  or  controlled  by  Japanese.  There  are  an  additional  350,000 
spindles  now  under  construction  under  Chinese  auspices  and  nearly 
300,000  under  Japanese  capital  and  control.  Of  the  22,500  looms  in 
operation,  13,700  are  owned  and  controlled  by  Chinese,  and  6,000  by 
Japanese.  British  interests  own  and  control  250,000  spindles  and 
nearly  3,000  looms.  The  Japanese  have  exhibited  the  greatest  ability 
in  handling  cotton  mills  in  China.  A  Chinese  writer  in  commenting 
upon  Japanese  participation  in  the  cotton  industry  in  China  writes 
as  follows: 

The  Japanese  predomination  of  this  industry,  at  least  temporarily,  has  taught 
the  Chinese  a  great  lesson  both  in  manufacturing  and  cotton  trading  on  the 
market.  We  should  not  discredit  nor  criticize  their  ambition  and  their  superior 
knowledge,  but  rather  we  should  admire  and  respect  them  as  to  what  they 
have  done  and  what  we  can  learn  from  them.  China  offers  splendid  prospects 
both  in  cotton  growing  and  cotton  manufacturing,  as  she  is  ranked  the  third 
cotton-growing  country  in  the  world,  next  only  to  America  and  India,  and  she 
is  also  the  greatest  market  for  cotton  yarn  and  the  second  largest  market  for 
cotton  piece  goods.  She  warmly  welcomes  foreign  capital  and  foreign  manage¬ 
ment  to  develop  her  industries,  particularly  that  of  cotton  production  and 
manufacture.  During  the  comparatively  short  time  of  less  than  two  decades, 


MODERN  CHINESE  INDUSTRIES 


267 


the  Japanese  have  done  a  wonderful  piece  of  work  in  China,  which  in  turn  has 
convinced  and  installed  many  new  ideas  and  ideals  in  Chinese  minds  toward 
this  important  and  stable  industry.  Of  course,  the  former’s  success  means  the 
latter’s  prosperity. 

COTTON  MANUFACTURING 

% 

Shanghai  and  vicinity  have  become  the  center  of  the  modern  cotton 
manufacturing  industry  of  China.  Hankow,  Tientsin,  and  Tsingtao 
are  also  important  cotton  manufacturing  cities.  In  spite  of  this 
development,  the  country  is  still  the  largest  importer  of  cotton  yarn 
and  probably  the  second  in  importance  as  a  market  for  cotton  cloth. 
There  are,  however,  noticeable  reductions  in  these  importations,  due 
to  the  growth  of  the  native  industry. 

China  offers  the  American  manufacturer  an  important  market  for 
the  sale  of  cotton  spindles  and  looms.  Upward  of  1,000,000  Ameri¬ 
can  spindles  are  now  in  use,  American  equipment  being  popular  in 
Chinese  cotton  mills.  A  detailed  list  of  modern  cotton  mills  in 
China,  with  particulars  as  to  locations,  capacity,  etc.,  can  be  obtained 
upon  application  to  the  Bureau  of  Foreign  and  Domestic  Commerce, 
Washington,  D.  C. 

FLOUR  MILLS 

Next  to  the  cotton  mills  in  importance  in  the  development  of 
modern  manufacturing  in  China  is  the  flour-milling  industry.  The 
aggregate  daily  capacity  of  the  160  modern  flour  mills  is  120,000 
barrels.  Manchuria,  with  Harbin  as  a  center,  represents  the  largest 
aggregate  output.  Kiangsu  Province,  with  Shanghai  and  Wusih 
as  centers,  is  second;  and  Tsinan,  in  Shantung,  is  rapidly  becoming  a 
flour-milling  center,  being  now  third.  Tientsin  and  Hankow  follow 
as  fourth  and  fifth  in  importance.  The  bulk  of  the  capital  in  this 
industry  is  Chinese.  Russian  interests  are  second,  followed  by 
Japanese  and  British  owned  mills.  In  the  section  on  “China’s  ex¬ 
port  products  ”  the  subject  of  wheat  and  flour  is  presented  in  more 
detail. 

The  flour  mills  suffer  from  their  inability  to  secure  wheat  of  uni¬ 
form  quality,  and  under  conditions  economically  advantageous  to  the 
flour-milling  industry.  It  is  interesting  to  note,  however,  that  the 
industry  is  developing  with  considerable  rapidity  and  that  the  larg¬ 
est  share  of  the  equipment  is  of  American  manufacture.  A  list  of 
the  modern  flour  mills  of  China  showing  their  nationality,  location, 
and  capacity  can  be  obtained  upon  application  to  the  Bureau  of 
Foreign  and  Domestic  Commerce,  Washington,  D.  C. 

MODERN  POWER  PLANTS 

Nothing  is  more  indicative  of  China’s  advancement  in  a  modern 
industrial  sense  than  the  very  extensive  installation  of  electric  light 
and  power  plants  throughout  the  country,  of  which  there  were  at  the 
beginning  of  1925  upward  of  400  in  various  localities,  with  an  aggre¬ 
gate  capacity  of  about  250,000  kilowatts.  The  largest  is  the  munici¬ 
pal  plant  in  the  Shanghai  International  Settlement,  operated  by  the 
municipal  authorities.  Its  capacity  is  121,000  kilowatts.  It  fur¬ 
nishes  the  cheapest  electric  power  for  industrial  purposes  of  all  the 
plants  in  China. 


268 


COMMERCIAL  HANDBOOK  OF  CHINA 


.  It  is  partially  because  of  this  cheap  electric  power  that  Shanghai 
has  become  China’s  primary  manufacturing  center. 

In  Canton  the  Canton  Electric  Co.  is  the  largest  plant  in  the  Re¬ 
public  owned  and  operated  by  Chinese.  It  is  equipped  with  Ameri¬ 
can  machinery  and  has  a  capacity  of  12,000  kilowatts.  Charging 
but  13  cents  gold  per  kilowatt  unit  for  light  per  month  and  less  than 
6  cents  gold  per  kilowatt  unit  for  power,  it  pays  15  per  cent  divi¬ 
dends  on  double  its  original  capital  investment  and  holds  a  franchise 
for  supplying  light  and  power  within  a  radius  of  12  miles  from 
its  plant. 

METALLURGICAL  INDUSTRIES 

In  the  section  in  this  handbook  on  “  China’s  export  products,” 
under  the  paragraphs  on  “  China’s  mineral  products,”  details  are 
given  of  the  development  in  the  iron  and  gold  industries.  China’s 
backwardness  in  modern  industrialism  is  clearly  indicated  by  the  fact 
that  of  the  country’s  known  resources  of  40,000,000,000  to  50,000,- 
000,000  tons  of  coal,  the  annual  production  now  amounts  to  less  than 
25,000,000  tons,  compared  with  the  annual  output  of  the  mines  of  the 
United  States  of  about  500,000,000  tons. 

The  following  comparative  statement  of  the  economic  develop¬ 
ments  in  China  with  those  of  the  United  States  indicates  to  a  very 
considerable  degree  the  potentialities  possessed  by  China — a  country 
of  similar  topographical  features,  larger  in  area,  and  with  much 
greater  population. 


Items 


China 


United  States 


Railways . . . - _ _ _ miles. . 

Surfaced  motor  roads . . . . . . . do - 

Graded  dirt  roads . . . . . . . . do - 

Motor  vehicles  in  operation . . number.  . 

Telephones . . do - 

Post  offices _ _ do - 

Telegraphs,  length  of  wires _ _ _ _ _ _ _ miles. . 

Telegraph  offices _ _ number.. 

Annual  coal  production _ tons.. 

Pig-iron  production _ ...do.... 

Cotton-weaving  spindles _ _ number.. 

H ydroelectric  power . . kilowatt-hours. . 

Laborers  in  modern  industrial  plants . number.. 


6, 500 

0) 

2 10, 000 
15, 000 
100, 000 
11,000 
78, 000 
900 

20, 000, 000 
300, 000 
3, 000,  000 
Nil. 
500, 000 


265, 000 
300,000 
1,000,000 
18, 000, 000 
17, 000, 000 
52, 000 
1,500,000 
25, 000 
500, 000, 000 
27, 000, 000 
36,  000, 000 
17, 000, 000, 000 
7, 000,  000 


1  Less  than  1,000  miles. 1  2  Estimated. 

Of  China’s  coal  production,  about  15,000,000  tons  are  from  mod- 
ernly  operated  mines.  The  Kailan  Mining  Administration,  a  Brit¬ 
ish  and  Chinese  corporation  wThich  holds  special  concession  privi¬ 
leges  in  connection  with  its  properties  in  Chihli  Province  in  North 
China,  in  its  report  for  the  year  1924  shows  profits  of  $10,830,000 
silver  on  an  aggregate  output  of  4,404,000  tons,  which  is  the  largest 
in  the  history  of  the  company.  The  company  declared  for  the  year 
1924  an  annual  dividend  of  20  per  cent,  free  of  income  taxes.  The 
company’s  cash  reserve  is  about  13  per  cent  on  its  share  capital. 
The  general  manager  at  the  end  of  the  year  1924  reported,  “  Our 
mines  were  never  previously  better  equipped  and  better  developed 
than  at  the  end  of  the  year  under  review.”  The  signal  success  of  this 
large  industrial  company  in  China,  controlled  and  operated  by  Brit¬ 
ish,  indicates  clearly  the  possibilities  in  industrial  enterprise  even 
under  unfavorable  political  conditions. 


MODERN  CHINESE  INDUSTRIES 


269 


OTHER  INDUSTRIES 

Among  other  modern  industrial  organizations  in  China  are  albu¬ 
men  and  egg  products  factories ;  arsenals ;  mints ;  canneries  and  bis¬ 
cuit  factories;  chemical  works;  dockyard,  shipbuilding,  and  engi¬ 
neering  works;  glass  and  porcelain  factories;  ice  and  cold-storage 
plants;  iron  and  steel  works;  tanneries;  match  factories;  oil  mills 
and  bean-cake  factories;  printing  and  lithographing  establishments; 
railway  shops;  rice  hulling  and  cleaning  factories;  sawmills;  silk 
filatures  and  weaving  mills;  tobacco  and  cigarette  factories;  wool¬ 
cleaning  and  press-packing  factories. 

It  is  well  to  take  cognizance  of  the  fact  that  modern  industrial  es¬ 
tablishments  in  China  are  becoming  more  efficient  and  turning  out 
better  qualities  of  products  as  years  go  by.  There  is  a  very  notice¬ 
able  tendency  upon  the  part  of  the  modern  factories  in  China  to 
imitate  as  closely  as  possible  the  products  of  western  factories,  in 
some  cases  even  to  the  extent  of  copying  the  trade-marks  of  the 
western  manufactured  articles.  Imitation  may  be  the  sincerest  form 
of  flattery,  but  American  manufacturers  who  would  prefer  to  have  this 
flattery  take  some  other  form  would  do  well  to  attend  to  the  regis¬ 
tration  of  their  trade-marks,  so  as  to  do  their  share  toward  protect¬ 
ing  a  property  which  has  acquired  a  certain  value  through  their 
initiation  and  energy. 

WAGES  AND  LIVING  CONDITIONS 

Under  the  craft  and  trade  guild  system,  piecework  rather  than  a 
definite  daily  wage  was  encouraged.  The  Chinese  laborer  is  accus¬ 
tomed  to  the  piecework  system,  and  much  of  the  labor  is  paid  upon 
this  basis.  The  Chinese  calendar  makes  no  provision  for  Sunday 
as  a  day  of  rest,  hence  many  of  the  modern  industrial  plants  follow 
the  customs  of  the  old  order  and  maintain  6y2  or  7  day  schedules  a 
week,  with  apparently  more  concern  for  the  machinery  and  equip¬ 
ment  than  for  the  welfare  of  the  laborers.  The  Chinese  New  Year 
is  the  only  holiday  of  any  consequence  which  is  common  throughout 
the  country.  From  10  days  to  2  weeks  are  usually  observed  by  these 
industrial  plants  for  this  great  national  festival.  The  daily  work¬ 
ing  hours  generally  are  long,  often  on  a  12-hour  basis.  The  country 
has  not  as  yet  enacted  any  labor  legislation.  It  is  too  early  in  China’s 
economic  life  to  take  effective  measures  to  control  child  labor.  In 
many  sections  the  children  appear  to  be  better  off  in  factories  than  in 
their  homes.  At  all  events,  with  a  people  so  close  generally  to  the 
limits  of  subsistence,  it  is  difficult  to  prohibit  or  even  regulate  child 
labor.  Naturally,  with  labor  upon  the  plane  which  it  occupies  in 
China,  it  would  be  ridiculous  to  expect  the  efficiency  per  individual 
which  obtains  in  a  country  like  the  United  States.  On  the  other 
hand,  it  is  misleading  to  make  the  statement  that  Chinese  labor  is 
cheap  but  inefficient.  Considering  its  cost,  it  is  efficient.  Where 
labor  can  be  secured  at  10  to  50  cents  gold  a  day,  it  is  only  to  be  ex¬ 
pected  that  there  should  be  an  extravagance  in  its  employment. 
However,  in  spite  of  the  low  price  of  labor  in  China,  foreigners  who 
have  had  considerable  experience  with  it  are  enthusiastic  over  its 
capabilities  when  placed  under  proper  direction.  In  fact,  even  at 
the  low  wage  scale  there  are  industries  in  which  it  is  proclaimed, 


270 


COMMERCIAL  HANDBOOK  OF  CHINA 


after  a  certain  amount  of  training  and  under  proper  direction,  as 
equivalent,  and  in  some  instances  even  superior,  to  the  labor  of  the 
West. 

It  is  interesting  to  note  that  labor  in  China  is  in  the  process  of 
organizing  along  western  lines.  There  is  an  excellent  foundation  for 
such  organization  in  the  trade  and  craft  guilds,  which  are  described 
fully  in  an  article  on  this  subject  in  this  handbook.  Up  to  the  pres¬ 
ent  the  organization  of  labor  along  modern  lines  has  been  confined 
for  the  most  part  to  South  China.  Labor  costs  in  China  are  grad¬ 
ually  increasing,  owing  mainly  to  still  more  rapid  increases  in  living 
costs.  During  the  past  10  years  the  average  advances  for  wages 
throughout  China  have  been  about  50  per  cent,  whereas  the  average 
advances  in  the  prices  of  commodities  have  been  almost  double,  or 
nearly  100  per  cent.  The  Shanghai  wholesale  price  index  as  com¬ 
piled  by  the  Bureau  of  Markets,  which  covers  foreign  as  well  as 
native  commodities,  taking  100  as  the  index  number  for  February, 
1913,  was  in  December,  1924,  as  follows : 


Cereal  products _ 148. 1 

Other  foodstuffs _ 151. 1 

Textiles _ 157.5 

Metals _ 179.7 

Fuel _ 177.  2 


Building  materials _ 139.  2 

Industrial  materials _ 151.  8 

Sundries _ 134.  6 

Average  for  all  commodities _ 157.  4 


INCREASE  IN  PRIVATE  WEALTH 


During  the  past  few  decades  wealth  in  China  has  increased  very 
considerably.  A  Chinese  banker  tells  me  that  30  years  ago  a  man 
with  $3,000  was  looked  upon  as  well  off.  To-day  little  distinction  is 
given  to  the  man  possessing  10  times  this  amount.  Within  recent 
years  many  of  the  Chinese  who  have  piled  up  huge  fortunes  in  political 
life  have  invested  large  sums  in  industrial  enterprises.  Many  of 
the  largest  industrial  concerns  and  numerous  banking  companies  are 
the  creations  of  those  who  have  enriched  themselves  as  military 
governors  or  other  officials.  These  people  are  not  able  to  manage 
the  business  ventures  themselves,  but  engage  managers,  generally 
men  who  have  been  closely  associated  with  them  in  politics. 

Less  than  40  years  ago  the  brass  cash,  10  of  which  equaled  1  copper 
cent,  or  one-half  cent  gold,  was  the  coin  of  the  realm.  To-day  in 
eastern  China — that  is,  in  the  trade  centers  in  contact  wdth  the  outside 
Avorld — the  brass  cash  are  almost  curios,  so  seldom  are  they  seen. 
A  coin  ten  times  the  value  has  replaced  the  cash,  indicating  the  in¬ 
creased  purchasing  power  of  the  masses. 

CHINESE  STUDENTS  IN  AMERICA 

It  may  be  well  to  remind  American  manufacturers  and  capitalists 
of  the  great  advantages  which  will  accrue  to  American  trade  and 
American  enterprises  in  China  in  the  education  and  training  of 
Chinese  students  in  American  technical  and  engineering  schools. 
The  Chinese  is  by  heritage  academically  inclined.  In  his  American 
training  he  needs  to  secure  a  goodly  measure  of  practical  experience 
in  industrial  plants,  in  business  offices,  on  farms,  and  in  other  actual 
contacts  with  the  practical  phases  of  American  life.  He  will  then 
be  able  to  take  back  to  his  country  some  clear  conceptions  as  to 


MODERN  CHINESE  INDUSTRIES 


271 


American  methods  of  translating  education  into  action,  and  per¬ 
chance  may  be  able  to  adjust  this  training  to  the  practical  needs  of 
his  own  country.  In  addition  to  inviting  Chinese  to  come  to  America 
for  training  in  industry  and  trade,  our  manufacturers  would  do  well 
to  carry  America  to  China  through  the  industrial  and  educational 
motion-picture  film,  as  suggested  in  a  separate  article  on  the  subject 
in  this  handbook. 

As  closely  related  to  the  subject  matter  of  this  section,  the  reader 
is  advised  to  read  the  sections  in  this  handbook  on  “  China’s  economic 
structure,”  and  “  China’s  export  products.”  The  Bureau  of  Foreign 
and  Domestic  Commerce  will  furnish  to  applicants  lists  of  manu¬ 
facturing  concerns  in  China. 


CHINA’S  ECONOMIC  STRUCTURE 


By  Commercial  Attache  Julean  Arnold 


China’s  geographical  isolation,  its  disregard  of  the  civilizations  of 
other  peoples,  and  the  all-pervading  respect  of  the  intellect  of  the 
nation  for  the  teachings  of  its  ancient  sages,  held  the  country,  at 
the  beginning  of  the  twentieth  century,  economically  still  a  medieval 
civilization,  although  possessed  of  a  rich  heritage  in  a  culture  which 
has  filtered  down  through  the  masses,  the  resultant  of  its  millenniums 
of  national  life.  The  developments  following  the  application  of 
steam  and  electricity  to  the  industrial  life  of  the  peoples  of  the 
Occident  only  began  to  make  their  influence  felt  in  China  during  the 
latter  half  of  the  nineteenth  century. 

NEED  OF  MODERN  TRANSPORTATION 

Topographically,  China  and  the  United  States  are  very  similar. 
Each  is  a  country  of  vast  continental  proportions.  The  great  Yang¬ 
tze  Valley  of  China  may  be  compared  with  the  Mississippi  Valley 
of  the  United  States.  Without  railways  the  population  of  the 
United  States  at  the  end  of  the  nineteenth  century  would  have  been 
grouped  about  the  sea  coasts  and  accessible  waterways.  The  Mis¬ 
sissippi  Valley  would  probably  have  been  settled  from  New  Orleans 
up.  This  would  have  been  a  situation  somewhat  comparable  with 
that  of  China.  In  other  words,  the  great  land  areas  out  of  touch 
with  water  communications  would  have  remained  unsettled  and 
undeveloped. 

Six-sevenths  of  China’s  population  is  concentrated  in  one-third  of 
its  area.  It  is  a  mistake  to  speak  of  China  as  overpopulated.  There 
is  in  the  lower  Yangtze  Valley,  that  is,  in  the  Yangtze  Delta  region, 
an  estimated  population  of  40,000,000  people,  in  an  area  of  50,000 
square  miles,  or  about  the  area  of  Illinois.  Mongolia,  with  an  area 
equivalent  to  about  one  and  one-half  times  that  of  the  States  east 
of  the  Mississippi  River,  has  a  population  of  about  2,000,000,  or  less 
than  two  to  the  square  mile.  There  are  other  regions  of  the  Chinese 
Republic,  comprising  hundreds  of  thousands  of  square  miles,  more 
sparsely  populated  than  any  State  in  the  American  Union,  owing 
primarily  to  lack  of  economic  transportation.  There  are  Provinces 
in  China  which  are  cut  away  economically  from  the  rest  of  the 
country  and  which  enjoy  only  a  minimum  of  commercial  inter¬ 
course.  So-called  West  China,  with  an  estimated  population  of 
100,000,000,  is  out  of  economic  communication  with  the  rest  of 
China,  hence  with  the  outside  world,  because  of  lack  of  railways. 
Much  of  the  transportation  in  this  section  of  West  China  is  on  the 
backs  of  human  beings.  If  the  cargo  carried  in  one  year  by  the 
railways  for  the  100,000,000  people  of  the  United  States  had  to  be 
placed  on  the  backs  of  human  beings,  it  would  require  800,000,000 

272 


china's  economic  structure  273 

men  working  365  days  of  the  year,  each  carrying  a  load  of  150 
pounds  over  an  average  of  15  miles  a  day,  to  equal  it. 

This  is  an  impressive  illustration  of  the  significance  of  the  lack 
of  economic  transportation  to  those  regions  in  China  out  of  touch 
with  waterways.  Transportation  in  these  sections  is  about  ten 
times  as  expensive  as  railway  transportation  in  the  United  States, 
although  unskilled  labor  receives  there  not  more  than  the  equiva¬ 
lent  of  about  12  cents  gold  a  day.  To  get  the  wheat  from  the  rich 
Wei  Basin  in  southern  Shensi,  where  it  can  be  purchased  at  one- 
third  the  price  in  America,  to  the  Peking-TIankow  Railway  about 
500  miles  distant,  increases  the  price  to  such  a  degree  as  to  make  it 
cheaper  to  purchase  wheat  in  America  and  transport  it  to  the  milling 
centers  of  China. 


Fig.  10. — Native  cart  on  primitive  road 


Within  the  past  few  years,  the  Governor  of  Shansi  Province  has 
constructed  nearly  1,000  miles  of  good  roads  in  the  so-called  “  Model 
Province.”  This  was  done  with  the  idea  of  encouraging  motor  trans¬ 
portation.  There  are,  however,  in  the  aggregate,  not  more  than  75 
motor  vehicles  in  the  whole  of  Shansi  Province,  which  has  a  popula¬ 
tion  of  about  10,000,000,  in  an  area  similar  to  that  of  the  State  of 
Kansas.  Transportation  by  pack  animals  and  carts  in  Shansi  aver¬ 
ages  about  16  cents  Chinese  silver  a  ton-mile.  Motor  transportation 
runs  from  20  to  25  cents  a  ton-mile,  whereas  railways  should  be 
able  to  carry  cargo  at  less  than  3  cents  a  ton-mile.  Shansi  needs 
a  trunk-line  railway  from  north  to  south,  and  good  roads  might 
then  well  serve  as  feeders.  Without  railways,  the  most  enlightened 
government  in  that  Province  will  not  make  for  substantial  pros¬ 
perity.  Railways  in  China  operated  under  reasonably  efficient  man¬ 
agement  are  potential  gold  mines,  as  the  populations  have  pre¬ 
ceded  the  railways  in  many  sections  which  are  not  yet  provided 

100020°— 26 - 19 


274 


COMMERCIAL  HANDBOOK  OF  CHINA 


with  such  means  of  transportation.  They  can  be  operated  at  a 
cost  of  less  than  50  per  cent  of  their  operating  revenues. 

Mr.  J.  E.  Baker,  technical  adviser  of  the  Chinese  Ministry  of 
Communications,  states  that  the  average  charge  on  railways  of 
China  is  less  than  1  y2  cents  silver  per  ton-kilometer.  On  more 
valuable  goods  the  charge  is  higher;  on  less  valuable  goods  it  is 
lower.  On  some  lines  and  on  some  classes  of  traffic,  the  charge  is 
no  more  than  y2  cent  per  ton-kilometer.  The  rate  per  carrier 
coolie  varies  probably  between  15  and  30  cents  silver  a  ton-kilo¬ 
meter,  with  the  average  close  to  25  cents.  Thus  on  the  average, 
the  carrier  coolie's  charge  is  about  fifteen  times  as  much  as  the 
railway's  charge.  Mr.  Baker  further  contends  that  it  is  no  exag¬ 
geration  to  state  that  railway  costs  on  well  located  and  well  man¬ 
aged  lines  are  not  more  than  one-fifteenth  of  cart  costs,  and  not 
more  than  one  twenty-fifth  of  porterage  costs.  Mr.  Baker  gives 
the  following  grouping,  showing  the  number  of  miles  of  railway 
per  100,000  of  population  in  several  different  countries : 


Group  I : 

Australia _ 404 

Canada _ 378 

United  States _ 261 

New  Zealand _ 254 

Group  II : 

Switzerland _ 78 

France _ 64 

Germany _ 57 

United  Kingdom _ 52 


Mr.  Baker  states  as  follows: 


Group  II — Continued. 


Spain _ 48 

Italy _ 33 

Russia _ 26 

Group  III : 

Japan _ 12 

India _ 11 

Siam _  9 

China _  2 


Those  who  are  familiar  with  world  conditions,  know  that  the  common 
people  in  the  first  group  live  far  better  than  do  those  in  the  second  or  the 
third  group,  and  that  those  in  the  second  group  (up  to  the  Great  War,  cer¬ 
tainly)  live  better  than  those  in  the  third  group.  It  must  be  remembered  that 
Australia  and  Canada  have  encouraged  the  building  of  railways  ahead  of 
population  in  order  to  foster  development  of  the  country.  Thirty  years  ago, 
the  United  States  showed  a  larger  figure  than  it  does  now. 

Once  the  process  of  using  natural  forces  for  burden  bearing  begins,  the 
day’s  labor  of  the  common  man  will  gradually  buy  more  and  more  of  the 
work  which  such  natural  forces  do.  Thus,  in  China  the  carrier  coolie’s 
daily  wage  will  buy  only  1  ton-kilometer  of  transportation  by  carrier  coolie, 
but  it  will  buy  20  ton-kilometers  of  railway  transportation.  And  in  the 
United  States  the  daily  wage  of  the  commonest  laborer  will  buy  about  200 
ton-kilometers  of  railway  transportation.  Thus,  the  highly  developed  railway 
system  in  the  United  States  has  multiplied  the  transportation  strength  of  its 
people  ten  times  that  of  China  using  railways  and  two  hundred  times  that  of 
China  using  coolies  only.  And  transportation  strength  measures  standard 
of  living. 

Bad  internal  communications  in  China  have  encouraged  provincial¬ 
ism.  This  has  been  accentuated  through  the  perpetuation  over  many 
centuries  of  the  family  system,  interwoven  with  which'  is  ancestor 
worship.  A  laissez  faire  governmental  policy  left  the  people  to 
their  own  devices  with  a  minimum  of  pressure  from  above.  How¬ 
ever,  to  safeguard  against  the  redevelopment  of  a  feudal  system 
which  characterized  China  prior  to  the  beginning  of  the  Christian 
era,  the  civil-service  examinations  carried  with  them  the  stipulation 
that  the  native  of  any  Province  should  not  hold  official  position  in 
that  Province.  These  civil-service  examinations,  perpetuated  for  a 
period  of  over  1,000  years,  also  acted  as  a  reinforcing  agency  hold- 


china's  economic  structure 


275 


in g  Chinese  society  together  with  common  ideals  and  aspirations. 
On  the  other  hand,  each  community  developed  its  own  interpreta¬ 
tion  of  many  of  the  nation’s  institutions — as,  for  instance,  the  coun¬ 
try’s  weights  and  measures  and  currency  units.  Often  distinct  dia¬ 
lects  differentiated  a  community  from  its  neighbors,  although 
through  the  civil-service  examinations,  a  common  written  language, 
a  common  literature,  and  common  educational  ideals  were  perpetu¬ 
ated  among  an  aristocracy  of  learning.  This  overpowering  respect 
for  the  teachings  of  the  sages,  which  marked  Chinese  society  up  to 
the  beginning  of  the  twentieth  century,  encouraged  individualism 
but  discouraged  initiative,  scientific  research,  and  invention,  as 
evidenced  by  the  fact  that  the  country  has  not  as  yet  developed  a  patent 
office.  It  produced  a  stereotyped,  self-sufficient  society.  Although 
this  society  has  been  for  upward  of  2,000  years  distinctly  demo¬ 
cratic,  yet  education  has  been  for  the  favored  few.  Economic  condi¬ 
tions  were  such  as  to  encourage  but  a  very  small  fraction  of  the 
population  in  seeking  an  education.  Thus,  while  the  civil-service 
examination  acted  as  a  safety  valve  for  the  ambition  of  the  nation, 
yet  under  it  the  percentage  of  illiteracy  among  the  masses  was  ap¬ 
palling.  The  great  agency  in  a  modern  democratic  society,  the 
public  school,  is  of  recent  growth  in  China. 

INDIVIDUALISTIC  DEVELOPMENT 

China  is  essentially  agricultural,  with  probably  80  per  cent  of  the 
people  engaged  in  rural  pursuits.  Although  from  time  immemorial 
agriculture  has  been  honored  and  assigned  a  position  next  after 
learning  in  Chinese  society,  one  sees  but  little  evidence  of  improve¬ 
ments  in  agricultural  processes  over  many  centuries.  In  the  United 
States  less  than  50  per  cent  of  the  people  comprise  the  agricultural 
population,  yet  they  live  better  and  produce  a  proportionately 
greater  surplus  for  export  than  do  the  people  of  China.  China  suffers 
from  poor  and  inadequate  irrigation,  deforestation,  lack  of  a  knowl¬ 
edge  of  proper  plowing  methods,  little  attention  to  seed  selection, 
usurious  practices  in  financing  the  farming  class,  a  bad  and  un¬ 
economic  marketing  system,  poor  internal  communications — in  gen¬ 
eral,  through  lack  of  cooperative  effort  and  the  application  of  science 
to  productive  industry;  and  this  in  spite  of  the  highly  industrious 
and  thrifty  personal  traits  of  the  people. 

Similarly,  the  beginning  of  the  twentieth  century  found  China 
far  behind  the  Occident  in  industrial  and  commercial  developments. 
Individual  business  rather  than  the  corporate  enterprise,  domestic 
handicraft  industry  rather  than  organized  manufacture  with  modern 
machinery,  characterized  the  old  China.  In  an  article  by  George  Otis 
Smith,  Director  United  States  Geological  Survey,  the  following 
statement  is  made : 

Edward  Everett  Hale  charted  the  course  of  industrial  development  when 
he  said  that  the  extent  to  which  the  world  had  changed  the  laborer  who  uses 
his  body  into  the  workman  who  uses  his  head  was  the  index  of  civilization. 
The  true  measure  of  industrial  progress  is  found  in  the  amount  of  mechanical 
power  used  to  supplement  man  power. 

Mr.  Smith  calculates  that  the  motor  power  we  are  now  using,  steam 
and  electricity,  gives  us  the  equivalent  of  five  energy  servants  for 
every  man,  woman,  and  child  in  the  United  States,  which  in  itself 


276 


COMMERCIAL  HANDBOOK  OF  CHINA 


is  equivalent  to  giving  us  industrially  the  effectiveness  of  500  mil¬ 
lions  of  people  working  without  this  power.  This  statement  can 
be  appreciated  in  a  country  like  China,  which  has  as  yet  developed 
hardly  the  minutest  fraction  of  its  wonderful  potentialities  in  hydro¬ 
electric  power  and  where  steam  power  is  only  at  the  threshold  of  its 
possibilities. 

INFLUENCE  OF  WESTERN  IDEAS 

It  is  only  in  the  past  50  years  that  the  Chinese  people  have  come 
to  realize  the  backwardness  of  their  country  in  a  modern  economic 
sense.  About  that  date  the  first  group  of  Chinese  students  was  sent 
abroad  to  imbibe  western  learning.  That  the  movement  did  not 
have  the  sympathy  of  the  nation  at  that  time  was  demonstrated  when 
these  students  were  recalled  before  they  were  able  to  complete  their 
education;  and  it  was  years  after  their  return  to  China  before  they 
were  permitted  to  utilize  their  training  abroad  for  the  benefit  of 
their  people. 

The  shock  to  the  nation  came  in  1894  with  their  defeat  by  Japan. 
It  was  only  then  that  China  realized  the  efficacy  of  the  western 
methods  which  had  been  adopted  by  the  Japanese. 

In  the  i>ast  two  decades  thousands  of  Chinese  students  have 
matriculated  in  western  universities,  imbued  with  the  idea  of  making 
China  over  along  modem  lines;  but  the  experience  of  the  past  few 
years  has  shown  that  the  task  is  too  stupendous  and  that  no  hasty 
progress  in  connection  with  the  establishment  of  a  new  economic 
order  in  China  may  be  expected.  To  some  this  has  brought  a  keen 
sense  of  disappointment  in  the  nfficacy  of  western  ideas,  and  has  in¬ 
duced  reaction.  There  are  those  who  lay  the  blame  upon  the  foreign 
institutions,  and  advocate  a  reversion  to  the  old  order.  The  better 
balanced,  however,  realize  that  too  much  was  expected  of  the  super¬ 
ficial  in  western  learning,  as  acquired  by  many  of  those  who  jour¬ 
neyed  abroad,  and  who  looked  to  it  to  serve  in  itself  as  a  panacea 
for  China’s  ills.  There  is  now  a  substantial  realization,  on  the  part 
of  these  better  informed  persons^  that  what  modern  science  and 
western  learning  have  to  offer  must  be  adjusted  to  meet  the  peculiar 
needs  of  the  Chinese  environment. 

China  was  not  prepared  for  the  drastic  changes  which  came  with 
the  overthrow  of  a  monarchy  of  several  thousand  years,  and  the 
sudden  inauguration  of  a  republican  form  of  government.  Under 
the  old  order  the  family  system  had  been  accentuated  to  such  a 
degree  that  the  individual  was  trained  to  a  deep  and  keen  sense  of 
responsibility  in  his  relations  to  the  family  or  clan,  but  with  little 
or  no  appreciation  of  responsibility  to  the  larger  unit,  the  community 
or  the  nation.  Thus  public  opinion,  so  essential  to  the  success  of  a 
representative  form  of  government,  had  not  been  developed  under 
the  monarchy.  What  protection  the  individual  required  in  his  rela¬ 
tions  to  society  was  secured  through  his  affiliations  with  his  clan  and 
with  his  trade,  craft,  or  provincial  guilds.  Custom  and  tradition 
carried  more  weight  than  law.  The  lawyer  was  unknown  in  Chinese 
society  prior  to  the  beginning  of  the  twentieth  century.  A  man’s 
relations  to  his  fellow  men  were  based  upon  equity  rather  than  upon 
legal  definition.  On  the  whole,  society  was  very  loosely  knit,  so  far 
as  its  relations  to  the  larger  unit,  the  central  government,  was  con- 


china's  economic  structure 


277 


cerned.  So  long  as  China  remained  isolated,  this  condition  of  affairs 
might  have  continued.  There  were  apparently  no  reasons  from 
within  for  a  change,  but  the  inevitable  contact  with  the  civilizations 
of  other  peoples  altered  the  entire  situation. 

With  the  inauguration  of  the  Republic,  there  has  been  a  tendency 
to  scrap  the  institutions  of  old  China  in  wholesale  fashion  irre¬ 
spective  of  relative  values,  and  to  take  on  occidental  institutions  in 
form  rather  than  in  essence.  For  instance,  the  ideas  of  corporate 
business,  as  taken  from  the  west,  can  not  succeed  in  China  without 
an  accompanying  sense  of  the  responsibility  of  trusteeship.  Poten¬ 
tially  the  Chinese  possess  the  qualities  necessary  to  the  success  of 
corporate  enterprise,  but  before  corporate  business  can  be  developed 
in  a  large  way  among  the  Chinese  mercantile  communities,  it  will  be 
necessary  to  institute  a  body  of  law  and  courts  competent  to  build  a 
solid  foundation  for  the  new  order. 


Fig,  11. — Automobile  on  new  type  motor  road 


During  the  past  decade,  the  Chinese  have  organized  numerous 
manufacturing  companies  of  a  corporate  nature.  Under  the  extraor¬ 
dinary  conditions  resulting  from  the  World  War,  huge  profits  were 
made,  but,  unfortunately,  these  were  paid  out  in  dividends  wdtliout 
the  building  up  of  reserves  or  provisions  for  depreciation  and  main¬ 
tenance.  Consequently  with  the  leaner  years  following  the  termina¬ 
tion  of  the  war,  many  of  these  companies  suffered  financial  em¬ 
barrassments  for  lack  of  liquid  capital. 

The  family  system,  admirably  adapted  to  the  old  order  before  the 
introduction  of  modern  machinery  and  the  application  of  the  prin¬ 
ciples  of  modern  science,  handicaps  in  many  ways  the  building  up 
of  trade  and  industry  on  modern  lines.  The  responsibility  of  a 
successful  member  in  a  family  for  all  his  relatives  is  disastrous  to 
the  pay  roll  of  a  corporate  institution  in  which  the  successful  member 


278 


COMMERCIAL  HANDBOOK  OF  CHINA 


is  a  director.  The  institution  known  in  China  as  “  face,”  which  is  so 
strongly  identified  with  the  family  system^  militates  against  young 
men  starting  at  the  bottom  of  the  ladder  and  working  their  way  up. 
Students  trained  in  engineering  in  the  West  return  to  China  reluctant 
to  participate  in  anything  resembling  manual  labor.  “  Face  ”  stands 
in  the  way.  The  trade  and  craft  guilds’  apprentice  system  also  adds 
to  the  difficulties  of  young  men  of  education  launching  upon  a  career 
in  business  or  industrial  establishments.  Gradually  these  handicaps 
to  the  successful  institution  of  a  modern  economic  order  will  disap¬ 
pear,  but  for  many  years  after  they  have  disappeared  in  form  the 
essence  will  continue  in  evidence.  An  analogous  situation  exists  in 
Japan,  where  in  form  fuedalism  has  disappeared  while  in  essence  it 
continues  to  embarrass  industry  and  trade. 

The  greatest  handicap  to  the  rapid  institution  of  a  successful 
modern  economic  society  in  China  is  the  disintegration  of  central 
government  authority.  Following  the  dissolution  of  the  monarchy, 
numerous  individuals  working  through  the  control  of  military  or¬ 
ganizations,  have  set  themselves  up  in  various  parts  of  the  country 
as  semi-independent  rulers,  with  the  result  that  we  now  have  in  China 
over  1,000,000  men  under  arms  serving  various  leaders,  each  pitted 
against  the  others  in  efforts  to  strengthen  his  own  political  position. 
The  economic  conditions  in  the  country  generally  have  encouraged 
individuals  to  join  the  standards  of  these  semi-independent  leaders 
as  promising  them  a  better  means  of  livelihood  than  the  struggle  to 
eke  out  an  existence  otherwise.  Thus,  soldiering  in  China  seems  to  be 
a  matter  of  necessity  rather  than  of  choice.  With  improved  economic 
conditions,  particularly  improved  internal  communications,  the  temp¬ 
tation  to  leave  the  productive  employments  for  employment  in 
brigand  armies  would  be  less  in  evidence.  Thus,  whatever  may  be 
done  to  improve  the  general  economic  conditions  of  the  country 
would  assist  in  hastening  the  development  of  a  stronger  central 
government. 

A  promising  aspect  of  the  situation  is  the  sense  of  nationalism 
which  is  growing,  particularly  among  the  business  men,  bankers, 
and  the  students  of  the  country.  This,  together  with  the  receptivity 
of  the  people  generally  to  modern  ideas,  promises  much  for  the 
future.  The  Chinese  are  esssentially  an  industrious  people;  they 
possess  good  ethical  and  educational  ideals;  and  they  are  natural 
traders  and  show  ability  in  handling  the  machinery  of  modern  in¬ 
dustry.  The  problems  confronting  the  country  to-day  are  stupen¬ 
dous.  The  transition  from  a  mediaeval  civilization  to  that  of  a 
modern  social  and  economic  order,  for  a  people  possessing  one- 
quarter  of  the  world’s  population  and  an  area  greater  than  that  of 
the  United  States  or  Europe,  must  of  necessity  be  attended  with  fric¬ 
tion  and  must  involve  the  time  element,  especially  as  the  evolution 
is  one  from  the  bottom  up  rather  than  from  the  top  down. 

Nothing  better  exemplifies  China’s  backwardness  in  a  modern  eco¬ 
nomic  sense  than  its  per  capita  consumption  of  iron  and  steel,  which 
is  one  one-hundred-and  eightieth  of  that  of  the  United  States,  one 
one-hundredth  of  that  of  England  or  Germany,  one-tenth  of  that 
of  Japan,  and  one-thirtieth  of  the  average  per  capita  consumption 
of  the  world  generally.  The  country  possesses  the  best  coal  and  iron 
resources  of  the  Pacific  regions,  but  very  little  by  way  of  develop- 


china's  economic  structure 


279 


ment  has  yet  taken  place  in  these  two  industries  which  constitute 
the  backbone  of  the  modern  industrial  society.  Further  details  as 
to  China’s  productive  capacity  will  be  found  in  the  section  in  this 
handbook  on  “  China’s  export  products.”  These  figures  indicate 
clearly  the  backwardness  of  the  country  in  a  modern  economic  sense, 
and,  at  the  same  time,  serve  to  convey  to  the  minds  of  the  American 
reader,  who  resides  in  a  country  very  similar  in  topography  to  that 
of  China,  the  enormous  potentialities  of  the  Chinese  Republic  as  a 
modern  economic  society. 

Among  western  observers  there  are  those  who  would  discourage 
China’s  rise  as  a  modern  economic  and  political  society,  fearing  the 
competition  of  the  400,000,000  of  industrious  Chinese,  when  armed 
with  the  implements  of  modern  science.  A  weak,  undeveloped  China 
is  a  far  greater  menace  to  the  world  than  a  strong,  well  ordered, 
well  nourished  population  would  be — especially  one  possessing  the 
rich  background  of  culture  that  characterizes  the  Chinese.  The 
West  need  only  fear  a  “  Yellow  Peril  ”  so  long  as  the  economic  level 
of  China  remains  below  that  of  the  Occident.  Through  the  de¬ 
velopment  of  China,  and  of  Asia’s  great  treasure  houses  of  natural 
resources,  the  economic  level  of  the  Chinese  people  can  be  elevated 
to  that  approaching  America’s,  with  a  corresponding  advance  in 
the  earning  and  purchasing  powers  of  the  individual.  It  is  then  to 
the  interest  of  the  American  people  to  assist  in  every  possible  way 
the  improvement  of  the  economic  condition  of  the  Chinese. 


CHINESE  GOVERNMENT  FINANCE 

By  Assistant  Commercial  Attache  A.  H.  Evans,  Peking 


The  power  of  government  to  tax  and  bring  the  proceeds  into  its 
own  treasury  is  the  first  factor  requisite  to  a  successful  administra¬ 
tion  of  public  finance,  whether  on  a  large  or  small  scale.  The  cen¬ 
tral  Government  in  China  has  not  held  this  power  in  the  past  and 
does  not  do  so  to-day.  The  wealth  is  in  the  country ;  the  resources 
are  there ;  but  the  methods  of  tapping  them,  while  sufficient  to  sup¬ 
ply  the  comparatively  modest  needs  of  the  Imperial  dynasties,  have 
broken  down  completely  as  a  result  of  the  hasty  efforts  made  by 
the  Republic  to  establish  a  centralized  control  of  revenues  which 
historically  were  always  under  provincial  administration. 

Successful  transition  to  the  new  centralizing  policy  would  have 
been  difficult  in  the  most  modern  country,  but  in  China  the  obstacles 
were  out  of  all  proportion  to  the  facilities  at  the  command  of  the 
Government  to  enforce  obedience  to  the  new  order.  The  large  area 
of  the  country,  its  numerous  illiterate  population,  the  unfamiliarity 
of  the  people  with  representative  government  and  its  methods,  the 
scarcity  of  trained  leaders,  the  inheritance  of  a  corrupt  office-holding 
class,  and,  above  all,  the  unyielding  resistance  shown  by  the  Prov¬ 
inces  to  the  efforts  made  to  centralize  financial  control,  combined  to 
make  the  task  beyond  the  Government’s  capacity.  Attempts  by 
outside  interests  to  rivet  their  grip  on  various  factors  in  the  country’s 
economic  life  also  have  aggravated  the  situation. 

Since  1911  the  financial  condition  of  the  central  Government,  both 
at  home  and  abroad,  has  grown  steadily  worse  under  each  succeed¬ 
ing  regime.  This  condition  is  largely  due  (1)  to  the  unfortunate 
borrowing  policy  adopted  to  meet  administrative  expenses  and  the 
contraction  of  other  loans  not  used  for  productive  purposes;  (2)  to 
the  growth  of  the  provincial  practice  of  retaining  central  Govern¬ 
ment  tax  revenues;  and  (3)  to  the  development  of  large  military 
groups  unwilling  to  acknowledge  central  Government  authority 
but  forcing  the  Government  to  support  them. 

Prior  to  the  revolution  (1911-12)  wThich  ended  the  rule  of  the 
Manchus  and  established  the  Republic,  the  Imperial  Chinese  Gov¬ 
ernment  gave  little  attention  to  details  of  the  financial  administra¬ 
tion  of  the  Empire.  During  centuries  of  time  there  had  developed 
a  decentralized  system  which  vested  in  the  provincial  authorities 
power  to  collect  all  revenues.  The  Imperial  Government  Board 
of  Revenue  received  regularly  statements  from  the  Provinces,  pre¬ 
pared  with  decimal  exactness,  but  these  generally  were  estimates  of 
collections  rather  than  accounts  of  cash  receipts. 

In  theory,  all  revenue  belonged  to  the  Emperor.  The  requirements 
of  the  court,  however,  were  comparatively  small,  and  until  the 
imposition  of  the  Japanese  wrar  indemnities  of  1895  and  the  Boxer 
indemnities  at  the  beginning  of  the  present  century  there  existed 

280 


CHINESE  GOVERNMENT  FINANCE  281 

only  a  nominal  burden  of  either  internal  or  foreign  indebtedness. 
By"  imperial  edict  the  court  prorated  its  budgetary  requirements 
among  the  Provinces  according  to  their  estimated  abilities  to  pay, 
periodic  remittances  of  goods  and  specie  being  made  to  Peking  by 
the  Provinces.  No  particular  efforts  were  made  by  the  court  authori¬ 
ties  to  determine  the  specific  tax  from  which  the  remittances  had 
been  derived,  so  long  as  demands  were  met  promptly.  Appoint¬ 
ments  to  important  provincial  treasury  posts  were  made  by  the  court 
in  accordance  with  a  carefully  worked  out  system  of  values  which 
graduated  the  appointment  fees  in  proportion  to  the  commercial 
importance  and  wealth  of  the  district.  When  national  emergencies 
arose  and  additional  funds  were  required  for  defense  purposes  or  to 
meet  debt-service  charges,  new  edicts  were  promulgated,  placing  upon 
the  Provinces  responsibility  for  securing  the  funds.  The  result  of 
this  system  was  to  grant  the  Provinces  a  measure  of  financial  inde¬ 
pendence  which  amounted  practically  to  fiscal  autonomy. 

The  only  important  exception  to  this  condition  occurred  in  the 
case  of  the  Chinese  Maritime  Customs,  legally  established  through 
the  Tientsin  treaties  of  1858  with  the  United  States,  Great  Britain, 
France,  and  Russia,  although  it  had  begun  to  function  four  years 
earlier.  This  administration  was  under  the  general  control  of  the 
central  Government.  Its  actual  receipts  it  made  public  in  independ¬ 
ent  statements  published  by  the  foreign  inspector  general.  The  reve¬ 
nues,  it  is  true,  still  continued  to  go  into  the  provincial  treasuries, 
for  the  central  Government  was  then  in  no  particular  need  of  these 
specific  funds.  The  new  method,  however,  of  submitting  reports 
founded  on  facts  suggested  to  the  court  new  possibilities  in  regard 
to  the  accounting  that  might  be  required  of  its  provincial  revenue¬ 
collecting  agencies.  Thereafter  the  central  Government,  wThen  its 
fiscal  needs  became  most  pressing,  made  intermittent  efforts  to 
strengthen  control  of  provincial  finance  and  to  require  more  accurate 
accounts,  but  with  small  success. 

The  situation  is  described  by  one  writer  1  in  the  following  lan¬ 
guage  : 

There  was  general  agreement  on  one  point:  that  it  was  absolutely  necessary 
the  central  Government  should  get  more  power  into  its  hands,  at  least  on 
purely  financial  matters.  The  Provinces  had  enjoyed  from  time  immemorial 
the  power  of  regulating  their  internal  finances  without  any  supervision  what¬ 
soever,  and  it  was  only  to  be  expected  that  they  would  not  give  way  unless 
under  extreme  pressure.  To  exercise  control  of  finances  certainly  meant  that 
Peking  intended  to  have  a  better  grip  over  the  Provinces  in  other  respects. 
If  the  people  had  been  profiting  out  of  the  misgovernment,  if  they  had  been 
paying  less  in  taxes  to  the  officials,  a  new  call  to  bear  additional  burdens  would 
not  possibly  have  been  felt ;  but  the  fact  was  that  the  taxpayer  was  ground 
down  by  the  tyranny  of  the  officials  so  much  that  no  increase  of  taxation  was 
possible  wdthout  exciting  acute  discontent.  The  officials  were  growing  fat  on 
the  peculation  which  they  were  allowed  to  exercise  freely  so  long  as  they  paid 
sufficient  in  bribes  to  the  court  officials  in  Peking.  The  provincial  officials 
had  been  emboldened,  by  the  venal  support  they  had  in  Peking,  to  offer  less 
and  less  for  the  actual  purposes  of  the  Government.  Repeated  requests, 
demands,  and  appeals  to  patriotism  met  with  very  little  response  from  the 
Provinces.  The  severe  famines,  floods,  and  other  distress  in  the  country,  not 
to  speak  of  the  ever  present  and  sporadic  rebellions,  not  only  led  to  increased 
provincial  expenditures  but  also  to  frequent  requests  to  Peking  from  the 
Provinces  to  forego,  partly  or  entirely,  or  to  postpone  payment  of  the  sums 
due  from  them.  The  central  Government  was  only  too  well  aware  of  the 


1  Finance  in  China:  S.  R.  Wagel  (1914),  pp.  10-12. 


282 


COMMERCIAL  HANDBOOK  OF  CHINA 


fact  that  there  were  no  means  of  enforcing  the  demand  for  increased  contri¬ 
butions.  The  removal  of  a  viceroy,  a  governor,  or  a  treasurer  as  punishment 
for  not  fulfilling  his  duties  diligently  in  the  shape  of  sending  contributions  to 
Peking  was  one  of  the  few  courses  that  remained  open.  It  was  felt,  however, 
that  such  expedients  did  not  help  toward  the  object  in  view.  When  the  whole 
body  politic  was  corrupt,  it  was  impossible  for  the  officials  who  were  directly 
controlled  and  appointed  from  Peking  to  do  anything  in  the  way  of  increasing 
revenue. 

Following  the  war  with  Japan  in  1894  China  found  it  necessary 
to  make  three  foreign  loans  in  order  to  pay  the  indemnity  de¬ 
manded  by  Japan.  The  central  Government  pledged  the  customs 
receipts  as  security  for  the  Russian-French  (1895)  loan  of  400,000,- 
000  francs  and  the  two  Anglo-German  (1896  and  1898)  loans  of 
£16,000,000  each,  and  used  the  proceeds  to  pay  the  Japanese.  In  1901 
the  Boxer  indemnity  of  450,000,000  haikwan  taels  was  added.  No 
provision  was  included  in  the  agreements  specifically  providing  that 
actual  customs  funds  were  to  be  used  in  meeting  the  debt-service 
charges,  nor  were  the  customs  rates  increased  to  provide  additional 
revenues  to  meet  these  newT  charges.  The  representatives  of  the 
foreign  interests  received  their  payments  as  they  fell  due  and  asked 
no  questions  regarding  the  source  from  which  they  were  derived. 

EFFORTS  TO  CENTRALIZE  CONTROL  OF  REVENUES 

Following  the  revolution  of  1911-12  and  the  establishment  of  the 
Republic,  sweeping  efforts  were  made  by  the  new  Government  to  cen¬ 
tralize  control  of  all  those  revenues  upon  which  it  depended  for 
financial  support.  The  new  policies  and  their  results  have  been 
described  by  Sir  F rancis  Aglen 2  as  follows : 

The  Maritime  Customs  revenue  till  then  collected  and  accounted  for  but 
not  directly  handled  by  the  foreign  side  of  the  Maritime  Customs  Administra¬ 
tion,  came  under  strict  control  and  was  taken  completely  out  of  provincial 
hands.  The  Maritime  Customs  collection  became  identified  as  a  central  Gov¬ 
ernment  fund  in  a  way  unknown  before.  President  Yuan  Shih-kai  in  the 
full  tide  of  his  centralizing  policy  attempted  to  do  the  same  with  the  salt 
revenue,  hitherto  regarded  as  the  mainstay  of  provincial  finance,  and  for  a 
time  he  succeeded.  The  salt  revenue  was  pledged  as  security  for  two  foreign 
loans,  foreign  control  of  receipts  was  introduced,  and  these  receipts  were 
definitely  earmarked  as  central  Government  funds.  A  similar  policy  was 
pursued  in  the  case  of  other  inland  revenues,  notably  the  wine  and  tobacco 
revenue  and  the  stamp  duty.  The  Provinces  were  left  to  fill  the  vacuum 
caused  by  the  withdrawal  of  these  revenues  as  best  they  could.  Another  turn 
was  given  to  the  likin  screw,  recourse  was  had  to  usurious  loans,  and  other 
even  more  questionable  means  for  raising  the  wind  were  employed. 

But  the  vacuum  was  too  great  to  be  filled,  and  the  inevitable  results  of 
building  on  an  insecure  foundation  were  not  long  in  showing  themselves.  The 
financial  structure  of  the  State,  never  at  the  best  of  times  very  coherent,  began 
to  creak,  and  ere  long  it  collapsed  altogether.  The  Imperial  Government 
had  followed  precedent  and  sound  policy  in  placing  responsibility  in  hands 
Tvhieh  held  the  power.  It  had  imposed  the  burden  of  supporting  the  State 
debt  on  provincial  shoulders  and  had  been  careful  not  to  sap  the  financial 
strength  of  the  Provinces  by  too  sudden  a  reversal  of  a  highly  decentralized 
system  of  administration  which  had  endured  for  ages.  The  Republican  Gov¬ 
ernment  reacting  to  foreign  impulses  in  its  haste  to  centralize  authority  has 
thrown  the  machine  out  of  gear.  It  has  assumed  the  responsibility  for  State 
obligations  without  the  power  to  meet  that  responsibility.  Power  has  always 
been  vested  in  the  Provinces,  and  there  it  will  remain.  Already  the  pro¬ 
vincial  authorities  have  resumed  control  over  a  large  portion  of  the  salt 
revenue  and  all  but  an  insignificant  fraction  of  the  wine  and  tobacco  revenue 


2  China  and  the  Special  Conference — in  Nineteenth  Century,  August,  1924. 


CHINESE  GOVERNMENT  FINANCE 


283 


and  the  stamp  duty.  Alone  of  all  the  so-called  central  Government  revenues, 
the  Maritime  Customs  collections  remain  intact.  The  divorce  of  responsibility 
from  power  has  produced  the  situation  in  China  which  confronts  the  world 
to-day — an  empty  State  treasury  and  a  pile  of  debt. 

The  Chinese  Government  missed  a  wonderful  opportunity  during 
the  later  years  of  the  World  War  and  until  the  end  of  1920  to  reduce 
some  of  its  foreign  indebtedness  at  the  most  favorable  exchange 
rates  for  silver  currency  that  have  existed  since  the  debts  were  con¬ 
tracted.  Instead  of  the  normal  ratio  of  approximately  $2  silver 
to  $1  gold,  the  value  of  silver  either  exceeded  or  was  nearly  on  a 
parity  with  the  gold  currencies  for  about  three  years.  An  internal 
loan  floated  during  that  period  with  the  proceeds  applied  to  retire¬ 
ment  of  gold  debts  would  have  represented  a  reduction  of  approxi¬ 
mately  50  per  cent  in  the  silver  needed,  as  compared  with  require¬ 
ments  at  the  exchange  rates  that  have  been  current  since  1920.  The 
opportunity  passed  unheeded  by  the  Government,  and  instead  of 
making  efforts  to  reduce  the  foreign  debt  under  unusually  advan¬ 
tageous  circumstances,  several  new  gold  loans  were  contracted,  the 
proceeds  of  which,  when  transferred  into  Chinese  currency,  produced 
only  about  50  per  cent  of  their  normal  silver  value. 

DEBTS 

With  the  exception  of  the  Japanese  war  and  the  Boxer  indemni¬ 
ties,  the  outstanding  debts  3  of  the  central  Government  have  nearly 
all  been  created  by  the  Ministry  of  Finance  and  the  Ministry  of 
Communications.  Cabinet  approval  has  been  regarded  as  sufficient 
in  most  instances  to  make  the  agreements  binding  upon  the  Govern¬ 
ment. 

An  official  report,  published  April  16,  1924,  by  the  Chinese  Gov¬ 
ernment  Commission  for  Readjustment  of  Finance,  stated  that 
“  secured  obligations  of  the  Ministry  of  Finance  amount  to  silver 
$1,186,567,840.”  The  present  securities  for  these  obligations  appear 
to  be  adequate,  and  the  debts  require  no  special  consideration.  The 
unsecured  loans  of  the  ministry,  however,  fall  into  quite  a  different 
category,  for  most  of  them  are  in  arrears  in  payments  on  principal 
and  interest,  and  both  the  creditors  and  the  Government  naturally 
are  concerned  over  the  situation. 

The  commission  stated  in  the  report  mentioned  above  that  the 
unsecured  loans  of  the  Ministry  of  Finance,  including  overdue  in¬ 
terest  to  the  end  of  1923,  amounted  to  $536,303,000  silver.  In  com¬ 
paring  this  amount  with  other  calculations  it  seems  evident  that  the 
ministry  has  omitted  the  Austrian  loan  of  £5,200,000,  which  (at  $9 
silver  to  £1  sterling)  equals  $46,800,000  silver.  Mr.  G.  Padoux, 
financial  adviser  to  the  Chinese  Government,  in  commenting  upon 
this  loan,  makes  the  following  statement :  “  The  agreement  seems  to 
have  been  canceled,  but  the  money  is  nevertheless  still  owing  to  the 
present  bondholders.4”  Inclusion  of  this  loan  would  increase  the 
unsecured  debts  to  $583,103,000  silver.  In  addition,  the  commission 
stated  there  were  $187,500,000  silver  of  Ministry  of  Communications 
debts  which  it  expected  the  Ministry  of  Finance  would  have  to  as- 


A  list  comprising  the  details  of  China’s  debts  is  found  in  Appendix  D  of  “  Currency, 
Banking,  and  Finance  in  China,”  by  Dr.  Frederic  E.  Lee. 

Memorandum  for  the  National  Commission  for  the  Study  of  Financial  Problems,  Jan¬ 
uary,  1923. 


284 


COMMERCIAL  HANDBOOK  OF  CHINA 


sume.  This  would  bring  the  total  unsecured  debts  up  to  approxi¬ 
mately  $770,603,000  silver.  It  is  understood  that  no  allowance  was 
made  by  the  commission  in  this  calculation  for  the  unsecured  debts 
of  the  railways  and  telegraphs  on  account  of  materials  purchased. 
These  debts,  according  to  the  official  publication  5  of  the  Ministry  of 
Communications,  were  at  the  beginning  of  1923  as  follows :  Rail- 
wa}Ts,  $39,313,000  silver;  telegraphs,  $7,699,000  silver;  total,  $47,- 
012,000.  Even  interest  was  not  paid  on  many  of  these  accounts 
during  1923  and  1924,  so  that  at  the  beginning  of  1925  it  seems  safe 
to  estimate  them  as  at  least  amounting  to  the  above  official  figure, 
and  it  may  be  that  the  total  amount  has  increased.  Nearly  all  of 
them  are  overdue  and  they  are  entitled  to  receive  consideration  in 
any  reorganization  of  the  Government’s  unsecured  debt. 

The  amortization  service  on  the  internal  consolidated  loans,6  paid 
from  surplus  customs  receipts  after  foreign-loan  service  has  been 
met,  was  in  arrears  one  year  on  January  1,  1925.  Interest  payments 
have  been  made  when  due,  but  the  inadequacy  of  funds  for  principal 
payments  indicate  that  the  consolidated  loans  can  at  least  be  con¬ 
sidered  as  being  imperfectly  secured.  The  principal  amount  out¬ 
standing  on  these  loans  September  1,  1924,  was  $142,420,000  silver. 
If  this  amount,  together  with  the  railway-material  debts  mentioned 
above,  is  added  to  the  unsecured  indebtedness,  the  total  reaches 
$960,035,000  silver.  Simple  interest  at  8  per  cent  on  this  amount 
for  the  different  periods  involved,  exclusive  of  interest  on  the  inter¬ 
nal  consolidated  loans,  adds  in  round  figures  $72,000,000  silver, 
bringing  the  total  unsecured  or  imperfectly  secured  debt  of  the  cen¬ 
tral  Government  up  to  approximately  $1,032,000,000  silver  at  the 
beginning  of  1925.  An  itemized  summary  of  this  amount  would  be 
approximately  as  follows  (values  in  silver  dollars)  : 


Unsecured  debts  of  Finance  Ministry,  including  overdue  interest 

to  end  of  1923 _ $536,  000,  000 

Simple  interest  at  8  per  cent  for  1924 _  43,  000,  000 

Austrian  loan  of  £5,200,000,  at  $9  silver  per  pound  sterling _  47,  000,  000 

Simple  interest  at  8  per  cent  for  1923  and  1924 _  7,  000,  000 

Ministry  of  Communications  loan  obligations  transferred  to 

Finance  Ministry _  187,  000,  000 

Status  of  interest  payments  not  definitely  known  but  probably 

in  arrears  one  year,  at  8  per  cent  equals -  15,  000,  000 

Ministry  of  Communications  material  debts  as  officially  stated 

January,  1923 _  47,  000,  000 

Simple  interest  at  8  per  cent,  1923  and  1924 -  8,  000,  000 

Domestic  consolidated  loans  imperfectly  secured.  (Interest  pay¬ 
ments  made  but  amortization  in  arrears  one  year) -  142,000,000 


Estimated  total  unsecured  or  imperfectly  secured  central 

Government  debt,  end  of  1924 _  1,  032,  000,  000 


Exception  may  be  taken  to  inclusion  of  the  internal  consolidated 
loans  under  the  category  of  unsecured  or  imperfectly  secured  debts, 
inasmuch  as  they  are  now  being  served  from  the  surplus  customs 
receipts  after  payments  are  made  on  foreign  loans  and  indemnities. 
The  view  of  the  foreign  powers  on  this  question  is  contained  in  the 


5  Tables  Showing  Various  Obligations  of  the  Ministry  of  Communications  Calculated 
up  to  Jan.  31,  i923,  pp.  15  and  19. 

6  These  loans  are  dealt  with  in  detail  in  Doctor  Lee’s  “  Currency,  Banking,  and  Finance 
in  China.”  Chap.  XIV. 


CHINESE  GOVERNMENT  FINANCE  285 

note  quoted  below,  which  appeared  in  the  Peking  press  in  Octo¬ 
ber,  1923 : 

The  undersigned  representatives  of  the  United  States  of  America,  France, 
Great  Britain,  and  Japan  have  the  honor  to  refer  to  their  memorandum  of 
December  23  last,  in  which  they  drew  the  attention  of  His  Excellency,  the 
Acting  Minister  of  Foreign  Affairs,  to  the  fact  that  while  the  unsecured  foreign 
debts  and  obligations  of  the  Chinese  Government  had  been  left  unprotected, 
China’s  internal  loans  had  been  temporarily  consolidated  on  the  security  of 
surplus  customs  revenues,  and  requested  that  in  future  such  surplus  customs 
revenues  should  no  longer  be  applied  exclusively  to  the  service  of  the  internal 
loans,  but  also  to  the  liquidation  of  foreign  debts  and  obligations  guaranteed 
by  the  Chinese  Goverment. 

The  attention  of  the  undersigned  has  now  been  called  to  a  memorial  of  the 
Ministry  of  Finance  published  in  the  Government  Gazette  of  September  21 
and  approved  by  mandate  recommending  the  permanent  continuance  of  the 
scheme  for  securing  the  service  of  the  internal  loans  on  customs  surplus  result¬ 
ing  from  the  effective  5  per  cent  tariff  and  its  extension  to  the  service  of  the 
Chinese  portion  of  the  $96,000,000  loan  of  1922,  thus  earmarking  for  the  service 
of  these  internal  loans  the  whole  surplus  accruing  from  the  present  customs 
tariff,  and  precluding  the  use  of  the  latter  as  security  for  any  general  debt 
consolidation  scheme. 

The  undersigned  aire  compelled  to  record  a  formal  protest  against  the 
action  of  the  Chinese  Government  in  disregarding  their  communication  of 
December  23  last  and  making  the  above  arrangements.  They  would  remind 
His  Excellency  the  Acting  Minister  for  Foreign  Affairs  (1)  that  the  foreign 
debts  and  obligations  of  the  Chinese  Government,  certain  of  which  are  now 
in  default,  were  contracted  by  the  Chinese  Government  before  the  date  of  the 
conclusion  of  some  of  the  internal  loans  which,  according  to  the  present  pro¬ 
posals,  are  to  be  secured  on  surplus  customs  revenues;  and  (2)  that  under 
the  terms  of  the  agreements  for  such  foreign  loans  the  Chinese  Government 
engages,  in  the  event  of  the  default  or  of  the  specific  security  pledged  becom¬ 
ing  ineffective,  to  provide  from  other  sources  the  sums  necessary  for  the  due 
payment  of  principal  and  interest.  The  undersigned  must,  therefore,  point  out 
to  His  Excellency  that  those  foreign  loans  are  entitled  to  an  automatic  pri¬ 
ority  over  the  later  internal  loans,  which  priority  the  above  mentioned  action 
of  the  Chinese  Government  entirely  ignores. 

They  accordingly  request  that  they  may  be  favored  with  an  immediate 
explanation  of,  and  a  clear  statement  regarding  the  intention  of  the  Chinese 
Government  with  respect  to  the  employment  in  the  future  of  surplus  customs 
revenue  toward  the  payment  of  foreign  debts  and  obligations. 

Interest  rates  on  some  of  the  foreign  portion  of  the  unsecured 
debt  run  as  high  as  1.2  per  cent  per  month  or  14.4  per  cent  per  an¬ 
num,  and  on  much  of  the  domestic  portion  the  rates  are  even  higher. 
Therefore  the  simple  rate  of  8  per  cent  used  in  the  foregoing  esti¬ 
mate  probably  is  considerably  less  than  the  average  rate  on  the  entire 
debt.  It  also  is  true  that  some  of  the  domestic  loans  were  contracted 
by  the  Government  at  very  high  discount  rates.  When  the  political 
affairs  of  the  Government  finally  justify  the  serious  preparation  of 
funding  plans,  it  then  will  be  desirable  to  examine  the  domestic 
debt  from  this  standpoint,  and  to  work  out  funding  values  on  a 
basis  approximating  actual  money  received  by  the  Government  when 
the  securities  were  issued.  Adj  ustment  of  usurious  interest  accumu¬ 
lations  also  appears  to  be  very  necessary. 

Since,  however,  these  bonds  are  selling  at  a  great  discount  they 
could  probably  be  refunded  at  a  much  smaller  figure.  A  debt  con¬ 
solidation  plan  has  been  advanced,  which  assumes  the  total  of  the 
unsecured  debt  at  a  round  billion  dollars,  on  which  payment  of 
interest  at  4  per  cent  would  begin  in  1927,  advancing  in  1929  to 
5  per  cent,  and  in  1932  to  7  per  cent.  Amortization  would  begin  in 
1927,  at  $5,000,000,  increasing  by  a  like  amount  annually — the  total 


286 


COMMERCIAL  HANDBOOK  OF  CHINA 


payments  to  extinguish  the  debt  in  20  years.  Tender  this  plan  the 
annual  payments  on  interest  and  principal  would  be  as  follows: 


Service  of  Consolidated  Debt 


Years 


1927. 

1928 

1929 

1930. 

1931. 

1932. 

1933. 
1934 

1935. 

1936. 

1937. 

1938. 

1939. 

1940. 

1941. 

1942. 

1943. 

1944. 

1945. 

1946. 


Rate 

Interest 

Amortization 

Total  service 
of  debt 

Per  cent 

4 

$40, 000, 000 

$5, 000, 000 

$45, 000, 000 

4 

59, 800, 000 

10, 000, 000 

49,  800, 000 

5 

49,  250, 000 

15, 000, 000 

64, 250, 000 

5 

48,  500, 000 

20, 000,  000 

68,  500, 000 

5 

47,  500,  000 

25, 000,  000 

72,  500, 000 

7 

64,  750,  000 

30,  000,  000 

94,  750, 000 

7 

62,  650, 000 

35, 000,  000 

97,  650, 000 

7 

60,  200, 000 

40, 000,  000 

100,  200, 000 

7 

57,  400, 000 

45,  000,  000 

102, 400, 000 

7 

54,  250, 000 

50, 000,  000 

104,  250, 000 

7 

50,  750, 000 

55, 000, 000 

105,  750, 000 

7 

46,  900,  000 

60,  000,  000 

106,  900, 000 

7 

42,  700, 000 

65, 000, 000 

107,  700, 000 

7 

38, 150, 000 

70, 000,  000 

108, 150, 000 

7 

33,  250, 000 

75, 000,  000 

108,  250, 000 

7 

26, 000, 000 

80, 000, 000 

108, 000, 000 

7 

22, 400, 000 

85, 000, 000 

107,400, 000 

7 

16, 450,  000 

90, 000, 000 

106, 450, 000 

7 

10, 150, 000 

95, 000, 000 

105, 150, 000 

7 

3,  500, 000 

50, 000, 000 

53,  500, 000 

In  the  case  of  payments  on  China’s  debt,  several  unknown  factors 
are  involved;  for  over  one-half  of  the  payments  must  be  made  in 
gold  currencies  on  which  the  exchange  rates  can  not  be  forecast  with 
any  degree  of  accuracy.  The  silver  requirements  each  year,  there¬ 
fore,  might  be  more  or  less  than  the  amounts  shown  in  the  above 
tabulation,  but  if  conversion  into  silver  dollars  of  the  debt  items 
which  make  up  the  foreign  portion  of  the  total  debt  is  considered 
reasonable  (pounds  sterling  at  9;  gold  dollars  at  1.90;  francs  at  7; 
yen  at  0.90),  then  the  yearly  debt  service  would  be  approximately  as 
shown  in  the  above  table. 

In  this  connection  it  is  interesting  to  note  how  the  haikwan-tael 
cost  of  payments  of  foreign  loans  and  the  indemnity  secured  on  the 
Chinese  Maritime  Customs  fluctuates.  During  1922,  1923,  and  1924 
the  cost  is  officially  stated  to  have  been  in  round  figures : 


Years 

Foreign 

loans 

Indemnity 

1922 . . . . . __ 

Haikwan 

taels 

21, 619, 190 
24, 374,  800 
23, 629,  790 

Haikwan 

taels 

15, 168, 590 
18, 838, 170 
19, 358, 420 

1923 . . . . . . . . . 

1924 . . . . . . . 

INCOME 


In  order  to  make  clear  the  present  financial  status  of  the  Chinese 
Central  Government  it  becomes  necessary  to  examine  the  current  in¬ 
come  account.  The  best  official  statement  of  the  Chinese  Government 
itself  is  found  in  the  figures  published  in  the  report  of  the  Financial 
Readjustment  Commission  in  April,  1924,  to  which  reference  already 


CHINESE  GOVERNMENT  FINANCE  287 

has  been  made.  The  statement  in  part  is  as  follows,7  all  amounts 
being  in  silver  dollars : 

Taking  up  first  the  question  of  revenue,  it  is  a  well-known  fact  that  the 
income  is  far  from  being  sufficient  to  meet  the  expenditures,  owing  to  the 
fact  that  not  only  have  the  Provinces  ceased  to  remit  funds  for  the  support 
of  the  central  Government  as  was  done  in  the  past,  but  they  have  even  gone  to 
the  extent  of  appropriating  for  local  use  revenues  which  belong  to  the  central 
Government.  At  present  the  Government  derives  its  revenue  principally  from 
five  sources,  namely : 

1.  The  Maritime  Customs  and  native  customs  within  50-li  limit. 

2.  Native  customs  outside  the  50-li  limit  and  along  the  land  frontiers. 

3.  The  salt  gabelle. 

4.  The  wine  and  tobacco  taxes. 

5.  The  stamp  duty. 

From  the  five  sources  enumerated  above,  the  amount  of  revenue  collectible 
each  year  is  about  $209,000,000.  The  net  amount  remitted  to  the  Gov¬ 
ernment,  however,  falls  far  short  of  this  sum,  for  among  these  only  the  cus¬ 
toms  revenue  has  remained  intact. 

Of  the  revenue  from  the  native  customs  outside  of  the  50-li  limit,  besides  the 
two  million  odd  dollars  from  the  Peking  octroi,  not  more  than  $700,000  has 
reached  the  central  Government  through  the  other  sources.  As  to  the  salt 
revenue,  about  $30,200,000  was  retained  by  the  Provinces,  while  about 
$10,300,000  was  required  for  the  cost  of  collection,  so  that  the  actual  amount 
realized  by  the  central  Government  was  only  about  $49,300,000.  As  to  the  wine 
and  tobacco  taxes  and  the  stamp  duty,  the  actual  amounts  remitted  to  the 
central  Government  constituted  only  one-tenth  of  the  amount  collected,  or  about 
$1,400,000  in  the  first  case  and  about  $300,000  in  the  second  case.  It  can  thus 
be  seen  that  out  of  a  nominal  total  of  $209,000,000  the  actual  sum  realized  by 
the  central  Government  is  about  $148,000,000,  out  of  which  has  to  be  again 
deducted  a  sum  of  $98,000,000  for  the  service  of  the  domestic  and  foreign 
loans  secured  upon  the  customs  and  salt  revenues  and  about  $43,000,000  for 
military  subsidies  and  the  redemption  of  the  different  kinds  of  treasury  notes 
secured  upon  the  salt  surplus,  thus  leaving  only  about  $7,000,000  unappropriated 
which  can  be  made  use  of  by  the  central  Government  for  administrative  and 
other  military  expenses. 

Now  according  to  the  latest  available  figures  the  annual  requirements  for 
administrative  expenses  are  about  $58,000,000  and  for  military  expenses  about 
$70,000,000,  making  a  total  of  $128,000,000.  While  this  does  not  exceed  the 
amount  authorized  by  the  budget  of  the  eighth  (1919)  year  of  the  Republic, 
which  has  been  adopted  by  a  mandate  of  November  29,  1923,  as  a  standard 
for  the  Government’s  retrenchment  policy,  yet  the  precariousness  of  the  situa¬ 
tion  is  easily  apparent  when  it  is  borne  in  mind  that  all  these  sums  have  to 
be  met  out  of  the  meager  amount  of  only  $7,000,000  which  is  at  the  free  dis¬ 
posal  of  the  Government.  In  other  words,  the  actual  amount  remitted  to  the 
Government  is  not  more  than  seven-tenths  of  the  amount  collected,  while  the 
unappropriated  portion  available  to  the  Government  is  only  5  per  cent  of 
that  amount. 

A  situation  created  by  the  fact  that  the  expenditure  of  the  Government 
exceeds  the  amount  at  its  disposal  by  seventeen  times  is  serious  enough.  But 
worse  still  is  the  fact  that  there  is  also  a  large  amount  of  unsecured  or 
inadequately  secured  loans  which  call  for  immediate  readjustment.  Calculating 
on  the  basis  of  the  figures  given  in  its  official  statement  of  September,  1922, 
the  outstanding  principal  and  interest  of  the  loans  of  the  Ministry  of  Finance 
amount  to  $536,000,000,  and  the  portion  of  the  loans  of  the  Ministry  of  Com¬ 
munications  which  it  can  not  itself  take  care  of,  according  to  a  memorandum 
it  has  recently  prepared  and  sent  to  the  Commission  for  the  Readjustment  of 
Finance,  amounts  to  $187,000,000,  making  a  grand  total  of  $723,000,000.  If 
consolidation  bonds  were  issued,  bearing  interest  only  at  the  rate  of  5  or  6 
per  cent  per  annum,  the  sum  required  for  the  payment  of  interest  alone  will 
amount  to  $40,000,000  or  $50,000,000  a  year.  Under  the  present  financial 
stringency,  when  the  Government  is  already  facing  a  deficit  of  about  $121,000,- 
000  per  year,  the  difficulty  of  oroviding  an  adequate  sinking  fund  for  the  loan 
service  can  be  readily  appreciated. 


_  A  very  full  resume  of  the  preliminary  report  may  be  found  in  the  China  Year  Book, 

1924,  p.  738  ff. 


288 


COMMERCIAL  HANDBOOK  OF  CHINA 


It  is  therefore  apparent  that  if  national  finance  is  to  be  reestablished  upon 
a  solid  foundation,  comprehensive  measures  for  fundamental  readjustments 
must  be  undertaken  at  once,  both  in  the  way  of  radically  curtailing  the 
expenses  and  also  of  effectively  increasing  the  receipts  of  the  Government. 

The  foregoing  resume  by  the  chairman  of  the  commission  can  but 
leave  one  with  a  feeling  that  possibilities  for  improvement  in  central 
Government  finance  are  predicated  upon  so  man}^  ifs  over  which 
the  central  Government  has  no  control,  that  foreign  unsecured  cred¬ 
itors  face  a  serious  situation.  The  only  practical  way,  therefore, 
for  the  Government  to  work  out  of  its  present  financial  predicament 
appears  to  be  contained  in  the  suggestion  that  the  revenues  of  the 
central  Government  which  are  to  be  increased  by  the  imposition 
of  the  2 y2  per  cent  surtax  envisaged  in  the  Washington  treaty  be 
applied  as  a  sinking  fund  for  readjustment  of  unsecured  loans.  The 
soundness  of  this  plan  has  been  generally  recognized. 

DEBT  CONSOLIDATION  PLANS 

Use  of  the  increased  customs  revenues  as  security  for  funding  the 
present  unsecured  debts  has  been  the  broad  basis  upon  which  all 
recent  studies  of  Chinese  Government  finance  have  rested,  the  chief 
reason  being  that  the  customs  collections  are  recognized  as  the  only 
dependable  source  of  income  which  will  be  available  to  the  Govern¬ 
ment  or  the  creditors  until  radical  political  and  constitutional  re¬ 
forms  are  carried  out.  These  will  require  considerable  time,  perhaps 
years,  before  they  become  effective.  With  the  ratification  of  the  nine 
"power  treaty  completed  on  August  5,  1925,  the  special  customs  con¬ 
ference  was  convened  on  October  26.8 

It  was  estimated  at  the  time  this  treaty  was  arranged  that  imposi¬ 
tion  of  the  21/2  per  cent  surtax  would  produce  approximately  $27,- 
000,000  silver,  and  the  surtax  of  5  per  cent  on  luxuries  something 
over  $2,000,000  silver.  Monsieur  Padoux,  adviser  to  the  Chinese 
Government,  in  a  pamphlet  published  January,  1923,  made  a  con¬ 
servative  estimate  of  $28,000,000  silver  for  returns  from  both  sur¬ 
taxes,  with  an  annual  increase  of  $3,000,000  silver  to  be  expected  from 
the  natural  growth  of  trade.  A  committee  of  the  American  Chamber 
of  Commerce  in  Peking  also  studied  the  question  and  came  to  the 
conclusion  that  these  estimates  were  reasonable.  Both  Monsieur 
Padoux  and  the  Chamber  of  Commerce  prepared  studies  showing  the 
extent  to  which  the  net  customs  revenues  and  the  receipts  from  the 
surtaxes  would  meet  the  service  charges  on  the  unsecured  debt  if  it 
were  funded.  The  details  of  these  plans  involve  differences  in  treat¬ 
ment  of  the  foreign  and  domestic  debt  and  suggest  considerable  scal¬ 
ing  down  of  interest  and  principal  of  the  domestic  debts.  The  latter 
operation,  as  the  American  committee  states,  can  best  be  considered 
by  the  Chinese  themselves. 

AVAILABLE  SOURCES  OF  REVENUE 

CUSTOMS  SURPLUS 

The  total  loan  charges  now  fixed  on  the  customs  revenue  amount  to 
approximately  $90,000,000  (1926).  These  charges,  according  to 


b  The  articles  of  this  treaty  describing  the  purposes  of  the  conference  may  be  found  in 
the  China  Year  Book,  1924,  pp.  1161—1164. 


CHINESE  GOVERNMENT  FINANCE 


289 


Monsieur  Padoux,9  are:  (1)  The  Russo-Frencli  loan  of  1895;  (2)  the 
Anglo-German  loans  of  1896  and  1898;  (3)  -the  1901  indemnity 
(Boxer  indemnity)  ;  (4)  the  reorganization  loan  of  1913;  (5)  several 
domestic  loans. 

The  situation  as  regards  the  loans  of  1895,  1896,  1898,  and  1913  is 
clear,  these  loans  being  charged  in  accordance  with  the  interest  and 
amortization  tables  attached  to  the  original  loan  agreements. 

But  the  situation  as  regards  the  1901  indemnity  and  the  domestic 
loans  is  somewhat  intricate.  The  Austrian  and  German  share  of  the 
Boxer  indemnity  has  been  canceled,  and  the  American,  Russian, 
French,  British,  and  Japanese  shares  have  been  remitted  to  the 
Chinese  Government,  or  are  in  the  process  of  being  remitted ;  they  are 
now  to  be  used  for  specific  domestic  purposes.  The  remitted  Russian 
portion  has,  however,  been  hypothecated  for  the  service  of  several 
domestic  loans  which  have  been  secured  on  it. 

The  following  table  gives  the  foreign  and  domestic  charges  against 
the  customs  revenue  for  the  years  indicated.  The  figures  under  the 
heading,  “  Remitted  portion  of  1901  indemnity,”  include  only : 

1.  The  American,  British,  French,  and  Japanese  shares. 

2.  The  balance  available  from  the  Russian  share  after  payment  of 
the  domestic  loans  secured  on  it. 

It  is  of  interest  to  note  in  connection  with  the  following  figures 
that  the  Boxer  indemnity  payments  still  retained  by  the  powers  form- 
a  very  inconsiderable  part  of  the  total  customs  revenues. 

Charges  on  Customs  Revenue 
[In  thousands  of  silver  dollars;  i.  e.,  000  omitted] 


Years 


1926  . . 

1927  _ 

1928  _ 

1929  . 

1930  . 

1931  _ 

1932  _ 

1933  . 

1934  _ 

1935  _ 

1936  . . 

1937  . 

1938...... 

1939  . 

1940  . 

1941  . 

1942  . 

1943  . 

1944  _ 

1945. . 

1946  . 

1947  . 

1948  . 

1949  . 

1950-1960. 


Foreign 


4  per 
cent 
Russo- 
French 
loan  of 
1895 


7,529 
7, 529 
7, 259 
7,  529 
7,  529 
7, 469 


5  per 
cent 
Anglo- 
German 
loan  of 
1896 


8,  548 
8, 540 
8,532 
8,  523 
8,  515 
8,505 
8,495 


4 Yi  per 
cent 
Anglo- 
German 
loan  of 
1898 


7,441 
7, 437 
7,433 
7,430 
7,426 
7, 422 
7,417 
7,413 
7,  408 
7, 403 
7,  398 
7,  393 
7,  387 
7,  381 
7,  375 
7,  369 
7,  362 
7,  355 


Retained 

portion 

of-1901 

indem¬ 

nity 


3,259 
3,259 
2,642 
2,642 
2,642 
2,642 
3,  813 
3,  813 
3,  813 
3,  813 
3,  813 
3,  813 
3,  813 
3,  813 
3,  813 
1,942 
1,942 
1,942 
1,942 
1,942 


5  per 
cent  re¬ 
organi¬ 
zation 
loan  of 
1913 


13, 464 
13, 464 
13, 464 
13,  464 
13, 464 
13,  464 
13, 464 
13,  464 
13,  464 
13,  464 
13,  464 
13,  464 
13,  464 
13,  464 
13,  464 
13,  464 
13,  464 
13,  464 
13,  464 
13,  464 
13,  464 
13, 464 
13,  464 
13, 464 
13,  464 


Total 

foreign 

charges 


40,  241 
40,  229 
39,  590 
39,  581 
39,  570 
39, 492 
33, 179 
24,680 
24,  675 
24,  670 
24,665 
24,660 
24,  654 
24,  648 
24,  642 
22,  765 
22,  758 
22,  751 
15,  396 
15,  396 
13,  464 
13,  464 
13,  464 
13, 464 
13,  464 


Domestic 


Remit¬ 
ted  por¬ 
tion  of 
1901  in 
demnity 


14, 309 
14, 469 

14,  629 
15,641 

15,  701 
18,  821 
29, 168 
29, 168 
29, 168 
29, 168 
29, 168 
29, 168 
29, 168 
33,  673 
33,  673 
15,  618 
15,  618 
15,  618 
15,  618 
15,  618 

5, 146 
5, 146 


Domes¬ 
tic  loans 


34, 985 
36, 164 
37, 366 
24, 328 
23, 416 
20,  226 
8, 956 
8,519 
8,  962 
5,  513 
5,242 
4,  973 
4,  702 


Total 

domes¬ 

tic 

charges 


49,  294 
50, 633 
51, 995 
39, 969 
39, 117 
39, 047 
38,124 
37,  687 
38, 130 
34,  681 
34,  410 
34, 141 
33,  870 
33,  673 
33,  673 
15,  618 
15,  618 
15,  618 
15,  618 
15,  618 
5, 146 
5, 146 


Total 
foreign 
and  do¬ 
mestic 
charges 


89, 525 
90, 852 
91,  585 
79,  550 
78,  687 
78,539 
71,  303 
62,  371 
62,  805 
59,  351 
59, 075 
58,801 
58,  524 
58,  321 
58,  315 
38,  383 
38,  376 
38,  369 
31,014 
31,014 
18,  610 
18,610 
13, 464 
13, 464 
13,  464 


0  Consolidation  of  China’s  Unsecured  Debt,  by  G.  Padoux,  British  Chamber  of  Com¬ 
merce  Journal,  Shanghai,  September— October,  1925. 


100020°—  26- 


-20 


290 


COMMERCIAL  HANDBOOK  OF  CHINA 


Monsieur  Padoux,  in  the  article  just  referred  to,  modified  slightly 
his  estimates  on  the  increases  likely  in  the  customs  revenue  from  the 
imposition  of  the  surtaxes.  The  following  table  is  the  more  recent 
estimate  made  by  him  of  the  possible  increases,  together  with  the 
total  charges,  domestic  and  foreign,  against  the  customs,  and  the 
balances  available  for  reconstruction. 

Balance  of  Customs  Revenue  Available  1  for  Financial  Reconstruction 


1926  . 

1927  _ 

1928  _ 

1929  . 

1930  . 

1931  _ 

1932  _ 

1933  _ 

1934  _ 

1935  _ 

1936  _ 

1937  _ 

1938  . . 

1939  _ 

1940  _ 

1941  . 

1942  _ 

1943  . 

1944  _ 

.1945 _ 

1946  . 

1947  _ 

1948  _ 

1949-1960 
1961 . 


Years 


Net  customs 
revenue 


Charges 


Foreign 


Domestic 


Surplus 


T 


$125,  000,  000 
128,  000,  000 
131,  000,  000 
133,  000,  000 
135,  000,  000 
137,  000,  000 
139,  000,  000 
141,  000,  000 
143,  000,  000 
145,  000,  000 
147,  000,  000 
149,  000,  000 
151,  000,  000 
153,  000,  000 
155,  000,  000 
157,  000,  000 

159,  000,  000 

160,  000,  000 
160,  000,  000 
160,  000,  000 
160,  000,  000 
160,000,000 
160,  000,  000 
160,  000,  000 
160,  000,  000 


$40,  250,  000 
40,  250,  000 
39,  600,  000 
39,  500,  000 
39,  600,  000 
39,  500,  000 
33,  200,  000 
24,  700,  000 
24,  700,  000 
24,  700,  000 
24,  700,  000 
24,  700,  000 
24,  700,  000 
24,  700,  000 
24,  700,  000 
22,  800,  000 
22,  800,  000 
22,  800,  000 
15,  400,  000 
15,  400,  000 
13,  500,  000 
13,  500,  000 
13,  500,  000 
13,  500,  000 


$49,  250,  000 
50,  600,  000 
52,  000,  000 
40,  000,  000 
39,  100,  000 
39,  000,  000 

38. 100,  000 

37,  700,  000 

38,  100,  000 
37,  000,  000 
34,  400,  000 

34. 100,  000 
33,  800,  000 
33,  600,  000 
33,  600,  000 
15,  600,  000 
15, 600,  000 
15,  600,  000 
15,  600,  000 
15,  600,  000 

5,  100,  000 
5,  100,  000 


$35,  500,  000 
37,  150,  000 
39,  400,  000 
53,  500,  000 
56,  300,  000 
58,  500,  000 
67,  700,  000 
78,  600,  000 
80,  200,  000 
85,  600,  000 
87,  900,  000 
90,  200,  000 
92,  500,  000 
94,  700,  000 
96,  700,  000 
118,  600,  000 
120,  600,  000 
121,  600,  000 
129,  000,  000 
129,  000,  000 
141,  400,  000 
141,  400,  000 
146,  500,  000 
146,  500,  000 
160,  000,  000 


^rom  British  Chamber  of  Commerce  Journal,  Shanghai,  September-0 ctober,  1925. 

SALT  SURPLUS 

Other  sources  of  revenue  which  might  be  increased  for  the  re¬ 
habilitation  of  Chinese  finances  are  the  salt  revenue,  the  wine  and. 
tobacco  tax,  the  Peking  octroi,  and  the  stamp  tax. 

The  salt  revenues  come  into  mind  first.  The  annual  collections 
from  this  source  have  varied  during  the  past  10  years  from  $70,000,- 
000  to  $85,000,000,  but  of  these  collections  a  constantly  increasing 
share — partly  authorized,  partly  unauthorized — has  been  retained 
by  the  provincial  governments.  The  salt  revenue  collections,  with 
the  amounts  retained  by  the  provincial  authorities,  the  amount 
devoted  to  obligations  secured  on  these  revenues,  and  the  amount 
released  to  the  central  Government  is  shown  for  the  years  1918-1924 
in  the  following  table. 

Statement  of  Salt  Revenue  1 


Years 

Total  collec¬ 
tions 

Retained  by 
provincial 
authorities 

Applied  on 
obligations 
secured  on 
salt  revenues 

Released  to 
central  Gov¬ 
ernment  2 

1918 _ _ _ _ _ 

$71,  566,  000 
80,  637,  000 
79,  064,  000 
77, 988,  000 
85,  789,  000 
79,  545,  000 
70,  544,  000 

$15,  546, 000 
26,  341,000 
23,912,000 
18,413,000 
31,  669,  000 

30,  207,  000 

31,  669,  000 

$4, 173,  000 
11,622,000 
13, 876, 000 
5,  526,  000 
8,051,000 
9, 492,  000 
8,111,000 

$71, 761, 000 
75,  213, 000 
64,  620,  000 
52,  060, 000 
47,  193,  000 
41,  543,  000 
31,  257, 000 

1919 _ _ 

1920 _ 

1921 _  .. 

1922 _ _ _ 

1923 . . . . . _ . 

1924... . . . 

1  Statement  of  the  Chinese  Government  Central  Salt  Administration. 

2  This  does  not  represent  the  remainder  after  deducting  the  previous  two  items  from  total  collections,  as 
certain  other  charges  (transfers,  etc.)  are  met  and  a  balance  retained  with  the  administration. 


CHINESE  GOVERNMENT  FINANCE 


291 


The  fixed  charges  on  this  revenue  are : 

(1)  The  Anglo-French  5  per  cent  loan  of  1908,  which  requires 
from  1926  to  1938  yearly  payments  decreasing  from  £396,250  down 
to  £261,250. 

(2)  The  5  per  cent  Crisp  loan  of  1912,  which  requires  yearly  pay¬ 
ments  of  £327,257  from  1926  to  1952. 

(3)  Part  of  the  5  per  cent  Hukuang  loan.  This  loan  is  sec'ured 
on  the  railway  and  on  the  salt  and  customs  revenue,  but  both  sink¬ 
ing  fund  and  interest  have  been  met  entirely  out  of  the  latter  two. 
Its  service  requires  £391,284  from  1926  until  1951. 

The  salt  revenue  is  also  collateral  security  for  the  Anglo-German 
loan  of  1898,  the  reorganization  loan,  and  the  Boxer  indemnity,  but 
these  charges  have  so  far  been  met  from  the  customs  revenue  and 
therefore  may  be  omitted.  In  addition,  however,  it  is  known  that 
the  service  requirements  on  about  40,000,000  yen  of  the  u  $96,000,000  ” 
loan  is  withheld  by  the  Yokohama  Specie  "Bank  from  salt  revenue 
which  otherwise  would  be  released  to  the  Government. 

From  the  foregoing  it  will  be  seen  that  the  fixed  charges  on  the 
salt  revenue  will  continue  down  to  1938  at  around  $8,000,000  to 
$9,000,000  annually,  depending  upon  the  rate  of  exchange,  and  from 
1938  to  1952  at  between  $4,000,000  and  $5,000,000  annually.  Assum¬ 
ing  the  present  rate  of  collection  for  the  next  25  years  and  the  reduc¬ 
tion  of  the  charges  to  $5,000,000  beginning  1938,  the  amount  available 
for  debt  consolidation  and  rehabilitation  will  average  around 
$32,000,000  until  1938,  and  $35,000,000  thereafter  until  1952. 

OTHER  REVENUES 

The  principal  remaining  source  of  revenue  is  the  wine  and  tobacco 
tax,  on  which  net  collections  have  averaged  around  $15,000,000 
yearly.  Of  these  total  collections,  however,  a  likewise  diminishing 
share  has  been  remitted  to  Peking,  the  amount  being  in  1919, 
$2,673,000;  1920,  $2,299,000;  1921,  $1,784,000;  1922,  $1,449,000.  By 
stopping  the  dissipation  of  these  funds,  a  possible  $1,500,000  may 
be  counted  on  annually. 

The  Peking  octroi  has  been  recently  reformed  and  improved,  and 
annual  revenue  of  $2,500,000  may  safely  be  estimated  from  that 
source. 

The  stamp  taxes  amount  annually  to  around  $2,500,000,  but  of 
these  collections  not  more  than  $200,000  or  $300,000  are  remitted  to 
the  central  Government. 

From  these  three  sources  annual  revenue  of  $4,300,000  may  be 
anticipated. 

The  following  table  shows  the  collections  of  these  three  taxes 
for  the  most  recent  years  available. 


Other  revenues 

1919 

1920 

1921 

1922 

Wine  and  tobacco  (net  collections)  1 _  _ 

$12,  443,000 
2,  673,  000 

1,  306,  900 

2,  354,  000 

$13,  012,  000 
2,  229,  000 
1, 488,  000 
2,  646,  000 

$12,  722,  000 
1,  784,  000 

1,  591,  000 

2,  522,  000 

$12,  726,  000 

1,  449,  000 

2,  500,000 
(3) 

Remitted  to  Peking. 

Peking  octroi  (net  collections) _ _ 

Stamp  taxes  (net)  2 . . 

1  Excludes  several  south  and  southwestern  Provinces.  Total  collected  for  all  China  is  estimated  at 
$26,000,000  silver. 

2  Peking  Government  receives  only  from  $200,000  to  $300,000  per  year. 

3  Not  known. 


292 


COMMERCIAL  HANDBOOK  OF  CHINA 


TOTAL  AVAILABLE  REVENUE  FOR  REHABILITATION 

Assuming  a  net  return  of  $4,300,000  from  the  wine  and  tobacco 
tax,  the  Peking  octroi,  and  the  stamp  taxes,  a  continuation  of  the  salt 
surplus  at  around  $32,000,000  until  1938  and  thereafter  $35,000,000 
until  1952,  and  an  expanding  customs  surplus  according  to  the  table 
given  above,  the  total  available  revenues  for  debt  consolidation  dur¬ 
ing  the  next  25  years  will  be  approximately  as  indicated  in  the  fol¬ 
lowing  tabulation.  The  fifth  column  represents  the  amount  neces¬ 
sary  for  the  service  of  the  unsecured  debt  as  consolidated  under  the 
proposed  plan  described  on  page  286,  while  the  last  column  gives 
the  estimated  surplus  available  for  administrative  expenses  of  the 
central  Government.  (The  amounts  are  in  silver  dollars.) 

Available  Sources  of  Revenue  for  Rehabilitation 


Years 

Customs 

surplus 

Salt  surplus 

Wine  and 
tobacco  tax, 
stamp  tax, 
and  Peking 
octroi 

Total 

Estimated 
service  of 
consolidated 
debt 1 

Balance 
available 
for  adminis¬ 
tration 
expenses, 
etc. 

1926 

$35,  500,  000 

$32,  000,  000 

$4,  300,  000 

$71,  800,  000 

1927. _ _ 

37;  150,  000 

32,  000,  000 

4,  300,  000 

73,  450,  000 

$45,  000,  000 

$28, 450,  000 

1928 _ 

39,  400,  000 

32,  000,  000 

4,  300,  000 

75,  700,  000 

49, 800,  000 

25, 900,  000 

1929 _ _ 

53,  500,  000 

32,  000,  000 

4,  300,  000 

89,  800,  000 

64,  250,  000 

25,  550,  000 

1930 _ 

56,  300,  000 

32,  000,  000 

4,  300,  000 

92,  600,  000 

68,  500,  000 

24, 100,  000 

1931 _ _ 

58,  500,  000 

32,  000,  000 

4,  300,  000 

94,  800,  000 

72,  500,  000 

22,  300,  000 

1932 _ _ 

67,  700,  000 

32,  000,  000 

4, 300,  000 

104,  000,  000 

94,  750,  000 

9,  250,  000 

1933.... . _. 

78,  600,  000 

32,  000,  000 

4,  300,  000 

114,  900,  000 

97,  650,  000 

17,  250,  000 

1934 . . 

80,  200,  000 

32,  000,  000 

4,  300,  000 

116,  500,  000 

100,  200,  000 

16,  300,  000 

1935 _ 

85,  600,  000 

32,  000,  000 

4,  300,  000 

121,  900,  000 

102,  400,  000 

19,  500,  000 

1936 _ _ 

87, 900,  000 

32,  000,  000 

4,  300,  000 

124,  200,  000 

104,  250,  000 

19,  950,  000 

1937. . . 

90,  200,  000 

32,  000,  000 

4,  300,  000 

126,  500,  000 

105,  750,  000 

20,  750,  000 

1938 . 

92,  500,  000 

32,  000,  000 

4,  300,  000 

128,  800,  000 

106, 900,  000 

21,  900,  000 

1939.... . . 

94,  700,  000 

35,  000,  000 

4,  300,  000 

134,  000,  000 

107,  700,  000 

26,  300,  000 

1940 _ 

96,  700,  000 

35,  000,  000 

4,  300,  000 

136,  000,  000 

108,  150,  000 

27,  850,  000 

1941 . . . 

118,600,  000 

35,  000,  000 

4,  300,  000 

157,  900,  000 

108,  250,  000 

49,  650,  000 

1942 _ 

120,  600,  000 

35,  000,  000 

4,  300,  000 

159,  900,  000 

108,  000,  000 

51, 900,  000 

1943 _ 

121,  600,  000 

35,  000,  000 

4,  300,  000 

160,  900,  000 

107,  400,  000 

53,  500,  000 

1944.... . . 

129,  000,  000 

35,  000,  000 

4,  300,  000 

168,  300,  000 

106,  450,  000 

61,  850,  000 

1945 _ 

129,  000,  000 

35,  000,  000 

4,  300,  000 

168,  300,  000 

105, 150,  000 

62, 150,  000 

1946 _ 

141,  400,  000 

35,  000,  000 

4,  300,  000 

180,  700,  000 

53,  500,  000 

127,  200,  000 

1947 

141,  400,  000 

35,  000,  000 

4,  300,  000 

180,  700,  000 

180,  700,  000 

1948 

146,  500,  000 

35,  000,  000 

4,  300,  000 

185,  800,  000 

185,  800,  000 

1949 

146,  500,  000 

35,  000,  000 

4,  300,  000 

185,  800,  000 

185,  800,  000 

1950 

146,  500.  000 

35,  000,  000 

4,  300,  000 

185,  800,  000 

185,  800,  000 

1951 

146,  500,  000 

35,  000,  000 

4,  300,  000 

185,  800,  000 

185,  800,  000 

1952 

146,  500,  000 

35,  000,  000 

4,  300,  000 

185,  800,  000 

185,  800,  000 

1953 

146,  500,  000 

40,  000,  000 

4,  300,  000 

190,  800,  000 

190,  800,  000 

i  Estimate  based  on  debt  consolidation  plan  discussed  on  pp.  285-286. 


GOVERNMENT  EXPENDITURE 


Various  estimates  have  been  made  as  to  the  amount  necessary  for 
the  administrative  expenses  of  the  Chinese  Government.  The  Fi¬ 
nancial  Readjustment  Commission,  in  its  report  of  April  16,  1924, 
which  has  been  adverted  to,  placed  the  amount  required  to  carry 
on  the  necessary  functions  of  the  Government  in  the  neighborhood 
of  $197,500,000  silver,  divided  as  follows: 


293 


CHINESE  GOVERNMENT  FINANCE 


Government  departments  and  agencies 

Expenditures 

Ordinary 

Contingent 

Organs  under  the  central  Government  . . .  _ . . . . . 

$22, 441,  350 
4,  048,  428 
3,  446,  932 
29,  519,  302 
52,  814,  744 
8,  643,  296 
1,817,  191 

3,  255,  270 

1,  541,  800 

1,  323,  747 

1, 109,  915 

$2,  748, 192 
1, 130, 106 
2,  282,  466 
6,  878,  455 
53,  512,  245 
120,  000 

Ministry  of  Foreign  Affairs _  _ _ _ _ _ _ 

Ministry  of  Interior  _ _ _  _  .  .  _  .  . . . 

Ministry  of  Finance  1 _ _ _ _  _ 

Ministry  of  War 2 _ _ _ _ _ _ _ _ _ 

Ministry  of  Navy . _  -------  _ _  _  -.  _  _  .. 

Ministry  of  Justice.. _ _  _ _ _  _  _  .. 

Ministry  of  Education _ _ _ _  _  _  _  ..  _ 

301,  740 
410,  447 
149,  218 
50,000 

Ministry  of  Agriculture _  _  -  .  .  _  _ _ 

Ministry  of  Communications _ _  ____  _ _ _  .  ..  . 

Bureau  of  Mongolian  and  Tibetan  Affairs.  ...  _ _  __  _  _ 

Total. . . . .  .  .  _ _ _ _ _ 

129,  961,  975 

67,  582,  869 

1  Includes  customs,  $14,416,256;  salt,  $10,866,578. 

2  The  large  proportion  of  ordinary  expenditure  under  this  heading  (approximately  40  per  cent)  is  worthy 
of  note. 


The  figures  given  above  may  be  taken  as  a  liberal  estimate,  based 
upon  a  unified  China  and  providing  for  future  reforms  in  adminis¬ 
tration.  Monsieur  Padoux  in  September,  1925, 10  considered  that, 
excluding  expenditure  of  various  self-supporting  ministries  and  bu¬ 
reaus,  a  total  of  $48,000,000  was  sufficient  for  governmental  expendi¬ 
ture  under  a  reconstruction  scheme,  Avhile  others  have  estimated 
$30,000,000  to  $35,000,000  as  sufficient  to  start,  increasing  gradually 
as  revenue  expanded. 

From  the  data  and  estimates  given  above  it  would  seem  that  with 
the  proposed  increase  in  the  customs  surtax  there  are  sufficient  reve¬ 
nues  in  sight  to  provide  for  a  consolidation  of  the  unsecured  debt 
and  a  substantial  surplus  for  the  administrative  expenditure  of  the 
Government.  Whether  the  actual  form  of  debt  consolidation  will 
follow  the  outline  indicated  above,  whether  only  partial  consolida¬ 
tion  will  be  considered,  or  whether  the  plan  of  dividing  the  unse¬ 
cured  debt  into  categories  enjoying  different  priorities  are  problems 
which  are  to  be  met  and  decided  by  the  customs  conference  now  in 
session,  as  is  likewise  the  corollary  consideration  of  what  amount  is 
to  be  considered  necessary  for  the  proper  administration  of  the 
Chinese  Government. 

SITUATION  OF  THE  RAILWAYS 

In  the  report  of  the  Financial  Readjustment  Commission  no  refer¬ 
ence  to  the  financial  situation  of  the  railways  was  made  except  to 
state  that  $187,500,000  silver  of  Ministry  of  Communications  debts 
was  being  transferred  to  the  Ministry  of"  Finance.  It  is  possible,  by 
referring  to  the  official  tables  published  in  1923  by  the  Ministry  of 
Communications,  to  describe  more  in  detail  the  difficulties  confront¬ 
ing  the  railways. 

Total  obligations  as  of  December  31,  1922,  were  as  follows,  all 
amounts  in  silver  dollars: 


Direct  obligations  of  ministry _ $43,  692,  571 

•  Railways -  622,065,812 

Telegraphs -  54,  698,  822 

Postal  service -  1,  662,  584 


Total - s  722,119,789 


10  Consolidation  of  China’s  Unsecured  Debt.  British  Chamber  of  Commerce  Journal, 
Shanghai,  September,  1925. 


294 


COMMERCIAL  HANDBOOK  OF  CHINA 


According  to  the  report  of  Mr.  Lo  Wen  Kan,  mentioned  previously, 
certain  loans  contracted  by  the  Ministry  of  Communications  already 
have  been  transferred  to  the  Ministry  of  Finance,  as  follows: 


Loans 

Amount  in 
original 
currency 

Rate  of 
exchange 

Silver  dollars 

Ching  Yu  Railway  advance . ..  -  _  francs.. 

Kao  Hsu  Railway  loan . . .  .........  ...yen  . 

Ki  Huei  Railway  loan _ _ _ _ do... 

Manchurian  Mongolian  Railways. _  .  ...  _  ..  ..do..-. 

Feng  Ching  Railway  loan _  _ _ _ 

9,  352,  431 
20,  000,  000 
10,  000,  000 
20,  000,  000 
£375,  000 
£22,  500 
20,  000,  000 
2,  400,  000 

7 

1 

1 

1 

i  10 

2  9 
i  1 

2  0,90 

1, 336, 061 
20,  000, 000 
10,  000,  000 
20,  000,  000 
3,  750,  000 
202,  500 
20,  000.  000 
2, 160,  000 

Feng  Ching  Railway  loan  interest  .......  . 

Telegraph  loan _ _  ...  .  ... . .  . . .yen.. 

Telegraph  loan  interest _ _  _ _ _ .do _ 

Total .  . . .  ...  .  .  _ _ _ _ 

77,  448,  561 

1  Rate  used  by  Ministry  of  Communications.  2  Rate  used  by  Ministry  of  Finance. 


Eliminating  the  above  loans  and  accrued  interest,  the  indebted¬ 
ness  of  the  Ministry  of  Communications  on  December  31,  1922,  can 
be  summarized  as  follows : 


Debts 

Millions  of  silver  dollars 

Foreign 

Domestic 

Total 

Direct  obligations  of  ministry: 

Short-term  loans  and  interest . . .  . . . 

0.8 

8.5 

34.3 

9.3 

34.3 

Nationalization  of  railways  and  interest.  . .  . . 

Total  . . . . . . 

.8 

42.8 

43.6 

Railway  obligations: 

Share  capital  and  interest.  ..  . . . . . 

2.8 

2.8 

411.6 

66.8 

29.2 
40.0 

16.3 

Mortgage  loans  and  interest  .  . . .  .. 

411.6 

49.3 

3.2 
34.6 

3.3 

Obligations  with  securities  and  interest  _  _ _ 

17.5 

26.0 

5,4 

13.0 

Obligations  without  securities  and  interest  _  _  ... 

Obligations  for  materials  _ _  ..  .  ..  _  .. 

Obligations  unspecified  . .  . 

Total .  . . . . . . . . 

502.0 

64.  7 

566.7 

Telegraph  Department  obligations: 

Mortgage  loans..  .  . . . 

22.0 

2.5 

.2 

7.8 

22.0 

2.5 

.2 

7.8 

Interest  on  mortgage  loans  _.  . . . . . . . . . 

Short-term  loans  _  .  .  . . . 

Obligations  for  materials.  . . . . . . . 

Total..  . . . . . . 

32.5 

32.5 

Postal  obligations  .  . .  . 

1.7 

1.7 

Total  indebtedness _ ...  _  ..  _ _ _ _ _ _ _ 

535.3 

109.2 

644.5 

The  above  figures  include  the  German  issues  of  the  Tientsin-PukoAv 
and  Hukuang  Railways  which,  though  received  by  China  in  the 
financial  settlement  with  Germany  completed  in  June,  1924,  it  is 
understood  have  not  been  canceled,  and  several  items  of  interdepart¬ 
ment  indebtedness  as  follows : 


Obligations  without  securities  :  Hukuang  Railway _ $12,  945,  000 

Obligations  for  materials  :  Pien  Lo  Railway _  496,  000 

Obligations  unspecified : 

Shanghai-Nanking  Railway _  2,  653,  000 

Pien  Lo  Railway _  3,453,000 

Kirin-Changchun  Railway _  511,  000 


Total _  20,  058,  000 


CHINESE  GOVERNMENT  FINANCE 


295 


The  greater  portion  ($567,000,000)  of  the  debt  is  directly  in  con¬ 
nection  with  the  railways.  Of  this  railway  debt,  approximately 
$411,000,000  consists  of  loans  classified  by  the  Ministry  of  Com¬ 
munications  as  mortgage  loans;  $156,000,000  consists  of  imperfectly 
or  entirely  unsecured  debt,  which  includes  bills  for  materials  and 
unpaid  accounts  of  a  current  nature.  The  term  “mortgage,”  how¬ 
ever,  has  been  used  in  a  loose  sense  and  denotes  the  naming  of  some 
general  security,  such  as  “revenues  of  Government  utilities,”  in 
the  case  of  the  Peking-Hankow  redemption  loan,  or  likin  revenues 
in  the  case  of  the  Tientsin-Pukow  original  and  supplementary  loans, 
rather  than  a  pledge  of  the  railway  property  itself.  Of  actual 
mortgages  on  railway  property,  the  total  is  estimated  as  under 
$250,000,000.  The  Peking-Hankow  funded  debt,  the  Hukuang,  and 
the  Tientsin-Pukow  loans  are  all  secured  by  pledges  of  various 
Government  revenues  rather  than  by  a  pledge  of  the  railway  prop¬ 
erty.  It  should  be  observed  that  the  railways  underlying  these 
$250,000,000  of  real  mortgages  are  not  in  particularly  difficult 
straits.  It  is  the  other  $317,000,000  of  obligations  that  constitute 
the  real  problem. 

Some  of  the  short-term  domestic  debt  (about  $12,000,000  silver) 
bears  interest  at  18  and  20  per  cent  per  annum.  For  the  most  part 
this  is  a  nominal  interest — that  is,  it  is  not  paid  but  is  added  to  the 
present  obligation.  In  order  to  show  how  this  accumulation  of  debt 
has  piled  up,  the  following  table  of  debt  maturities  has  been  pre¬ 
pared  from  information  contained  in  the  debt  schedules  of  the  minis¬ 
try,  and  amortization  tables  for  the  years  1923  to  1928,  inclusive. 
The  debt  maturities,  including  interest,  are  as  follows: 


Millions  of  silver  dollars 

Debt  maturities 

1923 

1924 

1925 

1926 

1927 

1928 

Railways: 

Mortgage  loans  ...  . . . . . 

52.3 

34.5 

31.0 

34.5 

32.0 

1  34. 1 

Obligations  with  securities  . _ _ _ 

22.2 

11.0 

1.4 

0.2 

0.2 

0.2 

Obligations  without  securities . . . . 

7.  1 

0.9 

0.6 

0.6 

0.6 

0.6 

Obligations  for  materials  __  _  .  . 

39.3 

Obligations  unspecified-  . 

4.8 

• 

Total.. . . . 

125.7 

46.4 

33.0 

35.3 

32.8 

34.9 

Telegraphs: 

Mortgage  loans  .  . . . . 

2  6.  6 

12.9 

1.6 

1.6 

1.5 

1.5 

Materials  .  . .  .  _ 

7.8 

Short-term  loans-  .  -  .  . . . . 

0.2 

14.6 

12.9 

1.6 

1.6 

1.5 

1.5 

Grand  total  yearly  maturities . . . 

140.3 

59.3 

34.6 

36.9 

34.3 

36.4 

1  Includes  interest  and  amortization,  Kia-Tsi  (Shantung)  Railway  loan  on  10-year  redemption  basis. 

2  Includes  $2,214,000  supposed  to  have  been  transferred  to  railways. 


In  studying  this  table  it  should  be  remembered  that  during  1923 
and  1924  practically  nothing  was  paid  on  the  railway  debts  except 
on  mortgage  loans.  Therefore,  there  has  been  a  large  carry-over 
from  these  years.  If  we  assume  that  the  mortgage  loans  were  paid 
in  full  during  1923  and  1924,  and  that  payments  were  not  made  on 
the  other  items,  then  the  cumulative  maturities  due  in  1925  would 
amount  approximately  to  $147,400,000  silver. 


296 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  net  income  of  the  railways  to  meet  these  charges  has  been 
inadequate.  In  1922  the  net  revenue  collected  was  approximately 
$34,000,000  silver.  The  postal  service  earned  a  net  above  expenses 
and  development  of  service  charges  of  about  $2,000,000  silver,  giv¬ 
ing  the  ministry  a  total  net  income  of  about  $36,000,000  silver.  This 
was  not  increased  during  1923,  and  in  1924  it  was  less  than  the 
above  amount.  It  is  apparent,  therefore,  that  if  the  creditors  are 
to  secure  payment  of  tlieir  accounts  and  the  Government  be  saved 
the  ignominy  of  collapse  and  repudiation,  plans  must  be  made  at  a 
very  early  date  to  bring  railway  revenues  more  into  line  with  debt- 
service  requirements.  To  make  this  financial  feat  possible,  three 
fundamental  conditions  which  do  not  now  exist  are  necessary:  (1) 
Peace  and  order  within  the  country;  (2)  adoption  of  budgets  and 
adherence  to  same  by  railway  management;  and  (3)  use  of  com¬ 
munications’  funds  for  communications’  purposes  only.  Given  these 
conditions  the  demonstrated  earning  capacity  of  the  railways  and 
telegraphs  appears  sufficient  to  extricate  them  from  their  present 
embarrassing  condition. 

Referring  again  to  the  table  of  debt  maturities,  it  should  be 
noted  also  that  the  charges  for  1923  and  1924  are  abnormally  high, 
owing  to  the  inclusion  for  these  years  of  large  amounts  of  unsecured 
floating  obligations.  If  these  were  cared  for  in  a  consolidated  long¬ 
term  funding  operation  adequately  secured,  the  financial  position  of 
the  railways  and  telegraphs  would  be  fairly  satisfactory  in  compari¬ 
son  with  their  normal  income,  but  their  normal  income  is  not  being 
received.  The  best  indication  of  how  military  disturbances  within 
the  country  during  the  latter  part  of  1924  affected  railway  income 
is  afforded  by  the  following  comparison  of  actual  net  operating 
revenues  for  1923  with  approximate  revenue  for  1924  of  the  more 
important  lines: 

Chinese  Government  Railways  1 


Net  operating  revenues 


Railways 


1924  (ap¬ 
proximate) 


1923  (actual) 


Peking-Hankow.. . . 

Peking-Mukden  . . 

Tientsin-Pukow _ 

Peking-Suiyuan . . . 

Shanghai-Nanking. . 

Shanghai  -Hangchow-Ningpo 

Cheng-Tai _ 

Canton- Kowloon _ 

Kirin-C  hangchun _ 

Taokow-  C  hanghwa _ 

Lung-Hai . . . 

Kaifeng-Honan . . 

Hupeh-Hunan _ 

Chuchow-Pinghsiang _ 

Ssu-Tao _ _ _ 

Kiaochow-Tsi  nan _ _ 

Total. . . 


$16,  000,  000 
5,  366,  510 
7,  912,  007 

2,  567,  000 

3,  932,  094 

1,  346,  305 

2,  292,  867 
2  43,  000 
750,  000 

1,  074,  840 

2,  000,  000 

1, 182,  000 

115,  042 
7,  000 
1,  724, 119 

3,  702,  770 


49,  929,  554 


$19,  347,647 
6,  951,  447 
9,135,644 

2,  667,  018 

3,  613,  715 
1, 150,131 
2,713,  949 

2  61,  257 
938, 164 
831,  932 

2,  052,  918 
1,310,052 

2  73,  249 
2  113,  000 
1,098,  168 

3,  004,  898 


54,  568, 177 


1  Source:  C  S.  Liu,  Director  of  Railway  Department,  Ministry  of  Communications,  Apr.  1,  1925. 

2  Deficit. 


The  only  logical  conclusion  that  can  be  reached  while  present  con¬ 
ditions  continue  in  China  is  that  the  unsecured  foreign  debts  of  the 


CHINESE  GOVERNMENT  FINANCE 


297 


Ministry  of  Communications  should  receive  consideration  on  an 
equal  footing  with  all  other  unsecured  debts  of  the  Government  in 
any  plans  that  are  devised  for  readjustment. 

The  international  character  of  the  obligations  has  been  indicated 
in  a  general  way  in  this  study,  though  without  specific  reference  to  the 
unsecured  debts  owed  to  any  single  country.  The  principal  cur¬ 
rencies  involved  are  pounds  sterling,  gold  dollars,  yen,  and  francs. 
These  are  also  the  currencies  used  by  the  nations  which  are  mem¬ 
bers  of  the  International  Consortium  for  China.  It  would  seem  to 
be  a  natural  function  of  the  consortium,  therefore,  to  carry  out  what¬ 
ever  funding  operation  is  finally  decided  upon. 

THE  OLD  CONSORTIUM 

In  1913  the  Chinese  Government  floated  a  reorganization  loan 
through  a  consortium  of  banks  in  five  nations  known  as  the  “Five- 
Power  Group.”  Under  the  terms  of  this  loan  contract  the  Chinese 
Government  agreed  to  give  the  lending  banks  the  option  of  under¬ 
taking  future  loans  issued  by  the  Government  at  a  commission  of 
6  per  cent  when  secured  by  a  tax  on  the  revenues  of  the  Salt  Ad¬ 
ministration  or  when  issued  for  the  same  purposes  as  named  in  the 
reorganization  loan  agreement.  The  European  war  disrupted  the 
“Five-Power  Group”  organization,  and  the  Chinese  Government 
has  since  borrowed  through  other  channels,  having  received  a  num¬ 
ber  of  loans  from  the  United  States  and  Japan. 

THE  NEW  CONSORTIUM 

In  1918  a  new  consortium  for  China,  representing  bankers  of 
Great  Britian,  France,  Japan,  and  the  United  States,  was  proposed. 
The  new  consortium  received  the  sanction  of  the  State  Department 
at  Washington  in  the  following  terms  (letter  to  the  bankers,  July 
9,  1918)  : 

The  formation  of  a  four-power  group,  to  consist  of  financial  interests  of  the 
United  States,  Great  Britain,  France,  and  Japan,  to  deal  with  the  Government 
of  China  for  the  purpose  of  making  loans  to  that  Government  seems  advisable. 
If  the  terms  and  conditions  of  each  loan  are  submitted  to  and  approved  by 
this  Government  and  the  other  cooperating  Governments  and  by  the  Govern¬ 
ment  of  China,  this  Government  would  not  only  interpose  no  objection,  but, 
on  the  contrary,  would  consider  such  an  arrangement  an  assurance  that  the 
welfare  of  China  and  the  proper  interests  of  the  other  Governments  were  of 
such  a  mutual  character  as  to  permit  of  close  and  friendly  intercourse  for 
their  common  good.  *  *  *  This  Government  would  be  opposed  to  any 

terms  or  conditions  of  a  loan  which  sought  to  impair  the  political  control  of 
China  or  lessen  the  sovereign  rights  of  the  Republic. 

On  October  8,  1918,  the  State  Department  announced  to  the 
French,  British,  and  Japanese  Embassies  that  31  banks  had  joined 
the  American  group  and  were  representative  of  all  sections  of  the 
country. 

The  principal  terms  of  the  new  consortium  agreement,  dated 
October  15,  1920,  are  summarized  in  the  China  Year  Book,  1923,  on 
pages  774-777. 

The  execution  of  the  consortium  agreement  and  its  confirmation 
and  approval  by  the  four  Governments  whose  banking  groups  were 
signatory  to  it  were  made  known  to  the  Chinese  Government  by 
official  communication  dated  January  18,  1921,  signed  by  the  min- 


298 


COMMERCIAL  HANDBOOK  OF  CHINA 


isters  to  China  of  the  four  Governments  concerned.  The  Chinese 
Government,  however,  has  not  accepted  the  consortium  agreement, 
and  is  not  a  party  to  it  (January,  1926). 

At  the  meeting  of  consortium  representatives  held  in  London, 
July,  1924,  the  organization  was  made  perpetual,  with  the  proviso 
that  any  member  might  withdraw  by  giving  12  months’  notice  to 
the  other  members. 

THE  NATIVE  (CHINESE)  CONSORTIUM 

Another  important  financial  development  was  the  formation  in 
1920  of  a  Chinese  banking  group  headed  by  the  Bank  of  China  and 
comprising  27  of  the  leading  native  banks.  The  combined  authorized 
capital  of  these  banks  is  $150,000,000  silver,  and  their  paid-up  capi¬ 
tal  is  estimated  as  $65,000,000  silver.11 

Early  in  1921  a  conference  of  the  native  consortium  at  Tientsin 
passed  the  following  resolutions  relative  to  future  loans  to  the 
Government : 

1.  Loans  are  not  to  exceed  one-half  the  value  of  the  revenues  as¬ 
signed  or  securities  pledged. 

2.  Value  of  revenues  assigned  or  securities  pledged  must  be  stated, 
and  stocks  or  bonds  pledged  must  have  a  fixed  date  of  redemption. 

3.  Positively  no  loans  are  to  be  made  without  adequate  guaranties 
or  security. 

4.  No  sum  of  any  considerable  amount  is  to  be  advanced  to  the 
Government  before  a  loan  agreement  is  signed. 

5.  Pavment  of  interest  must  not  be  deferred. 

*/ 

6.  Redemption  of  principal  must  be  made  as  it  falls  due;  on  no 
account  is  payment  to  be  deferred  or  the  loan  refunded. 

Later  in  1921  the  native  consortium  presented  to  the  Government 
a  series  of  memoranda  covering  the  following  points:  (1)  That  the 
Government  afford  opportunity  to  the  native  consortium  to  finance 
any  proposal  that  it  might  be  the  purpose  of  the  Government  to  take 
up  with  the  international  consortium;  (2)  that  measures  be  taken  for 
the  unification  of  the  Chinese  railways  under  centralized  control; 
(3)  that  the  Chinese  currency  system  be  reformed  by  the  adoption  of 
a  gold  standard,  the  abolition  of  the  tael,  the  unification  of  the  cur¬ 
rency,  and  the  control  of  note  issue  by  the  Government. 

In  extending  loans  to  the  Government  the  native  consortium  has 
tried  to  insist  that  satisfactory  assurance  be  given  that  the  money 
borrowed  should  be  expended  for  the  purpose  for  which  it  was 
loaned  and  for  no  other,  and  that  it  should  not  be  applied  to  current 
expenses  or  to  administrative  purposes.  Two  loans  of  the  Govern¬ 
ment  in  1921  were  financed  by  the  native  consortium,  the  first  being 
the  railway-car  loan  for  $6,000,000  silver  and  the  second  the  Shang¬ 
hai  Mint  loan  for  $2,500,000  silver,  in  both  of  which  the  banking 
group  retained  in  its  own  hands  the  proceeds  of  the  loans  and  dis¬ 
bursed  them  direct  to  the  contractors,  reserving  the  right  of  veto  on 
all  contracts.  In  the  case  of  the  railway-car  loan  the  native  con¬ 
sortium  reserved  the  right  to  inspect  the  cars  periodically  and  insure 
proper  maintenance;  to  receive  direct  remittances  to  meet  the  service 


11  Details  of  the  organization  of  the  member  banks  of  the  Chinese  consortium  may  be 
found  in  Appendix  B  of  “  Currency,  Banking,  and  Finance  in  China,”  by  Dr.  Frederic 
E.  Lee. 


CHINESE  GOVERNMENT  FINANCE 


299 


of  the  loan  from  the  railways  to  which  the  rolling  stock  had  been 
assigned;  to  deduct  interest  from  funds  remaining  in  its  hands  in 
case  of  default ;  to  hold  as  contingent  security  a  lien  on  the  surplus 
revenues  of  the  Peking-Hankow  Railway;  and  to  audit  and  publish 
the  accounts  of  that  railway.  Military  interference  with  the  railways 
and  the  Government  has  prevented  the  banks  from  putting  into 
effect  these  protective  stipulations. 

CONCLUSION 

This  report  is  intended  to  present  only  a  broad  outline  showing  the 
general  financial  condition  of  the  central  Government.  That  the 
Government  is  temporarily  unable  to  realize  upon  many  of  its  exist¬ 
ing  assets,  and  so  is  unable  to  pay  immediately  the  interest  and 
principal  of  its  debts  is  evident.  It  would  be  wrong,  however,  to 
leave  the  impression  that  the  situation  is  hopeless  or  that  the  Chinese 
themselves  can  not  improve  it.  There  is  more  wealth  noiv  within 
the  country  than  at  any  previous  time  in  the  nation’s  history,  but 
trade  is  hampered  by  a  multiplicity  of  restrictions  and  exactions 
probably  never  equaled  elsewhere  in  the  world.  Furthermore,  as 
China  does  not  yet  enjoy  tariff  autonomy,  because  of  existing  treaties 
and  the  complications  of  loan  agreements,  the  situation  is  compli¬ 
cated. 

To  bring  about  permanent  improvement  of  the  Government’s 
finances,  political  and  constitutional  changes  are  involved  that  China 
must  work  out  for  herself. 

As  has  been  shown,  the  total  unsecured  indebtedness  of  the  Govern¬ 
ment  has  reached  the  point  whereby  the  action  of  interest  alone  it 
increases  nearly  $100,000,000  silver  per  year.  The  total  cost  to 
China  of  a  continuation  of  the  present  situation  is  thus  almost  $10,- 
000,000  silver  a  month. 

BIBLIOGRAPHY 

American  Chamber  of  Commerce,  Peking.  Chinese  Government  Finance. 

Study  made  by  a  committee  from  the  American  chamber.  1923. 

Baylin,  J.  R.  Foreign  Loan  Obligations  of  China.  Peking,  Chinese  Govern¬ 
ment  Bureau  of  Economic  Information.  1925. 

Chang  Ying  Hua  (Director  of  the  Bureau  of  Currency).  The  Financial  Recon¬ 
struction  of  China.  1923. 

Chinese  Government.  Tables  showing  various  obligations  of  the  Ministry  of 
Communications,  calculated  up  to  January  31,  1923. 

Chinese  Government  Bureau  of  Economic  Information.  Bulletins  and  supple¬ 
ments,  1923  and  1924. 

Financial  Readjustment  Commission.  Preliminary  report,  published  April,  1924. 
Kimber’s  Record  of  Government  Debts  and  Foreign  Securities.  1923. 

Lee,  Frederic  E.  Currency,  Banking  and  Finance  in  China.  220  pp.  Trade 
Promotion  Series  No.  27.  United  States  Department  of  Commerce.  1926. 
MacMurray,  J.  V.  A.  Treaties  and  Agreements  with  and  Concerning  China. 
2  vols.  1921. 

Overlach,  T.  W.  Foreign  Financial  Control  in  China.  1919. 

Padoux,  G.  (Adviser  to  the  Chinese  Government).  The  Financial  Reconstruc¬ 
tion  of  China  and  the  Consolidation  of  China’s  Present  Indebtedness.  1923. 
Report  of  Chinese  Minister  of  Finance,  Mr.  Lo  Wen  Kan,  September,  1922. 

Published  in  China  Year  Book.  1923. 

Seligman,  E.  R.  A.  Essays  in  Taxation.  1923. 

Senate  Document  No.  124,  February,  1922.  Armament  Conference  Treaties. 
Wagel,  S.  R.  Finance  in  China.  1914. 

Willoughby,  W.  W.  China  at  the  Conference.  1922. 

Winston,  A.  P.  Chinese  Finance  Under  the  Republic.  1916. 


PROBLEMS  OF  FOREIGN  CAPITAL  IN  CHINA 


By  J.  V.  A.  MacMurray,  American  Minister,  Peking 

[Reprinted  by  permission  from  Foreign  Affairs,  an  American  quarterly  review,  New  York, 

Vol.  Ill,  No.  3] 

Among  the  economically  less-advanced  areas  of  the  world  China 
is  peculiar  in  that  it  is  not  a  new  country  awaiting  the  beginnings 
of  an  ordered  civilization,  like  much  of  the  African  and  South 
American  continents;  it  is  a  country  of  dense  population,  not  only 
with  a  distinctive  culture  and  a  high  degree  of  social  organization, 
but  already  possessing  a  very  considerable  industrial,  commercial, 
and  financial  development  of  its  own.  Industrial  enterprises,  there¬ 
fore,  and  more  especially  the  modern  means  of  communication,  such 
as  railways  and  steam  shipping,  find  in  China  a  field  already  plowed 
and  harrowed  for  the  sowing.  Once  built  wfith  honesty,  and  operated 
with  even  a  minimum  of  efficiency,  a  railroad  in  China  pays  for  it¬ 
self  almost  from  the  beginning.  Its  course  lies  through  a  region 
already  under  intensive  cultivation,  and  through  towns  which  imme- 
morially  have  possessed  local  industries,  whose  opportunity  for  ex¬ 
pansion  has  hitherto  been  limited  by  the  enormous  transportation 
costs  incident  to  the  old  methods  of  conveyance  by  donkey,  by  camel, 
or  by  wheelbarrow ;  and  within  reach  of  it  dwells  a  population  more 
densely  settled  than  in  any  region  of  the  world,  except  perhaps  some 
portions  of  northwestern  Europe.  A  railway  in  China  has  not, 
therefore,  to  develop  the  country  which  it  is  to  serve  and  from  which 
it  is  thereafter  to  derive  its  revenue.  The  economic  problem  which  it 
resents  is  rather  one  of  adjustment  and  development,  which  takes 
place  automatically  as  between  the  industries  and  the  markets  of  the 
region  which  has  been  awaiting  this  quicker  and  cheaper  means  for 
the  disposal  of  its  products. 

China  is  also  peculiar  among  the  economically  less-advanced  areas 
of  the  world  in  that  its  development  through  foreign  capital  has 
been  undertaken,  not  by  the  nationals  of  any  single  power,  but  by 
various  nationalities  simultaneously — some  of  them  inspired  by 
political  at  least  as  much  as  by  economic  motives.  Among  these 
powers  the  Chinese  Government  has  intrigued,  playing  off  one  for¬ 
eign  influence  against  another,  and  offsetting  concessions  to  one  set 
of  interests  by  “  compensations  ”  to  other  interests.  This  has  re¬ 
sulted  in  a  haphazard  development,  neither  continuous  nor  consistent, 
often  ignoring  economic  necessities  in  favor  of  considerations  of  im¬ 
mediate  political  expediency.  It  has,  moreover,  had  other  results 
more  positively  dangerous  alike  to  Chinese  interests  and  to  the  in¬ 
terests  of  the  foreign  investing  nations.  It  has  from  time  to  time 
resulted  in  acute  international  rivalries  which  have  in  turn  led  to  an 
accentuation  of  particularistic  and  exclusive  designs,  such  as  have 
found  expression  in  the  various  claims  to  so-called  “  spheres  of 
interest,”  or,  as  they  are  sometimes  designated,  “spheres  of  in- 

300 


PROBLEMS  OF  FOREIGN  CAPITAL  IN  CHINA 


301 


fluence.”  Under  these  conditions,  economic  and  political  motives 
have  interacted  one  upon  the  other,  and  have  become  blended  and 
confused  to  an  extent  that  is  perhaps  not  equaled  elsewhere  in  the 
world. 

As  has  been  said:  “Financial,  economic,  and  industrial  conces¬ 
sions  have  been  made  the  objects  of  international  policies;  such 
advantages  have  been  sought  by  governments — both  directly,  in 
the  form  of  general  conventional  stipulations,  and  indirectly,  in  the 
form  of  special  grants  to  particular  banks  or  industrial  organiza¬ 
tions — through  all  the  means  available  to  one  state  in  its  intercourse 
with  another ;  the  holders  of  such  concessions  have  often  spoken  with 
the  voice  of  their  governments  in  insisting  upon  their  own  con¬ 
struction  of  the  rights  granted  to  them;  and  such  commitments  to 
individuals  of  one  nationality,  even  when  left  unutilized  and  allowed 
to  lapse  by  the  terms  of  the  concessions,  have  now  and  again  been 
claimed  as  a  basis  of  protest  against  a  grant  to  the  nationals  of  any 
other  country.  The  result  of  this  merging  of  individual  with 
governmental  interests  has  been  that  matters  which  would  elsewhere 
be  of  merely  commercial  character,  susceptible  of  judicial  determina¬ 
tion  in  case  of  dispute,  are  in  China  matters  of  international  political 
concern,  for  the  settlement  of  which  the  ultimate  recourse  is  to 
diplomatic  action.  It  is  thus  in  a  sense  true  that  the  international 
status  of  the  Chinese  Government  is  determined  and  conditioned  by 
its  business  contracts  with  individual  foreign  firms  or  syndicates, 
scarcely,  if  at  all,  less  than  by  its  formal  treaties  with  other  govern¬ 
ments.” 

It  would  be  unfair,  however,  to  convey  the  impression  that  the 
reliance  of  China  upon  foreign  private  capital  is  intrinsically  bad 
or  harmful  to  Chinese  interests.  Harm  has  indeed  been  done  to 
the  interests  both  of  China  and  of  the  other  powers  in  certain  cases 
in  which  nations  ambitious  of  political  advantage,  or  of  exclusive 
economic  position,  have  insisted  upon  an  admixture  of  uneconomic 
elements  designed  to  serve  ulterior  ends.  This  is,  of  course,  most 
marked  in  cases  involving  encroachments  upon  the  territorial  or 
administrative  integrity  of  China,  or  upon  the  principle  of  the  open 
door  or  equality  of  economic  opportunity  for  all  nations  in  China. 
It  has  been  exemplified  particularly  in  connection  with  certain  rail¬ 
way  lines  constructed  by  nominally  private  enterprise — enterprise, 
however,  which  was  in  fact  a  disguised  agency  of  government, 
assuming  to  exercise  within  Chinese  territory  the  administrative  and 
fiscal  functions  of  a  government,  and  insisting  upon  a  fantastic 
reverence  for  the  sacredness  of  its  property  rights.  Along  their 
right  of  way  such  railway  companies  have  assumed  to  nullify  the 
treaty  rights  of  foreign  residents  in  China,  to  assume  jurisdiction 
over  their  persons  and  property,  and  to  levy  taxes  upon  them;  and 
the  railway  right  of  way  has  been  treated  as  so  far  identified  with 
the  national  territory  of  the  foreign  company  that  roads  could  not 
be  built  across  it,  nor  could  Chinese  troops  in  hot  pursuit  of  bandits 
be  permitted  to  trespass  upon  the  line  even  for  the  purpose  of 
putting  down  lawlessness.  But  these  are  instances  not  of  the  harm¬ 
fulness  of  private  financial  enterprise  in  itself,  but  of  the  perversions 
which  have  from  time  to  time  occurred  in  consequence  of  the  desire 
of  governments  to  use  business  enterprises  as  pretexts  for  political 
penetration. 


302 


COMMERCIAL  HANDBOOK  OF  CHINA 


In  those  eases  in  which  foreign  economic  developments  in  China 
have  been  left  free  of  political  designs,  however,  and  allowed  to 
develop  with  a  sole  view  to  the  security  of  the  bondholders  and 
the  success  of  the  enterprise,  the  record  is  on  the  whole  one  which 
China  is  not  warranted  in  resenting,  and  in  which  the  operations 
of  international  finance  appear  in  a  favorable  light.  Even  where 
the  safeguards  have  involved  a  degree  of  foreign  supervision  over 
Chinese  revenues  (so  as  “to  touch  very  nearly  the  administrative 
independence  of  China,”  as  it  was  put  by  President  Wilson  in  the 
public  announcement  of  withdrawal  of  support  from  the  American 
group  of  the  consortium,  in  1913),  it  must  in  fairness  be  admitted 
that  the  arrangements  of  this  sort  actually  made  up  to  the  present 
time  have  more  than  justified  themselves  by  the  inestimable  service 
which  they  have  rendered  to  the  Chinese  Government.  One  has 
but  to  point  to  the  international  services  established  in  connection 
with  the  Maritime  Customs  and  the  salt  revenues. 

The  customs  service,  as  is  well  known,  had  long  ago  grown  up 
as  a  result  of  historical  circumstances,  under  the  organizing  genius 
of  Sir  Robert  Hart ;  but  in  connection  with  the  Anglo-German  loans 
of  1896  and  1898,  made  for  the  purpose  of  paying  the  Chinese  in¬ 
demnities  to  Japan  after  the  war  of  1894-95,  it  was  stipulated  that 
the  system  of  foreign  supervision  over  the  administration  of  the 
customs  should  remain  unaltered  during  the  life  of  these  loans,  which 
were  charged  upon  the  customs  revenues ;  and  the  provisions  of  these 
loan  contracts,  therefore,  constitute  the  basic  agreement  with  regard 
to  the  continuance  of  the  present  system  of  international  supervision 
over  the  customs  administration.  In  1913  a  similar  service,  of  an 
international  character,  was  provided  for  by  the  terms  of  the 
reorganization  loan,  in  connection  with  the  security  of  that  loan 
upon  the  revenues  of  the  Salt  Gabelle.  Both  of  these  organizations 
have  rendered  to  the  Chinese  Government  loyal  and  efficient  service, 
of  which  they  may  well  be  proud,  and  which  has  won  for  them  in 
an  extraordinary  degree  the  confidence  of  the  Chinese  people. 

In  a  brief  review  of  the  operations  of  private  financial  enterprise 
in  China,  it  is  possible  to  deal  only  with  a  few  of  those  aspects  of 
the  problem  which  are  fundamental  and  peculiar  to  the  case  of 
China.  This  paper  will  therefore  confine  itself  almost  exclusively 
to  the  question  of  railways,  making  only  incidental  reference  to  the 
important  series  of  administrative  loans  by  which  China  was  enabled 
to  meet  the  indemnities  imposed  upon  her  as  a  result  of  the  war 
with  Japan,  and  by  which  after  the  revolution  of  1911  she  was  sup¬ 
plied  with  the  means  of  organizing  and  consolidating  the  new  Re¬ 
publican  Government.  It  will  be  necessary  to  leave  almost  without 
comment  the  activities  of  the  original  consortium — a  combination  of 
American,  English,  French,  German,  Japanese,  and  Russian  bank¬ 
ing  interests — which  in  1910  and  the  following  years  took  so  momen¬ 
tous  a  part  in  establishing  international  financial  cooperation  in 
China,  but  which  dealt  solely  with  administrative  rather  than  with 
industrial  financing. 

From  the  time,  30  years  ago,  when  China  first  had  recourse  to 
foreign  capital  to  aid  in  her  internal  development,  there  has  grown 
up  a  sharp  though  somewhat  artificial  distinction  between  loans  for 
the  general  purposes  of  the  Government,  conveniently  designated  as 


PROBLEMS  OP  FOREIGN  CAPITAL  IN  CHINA 


303 


administrative  loans,  and  those  devoted  to  industrial  developments 
undertaken  by  the  Government — these  so-called  industrial  loans  be¬ 
ing’  in  practically  every  case  for  the  purpose  of  railway  construction. 

The  building  of  railways  was  a  task  for  which  neither  the  Chinese 
Government  nor  the  Chinese  people  were  competent  by  training  or 
tradition.  They  lacked  the  necessary  technical  education  and  ex¬ 
perience,  and  were  not  familiar  with  the  kind  of  cooperation  on  a 
considerable  scale  which  is  necessary  for  public  works  or  corporate 
undertakings.  Without  undue  reflection  upon  the  Chinese  people, 
it  may  be  recalled  that  their  standards  of  public  or  corporate  re¬ 
sponsibilities  as  trustees  have  never  been  developed,  as  in  the  case 
of  western  nations.  For  reasons  peculiar  to  their  social  and  political 
fabric,  the  Chinese  have  developed  standards  different  from  our 
own — in  some  respects  more  punctilious  than  those  of  western  peo¬ 
ples,  but  involving  none  of  that  regard  for  the  sacredness  of  a  trust 
which  is  so  conspicuous  in  the  legal  and  moral  concepts  of  the  Occi¬ 
dent.  To  risk  a  generalization  so  broad  that  it  must  necessarily  be 
at  least  partly  faulty,  one  might  say  that  the  Chinese  are  singularly 
conscientious  about  the  obligations  of  a  debt,  but  equally  unrespon¬ 
sive  to  the  obligations  of  a  trust.  This  has  been  evident  in  such  cor¬ 
porate  activities  as  the  Chinese  have  undertaken  during  the  past 
generation.  Directors  of  corporations  have  not  felt  any  inhibition 
upon  their  borrowing  corporate  funds  for  the  purpose  of  speculation, 
in  stocks  or  in  exchange,  for  their  personal  profit.  It  has  resulted 
that  Chinese  corporations  have  frequently  ended  in  bankruptcy 
through  some  fluctuation  in  shares  with  which  the  corporation  itself 
was  in  no  wise  concerned. 

As  the  result  of  these  and  other  handicaps,  Chinese  financiers 
have  never  yet  succeeded  in  building  a  railway;  and  the  failure  of 
the  effort  in  the  case  of  the  Province  of  Szechwan  railway  was  so 
conspicuous  and  so  disappointing  that  it  constituted  one  of  the  causes 
which  brought  on  the  Chinese  revolution  in  1911.  Nor  has  the 
Chinese  Government  itself  ever  built  more  than  a  few  odd  miles  of 
railway,  except  in  the  case  of  the  Peking-Kalgan  line,  which  was 
indeed  a  fine  technical  accomplishment  and  a  successful  enterprise, 
but  which  during  the  past  few  years  has  been  made  the  sport  of 
political  and  personal  ambitions,  until  at  present  it  has  lost  its  orig¬ 
inal  independence  of  foreign  influence  and  has  become  almost  irre¬ 
trievably  burdened  with  debts. 

Apart  from  certain  more  or  less  experimental  efforts,  the  first  rail¬ 
way  concessions  in  China  were  in  the  strict  sense  of  the  word  “  con¬ 
cessions.”  They  involve  the  grant,  to  foreign  interests,  of  the  right 
to  build  and  exploit  railwa}^s  in  Chinese  territory  as  foreign  enter¬ 
prises  independent  of  the  Chinese  Government.  To  this  group  be¬ 
long  the  Chinese  Eastern  Railway  (the  Russian  Government’s 
agency  of  penetration  in  Manchuria),  the  German  railway  in  Shan¬ 
tung,  and  the  French  railway  in  Yunnan.  These  railways,  however, 
are  examples  of  what  was  in  fact  a  governmental  activity,  rather 
than  of  the  use  of  private  capital ;  and  they  were  possible  of  develop¬ 
ment  only  in  connection  with  adjacent  territorial  possessions,  of 
which  they  served  as  extensions. 

In  regions  more  remote  from  foreign  territorial  possessions  there 
was  an  opportunity  for  the  development  of  a  type  of  contract  which 


304 


COMMERCIAL  HANDBOOK  OF  CHINA 


has  become  known  as  the  underwriting  contract  or  bankers’  contract. 
This  type  of  contract  provides  for  a  loan  to  be  floated  in  the  foreign 
money  markets  by  the  bankers  as  underwriters.  The  bankers  then 
have  the  railway  built  for  the  Chinese  Government ;  they  choose  the 
engineer  themselves,  as  also  the  auditor  to  supervise  the  expenditures. 
In  the  earlier  contracts  of  this  type,  the  loan  was  secured  upon  the 
railway  itself,  and  under  the  guise  of  joint  foreign  and  Chinese 
supervision  the  bankers  in  fact  retained  what  was  an  effective  con¬ 
trol  of  the  operation  of  the  railway.  But,  beginning  with  the  Anglo- 
German  contract  for  the  Tientsin-Pukow  Railway,  in  1908,  this  type 
of  contract  has  been  modified  by  omitting  the  mortgage  upon  the 
railway,  and  by  relaxing  foreign  supervision  in  engineering  and 
auditing  after  the  line  has  been  built.  With  many  variations  in 
detail,  this  is  the  general  basis  upon  which  the  railways  in  China 
have  been  built  by  foreign  private  capital. 

Without  attempting  too  detailed  an  analysis,  it  may  be  pointed 
out  that  the  essential  elements  of  foreign  supervision,  alike  over  con¬ 
struction  and  operation  of  railroads  of  this  type,  are  embodied  in 
these  so-called  “engineering  rights”  (the  right  of  the  bankers  to 
have  the  road  constructed  under  the  direction  of  an  engineer  nomi¬ 
nated  by  them),  and  “auditing  rights”  (the  control  of  expenditure, 
during  construction,  by  a  financial  representative  of  the  bankers). 
Closely  connected  with  the  “engineering  rights  ”  is  the  question  of 
a  preference  for  materials  and  equipment  manufactured  by  firms 
of  the  same  nationality  as  the  bankers.  In  many  of  the  contracts 
of  this  type,  provision  is  made  for  the  establishment  of  a  purchas¬ 
ing  agency,  which,  for  a  fixed  commission,  is  to  purchase  all  mate¬ 
rial  required  for  the  construction  and  operation  of  the  line.  In 
practice  this  has  usually  meant  that  all  material  for  the  road  was 
purchased  from  a  firm  affiliated  with  the  lending  bank.  Even  where 
no  such  provision  exists,  however,  it  generally  works  out  in  practice 
that  the  necessary  material  for  the  road  is  supplied  by  the  industry 
of  the  country  which  furnished  the  money  and  which  nominated 
the  engineer  in  chief.  The  tendency  presents  a  real  difficulty  only 
in  cases  where  several  nationalities  have  cooperated  in  the  build¬ 
ing  of  a  line.  An  attempt  to  obviate  this  difficulty  was  made  in 
the  case  of  the  Hukuang  Railways,  in  the  construction  of  which 
American,  British,  French,  and  German  capital  participated.  Sec¬ 
tions  were  allotted  to  the  several  nationalities,  but  the  contract  pro¬ 
vided  for  an  “  impartial  preference,”  on  all  the  sections,  for  the 
materials  of  all  the  lending  nationalities.  It  was  assumed  that  free 
competition  among  the  manufacturers  of  the  four  interested  countries 
would  obviate  any  disposition  on  the  part  of  the  various  section 
engineers  to  favor  materials  of  their  own  nationality.  But  the  theory 
found  in  human  nature  an  obstacle  to  its  successful  realization.  The 
whole  training  of  an  American  engineer  makes  him  look  askance  at 
the  rigid  type  of  locomotive  suitable  to  English  railways,  which  in 
his  opinion  are  wholly  impracticable  for  such  pioneer  lines  as  are 
required  to-day  in  China ;  and  he  regards  as  a  mere  extravagance 
the  eternally  substantial  British  type  of  bridges,  with  their  rivet 
holes  individually  drilled  by  hand.  The  British  engineer,  on  the 
other  hand,  trained  in  the  practice  of  a  country  where  the  railroad 
system  has  long  ago  ceased  to  cover  new  territory  and  devoted  to 


PROBLEMS  OF  FOREIGN  CAPITAL  IN  CHINA 


305 


the  perfection  of  the  existing  system,  regards  with  complete  con¬ 
tempt  what  he  considers  the  jerry-built  rolling-stock  and  bridge 
work  of  his  American  colleague.  Here  is  an  honest  difference  of 
views  which  presents  one  of  the  most  difficult  of  the  problems  inci¬ 
dent  to  international  financial  cooperation  in  railway  development 
in  China. 

It  is  difficult  for  us  to  realize  the  extent  to  which  the  construction 
of  a  railway  in  China  constitutes  a  new  focus  for  the  whole  economic 
life  of  the  area  traversed.  In  the  present  rudimentary  stage  of  the 
country’s  railroad  development  there  is  almost  nowhere  any  com¬ 
petition  by  rail  or  by  water.  The  construction  of  a  new  line  gives 
an  outlet  for  industries  which  theretofore  had  never  dreamed  of 
being  more  than  merely  local.  Inevitably,  the  whole  economic  and 
commercial  organization  of  the  district  crystallizes  around  the  new 
line.  Districts  that  were  formerly  as  remote  from  each  other  as 
China  is  from  us,  suddenly  have  rapid  intercommunication.  And 
this  new  facility,  for  conference  and  for  the  dispatch  of  troops  and 
supplies,  brings  the  Government  and  the  people  into  closer,  though 
not  always  more  harmonious,  contact  than  was  possible  before. 

It  is  not  strange  that  these  wonder-working  lines  of  steel  rails, 
which  were  to  so  large  an  extent  subject  to  the  control  of  one  or 
•another  foreign  interest,  became  each  the  nucleus  of  an  influence 
which  was  both  economic  and  political.  They  became,  in  fact,  the 
primary  means  of  economic  and  political  penetration  of  China  by 
the  several  powers;  and  each  became,  at  least  potentially,  the  basis 
for  the  assertion  of  a  sphere  of  influence  and  for  consequent  claims 
to  “  special  interests  ”  and  a  particularly  favored  position.  Such 
claims  were  at  times  asserted  consciously,  with  a  deliberate  impli¬ 
cation  that  the  property  interests  involved  were  such  as  required 
for  their  protection  the  acknowledgment  of  privileges  superior  to 
the  governmental  rights  of  China  and  to  the  treaty  rights  of  third 
parties.  There  have  also  been  occasions  where  the  foreign  con¬ 
trol  of  railways,  without  actually  asserting  any  superior  rights,  has 
nevertheless  resulted  in  practical  trade  advantages  to  citizens  of  a 
given  nationality,  as  against  all  others.  These  discriminations  have 
seldom  been  so  pronounced  as  to  present  a  concrete  issue.  More  often 
they  have  taken  the  form  of  through  traffic  arrangements  which  were 
in  practice  available  only  to  shippers  of  a  particular  nationality,  and 
of  technical  formalities  in  regard  to  applications  for  cars,  customs 
declarations,  way-billing  arrangements,  and  the  like.  Frequently 
these  discriminations  have  been  the  result  not  of  deliberate  policy, 
but  of  an  attitude  of  self-conscious  nationalism  on  the  part  of 
subordinate  employees  who  regarded  with  interest  and  zeal  the 
consignments  covered  by  documents  in  their  own  language.  But 
whether  one  considers  these  practices  as  warranted  or  unwarranted, 
the  result  was  that  railway  lines  came  to  be  identified  with  claims 
to  spheres  of  interest  where,  as  the  years  went  by,  the  trade  and 
enterprise  of  third  countries  found  themselves  more  and  more  ex¬ 
cluded,  and  in  which  more  and  more  definite  claims  to  paramountcy 
or  predominance  of  influence  were  asserted  in  behalf  of  the  nationali¬ 
ties  originally  concerned. 

100020°— 26 - 21 


306 


COMMERCIAL  HANDBOOK  OF  CHINA 


It  was  in  the  attempt  to  remove  these  tendencies  toward  national 
discrimination  that  Secretary  Knox  in  1909  proposed  his  plan  for 
the  so-called  neutralization  of  railways  in  Manchuria.  The  plan 
provided  that  the  interested  countries — including  Russia  and  Japan, 
wdiich  possessed  railways  in  that  region,  and  the  United  States  and 
Great  Britain,  whose  nationals  held  contracts  for  railway  construc¬ 
tion  there — should  pool  their  interests  with  a  view  to  establishing 
a  single  system  of  railways  to  be  operated  by  an  international  syn¬ 
dicate.  In  the  light  of  what  is  now  known  regarding  the  arrange¬ 
ments  existing  among  the  powers  at  that  time,  it  is  evident  that  this 
plan  never  had  any  prospects  of  success.  It  was  in  fact  supported 
only  by  Germany,  which,  like  ourselves,  was  an  outsider  to  the 
arrangements  by  which  France,  Great  Britain,  Japan,  and  Russia 
had  arrived  at  a  mutual  accommodation  of  their  respective  interests 
on  the  Continent  of  Asia. 

Even  in  its  failure,  however,  the  Knox  proposal  gave  an  impetus 
toward  international  cooperation  among  the  powers  most  interested 
in  questions  of  Chinese  finance.  So  far  as  concerned  railways,  this 
cooperation  found  expression  only  in  the  joint  financing  of  the 
Hukuang  Railways  by  capital  from  the  United  States,  Great  Britain, 
France,  and  Germany.  For  the  purpose  of  administrative  loans, 
however,  the  bankers  of  these  four  countries  and  of  Japan  and 
Russia  associated  themselves,  in  1909,  in  what  has  become  known  as 
the  consortium.  The  American  group  dropped  out  in  1913 ;  but  the 
remaining  five  powers  went  on  with  the  flotation  of  the  reorganiza¬ 
tion  loan,  which  marks  an  epoch  of  progress  in  that  it  caused  the 
development  of  the  Salt  Gabelle,  a  producer  of  revenue  almost  as 
dependable  as  the  customs.  The  consortium  did  not  attempt  to 
deal  with  industrial  loans,  however,  and  therefore  failed  to  con¬ 
tribute  anything  toward  the  solution  of  the  problem  created  by  the 
railways  as  agencies  of  economic  and  political  penetration.  The 
difficulties  of  this  problem  became  accentuated  with  the  passage  of 
time  until  in  1917,  when  an  American  firm  obtained  contracts  for  the 
construction  of  a  number  of  lines  in  different  parts  of  China,  it  met 
with  protests  from  Russia  against  its  building  of  a  line  northward 
and  westward  into  Mongolia,  from  France  against  its  building  of 
a  line  southward  into  Kwangsi,  and  from  Great  Britain  against  its 
building  of  a  line  from  the  lower  Yangtsze  Basin  westward  into 
Szechwan.  In  each  case  the  American  projects  were  held  to  conflict 
either  with  a  general  superiority  of  rights  in  the  region  in  question 
or  with  the  particular  privileges  of  a  corporation  which  claimed  that 
the  new  line  would  be  in  effect  an  extension  of  a  railway  which  it 
had  contracted  to  build.  It  is  not  to  be  wondered  at  that  the  Amer¬ 
ican  contractor  in  question,  in  the  course  of  a  conversation  in  which 
certain  of  the  opposing  interests  pointed  out  to  him  the  extent  of 
their  several  spheres  of  interest,  scrutinized  the  map  with  some 
puzzlement  and  finally  asked,  “  Then  where  is  China  ?  ”  The  crux 
of  the  whole  difficulty  appears  in  the  fact  that  in  each  case  the 
Chinese  Government,  which  had  selected  these  lines  for  develop¬ 
ment  by  the  American  company,  actually  asked  the  contractor  to 
forego  work  on  them,  in  the  hope  that  later  opportunities  for  his 
enterprise  might  be  found  which  would  not  raise  an  issue  with  the 
claims  of  other  nationalities. 


PROBLEMS  OF  FOREIGN  CAPITAL  IN  CHINA 


307 


This  was  one  of  the  conditions  which  the  American  Government 
had  in  view  when,  in  1920,  it  proposed  to  the  British,  French,  and 
Japanese  Governments  that  the  consortium  should  be  reconstituted, 
or  rather  that  there  should  be  formed  a  new  consortium,  which  should 
deal  not  only  with  administrative  loans  but  with  loans  for  such  in¬ 
dustrial  enterprises  as  railways  in  China.  It  was  proposed  that  the 
several  national  groups  should  pool  into  the  common  resources  of 
the  new  consortium  such  rights  as  they  possessed  with  regard  to  the 
construction  of  railways  and  similar  enterprises.  For  a  time,  there 
was  determined  opposition  to  this  proposal  on  the  part  of  the 
Japanese  Government,  which  declared  itself  unwilling  to  authorize 
its  nationals  to  enter  into  this  form  of  international  cooperation 
unless  Manchuria  and  the  adjacent  portion  of  Mongolia  were  ex¬ 
cluded  from  the  activities  of  the  new  consortium.  The  ensuing  con¬ 
sultations  among  the  interested  governments  involved  a  considera¬ 
tion  of  Japan’s  claim  to  special  interests  in  the  area  in  question;  but 
in  the  end,  when  it  had  been  made  clear  to  Japan  that  the  proposal 
did  not  contemplate  the  surrender  to  the  consortium  of  vested  in¬ 
terests  in  railways  which  were  already  in  operation  as  going  con¬ 
cerns,  the  Japanese  Government  gave  its  consent  to  the  participation 
of  its  bankers  in  the  new  consortium,  the  understanding  being  that 
each  national  group,  while  retaining  its  individual  rights  with  re¬ 
spect  to  all  railways  actually  constructed  or  which  had  made  sub¬ 
stantial  progress  toward  completion,  should  pool  all  of  its  contracts 
for  enterprises  which  had  not  yet  been  seriously  taken  in  hand.  The 
new  consortium  thus  furnishes  a  means  by  which  future  railway  con¬ 
struction  in  China  may  be  made  a  matter  of  general  international 
concern,  and  divorced  from  particular  political  pretensions. 

The  Chinese  Government  has  not  yet  seen  fit  to  avail  itself  of 
the  facilities  offered  by  the  new  consortium.  But  if  and  when  the 
Chinese  are  ready  to  deal  with  it,  it  will  be  in  a  position  to  make  the 
requisite  funds  available  for  them  under  conditions  far  less  danger¬ 
ous  or  subversive  to  Chinese  sovereignty  than  those  effective  in  the 
past.  Not  only  will  any  railway  so  constructed  be  purged  of  implica¬ 
tions  that  it  is  the  basis  of  a  claim  to  a  sphere  of  influence,  but  the 
very  fact  of  its  construction  under  these  auspices  will  negative  any 
such  claim  heretofore  asserted  in  that  region.  In  the  meantime,  the 
mere  fact  of  the  consortium’s  existence  as  the  result  of  an  agree¬ 
ment  for  international  financial  cooperation  has  been  of  real  service 
in  arresting  the  tendency  of  railway  contracts  to  establish  rights 
partaking  of  the  nature  of  a  protectorate. 

Closely  related  to  this  question  is  that  phase  of  the  work  of  the 
Washington  Conference  on  the  Limitation  of  Armaments  which 
dealt  with  the  principles  and  policies  to  be  adopted  by  the  participat¬ 
ing  powers  in  their  relations  with  China.  Most  of  the  decisions  of 
the  conference  in  this  regard  were  embodied  in  one  of  the  treaties 
concluded  on  February  6,  1922.  That  treaty  is  not  yet  technically  in 
force,  as  it  awaits  the  ratification  of  France;  but  the  principles  which 
it  incorporates  have  been  adopted  and  followed  by  all  the  interested 
governments  as  fully  and  as  punctiliously  as  though  the  treaty  had 
in  fact  become  the  law  of  the  land  for  all  the  participating  powers. 
Perhaps,  then,  while  we  are  awaiting  the  ratification  of  France 
(which  it  is  to  be  assumed  will  in  due  course  be  given)  even  the  strict 


308 


COMMERCIAL  HANDBOOK  OF  CHINA 


legal  constructionist  will  pardon  a  reference  to  that  treaty  as  though 
it  had  actually  entered  into  force.  The  treaty  not  only  accepts  the 
mutually  dependent  principles  of  the  open  door  and  the  integrity 
of  China — formulas  which,  like  a  worn  coin,  had  lost  all  distinguish¬ 
ing  marks — but  it  also  makes  precise  provisions  for  certain  applica¬ 
tions  of  these  doctrines ;  it  expressly  discountenances  claims  to 
spheres  of  influence;  and  it  gives  to  the  doctrine  of  the  open  door, 
or  equality  of  economic  opportunity  in  China,  a  definition  more  pre¬ 
cise  and  more  far-reaching  than  has  ever  hitherto  been  attempted. 
In  connection  with  the  treaty,  the  conference  adopted  a  resolution 
which  should  go  a  great  way  toward  clearing  away  the  atmosphere 
of  secret  intrigue  which  has  so  often  surrounded  foreign  enterprise 
in  China,  by  providing  for  the  practically  immediate  publication  of 
all  contracts  for  concessions  from  the  Chinese  Government  or  from 
the  Provinces. 

With  the  consortium  available  as  a  means  of  international  coopera¬ 
tion,  and  with  the  open  door  principle  of  fair  play  accepted  and 
defined  by  mutual  agreement,  the  way  is  open  for  a  healthy  and 
normal  development  of  the  resources  and  opportunities  of  China 
through  the  participation  of  foreign  capital  on  a  genuinely  economic 
basis,  to  the  advantage  of  China  at  least  as  much  as  to  the  profit  of 
foreign  investors.  It  is  to  be  hoped  that  we  are  on  the  eve  of  an 
economic  development  which  will  take  account  of  the  fact  that  a  fair 
bargain  is  profitable  to  both  parties,  and  that  no  nationality  need 
strive  to  establish  exclusive  claims  through  fear  that  it  must  suffer 
loss  in  consequence  of  another’s  gain.  We  know  that  the  wealth  of 
China,  particularly  in  mineral  resources,  has  been  exaggerated  to 
the  point  of  fable,  but  it  may  well  be  doubted  whether,  in  our  dreams 
of  a  Chinese  Eldorado,  we  have  ever  adequately  realized  the  more 
substantial,  because  inexhaustible,  wealth  that  lies  not  in  the  soil  of 
China,  but  in  the  industry,  the  intelligence,  and  the  fine  character  cf 
the  Chinese  people.  These  are  resources  which  are  capable  of  an 
incalculable  wealth-making  power.  China,  for  its  own  good  no  less 
than  for  the  good  of  those  who  look  forward  to  supplying  its  grow¬ 
ing  market  with  their  commodities,  is  destined  to  provide  opportuni¬ 
ties  such  that  no  nationality  need  have  occasion  to  grudge  what  falls 
to  another  for  development. 

At  present  the  obstacle  to  such  a  development  is  the  prevailing 
political  chaos  in  China,  and  the  accompanjdng  disintegration  of 
administrative  authority.  This  is  doubtless  a  crisis  through  which 
China  is  compelled  to  pass  as  a  result  of  the  political  and  social  tra¬ 
ditions  formed  by  her  people  during  the  longest  coherent  history  of 
any  nation  now  extant.  One  may  feel  discouraged  that  the  end  of 
this  period  of  disorganization  is  not  yet  in  sight.  But  no  one  familiar 
with  the  fine  qualities  of  the  Chinese  people  can  doubt  that  there  will 
eventually  be  a  reintegration  of  their  national  life.  When  that  time 
comes,  China  will  inevitably  pattern  herself  more  and  more  closely 
after  our  western  world,  and  of  course  largely  through  the  means 
provided  by  foreign  capital.  The  way  in  which  foreign  capital  meets 
its  responsibilities  in  serving  the  ends  of  the  neAv  China  will,  more 
than  any  other  factor,  determine  the  solution  of  that  greatest  of  all 
problems  confronting  mankind — the  relationship  that  is  to  exist 
between  the  civilizations  of  the  East  and  the  West. 


RAILWAYS  IN  CHINA 

By  J.  E.  Baker,  Adviser  to  the  Chinese  Ministry  of  Communications 


The  railways  of  China  and  its  dependencies  do  not  exceed  an 
aggregate  length  of  more  than  7,500  miles.  For  the  most  part  they 
are  confined  to  the  coastal  plain  and  Manchuria,  although  there  are 
a  number  of  small  lines  scattered  throughout  the  country.  These 
railways  are  as  follows : 


Lines  1 

Location 

Miles  c 

Contigu¬ 

ous 

f  line 

Scat¬ 

tered 

MANCHURIA 

1.  Chinese  Eastern . -  _.  . . 

North  Manchuria _ 

1,  078 

Timber  concession  lines  in  connection  . -  . 

_ _ do..  _ _  .. 

286 

2.  Tsitsihar  (narrow  gauge) . . . . . 

_ _ do..  _ _ _ 

18 

3.  South  Manchuria.  ..  . . . . .  .. 

South  Manchuria _ 

681 

4.  Ssu-Tao  . .  . . . 

Central  Manchuria 

266 

5.  Kirin- Changchun  ..  . . . ..  . 

.  ...do _ 

77 

6.  Peking-Mukden  (outside  wall)  .  ...  . 

North  China _ 

324 

Branches  (privately  owned) _  _ _ 

.do.. . 

56 

Mining  railways .  _ _ _  .  ..  ..  ... 

_ do.. . . 

21 

20 

COASTAL  PLAIN 

6.  Peking-Mukden  (inside  wall) . . . . . . .  .. 

North  China . . 

293 

7.  Peking-Hankow. .  ..  _  _  ...  _  ... 

Central  China . 

822 

8.  Tientsin- Pukow _  ...  _  _  ... 

_ do _  _ _ _ 

691 

9.  Shanghai-Nanking _  .  _  _  ..  _ 

Yangtze  Valley _ 

204 

10.  Shanghai-Hangchow  .  . 

_  do _  _ 

131 

Ningpo  section .  . . . . 

.  .  .do.  .  .  _ 

49 

11.  Peking-Suiyuan..  ... 

Northwest  China _ 

461 

12.  Cheng-Tai . . 

Shansi _ _ 

152 

13.  Taokow-Chinghwa. .  _  ... 

Honan..  _ _ 

95 

14.  Lung-Hai  (including  Kaifeng-Honan)  ...  ..  ...  . 

446 

15.  Hupeh-Hunan _  .  .  _ _ _  _  _ _ 

South  Central  China 

264 

16.  Chuchow-Pinghsiang. .  .  _  .  ..  _  ... 

_ _ do...  . . 

56 

17.  Shantung  (Kiao-Tsi)l_  .  . .  ....  _ 

Shantung  .  _ _ 

283 

18.  Chung  Hsin  Mining  Co _  ...  .  ...  .  ...  ..  _  . 

_ do _  .... 

32 

Mentowkow-Chaitang _  ....  _  _ 

Peking..  _  _  . 

38 

Nanking  City _ .  .  _  _ _  _ _ 

Nanking. 

5 

Poshan  Light  Railway..  .  ...  .  .  _  _ _ _  ... 

Shantung _ .... 

14 

19.  Kiukiang-Nanchang. ..  ......... 

Kiangsi . . 

79 

Tayeh  Mining  Railway...  .  .. 

Hupeh.. 

15 

Shantung  Wen _  .  .". _  .  .  ..  _  .  .  . 

Shantung  ... 

42 

Lin-Kiang  Yangho... _ _  _ _ _ 

Chihli... 

14 

Yu  Ning _  _  ...  .  . 

_ do 

23 

Ching  Shih _  ...  . 

__do 

18 

Tsehsien  Ya  Lu _ 

19 

Lung  Yen  Iron.. _ _ 

Chihli.. 

13 

OTHER  PARTS  OF  CHINA 

20.  Canton-Kowloon  (including  British  section) . . 

119 

21.  Canton-Samshui  _ 

30 

22.  Changchow-Amoy _ _  .  . 

Fukien 

18 

23.  Kwangtung _ " _ 

North  of  Canton 

141 

24.  Sunning 

Near  Canton 

93 

25.  Chaochowfu-Swatow. 

26 

26.  Yunnan. 

Southwest  China 

288 

Ko  Chu  Pishih _ 

Y  unnan 

33 

Miscellaneous  mining  lines 

140 

1  Numbers  refer  to  railway  map  and  serve  as  a  guide  to  location. 


309 


310 


COMMERCIAL  HANDBOOK  OF  CHINA 


In  Manchuria  the  railway  lines,  though  continuous  for  the  most 
part,  do  not  constitute  a  single  system,  but  rather  three  systems — 
the  Chinese  Eastern,  the  South  Manchuria,  and  the  Government 
Railways.  The  two  Government-OAvned  lines,  the  Kirin-Changcliun 
and  the  Ssu-Tao,  connect  with  the  South  Manchuria  only  and  are 
operated  by  it  as  branch  lines. 

At  Changchun  the  South  Manchuria  line  forms  a  junction  with 
the  Chinese  Eastern,  but  between  them  there  is  an  unbridgeable 
break  due  to  the  fact  that  the  Chinese  Eastern  track  is  built  to  the 
5-foot  gauge  of  the  Russian  State  Railways,  while  the  South  Man¬ 
churia  follows  the  standard  Chinese  gauge,  4  feet  8 y2  inches.  At 
Mukden,  where  the  South  Manchuria  joins  the  Chinese  Govern¬ 
ment  railway  system,  there  is  another  break.  The  lines  have  the  same 
gauge,  but  the  automatic  coupler  on  the  Chinese  railways  is  6  inches 
higher,  owing  principally  to  the  greater  wheel  diameter  on  the  Chi¬ 
nese  rolling  stock. 

The  lines  of  the  coastal  plain  form  a  continuous  system  of  over 
3,500  miles.  However,  this  continuity  is  broken  in  a  physical  sense 
by  the  Yangtze  River,  over  which  there  are  neither  bridges  nor  car 
ferries.  Out  of  the  3,541  miles  of  railway  on  the  central  plain,  but 
650  miles  of  the  continuous  system  are  south  of  the  Yangtze.  Most 
of  the  short  industrial  lines  north  of  the  river  connect  with  the 
trunk  lines,  but  south  of  the  river  such  short  lines  lead  to  ports 
rather  than  to  railways. 

Radiating  from  Canton  are  three  short  lines,  which  in  time  should 
be  merged  into  a  regional  system  corresponding  somewhat  to  the 
systems  that  serve  the  coastal  plain  and  Manchuria;  but  at  present 
these  lines  must  be  regarded  as  in  the  category  of  scattered  lines, 
for  none  of  them  is  continuous  with  another,  and  their  combined 
length  is  less  than  300  miles. 

HISTORICAL  SURVEY 

From  the  inception  of  the  idea  of  railways  in  China  to  the  present 
is  about  60  years.  The  first  efforts  to  build  railways  in  China  were 
put  forth  in  Shanghai  even  before  the  close  of  the  Taiping  Rebellion 
(1864).  The  merchants  of  the  port — foreigners  for  the  most  part — 
presented  a  petition  to  the  great  Viceroy,  Li  Hung  Chang,  for  per¬ 
mission  to  build  a  railway  to  Soochow.  The  petition  was  emphati¬ 
cally  denied;  but  the  agitation  was  immediately  renewed,  only  the 
line  fostered  was  in  the  opposite  direction — that  is,  from  Shanghai 
to  Woosung.  After  10  years  of  effort,  a  charter  was  obtained  by 
Jardine  and  Matheson,  a  British  firm,  and  on  January  20,  1876,  the 
first  rail  was  laid. 

The  track  was  of  but  30-inch  gauge ;  and  the  locomotive,  the  “  Pio¬ 
neer,”  which  ran  upon  it  for  the  first  time  on  the  14th  of  February, 
weighed  less  than  1  ton.  A  dispute  arose  as  to  the  right  to  use  a 
locomotive.  Some  time  later  a  Chinese,  evidently  determined  on  sui¬ 
cide,  was  run  over  by  the  train.  This  incident  was  used  to  such  good 
effect  that  Jardine  and  Matheson  were  forced  to  sell  out  to  the  local 
authorities,  who  tore  up  the  track  and  shipped  it,  together  with  the 
rolling  stock,  to  Formosa,  where  it  was  dumped  on  the  beach.  This 
was  the  last  of  railroads  around  Shanghai  for  some  years. 


RAILWAYS  IN  CHINA 


311 


In  the  meantime,  Li  Hung  Chang  had  been  transferred  as  Viceroy 
to  the  Province  of  Chihli.  His  friend,  Tong  Kin  Sin,  had  organized 
the  China  Merchants  Navigation  Co.,  which  was  conducting  a 
coastwise  trade  in  steamships  in  competition  with  foreign  shipping, 
but  the  company  was  in  difficulty  because  of  the  high  price  of  coal. 
The  Tongshan  mines  which  produced  it  were  so  far  inland  that 
the  cost  of  transportation  rendered  its  price  at  Tientsin  practically 
prohibitive.  English  engineers  convinced  Tong  that  his  remedy 
lay  in  building  a  railroad,  and,  accordingly,  a  petition  was  presented 
to  Li  Hung  Chang  for  permission  to  build  from  Tongshan  to  Peh- 
tang,  at  the  mouth  of  the  Pehtang  River.  Li  Hung  Chang  was 
entirely  favorable,  but  political  enemies  at  court  were  to  be  found 
in  opposition,  and  although  Li  was  in  high  favor  he  could  obtain 
imperial  sanction  for  only  6  miles  of  line,  which  connected  the  mines 
with  a  canal  built  to  Hsukuchuang. 

This  line  was  laid  out  with  standard  gauge  of  4  feet  8 y2  inches, 
the  foreign  engineers  being  inspired  with  the  idea  that  it  was  the 
nucleus  of  a  continental  system.  The-  only  motive  power  contem¬ 
plated  in  the  charter  was  that  of  animals  or  men ;  but  with  the  same 
enthusiasm,  the  engineers  set  about  the  construction  of  a  locomotive 
out  of  a  stationary  boiler  and  channel  iron,  together  with  wheels 
which  had  been  shipped  in  as  “old  iron.”  On  June  9,  1881,  the 
one-hundredth  anniversary  of  the  birth  of  George  Stevenson,  this 
engine  was  christened  the  “  Rocket  of  China  ”  and  given  its  first 
run  over  the  6  miles  of  track  then  in  existence.  While  the  run  of 
the  “  Pioneer  ”  at  Shanghai  antedated  that  of  the  “  Rocket  of  China  ” 
by  more  than  15  years,  the  latter  was  the  first  locomotive  run  on  a 
permanent  railway  in  China. 

It  was  five  years  before  the  attempt  to  extend  the  line  was  suc¬ 
cessful.  The  Kaiping  Railway  Co.  was  formed  with  Wu  Ting  Fang 
(later  Minister  to  the  United  States)  as  president,  and  on  April 
12,  1887,  a  railway  prospectus  was  issued  soliciting  subscriptions 
for  the  purpose  of  building  the  line  to  Tientsin.  This  purpose  was 
accomplished  in  1889,  but  in  the  meantime  the  name,  “  Kaiping 
Railway  Co.,”  had  been  changed  to  “  China  Railway  Co.”  China 
was  smarting  under  defeat  in  Indo-China  at  the  hands  of  the 
French,  and  those  in  authority  were  led  to  perceive  that  lack  of 
communications  was  the  explanation  of  why  the  immense  resources 
of  the  Empire  were  not  able  to  overcome  the  relatively  small  forces 
by  which  the  French  had  effected  their  conquest.  Hence,  in  1891, 
the  Imperial  Government  ordered  the  line  extended  to  Shanhaik- 
wan,  avowedly  for  purposes  of  military  expediency. 

Although  the  China  Railway  Co.  enjoyed  support  from  person¬ 
ages  of  official  importance,  it  was  not  until  1894  that  the  Government 
itself  concluded  to  take  over  railway  enterprises  for  its  own.  The 
Tientsin-Shanhaikwan  line  was  then  pushed  in  both  directions, 
reaching  Fengtai  that  year,  and  surveys  were  carried  on  in  the  direc¬ 
tion  of  Vladivostok.  Construction  had  reached  some  40  miles  north 
of  the  Great  Wall  when  war  broke  out  with  Japan. 

The  ease  with  which  Japan  defeated  China  probably  surprised 
foreign  countries  more  than  it  dismayed  the  Chinese.  The  idea 
was  voiced  that  China  wyas  utterly  without  cohesion  and  about  to 
fall  apart.  Under  such  conditions  nations  with  possessions  along  the 


312 


COMMERCIAL.  HANDBOOK  OF  CHINA 


Chinese  borders  expected  to  be  able  to  incorporate  portions  of  the 
Chinese  Empire,  and  those  without  such  possessions  began  to  scheme 
actively  for  means  of  removing  that  disability.  In  swift  succession 
came  treaties  or  agreements  between  China  and  Russian,  French, 
German,  and  British  interests,  all  closely  backed  by  their  home 
Governments.  The  Chinese  Eastern,  to  be  built  across  northern 
Manchuria  by  a  private  institution  created  by  the  Russian  Govern¬ 
ment  for  the  purpose,  was  the  first  agreed  upon.  The  Yunnan  Rail¬ 
way,  to  be  built  from  Yunnan  to  a  connection  with  the  French  rail- 
wa}7s  in  Indo-Cliina,  was  the  next.  The  German  Government  ob¬ 
tained  railroad  construction  rights  in  Shantung  and  the  control  of 
the  harbor  of  Kiaocliow.  Russia  thereupon  obtained  the  right  to 
build  a  railway  northward  from  the  harbor  of  Port  Arthur  on  the 
Gulf  of  Chihli  to  a  junction  with  the  Chinese  Eastern  at  Harbin. 
Great  Britain  secured  control  of  Weihaiwei  and  secured  the  general 
promise  that  the  construction  of  railways  in  the  Yangtze  Valley 
should  be  confided  to  companies  of  British  nationality.  The  various 
foreign  nations,  in  thus  securing  railway  concessions,  were  justified 
by  their  statesmen,  who  spoke  broadly  of  the  advantages  which 
would  accrue  upon  the  occurrence  of  the  expected  break-up  of  China. 
The  Chinese,  however,  were  taking  active  measures  to  meet  this 
danger.  A  shrewd  bargain  was  being  made  for  the  construction  of 
a  trunk  line  from  Lukowkiao,  near  Peking,  to  Hankow.  American 
interests  made  the  first  reconnoissance,  believing  that  a  contract  for 
construction  would  follow.  British  interests  appeared  in  competi¬ 
tion,  but  while  the  Chinese  negotiators  were  flitting  back  and  forth 
between  the  British  and  the  American  representatives,  Belgian 
agents  appeared,  who  were  willing  to  negotiate  an  agreement  upon 
the  terms  for  which  China  was  holding  out.  When  the  Belgians 
discovered  that  they  could  not  float  the  loan  upon  the  agreed  terms, 
they  began  immediately  to  negotiate  for  safeguards  similar  to  those 
demanded  by  the  British  and  the  Americans;  and  with  the  support 
of  the  French  and  the  Russian  Legation  they  were  able  to  obtain 
these  terms. 

This  combination  led  to  important  results  which  will  appear  later, 
the  most  immediate  of  which,  however,  was  the  granting  to  an 
American  syndicate  the  construction  of  the  line  from  Hankow  to 
Canton.  Similarly,  China  negotiated  with  British  capitalists  a  loan 
for  the  extension  of  the  Imperial  Railways  of  North  China  from  a 
point  north  of  the  Great  Wall,  where  construction  had  ceased,  to 
Hsinmintun.  The  Russian  Government,  however,  raised  a  strong 
protest,  and  after  months  of  negotiation  reached  an  understanding 
(to  which  China  was  not  a  party)  with  Great  Britain,  permitting 
the  agreement  to  be  carried  out  and  providing,  further,  that  Great 
Britain  would  raise  no  objections  to  any  Russian  projects  north  of 
the  Great  Wall,  while  Russia  would  raise  no  objections  to  British 
projects  in  the  Yangtze  Valley.  Thus  the  Russian  and  the  British 
“  spheres  of  influence  ”  were  definitely  outlined,  and  the  policies  of 
spheres  of  influence  became  duly  recognized. 

In  the  case  of  the  Chinese  Eastern,  the  Yunnan,  and  the  Shantung 
Railways,  the  entire  ownership  and  risk  of  the  enterprise  was  con¬ 
veyed  without  reservation  to  the  foreign  concessionaire,  who,  in  all 
cases,  though  appearing  in  the  agreement  as  a  private  concern,  was 


RAILWAYS  IN  CHINA 


313 


known  to  be  the  direct  agent  of  its  home  government.  In  the  case 
of  the  Peking-Hankow  and  the  Peking-Mukden,  however,  owner¬ 
ship  was  vested  in  the  Chinese  Government,  wThich  not  only  accepted 
responsibility  for  the  repayment  of  the  loan  and  interest  thereupon, 
but  pledged  the  general  revenues  of  the  Government  for  the  pur¬ 
pose.  The  agreements  for  these  loans  provided  as  additional  se¬ 
curity  a  very  comprehensive  degree  of  administrative  control  of 
the  lines  by  nominees  of  the  loaning  syndicate. 

DEVELOPMENTS  SINCE  1900 

Following  the  suppression  of  the  Boxer  uprising,  the  support 
which  foreign  military  forces  gave  to  the  Manchu  throne  by  re¬ 
calling  the  Empress  Dowager  from  her  flight,  resulted  in  a  large 
number  of  contracts  with  foreign  financiers  for  the  construction  of 
railways  for  the  Chinese  Government.  In  1903  and  1904  agreements 
were  made  for  the  Shanghai-Nanking,  Cheng-Tai,  and  Kaifeng- 
Honan  lines,  modeled  after  the  Peking-Hankow  agreement,  which 
placed  practically  the  entire  administrative  control  of  these  lines 
in  the  hands  of  the  foreign  nominees. 

In  the  meantime  what  is  known  as  the  “local  movement ”  had 
been  developing.  F or  20  years  Chinese  youth  had  been  going  abroad 
for  modern  education,  and  bringing  back  with  them  ideas  of  corpo¬ 
rate  organization  and  the  ambition  to  put  their  learning  to  the  test. 
As  early  as  1898  a  number  of  short  lines,  such  as  the  line  from  Shang¬ 
hai  to  Woosung  and  from  the  Pinsiang  collieries  to  the  Hsiang  River, 
were  begun  by  the  Chinese  themselves,  and  the  1903  group  of  con¬ 
tracts  gave  a  new  impetus  to  the  native  desire  for  building  its  own 
railways.  The  Americans,  who  appeared  to  have  sold  out  the  Can- 
ton-Hankow  agreement  to  the  Belgians,  were  forced  to  surrender 
their  agreement  (for  a  consideration)  and  the  project  was  parceled 
out  to  provincial  companies.  After  1904  the  Imperial  Government 
found  itself  practically  unable  to  make  further  extension  of  the  rail¬ 
way  system  by  means  of  foreign  loans.  It  contracted  for  extension 
of  the  British-built  railway  within  the  concession  of  Kowloon  in 
1907 ;  but  this  line  covered  only  the  90  miles  to  Canton  and  was  the 
last  contract  to  be  negotiated  by  the  Empire  under  the  old  terms. 

With  1905  may  be  said  to  begin  the  success  of  China  in  regaining 
control  of  the  railways  within  its  borders.  A  concession  which  had 
been  given  a  mining  concern  in  Hongkong  was  taken  back  by  the 
Government  and  the  line,  which  is  now  known  as  the  Taokow- 
Chinghwa,  was  made  a  Government  railway.  Native  companies  were 
formed  to  build  railways  between  Tientsin  and  the  Yangtze  River; 
Shanghai  to  Hangchow  and  Ningpo;  Kiukiang  to  Nanchang; 
Hankow  to  Szechwan;  and  several  other  scattered  projects  in  various 
Provinces  of  the  central  plain.  In  1906  the  central  Government 
began  the  construction  of  the  Peking-Kalgan  line.  In  1908  China 
regained  control  of  the  Peking-Hankow  line,  which  had  proved 
unexpectedly  profitable. 

It  soon  became  apparent  that  the  native  forces  were  not  equal  to 
the  task  they  had  taken  in  hand.  Charges  of  corruption  were  made 
by  stockholders  against  the  officers.  Countercharges  of  failure  to 
meet  stock  assessments  were  made  by  officers  against  the  stockholders. 
Mismanagement,  favoritism,  and  intrigue  for  personal  ends  were 


314 


COMMERCIAL  HANDBOOK  OF  CHINA 


common  accusations.  The  central  Government  found  itself  in  an 
embarrassing  position.  On  the  ground  that  native  capital  was 
available,  it  had  denied  to  foreign  contractors  the  right  to  build 
lines — a  principle  agreed  upon  as  far  back  as  1898.  Native  capital 
proving  itself  thus  incompetent  rendered  the  central  Government 
helpless,  diplomatically,  when  foreign  interests  reappeared  to  enforce 
their  claims.  Thus,  early  in  1908  British  and  German  interests 
obtained  a  contract  for  the  construction  of  the  Tientsin-Pukow  line, 
and  the  same  British  concern  which  had  made  the  Peking-Mukden 
loan  in  1898  and  the  Shanghai-Nanking  loan  in  1903  obtained  a  con¬ 
tract  for  the  construction  of  the  Shanghai-Hangchow-Ningpo  line. 
An  attempt  was  also  made  at  this  time  to  work  out  an  agreement 
to  cover  the  building  of  the  Canton-Hankow  line  as  well  as  a  line 
from  Hankow  into  Szechwan.  Under  the  terms  of  these  agreements, 
known  thereafter  as  “  Pukow  terms,”  while  the  Chinese  Government 
bound  itself  to  employ  maintenance  engineers  nominated  by  the 
foreign  syndicate,  these  officers  are  specifically  under  the  direction 
of  a  Chinese  managing  director,  and  all  funds  of  the  line  are  in 
absolute  control  of  Chinese  officials. 

In  making  the  Tientsin-Pukow  and  the  Shanghai-Hangchow- 
Ningpo  contracts,  the  central  Government  had  taken  over  the  invest¬ 
ment  of  the  local  gentry  and  provincial  officials  at  cost,  by  paying 
cash  or  by  guaranteeing  dividends  upon  their  shares.  When  it  came 
to  the  Canton-Hankow  and  Hankow-Szechwan  line,  however,  the 
charges  of  maladministration  were  so  great  that  the  central  Govern¬ 
ment  refused  to  follow  this  precedent,  and  announced,  instead,  that 
an  investigation  would  be  instituted  and  that  punishment  of  guilty 
officials  would  follow.  Naturally,  local  opposition  to  the  conclusion 
of  a  contract  with  foreign  interests  for  these  lines  was  very  great. 
By  1911,  however,  a  contract  was  made  with  the  “  four  nation  group,” 
consisting  of  bankers  representing  England,  Germany,  France,  and 
America.  It  aroused  a  storm  of  protest  and  was  represented  in  the 
Provinces  as  a  partition  of  South  China  among  the  four  powers 
named.  Naturally  this  opposition  was  greatest  where  the  imperial 
power  was  weakest — namely,  in  the  inacessible  Province  of  Szech¬ 
wan.  Representatives  of  the  Government  were  driven  out  and  a 
special  envoy  to  the  Province  was  murdered  en  route.  Storm  clouds 
of  revolution  had  been  gathering  in  the  important  centers  for  several 
years,  and  by  accident  one  of  these  broke  at  Wuchang  late  in  1911. 
Revolutionary  activities  then  began  in  all  of  the  important  provin¬ 
cial  centers,  in  the  face  of  which,  after  making  practically  no  opposi¬ 
tion,  the  Manch'us  abdicated  on  February  12,  1912. 

With  the  passing  of  the  Manchus  local  opposition  to  building  of 
railways  with  foreign  capital  absolutely  ceased.  Within  a  year  the 
provisional  President  of  the  new  Republic  was  advocating  the  con¬ 
struction  of  50,000  miles  of  trunk  lines  within  the  ensuing  10  years 
by  means  of  foreign  loans.  That  same  year  an  agreement  was  made 
for  the  extension  of  the  Kaifeng-Honan  line  eastward  to  the  coast 
and  westward  to  the  interior  of  Kiangsu.  This  line  is  now  known 
as  the  Lung-Hai.  The  following  year  an  agreement  was  made  with 
similar  interests,  Franco-Belgian,  to  build  a  north  and  south  trunk 
line  from  Tatungfu  in  Shansi  to  Chengtu  in  Szechwan.  Almost 
simultaneously  an  agreement  was  made  with  a  British  company  for 


RAILWAYS  IN  CHINA 


315 


the  building  of  a  line  from  Pukow  west  to  the  Peking-Hankow  line, 
with  possible  extensions  beyond.  In  1914  contracts  were  made  with 
British  and  French  interests  for  the  gridironing  of  the  territory 
south  of  the  Yangtze.  Altogether  between  6,000  and  7,000  miles  of 
line  were  contracted  for  within  these  two  years,  and,  most  remarkable 
of  all,  the  terms  agreed  upon  granted  to  the  foreign  contractors  an 
administrative  control  over  the  lines  to  a  degree  almost  equal  to 
those  known  as  “  Pukow  terms.” 

CHANGES  BROUGHT  BY  THE  WAR 

The  outbreak  of  the  World  War  in  1914  most  effectively  frustrated 
nearly  all  plans  for  railway  construction.  In  1915  an  American  com¬ 
pany  attempted  to  secure  a  railway  construction  contract,  and  in  1917 
and  1918  the  Japanese  succeeded  in  obtaining  several  contracts. 
Later,  with  acknowledgment  from  their  home  Governments,  the  im¬ 
portant  financial  institutions  of  France,  England,  Japan,  and 
America  made  an  agreement  for  joint  financing  of  future  railway 
construction  and  other  large  industrial  enterprises  in  China,  which 
combination  was  known  as  the  “new  consortium.”  It  was  expected 
that  this  combination  would  to  some  extent  nullify  the  “  spheres  of 
influence,”  that  were  beginning  to  overlap,  and  would  allay  China’s 
suspicions  that  certain  countries  had  perhaps  more  than  an  altruistic 
interest  in  her  development. 

The  effects  of  the  new  consortium,  however,  proved  exactly  the 
opposite  of  those  anticipated.  The  Chinese,  instead  of  being  assured 
of  immunity  from  foreign  aggression,  conceived  the  idea  that  its 
effect  would  be  to  subject  them  absolutely  to  foreign  dominations. 
Their  opposition  to  the  consortium  was  pronounced.  As  the  result 
of  this  and  of  the  conditions  brought  about  by  the  World  War,  rail¬ 
way  construction  during  the  12  years  of  the  Republic  has  totaled 
only  1,000  miles,  compared  with  the  6,000  miles  constructed  in  the 
final  12  years  of  the  Empire — industrial  lines  being  disregarded. 

PROGRESS  DURING  PERIOD  OF  THE  REPUBLIC 

It  would  be  incorrect  to  assume,  however,  that  no  progress  has 
been  made  during  the  period  of  the  Republic.  One  of  the  first  acts 
of  the  new  regime  was  to  attempt  to  cement  the  various  lines  into  a 
national  system.  The  negotiators  of  the  original  contracts  made  no 
provision  for  this  feature.  Each  line  had  been  constructed  as  a 
separate  entity,  with  its  own  designs  for  material  and  structures,  and 
with  no  provision  for  cooperation  between  them.  Trains  arrived 
and  departed  at  junction  points  with  no  consideration  of  connec¬ 
tions.  Tickets  had  to  be  purchased  and  baggage  rechecked  as  one 
passed  from  one  line  to  another.  If  passing  beyond  the  originat¬ 
ing  Jine  cargo  had  to  be  transferred  from  the  cars  of  one  line  to 
those  of  another,  and  even  the  language  spoken  was  different.  Dur¬ 
ing  the  12  years  of  the  Republic  the  general  accounts  of  all  of  the 
railways  subject  to  the  jurisdiction  of  the  central  Government  have 
been  reduced  to  a  common  standard.  Through  trains  run  between 
principal  centers.  Tickets  can  be  bought  and  baggage  can  be 
checked  from  any  point  to  any  other  point  upon  any  of  the  con¬ 
tiguous  lines.  Uniform  rules  for  the  packing  and  shipping  of  goods 


316 


COMMERCIAL  HANDBOOK  OF  CHINA 


have  been  provided.  The  metric  system  of  distance  and  weight  has 
been  put  into  effect  upon  all  lines.  Even  through  billing  of  goods 
and  the  interchange  of  rolling  stock  have  been  introduced;  and, 
while  not  100  per  cent  effective,  such  practices  are  being  rapidly  ex¬ 
tended.  The  accounting  for  through  passenger  traffic  and  through 
shipments  is  now  performed  in  a  central  office.  Arrangements  have 
been  made  also  for  through  traffic  between  Chinese  Government  lines 
with  the  South  Manchuria,  Chinese  Eastern,  Chosen,  and  Imperial 
Railways  of  Japan.  The  standardization  of  physical  equipment  has 
been  agreed  upon  in  principle,  but  the  actual  working  out  of  the  de¬ 
tails  will  require  considerable  time. 

An  agreement  was  entered  into  by  Japan  and  China  in  1922  for 
the  retrocession  of  the  Shantung  Railway.  The  line  was  purchased 
by  the  delivery  of  treasury  notes,  executed  by  the  Chinese  Govern¬ 
ment;  and,  by  a  resolution  passed  at  the  Washington  conference,  the 
powers  recorded  their  hope  that  “to  the  utmost  degree  consistent 
with  existing  legitimate  rights,  the  future  development  of  railways 
in  China  shall  be  so  conducted  as  to  enable  the  Chinese  Government 
to  effect  unification  of  railways  into  a  railway  system  under  Chinese 
control,  with  such  foreign  financial  and  technical  assistance  as  may 
prove  necessary  in  the  interests  of  that  system.”  However,  the 
realization  of  this  aspiration  undoubtedly  has  been  deferred  by 
recent  political  events  in  China. 

STATISTICS  OF  PRINCIPAL  LINES 

The  following  table  gives  the  names  of  the  principal  lines,  the  char¬ 
acter  of  the  ownership,  origin  of  construction  funds,  length  of  line, 
cost  of  construction,  extent  of  funded  debt,  and  amount  of  shares  or 
Government  investment. 


Trade  Promotion  Series  No.  38 


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TAR  EASTERN  DIVISION 


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GEOGRAPHIC  SECTION  RESEARCH  no* 


(DRAFT/NG  D/V.  2183  ) 


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Trade  Promotion  Series  No.  38 


RAILWAYS  IN  CHINA 


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i  Numbers  refer  to  map  as  guide  to  location.  2  Spoil  of  war.  3  Not  complete. 


318 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  table  below  gives  the  operating  revenues  and  expenses,  oper¬ 
ating  ratio,  and  net  revenue  during  the  year  1922  for  the  principal 
lines,  so  far  as  data  are  available. 


Railways 


Chinese  Eastern . 

South  Manchuria . . 

Yunnan . . . . 

Kowloon-Canton  (British  section) 

Peking-Hankow. . 

Peking-Mukden _ _ 

Tientsin-Pukow . 

Shanghai- Nanking . . . 

Shanghai-Hangchow-Ningpo _ 

Peking-Suiyuan . . 

Cheng  Tai... . 

Taoko  w-  Chinghwa . . . 

Kaifeng-Honan . 

Lung-Hai . . 

Kirin-Changchun . . 

C  huch  o  w  -  Pi  ngsi  ang _ _ 

Canton-  Kowloon _ . . 

Canton-Samshui . . . . 

Changchow-Amoy . . 

Hupeh-Hunan _ _ 

Ssu-Tao . 

Kiao-Tsi... . . 

Kiukiang-Nancbang _ _ 

Sunning . . 

Kwangtung  Provincial _ _ 


Revenues 

Expenses 

Oper¬ 

ating 

ratio 

Net  revenue 

R.  33,  333,  770 

R.  27,  577,  675 

S2V2 

R.  5,  756,095 

Y.  87,  662,  013 

Y.  34, 099,  801 

39 

Y.  53,  562,  212 

Fr.  28, 241, 625 

Fr.  21, 210,  785 

75 

Fr.  7, 030, 845 

$710, 295 

$562, 144 

79 

$148, 151 

26, 388,117 

11,444,  303 

43 

14, 943,  814 

20,  690,  449 

12,  933,  499 

63 

7,  756,  950 

16, 121,  893 

9,  678,  609 

60 

6,  443,  284 

7, 572,  529 

4,  525,  891 

60 

3,  046,  638 

3,  603,  009 

3, 183,  613 

88 

479,  396 

6,  593,  825 

4,  536,  041 

69 

2, 057,  784 

3,  590,118 

1,  597,  419 

44 

1,  992,  698 

1,  389,  3S6 

626,  087 

45 

763,  250 

2, 418,  907 

1, 045,  709 

43 

1, 373, 198 

3, 162,  842 

1,  383,  401 

43 

1,  779, 440 

2,  789,  552 

1,  790,  525 

64 

999, 027 

525,  055 

543,  832 

136 

C1) 

1,541,494 

1, 028,  745 

67 

512,  748 

2  962, 091 

2  487,  435 

51 

2  474,  656 

76,  826 

85,  774 

112 

3  8,  948 

1, 895,  980 

1,  632,  803 

86 

263, 177 

1,661,353 

1, 167,  062 

70 

494, 291 

Y.  8,455,  683 

Y.  4,411,618 

52 

Y.  4,044, 065 

4  $539,  734 

4  $606,  818 

112 

(4)  0) 

4  1, 764, 136 

4  1, 048,  623 

90 

4  115,373 

2, 490, 000 

(5) 

(6) 

(6) 

1  Deficit.  2  Data  for  1916.  3  Less  $8,948.  4  Data  for  1921.  5  Not  reported. 

MANAGEMENT  OF  CHINESE  RAILWAYS 


On  the  lines  constructed  under  special  concessions  the  form  of 
management  follows  generally  the  practices  in  the  homeland  of  the 
concessionaire,  with  special  features  provided  to  meet  special  con¬ 
ditions. 

CHINESE  EASTERN  RAILWAY 

The  agreement  of  September,  1896,  between  China  and  Russia  for 
the  construction  of  the  Chinese  Eastern  Railway  provided  that  the 
president  should  always  be  a  Chinese  and  should  reside  in  Peking. 
When  the  first  president  died,  however,  in  1903,  the  vice  president,  a 
Russian  and  an  officer  of  the  Ministry  of  Finance  at  St.  Petersburg, 
became  president  and  continued  to  hold  that  office  during  the  life 
of  the  Russian  Imperial  regime.  Theoretically  the  Chinese  Eastern 
Railway  was  governed  throughout  that  period  by  a  board  of  direc¬ 
tors  under  the  Ministry  of  Finance  at  St.  Petersburg.  Always  under 
the  direction  of  the  Ministry  of  Finance,  the  board  exercised  a  cer¬ 
tain  degree  of  supervision  through  the  device  of  a  revision  commit¬ 
tee,  whose  representatives  were  attached  to  each  department  of  the 
railway  and  had  the  right  of  criticism  and,  to  a  certain  degree,  of 
censorship.  Actually,  however,  direction  of  the  railway  was  in  the 
hands  of  the  general  manager,  who  resided  at  Harbin.  This  power¬ 
ful  personage  was  not  only  at  the  head  of  all  Russian  civil  adminis¬ 
tration  within  the  railway  zone,  with  full  direction  of  the  railway 

(accounting  department,  transportation,  maintenance  of  way  and 
equipment,  police  control,  and  the  making  of  rates  and  municipal 
legislation),  but  in  the  later  years  of  the  Czarist  regime  he  was  also 


RAILWAYS  IN  CHINA 


319 


commander  in  chief  of  Russia's  military  forces  in  the  railway  zone. 
The  Chinese  Eastern  Railway  was  thus  in  itself  a  kind  of  political 
state  as  well  as  an  industrial  institution,  with  its  general  manager 
possessed  virtually  of  the  powers  of  a  dictator,  subject  only  to  the 
will  of  his  imperial  master. 

After  the  collapse  of  Imperial  Russia  the  management  of  the  rail¬ 
way  underwent  a  change.  The  residence  of  the  board  of  directors 
was  changed  to  Harbin  and  5  of  the  10  members  were  Chinese,  the 
president  being  a  Chinese.  Police  control  was  taken  over  by  Chinese 
military  authorities.  In  each  department  a  Chinese  was  appointed 
assistant  chief,  but  his  powers  were  limited  largely  to  observation 
rather  than  direction. 

It  is  too  early  to  forecast  the  possible  changes  that  must  result 
from  the  settlement  with  the  Russian  Soviet  Government,  although 
undoubtedly  important  changes  are  bound  to  take  place.  The  pres¬ 
ent  agreement  provides  merely  a  substitution  of  Soviet  representa¬ 
tives  for  former  representatives  of  the  Russo- Asiatic  Bank,  but  it  is 
not  improbable  that  the  Russian  representatives  will  endeavor  even¬ 
tually  to  recover  civil  administration  within  the  railway  zone.  At 
present  all  civil  institutions  in  the  railway  zone  which  were  formerly 
under  the  railway  control  are  subject  to  Chinese  civil  administration. 

SOUTH  MANCHURIA  RAILWAY 

The  South  Machuria  Railway  Co.,  like  the  Chinese  Eastern,  tran¬ 
scends  the  ordinary  functions  of  a  railway.  It  has  charge  of  police 
control  along  the  railway,  directs  general  civic  and  educational  mat¬ 
ters,  engages  in  extensive  mining  operations,  and  generally  directs 
matters  of  commerce  and  industry  within  its  area.  A  board  of  direc¬ 
tors  determines  the  policies  for  and  harmonizes  the  interests  of  the 
several  institutions  connected  with  the  railway.  The  railway  itself 
is  under  the  direction  of  a  general  manager,  who,  subject  to  the  board 
of  directors,  has  charge  of  all  its  activities.  All  important  changes 
of  policy,  however,  with  respect  to  its  different  departments  must  be 
confirmed  by  the  board  of  directors  before  the  general  manager’s 
decision  can  become  final.  The  board  of  directors  is  finally  subject 
to  the  jurisdiction  of  the  Minister  of  Railways  of  the  Japanese 
Imperial  Cabinet. 

CHINESE  GOVERNMENT  LINES 

On  Chinese  Government  railways  the  organization  is  generally 
uniform,  but  the  distribution  of  powers  within  the  organization 
varies.  The  typical  organization  is  that  of  a  managing  director, 
to  whom  the  traffic  manager,  locomotive  superintendent,  mainte- 
nance-of-way  engineer,  chief  accountant,  and  chief  of  police  make 
their  reports.  The  traffic  manager  has  jurisdiction  not  only  over 
rates,  fares,  and  conditions  of  shipment,  but  over  transportation  also. 
Stores  are  usually  under  the  jurisdiction  of  the  particular  depart¬ 
ment  using  them.  The  Peking-Hankow,  Peking-Suiyuan,  and  Shan¬ 
tung  Railways  have  separate  stores  departments. 

The  typical  organization  is  considerably  *modified  by  two  factors ; 
(1)  Loan  agreements,  and  (2)  the  consolidation  policy  pursued  dur¬ 
ing  the  period  of  the  Republic. 


320 


COMMERCIAL  HANDBOOK  OF  CHINA 


On  lines  built  with  foreign  loans  a  certain  number  of  foreign 
officials  are  provided  for  and  tlieir  powers  are  enumerated  in  the 
agreement.  On  most  lines  a  foreign  general  manager,  with  the  title 
“  engineer  in  chief,"  is  named,  to  whom  the  heads  of  departments 
report  rather  than  to  the  managing  director.  In  such  instances  the 
managing  director  has  ordinarily  little  active  control  over  the  techni¬ 
cal  operations  of  the  lines,  but  is  the  medium  of  communication  be¬ 
tween  the  railway  and  the  Government.  In  addition  to  the  foreign 
engineer  in  chief,  or  general  manager,  the  loan  agreement  usually 
specifies  a  foreign  chief  accountant,  whose  powers  cover  not  only 
the  organization  of  the  system  of  accounts  and  matters  affecting 
personnel,  but  who  has  custody  of  the  entire  railway  funds.  Only 
upon  his  signature  can  these  funds  be  drawn  from  the  depository 
specified  in  the  agreement. 

In  the  agreements  prior  to  1908  not  only  are  foreigners  named  as 
heads  of  the  important  departments,  but  they  are  specified  also  for 
other  technical  positions  of  responsibility.  Thus  on  the  Peking- 
Mukden,  Shanghai-Nanking,  Cheng  Tai,  Kaifeng-Honan,  and  Tao- 
kow-Chinghwa  not  only  are  the  engineers  in  chief,  chief  accountants, 
locomotive  superintendents,  maintenance  engineers,  and  traffic  man¬ 
agers  foreigners,  but  also  most  of  the  district  engineers,  traffic  in¬ 
spectors,  and  locomotive  inspectors  are  foreign.  For  the  “most  part 
these  foreign  officials  have  complete  control  of  their  departments, 
including  the  making  of  rates  and  of  rules  for  the  packing  and  ship¬ 
ping  of  goods  and  the  right  to  discharge  subordinates.  On  the 
Peking-Mukden,  however,  a  considerable  limitation  upon  the  latter 
power  has  been  imposed  by  a  provision  in  the  contract  which  places 
the  hiring  of  native  employees  entirely  in  the  hands  of  the  man¬ 
aging  director.  The  result  is  that  practically  the  full  control  of 
personnel  under  any  department  is  in  the  hands  of  the  chief  engi¬ 
neer's  Chinese  assistant,  rather  than  under  control  of  the  head  of  the 
department. 

On  lines  built  as  the  result  of  contracts  made  in  1908  and  there¬ 
after,  foreign  participation  in  the  organization  has  been  very  con¬ 
siderably  modified.  For  example,  on  the  Shanghai-Hangchow- 
Ningpo  (management  of  which  was  later  consolidated  with  that  of  the 
Shanghai-Nanking),  although  the  same  foreign  officers  and  Chinese 
officers  participate  in  the  management  of  the  two  lines,  their  posi¬ 
tions  are  reversed.  The  foreign  departmental  chief  on  the  Shanghai- 
Nanking  has  a  Chinese  assistant,  who  on  the  Shanghai-Hangchow- 
Ningpo  is  in  effect  the  chief  to  whom  the  foreigner  is  an  assistant. 
The  heads  of  departments  on  the  Shanghai-Nanking  road  report  to 
the  chief  engineer  for  instructions;  on  the  Shanghai-Hangchow- 
Ningpo,  they  take  orders  from  the  managing  directors.  However, 
the  custody  of  the  funds  belonging  to  the  railway  is  by  contract  in 
the  control  of  the  foreign  chief  accountant. 

On  the  Tientsin-Pukow  line  there  is  no  foreign  engineer  in  chief, 
but  all  heads  of  departments  report  to  the  managing  director.  The 
traffic  manager  is  a  Chinese.  The  two  maintenance  departments  are 
divided  into  districts.  In  the  southern  district  both  the  locomotive 
superintendent  and  the  chief  maintenance  engineer  are  British,  but 
in  the  northern  district  they  are  Chinese.  The  chief  accountant  is  a 


RAILWAYS  IN  CHINA 


321 


Chinese,  and  has  full  control  of  the  funds.  These  same  conditions 
apply  to  the  Hupeh-Hunan  section  of  the  Canton-Hankow  Railway, 
except  that  it  has  only  the  one  district. 

Organization  on  the  Peking-Hankow  was  originally  similar  to 
that  of  the  other  lines  contracted  for  prior  to  1908;  but  in  1909, 
when  the  original  loan  was  refunded,  the  new  loan  made  no  reference 
to  personnel  of  administration,  and  hence  all  the  foreign  depart¬ 
mental  chiefs  were  reduced  to  the  position  of  assistants  to  their 
former  Chinese  assistants,  who  then  became  chiefs.  Their  functions 
did  not  change  radically;  but  gradually  the  influence  exercised 
by  the  foreigners  has  been  reduced,  until  they  are  now  virtually  in 
the  position  of  mere  advisers  on  technical  matters. 

RELATIVE  IMPORTANCE  OF  LINES 


The  relative  importance  of  the  various  lines  is  shown  by  the 
following  tabulation,  which  divides  the  various  lines  into  groups 
according  to  the  amount  of  revenue  (figures  are  for  1922  unless  other¬ 
wise  indicated)  : 


CLASS  I.  REVENUES  MORE  THAN  $10,000,000 


Railways 

Miles 

Revenue 

Service  units 

Total 

units 

Ton- 

kilometers 

Passenger- 

kilometers 

South  Manchuria _ _ 

681 

1,078 

822 

293 

691 

Y.  87, 662,013 
R.  33, 333,  770 
$26, 388,117 
20, 690, 448 
16, 121,  892 

Thousands 
4, 047, 832 
866,  768 
1, 120,  510 
825,  568 
830,  819 

Thousands 
732, 130 
437, 551 
490, 260 
826, 008 
479, 601 

Thousands 
4,  779,  962 
1,304,319 
1,  610,  770 
1, 651, 576 
1, 310, 420 

Chinese  Eastern.  . . . 

Peking-Hankow..  ..  ..  ..  . . . . 

Peking-Mukden  (inside  wall  only) _ 

Tientsin- Pukow _  .  .  . . 

CLASS  II.  REVENUES  $5,000,000  TO  $10,000,000 


Shantung  Railway  . . . . 

283 

Y.  8, 455, 683 

441, 459 

217,  899 

659, 358 

Shanghai-Nanking..  _ _ 

204 

$7,  572,  528 

318, 377 

648,  709 

967, 086 

Peking-Suiyuan _ ...  _  _ _ 

461 

6,  593,  824 

230, 658 

88,  460 

319, 118 

Lung-Hai  (including  Kaifeng-Honan) _ 

446 

5,  581,  748 

111,454 

215,  872 

327, 326 

CLASS  III.  REVENUES  $1,000,000  TO  $5,000,000 


Shanghai-Hangchow-Ningpo  _ 

180 

$3, 663, 009 

103,  200 

262, 273 

365, 473 

Cheng  Tai _ 

95 

3,  590, 117 

111,689 

36,  368 

148, 057 

Kirin- Changchun . . . 

77 

2,  789,  552 

68,  014 

35,  754 

103,  768 

Yunnan _ _ _  .  .  _  . 

288 

2, 658,  661 

0) 

75,  570 

75,  570 

Kwangtung  _ _ _ _ 

141 

2, 490,  000 

0) 

0) 

Hupeh-Hunan  . . . . 

264 

8;  855;  980 

764,  000 

62, 259 

63, 023 

Ssu-Tao... _ _  _ _ 

266 

1,  661,  352 

48,  744 

19,  764 

68,  508 

Canton- Kowloon.  _ _ _ _ 

90 

1,541,493 

10,411 

136,  856 

147,  267 

Ta  oko  w-  Chinghwa _ _ _ _ 

95 

1, 389,  336 

81, 197 

14,  781 

95, 978 

Sunning. _ _ _ 

93 

2  1, 164, 136 

0) 

0) 

CLASS  IV.  REVENUES  LESS  THAN  $1,000,000 


Kowloon  Canton..  _ 

29 

$710, 295 

0) 

(*) 

Kiukiang  Nanchang.  .  _ _  ...  . 

79 

2  539,  734 

(>) 

0)  [ 

Swatow  Chaochowfu _ 

26 

220,  537 

0) 

0)  L 

1  Not  reported. 


2  For  year  1921, 


100020°— 26 - 22 


322 


COMMERCIAL  HANDBOOK  OF  CHINA 


PROPERTY  AND  EQUIPMENT1 

The  standard  gauge  for  railways  in  China  is  4  feet  8 y2  inches. 
Exceptions  to  this  are  the  Chinese  Eastern,  with  5-foot  gauge;  the 
Cheng  Tai  and  Yunnan  Railways,  with  meter  gauge;  and  numerous 
scattered  industrial  lines  with  various  gauges. 

BRIDGES 

On  each  line  the  practice  followed  in  bridge  construction  has  been 
that  of  the  nation  to  which  the  loan  syndicate  belonged. 

The  longest  bridge  in  China  is  that  on  the  Peking-Hankow  line 
over  the  Yellow  River,  which  is  9,875  feet  long.  The  Tientsin- 
Pukow  bridge  over  the  same  river,  although  it  is  about  200  miles 
downstream,  is  only  4,080  feet  long.  The  Chinese  Eastern  bridge 
over  the  Sungari  River  at  Harbin  is  also  an  imposing  structure,  and 
the  Liao  River  bridge  on  the  Peking-Mukden  consists  of  twenty  100- 
foot  spans. 

BALLAST 

Except  on  the  Chinese  Eastern  and  lately  built  extensions  of  other 
lines,  Chinese  railways  are  ballasted  with  broken  rock.  A  portion  of 
the  Tientsin-Pukow  utilizes  broken  brick  in  part.  The  Chinese 
Eastern  depends  principally  on  gravel  and  sand.  On  its  Harbin- 
Changehun  section  a  clay  ballast  is  covered  with  broken  rock  to  give 
the  appearance  of  rock  ballast  and  to  keep  down  excessive  dust. 

PURCHASING  OF  MATERIALS 

Purchasing  of  materials  for  the  railways  in  China  differs  with  the 
various  lines,  thus  indicating  the  individuality  which  has  character¬ 
ized  each  line  from  its  inception.  On  the  Chinese  Eastern  Railway 
purchases  have  been  conducted  hitherto  by  the  superintendent  of  the 
materials  department,  acting  under  the  suggestion  and  advice  of  the 
heads  of  the  various  operating  departments  regarding  the  introduc¬ 
tion  of  special  appliances  or  new  materials.  With  respect  to  all  the 
more  important  purchases  the  general  manager  was  consulted.  The 
new  regime  inaugurated  by  the  special  agreement  made  between  the 
Manchurian  Provinces  and  the  Soviet  Government  will  probably  not 
alter  this  situation  to  any  considerable  extent. 

On  the  South  Manchuria  Railway  the  usual  materials  are  pur¬ 
chased  by  the  stores  department  at  Dairen.  The  Tokyo  office  has 
been  employed  at  times  in  placing  orders.  The  using  departments 
instruct  the  stores  department  as  to  specifications  and  the  use  of  new 
or  improved  devices.  The  South  Manchuria  Railway,  operating  as 
it  does  the  two  Chinese  Government  railways — the  Kirin- Changchun 
and  the  Ssu  Tao — does  their  purchasing. 

On  the  Chinese  Government  railways  the  various  loan  contracts 
limit,  to  a  considerable  extent,  freedom  of  purchase.  On  several 
of  these,  although  specific  reservation  is  made  in  favor  of  articles 
produced  in  China,  preference  is  stated  for  articles  manufactured 


1  Far  Eastern  Markets  for  Railway  Materials,  Equipment,  and  Supplies,  by  Trade 
Commissioner  Frank  Rhea,  published  by  the  Bureau  of  Foreign  and  Domestic  Commerce 
as  Special  Agents  Series  No.  180,  gives  a  detailed  discussion  of  the  various  types  of 
equipment  used  in  China.  This  publication  can  be  obtained  from  the  Superintendent  of 
Documents,  Government  Printing  Office,  Washington.  Price,  35  cents. 


RAILWAYS  IN  CHINA 


323 


by  the  nationality  of  the  loaning  syndicate.  This  reservation,  how¬ 
ever,  has  no  greater  practical  effect  upon  preferences  in  purchasing 
than  the  provision  that  the  principal  using  officers  shall  be  of  the 
nationality  of  the  loaning  syndicate.  It  is  inevitable  that  officers 
will  specify  materials  of  the  type  and  quality  with  which  they  are 
familiar,  and  it  is  likewise  inevitable  that  they  will  be  more  familiar 
with  the  types  and  specifications  of  materials  manufactured  in  their 
home  countries.  Specific  provision  is  made  in  favor  of  British  man¬ 
ufacturers  (after  Chinese  manufacturers)  on  the  Shanghai-Hang- 
chow-Ningpo  and  Canton-Kowloon  lines  and  on  the  British  section 
of  the  Tientsin-Pukow  line.  The  presence  of  Belgian  officers  on 
the  Lung-Hai,  Kaifeng-Honan,  and  Cheng  Tai  lines  gives  them  all 
the  practical  advantages  of  contractual  preference  on  these  lines, 
as  does  the  presence  of  British  officers  on  the  Shanghai-Nanking,  the 
Hupeh-Hunan  section  of  the  Canton-Hankow,  the  Taokow-Ching- 
hwa,  and  the  Peking-Mukden.  For  a  long  time  the  presence  of 
Belgian  officers  on  the  Peking-Hankow  operated  in  this  manner. 
However,  on  that  line,  as  well  as  the  Peking-Suiyuan  and  the  Shan¬ 
tung  Railway,  purchasing  is  now  entirely  in  the  hands  of  the  Chinese 
administration,  which  conducts  it  largely  by  means  of  tenders,  al¬ 
though  there  is  a  considerable  tendency,  induced  by  straitened 
finances,  toward  small  local  purchases.  On  these  lines  the  arrange¬ 
ments  for  tenders  are  made  by  the  chief  of  the  materials  department, 
but  must  be  sanctioned  by  the  managing  director.  Large  purchases 
and  the  introduction  of  new  and  improved  devices  must  be  nego¬ 
tiated  to  a  considerable  extent  through  the  managing  director’s 
office. 

Regarding  the  purchasing  of  material,  the  Ministry  of  Communi¬ 
cations  has  recently  laid  down  certain  regulations  which  apply  to 
all  railways,  except  in  the  face  of  contrary  provisions  in  the  loan 
agreements.  Under  these  standard  regulations  whenever  any  single 
purchase  of  material  or  of  similar  materials  will  involve  a  payment 
estimated  to  be  over  $5,000  Chinese  currency  an  invitation  to  tender 
must  be  made,  unless  the  material  is  produced  solely  by  one  manu¬ 
facturer  and  is  handled  by  an  exclusive  agency  or  unless  a  supplier 
has  made  a  long-term  agreement  with  respect  to  a  certain  quantity 
of  material.  Firms  submitting  tenders  are  required  to  make  a  de¬ 
posit  as  a  guaranty  of  good  faith,  and  in  addition  are  required  to 
pay  for  the  cost  of  specifications  and  drawings  furnished  by  the 
railway  to  the  firm  in  preparation  of  the  submission  of  its  tender. 
The  amount  of  this  deposit  is  fixed  by  the  railway  according  to  cir¬ 
cumstances.  These  deposits  are  returned  to  the  bidders  after  the 
award  of  tender,  except  that  the  deposit  of  the  successful  tenderer 
is  transferred  to  a  deposit  against  the  contract  entered  into.  The 
invitation  of  tender  can  be  made  by  the  railway  only  after  approval 
by  the  Ministry  of  Communications.  In  case  the  estimated  cost  of 
the  materials  exceeds  $50,000,  representatives  of  the  Ministry  of 
Communications  are  present  at  the  time  of  opening  the  tenders. 
Railways  are  not  bound  to  accept  the  lowest  bid,  except  that  it  is 
prescribed  that  when  several  bidders  are  equally  known  and  pro¬ 
viding  that  their  terms  of  delivery  and  payment  are  similar,  the 
one  whose  bid  is  lowest  shall  be  selected. 


324  COMMERCIAL  HANDBOOK  OF  CHINA 

OPERATING  METHODS  AND  ORGANIZATION  . 

There  is  little  to  distinguish  the  organization  of  the  departments 
of  maintenance  of  way  and  maintenance  of  equipment  in  China  from 
those  in  America,  ^except  that  the  number  of  employees  is  consid¬ 
erably  greater.  The  personnel  of  train  crews  is  under  the  control  of 
the  traffic  department,  while  engine  crews  are  under  the  jurisdiction 
of  the  locomotive  department.  The  engine  crew  and  the  train  crew 
are  entirely  independent  of  each  other  and  there  is  little  cooperation 
between  them. 

The  responsibility  for  getting  trains  over  the  line  devolves  princi¬ 
pally  upon  station  masters.  The  “  token  ”  system  of  train  movement 
is  that  in  use  on  all  lines.  On  the  less  important  lines  that  delivery 
of  the  token  or  u  staff,”  as  it  is  called  in  China,  is  controlled  by  the 
station  master  by  means  of  the  telegraph,  but  on  all  of  the  important 
lines  automatic,  electrically  controlled  instruments  are  installed. 
On  the  Chinese  Eastern  a  train-control  system  was  installed  through 
the  influence  of  John  F.  Stevens.  This  system  in  effect  combines 
the  American  dispatcher  system  with  the  token  system  as  a  means  of 
facilitating  train  movement.  On  the  Shanghai-Nanking  Railway  the 
same  system  is  now  under  trial,  with  the  distinction,  however,  that 
the  Shanghai-Nanking  so  far  has  omitted  the  record  of  train  move¬ 
ments  on  the  train  sheet.  As  traffic  becomes  more  dense  upon  other 
lines  and  as  managements  become  more  exacting  with  respect  to 
regularity  of  train  movement,  an  extension  of  the  train-control 
system  may  be  expected. 

TRANSPORTATION  METHODS 

Passenger  equipment  is  divided  into  at  least  three  classes — first, 
second,  and  third — and  on  the  lines  radiating  from  Shanghai  (the 
Tientsin-Pukow  and  the  Peking-Mukden)  there  is,  in  addition,  a 
fourth  class.  Practically  every  train  contains  cars  of  the  first  three 
classes.  Nearly  all  of  the  first-class  cars  are  of  the  coupe  type.  The 
privacy  which  the  compartment  affords  is  particularly  appreciated 
by  Chinese  women,  who  are  emerging  only  now  from  a  seclusion 
maintained  for  centuries.  The  great  diversity  of  nationalities  repre¬ 
sented  by  first-class  travel,  with  the  consequent  differences  in  lan¬ 
guage  and  etiquette,  also  makes  a  strong  argument  for  the  coupe  type. 
However,  on  the  run  between  Peking  and  Tientsin  the  Peking- 
Mukden  line  has  made  the  experiment  of  a  so-called  parlor  car, 
arranged  not  unlike  American  day  coaches.  The  seats  in  most  of 
the  coupe  cars  are  convertible  into  berths  for  night  use. 

On  the  longer  runs  second-class  cars  are  arranged  similarly  to  those 
of  the  first  class  except  that  four  berths  to  a  coupe  prevail  instead  of 
two.  On  the  shorter  runs,  however,  the  second-class  car  is  merely  a 
rough  counterpart  of  the  American  day  coach,  seats  usually  being 
upholstered  in  rattan  or  composed  of  narrow  wyooden  slats.  Third- 
class  cars  are  even  cruder,  and  fourth-class  travel  is  mostly  in  freight 
cars  on  mixed  trains. 

Freight  traffic  moves  principally  in  carload  lots  and  in  through 
trains  between  large  centers.  Less-than-carload  freight,  and  the  oc¬ 
casional  carload  to  be  picked  up  at  small  stations,  is  hauled  in 
mixed  trains  upon  which  passenger  traffic  predominates.  Most  of 


RAILWAYS  IN  CHINA 


325 


the  freight  equipment  comes  under  three  headings — box  cars,  coal 
cars,  and  flat  cars.  There  are  a  few  tank  cars,  but  most  of  these  are 
owned  by  the  oil  companies  operating  in  China.  On  the  Shantung 
Railway  there  are  special  cars  for  the  use  of  lime  shipments.  This 
type  consists  of  a  steel  gondola,  fitted  with  a  roof  which  can  be 
swung  up  one-half  at  a  time.  Livestock  is  shipped  in  high-sided 
coal  cars,  although  a  few  lines  have  stock  cars  which  serve  a  variety 
of  other  purposes.  Since  most  of  the  grain  comes  to  market  after 
the  close  of  the  summer  monsoon,  open  cars  can  be  used  with  safety 
for  this  purpose;  and  since  the  rate  system  charges  for  the  entire 
capacity  of  the  car,  whether  the  same  is  used  or  not,  open  cars  are 
favored  by  shippers  for  all  the  lighter  commodities  as  well  as  for 
grain,  as  not  only  can  the  car  be  conveniently  loaded  but  a  larger 
proportion  of  the  capacity  can  be  availed  of.  Thus,  cotton  and  wool 
in  bags  or  bales  are  heaped  up  to  the  limit  of  clearance.  Fruits, 
such  as  apples  and  pears,  are  first  picked  in  baskets  and  then  piled 
on  the  open  cars.  There  are  no  refrigerator  cars  in  China.  Against 
the  occasional  snow  or  out-of -season  rain,  bamboo  mats  are  tied  over 
the  cargo  in  the  open  cars.  Some  of  the  lines  are  furnishing  tar¬ 
paulins  for  especially  valuable  or  easily  damaged  shipments.  On 
the  South  Manchuria  and  Chinese  Eastern  lines  heavy  rope  nets  are 
placed  over  the  tops  of  open  cars  to  prevent  pilferage. 

PILFERAGE 

Pilferage  is  a  very  serious  matter  on  Chinese  railways,  and  the 
Chinese  Government  railways  accept  shipments  only  at  owner’s 
risk,  except  at  special  rates,  some  10  per  cent  higher  than  the  normal 
rate.  The  result  is  that  most  of  the  shippers  send  a  watchman  with 
their  cargo.  Each  Province  levies  one  or  more  transit  taxes;  there¬ 
fore  it  is  necessary  for  some  sort  of  agent  to  accompany  cargo 
going  long  distances.  As  these  taxes  are  more  or  less  arbitrary  and 
without  system,  it  is  profitable  for  those  who  are  familiar  with  the 
situation  to  make  special  arrangements  with  the  tax  collector  at  each 
of  these  likin  stations.  Thus  the  railway  risk  rate  is  attractive  to 
only  the  occasional  small  shipper  over  short  distances.  Yet  the 
presence  of  a  watchman  is  not  full  guaranty  against  pilferage. 
Closed  cars  are  perhaps  more  often  subject  to  such  depredations 
than  are  open  cars,  unless  the  former  are  fitted  with  steel  floors. 
The  poverty  of  the  people  is  so  compelling  in  China  that  almost  any 
risk  and  labor  will  be  undertaken  to  bore  through  the  floor  of  a 
closed  car  into  a  possible  tin  of  oil  or  other  liquid.  The  sharpened 
end  of  a  hollow  bamboo  thrust  into  a  sack  of  grain  leaves  no  evi¬ 
dence  of  violence,  but  in  the  course  of  half  an  hour  sufficient  dry 
wheat  will  rattle  through  to  feed  a  family  for  several  days. 

RATES 

Passenger  rates  on  the  Chinese  Government  railways  are  fixed  on 
a  distance  basis  according  to  class.  There  are  four  classes  under 
ordinary  passengers ;  excursion  traffic  is  grouped  under  three  classes ; 
and  in  addition  to  these  are  privileged  passengers  (mostly  members 
of  the  families  of  employees)  and  Government  passengers,  both 
civil  and  military.  About  90  per  cent  of  the  total  passenger  move- 


326 


COMMERCIAL  HANDBOOK  OF  CHINA 


ment  falls  under  the  head  “  ordinary,”  and  nearly  90  per  cent  of  this 
consists  of  third  and  fourth  class  travel.  Third-class  rates  average 
about  iy2  cents  per  mile;  fourth-class  rates  are  somewhat  less  than 
half  the  third-class  rate;  second-class  rates  average  nearly  double 
the  third-class;  and  first-class  rates  are  more  than  three  times  the 
third-class  rate.  While  this  spread  between  the  different  classes  is 
fairly  constant  throughout  the  Government  lines,  there  is  consider¬ 
able  variation  in  the  general  level  of  rates,  depending  principally 
upon  the  extent  of  competition  from  water  transportation.  Thus 
the  rates  on  the  lines  radiating  from  Shanghai  and  from  Canton  are 
fully  a  third  lower  than  those  in  the  other  parts  of  the  coastal  plain, 
while  those  in  Manchuria  are  a  third  higher. 

The  system  of  freight  rates  charged  on  the  different  lines  originally 
varied  with  each  line,  but  within  the  past  five  years  the  Government 
railways  have  worked  out  a  uniform  classification  and  basis  for 
rates.  This  uniform  classification  recognizes  six  classes,  in  addition 
to  which  there  are  special  rates  for  dangerous  articles  and  goods  of 
extraordinary  value.  In  classifying  goods  the  following  factors 
have  been  given  consideration:  Value  of  goods;  bulkiness;  amount  of 
traffic  from  a  given  source;  need  of  encouragement  to  a  new  industry; 
special  services  required;  special  considerations.  For  the  most  part 
mineral  products,  as  coal,  sand,  and  gravel,  are  to  be  found  under  the 
sixth  class;  most  agricultural  products  come  under  the  fourth  and 
fifth  classes;  crude  manufactures  under  the  third  class;  finished  and 
high-class  manufactures  under  the  second  class;  and  highly  valuable 
goods  under  first  class. 

The  range  in  rates  is  from  as  low  as  three-fourths  cent  per  ton- 
mile  for  coal  to  7  cents  per  ton-mile  for  manufactures.  However, 
this  represents  the  range  between  the  lowest  rate  on  the  line  with 
the  lowest  level  to  the  highest  rates  on  the  line  with  the  highest 
level.  Within  each  class  three  sets  of  rates  are  offered — picul  rates, 
ton  rates,  and  carload  rates  (per  ton).  The  tapering  principle  is 
recognized.  However,  not  only  is  there  a  different  general  level  of 
rates  on  each  line,  but  the  rapidity  with  which  the  taper  runs  out 
differs  on  the  various  lines.  A  typical  example,  however,  is  afforded 
by  the  Peking-Hankow  line,  in  which  six  zones  are  provided — 1  to  20 
kilometers;  21  to  50;  51  to  100;  101  to  200  ;  201  to  400;  above  400. 
The  lines  lying  on  the  coastal  plain  have,  roughly,  the  same  average 
length  of  haul  and  the  same  rate  level.  A  distinctly  higher  rate  level 
is  observed,  however,  by  the  Cheng-Tai  and  the  Peking-Suiyuan 
lines,  which  traverse  mountainous  country. 

Compared  with  the  Chinese  Government  railways,  freight  rates 
on  the  South  Manchuria  line  and  its  branches  average  about  25  per 
cent  higher.  Those  on  the  Chinese  Eastern  are  nearly  double,  and 
those  on  the  Yunnan  Railway  more  than  treble.  In  addition  to  the 
six  classes  of  goods  recognized  on  the  Chinese  Government  railways, 
there  has  come  to  be  a  considerable  number  of  commodity  rates. 
These  commodity  rates,  however,  are  generally  based  on  distance 
rather  than  being  a  flat  rate  from  a  given  source  to  a  given  destina¬ 
tion.  Most  of  these  special  commodity  rates  occur  in  connection  with 
the  movement  of  coal.  Five  years  ago  the  number  of  commodities 
recognized  in  the  classification  of  any  line  did  not  exceed  600.  The 
uniform  classification,  however,  at  the  present  time  contains  about 


RAILWAYS  IN  CHINA  327 

1,500  names,  this  including  a  considerable  duplication  for  purposes 
of  easy  reference. 

On  the  South  Manchuria  line  freight  is  carried  under  two  cate¬ 
gories,  ordinary  and  special.  Ordinary  freight  comes  under  four 
classes.  Special  freight  includes  dangerous  articles  and  articles 
which  are  carried  at  special  piece  rates.  Numerous  commodity 
rates  also  exist.  On  the  Chinese  Eastern  about  30  classes  are  recog¬ 
nized;  there  are  also  a  number  of  special  commodity  rates.  The 
passenger  classification  on  these  lines  is  similar  to  that  on  the  Chinese 
Government  railways. 


BIBLIOGRAPHY 

Anonymous.  Investment  Values  of  Chinese  Railway  Bonds.  1923. 

Charignon.  Les  Chemins  de  Fer  Chinois.  1914.  A  description  of  the  lines  in 
existence  in  1913,  written  from  an  engineer’s  standpoint.  Maps  and  program 
for  the  development  of  a  continental  system. 

China  Year  Book,  1924.  Tientsin  Press.  Synopsis  of  railway  history,  and 
latest  statistics  available  up  to  year  of  issue. 

Hsu,  Dr.  M.  C.  Railway  Problems  in  China.  Columbia  University  Studies  in 
Political  Science,  Vol.  XLVI,  No.  2.  Columbia  University,  1915.  A  discussion 
of  loan  and  working  agreements  written  from  the  Chinese  standpoint. 

Kent,  P.  H.  Railway  Enterprise  in  China.  1907.  (Out  of  print.)  A  narrative 
of  the  negotiations  leading  to  construction  agreements,  written  from  the 
foreign  point  of  view.  Appendixes  contain  text  of  agreements. 

Laboulaye.  Les  Chemins  de  Fer  de  Chine.  1911. 

MacMurray,  J.  V.  A.  Treaties  and  Agreements  with  and  Concerning  China, 
1894-1921.  Carnegie  Foundation,  1921.  Contains  all  treaties,  agreements, 
and  known  notes  affecting  Chinese  railways.  Arranged  principally  in 
chronological  order.  Has  the  advantage  of  good  translations  into  English. 

Ministry  of  Communications,  Peking : 

Railway  Loan  Agreements  of  China.  1921.  In  the  original  language. 

Minutes  of  the  Commission  for  the  Unification  of  Railway  Accounts  and 
Statistics.  1918. 

Regulations  for  the  Purchase  of  Materials  for  Chinese  Government  Rail¬ 
ways.  1921. 

Statistics  of  Railways,  Republic  of  China.  1922  et  seq.  “A  model  of  its 
kind,  probably  more  up  to  date  than  that  produced  in  any  other  country 
in  the  world.”  (East  India  Railway  Commission,  p.  45,  par.  134.) 

Overlach,  T.  W.  Foreign  Financial  Control  in  China.  Macmillan,  1919.  A 
discussion  of  “  spheres  of  interest  ”  and  related  subjects. 

Rhea,  Frank.  Far  Eastern  Market  for  Railway  Material,  Equipment,  and 
Supplies.  Special  Agents  Series  No.  180.  United  States  Department  of  Com¬ 
merce,  1919. 

Stringer.  The  Chinese  Railway  System.  Shanghai,  Kelly  &  Walsh,  1922.  A 
brief  treatise  on  the  construction  and  administration  of  Chinese  railways, 
with  special  chapters  on  engineering  features. 

Willoughby,  W.  W.  China  at  the  Conference.  Johns  Hopkins  Press,  1922. 
A  report  of  the  proceedings  and  results  of  the  Washington  Conference.  A 
few  pages  treat  of  railways  in  general  and  of  the  Shantung  Railway  in 
particular. 


CHINESE  POSTAL  SERVICE 


Until  1923  Great  Britain,  France,  Japan,  and  America — and, 
earlier,  Germany  and  Russia — maintained  postal  agencies  in  China, 
but  the  powers  assembled  at  the  Washington  Conference,  recogniz¬ 
ing  the  efficiency  of  the  Chinese  postal  service,  agreed  in  December, 
1921,  to  withdraw  those  agencies.  As  a  result  the  work  of  approxi¬ 
mately  100  foreign  postal  agencies  was  turned  over  to  the  Chinese 
offices  at  the  beginning  of  1923.  Japan,  however,  has  retained  those 
of  its  offices  situated  in  the  South  Manchuria  Railway  zone,  though 
all  other  Japanese  post  offices  in  China  were  withdrawn  at  the  ap¬ 
pointed  time. 

The  Chinese  postal  service  is  under  the  control  of  the  Ministry  of 
Communications  at  Peking.  The  Directorate  General  of  Posts  is 
headed  by  a  Chinese  Director  General  and  a  foreign  Co-Director 
General,  in  whose  hands  rests  executive  authority.  A  staff  of  about 
a  hundred  foreigners  and  many  thousands  of  Chinese  is  employed 
under  a  system  similar  to  the  civil-service  system  in  administrative 
departments  of  the  United  States  Government. 

China  is  a  member  of  the  Universal  Postal  Union  and  participates 
in  all  the  usual  business  conducted  by  postal  services  throughout  the 
world.  Ordinary  and  registered  mails,  parcels,  insured  letters,  and 
money  orders  are  exchanged  with  most  of  the  rest  of  the  world.  As 
this  chapter  is  intended  mainly  for  Chinese  and  American  business 
men,  only  the  domestic  service  and  the  services  between  America  and 
China  will  be  dealt  with  here. 

DOMESTIC  SERVICE 

i 

The  total  number  of  places  provided  with  postal  facilities  at  the 
end  of  1923  exceeded  40,000.  Serving  these  places  are  mail  routes 
totaling  260,000  miles,  of  which  but  7,000  miles  are  railway.  Water 
routes,  consisting  of  steamer,  launch,  and  native  boat  lines  are  used 
for  21,000  miles.  This  leaves  232,000  miles  of  overland  courier 
lines  on  which  mails  are  transmitted  by  every  available  means,  from 
wheelbarrows  to  motor  cars,  including  the  coolie  and  the  camel.  One 
of  these  courier  lines  stretches  from  the  railhead  in  Honan  for  3,600 
miles  (more  than  the  distance  from  New  York  to  San  Francisco) 
to  Kashgar  in  western  Chinese  Turkestan.  Mails  are  dispatched 
over  this  line  and  over  all  other  lines  leading  to  important  cities 
every  day  in  the  year. 

Printed  matter  and  trade  circulars. — Unaddressed  trade  circulars, 
in  single  sheets  or  small  pamphlets,  are  distributed  by  the  post  office 
at  10  cents  per  100  copies.  Advertisements  thus  distributed  reach 
that  part  of  the  public  which  oftenest  receives  mail,  and  such  per¬ 
sons  are  the  most  likely  “  prospects  ”  for  the  sale  of  foreign  goods,  as 
they  are  of  the  more  prosperous  classes.  Trade  circulars  printed  in  a 

328 


CHINESE  POSTAL  SERVICE 


329 


foreign  language  are  delivered  to  foreigners  and  to  those  Chinese 
who  habitually  receive  foreign  mails. 

Money  orders. — There  are  over  2,000  post  offices  which  handle 
money  orders.  As  the  currency  of  China  is  not  standardized,  the 
fees  charged  are  variable,  but  are  based  upon  the  relative  value  of 
the  currency  in  use  in  the  various  Provinces,  as  indicated  by  actual 
market  quotations.  Money  orders  issued  in  1923  exceeded  $95,000,- 
000,  an  increase  of  25  per  cent  over  the  previous  year. 

Parcels. — Domestic  parcel  postage  includes  registration  fee.  Post¬ 
age  between  all  steam-served  offices  east  of  Szechwan  is  20  silver  cents 
for  the  first  kilo  and  10  cents  for  each  additional  kilo.  The  limit  of 
weight  is  10  kilos  (about  22  pounds). 

Insurance. — Insurance  of  domestic  parcels  containing  gold  or 
silverware  and  of  letters  containing  bank  notes  is  compulsory. 

SINO-AMERICAN  POSTAL  ARRANGEMENTS 

Mails  between  the  United  States  and  Chinese  post  offices  are 
exchanged  directly  between  the  exchange  offices  of  the  two  countries, 
and  each  administration  sorts  mails  by  districts  and  cities  for  dis¬ 
tribution  by  the  other.  Thus,  for  instance,  Chinese  mails  for  New 
York  City  are  tied  in  bundles  or  inclosed  in  separate  bags  in  China 
and  need  not  be  re-sorted  by  the  Seattle  or  San  Francisco  office 
upon  landing  in  America,  but  may  go  directly  to  New  York  by  the 
first  train  available.  The  business  man  in  China  may  also  utilize 
the  San  Francisco  to  New  York  air-mail  route  upon  payment  of  the 
fee  for  transmission  by  that  service.  Postage  rates  from  China  to 
America  are  those  found  in  the  union  tariff  of  postage.  The  rates 
on  insured  letters  do  not,  however,  apply,  as  the  United  States  has 
not  adhered  to  the  union  convention  for  exchange  of  insured  mails. 

A  special  agreement  exists  for  exchange  of  parcels  between  the 
two  countries.  All  the  usual  sorts  of  merchandise  and  printed  mat¬ 
ter  may  be  sent  by  parcel  post.  Letters,  post  cards,  and  written 
matter,  or  articles  which  violate  the  internal  laws  and  regulations 
of  either  country  may  not,  however,  be  inclosed  in  parcels.  Poisons, 
firearms,  obscene  or  immoral  matter,  and  dead  animals  are  pro¬ 
hibited. 

The  maximum  weight  of  a  parcel  is  22  pounds  except  to  or  from 
Shanghai,  where  50  pounds  is  the  limit.  The  limit  of  size  is  84 
inches  in  length  and  girth  combined. 

Postage  on  parcels  is  12  cents  gold  (24  cents  Chinese)  per  pound 
or  fraction  thereof.  Registration  fee  is  10  cents  in  addition  to 
postage.  In  the  case  of  parcels  to  or  from  places  in  China  not 
served  by  steam  (i.  e.,  railway,  steamer,  or  launch),  domestic  post¬ 
age  is  charged  in  addition  to  the  above  rates.  A  tax  of  50  cents  per 
parcel  is  charged  on  each  parcel  destined  for  places  in  Manchuria 
north  of  Changchun  and  for  places  in  Yunnan  reached  via  Hong¬ 
kong  and  Indo-China.  In  the  case  of  parcels  posted  in  America, 
this  tax  is  collected  from  the  addressee. 

A  customs  declaration  on  a  form  furnished  by  the  post  office  is 
necessary  for  each  parcel.  In  addition  to  the  customs  declaration, 
senders  of  parcels  from  China  to  the  United  States  are  strongly 
advised  to  inclose  in  each  parcel  a  list  of  contents  showing  value. 


330 


COMMERCIAL  HANDBOOK  OF  CHINA 


This  list  should  be  a  copy  of  a  consular  invoice  for  parcels  valued 
at  over  $100  in  United  States  currency. 

Article  XII  of  the  Sino-American  parcel-post  agreement  reads: 

The  Post  Office  Department  of  either  of  the  contracting  countries  will  not 
be  responsible  for  the  loss  or  damage  of  any  parcel,  and  no  indemnity  can 
consequently  be  claimed  by  the  sender  or  addressee  in  either  country. 

Loss  or  damage  to  parcels  is,  however,  very  rare  except  in  in¬ 
stances  of  poor  packing.  Senders  of  parcels  should  be  very  careful 
to  pack  breakable  articles  in  strong  boxes,  as  considerable  strain  and 
great  weight  must  be  provided  against  in  transmission  by  sea.  In 
apparent  cases  of  loss  or  delay  of  parcels,  parties  interested  should 
communicate  at  once  with  the  postal  authorities,  who  will  gladly 
investigate.  A  fee  of  10  cents  should  be  sent  with  the  inquiry  if  it 
is  desired  that  a  parcel  be  traced  to  destination. 

Parcels  are  not  insured  by  the  postal  service  if  forwarded  by 
direct  service,  but  they  may  be  insured  in  private  companies  for 
a  small  fee.  Parcels  from  China  to  the  United  States,  if  transmitted 
through  the  British  postal  service,  may  be  insured,  but  the  postal 
rate  is  higher  and  the  time  en  route  much  longer. 

CUSTOMS  TREATMENT  OF  PARCELS 

Parcels  entering  China  destined  for  the  treaty  ports  are  nominally 
subject  to  the  ordinary  customs  duties  of,  but,  owing  to  the  miscellane¬ 
ous  nature  of  a  parcel-post  trade,  a  5  per  cent  ad  valorem  duty  is 
usually  levied  and  is  paid  by  the  addressee  or  his  agent  upon  delivery. 
Parcels  destined  to  places  beyond  treaty  ports  are  subject  to  transit 
duties  of  2y2  per  cent  additional.  For  convenience,  the  post  office 
collects  both  tariffs  on  behalf  of  the  customs  administration. 

Parcels  for  export  are  subject  to  the  same  duties  as  incoming 
parcels. 

The  Chinese  customs  usually  pass  duty  free  all  single  parcels 
valued  at  less  than  $10  Chinese  currency  (about  $5  LTnited  States). 

MONEY-ORDER  SERVICE 

Money  orders  may  be  purchased  at  any  United  States  post  office 
for  payment  at  any  money-order  office  in  China.  The  orders  are 
made  for  United  States  currency  and  are  converted  at  a  Chinese 
exchange  office.  Foreign  bank-exchange  rates  are  used  in  making 
the  conversion. 

Money  orders  payable  by  post  offices  in  the  United  States  in  United 
States  currency  may  be  purchased  at  post  offices  in  China  in  Chinese 
currency,  the  exchange  being  at  the  rate  of  the  day.  The  fee  is  10 
cents  per  $10  or  fraction  thereof  and  the  maximum  amount  in  a 
single  money  order  is  $100,  United  States  currency.  As  all  money 
orders  must  pass  through  the  exchange  offices  of  both  countries,  they 
require  a  little  longer  time  to  reach  the  payee  than  a  letter  would 
require. 


TARIFFS  AND  INTERNAL  TAXES  1 

By  Commercial  Attache  Julean  Arnold 


For  60  years  prior  to  the  treaties  of  1842  and  1844,  the  merchants 
of  western  nations  trading  with  China  had  no  contact  with  Chinese 
customs  duties.  All  taxes  against  foreign  trade  were  paid  by  the 
Chinese  ko  hong  merchants  at  Canton,  who  held  the  monopoly  of 
trade  rights  with  foreigners.  The  treaties  of  1842  and  1844  with 
Great  Britain,  the  United  States,  and  France  stipulated  that: 
(1)  Foreign  trade  with  China  was  permitted  at  four  ports  other 
than  Canton;  (2)  the  monopoly  of  doing  business  with  foreigners, 
held  for  decades  by  the  Canton  ko  hongs,  was  abolished;  (3)  foreign 
merchants  could  rent  land  at  designated  places,  called  treaty  ports, 
for  business  and  residence,  and  could  transact  business  in  the  open 
market  with  their  persons  and  property  under  the  protection  and  . 
jurisdiction  of  the  laws  of  their  respective  countries  instead  of  under 
Chinese  law ;  and  (4)  foreign  import  and  export  trade  should  be 
subject  to  the  levy  of  moderate  customs  (averaging  5  per  cent  ad 
valorem)  according  to  a  published  tariff. 

Following  these  treaties,  certain  irregularities  began  to  crop  up 
in  the  Chinese  administration  of  the  customs  which  the  consuls  of 
the  United  States,  France,  and  Great  Britain  earnestly  endeavored  to 
correct.  The  difficulties  were  not  all  of  Chinese  creation.  The 
attitude  of  certain  foreign  merchants,  now  beyond  Chinese  jurisdic¬ 
tion,  who  endeavored  to  take  advantage  of  every  opportunity  to 
evade  payment  of  the  stipulated  duties,  had  its  part  in  complicating 
the  situation. 

The  Taiping  rebels  captured  Shanghai  native  city  on  Septem¬ 
ber  7,  1853,  and  on  the  following  day  the  customhouse  in  the  foreign 
settlement  was  looted  and  burned.  In  order  to  protect  their  trade 
interests,  the  western  powers,  whose  nationals  occupied  the  area 
north  of  the  Shanghai  wallecl  city,  which  by  treaty  had  been  set 
aside  for  foreign  business  and  residence,  declared  their  territory 
neutral  and  refused  to  allow  either  the  Imperial  Government  forces 
or  the  rebels  to  use  it  as  a  base  of  operations.  It  became  a  refuge 
for  numerous  Chinese  officials,  and  in  June,  1854,  the  u  taotai,”  who 
functioned  as  superintendent  of  customs  and  was  a  refugee  in  the 
foreign  settlement,  was  prevailed  upon  by  the  British,  American,  and 
French  consuls  to  appoint  for  the  port  of  Shanghai  a  commission  of 
three  foreign  (French,  American,  and  British)  inspectors  of  customs. 

A  year  later  the  “  taotai  ”  was  impeached  and  banished  by  the  central 
Government.  The  French  and  American  inspectors  retired  from  the 
commission,  and  this  left  authority  entirely  with  the  British  repre¬ 
sentative,  who  developed  the  administration  to  include  others  of® 
the  treaty  ports. 

Buie  10  of  the  supplementary  tariff  schedule  of  the  British  treaty 
of  Tientsin  in  1858  prescribes  one  system  for  the  collection  of  cus- 


1  Indebtedness  to  Consul  J.  E.  Jacobs  is  acknowledged  for  very  helpful  data  on  China’s 
internal  taxes. 


331 


332 


COMMERCIAL  HANDBOOK  OF  CHINA 


toms  duties  at  all  treaty  ports  in  China.  It  contains  the  following 
stipulation : 

The  high  officer  appointed  by  the  Chinese  Government  to  superintend  foreign 
trade  will,  accordingly,  from  time  to  time,  either  himself  visit,  or  will  send  a 
deputy  to  visit,  the  different  ports.  The  said  high  officer  will  be  at  liberty,  of 
his  own  choice,  and  independently  of  the  suggestion  or  nomination  of  any 
British  authority,  to  select  any  British  subject  he  may  see  fit  to  aid  him  in  the 
administration  of  the  customs  revenue ;  in  the  prevention  of  smuggling ;  in  the 
definition  of  port  boundaries ;  in  discharging  the  duties  of  harbor  master ;  also 
in  the  distribution  of  lights,  buoys,  beacons,  and  the  like,  the  maintenance  of 
which  shall  be  provided  for  out  of  the  tonnage  dues. 

This,  then,  is  the  treaty  provision  for  foreign  administrative 
assistance  in  the  Chinese  customs.  The  conventions  of  Peking  of 
1860  provided  for  the  payment  of  certain  indemnities  from  customs 
receipts.  This  led  to  the  organization  of  a  consolidated  service  under 
the  direct  control  of  the  central  Government.  Accordingly,  the 
British  assistant  to  the  Chinese  Superintendent  of  Foreign  Trade 
was  elevated  to  the  post  of  Inspector  General  of  Customs  in  January, 
1861,  to  exercise  a  general  supervision  over  all  things  pertaining  to 
the  customs  revenue  and  to  foreign  trade. 

On  November  15,  1863,  Sir  Robert  Hart  was  appointed  Inspector 
General  of  Customs  with  headquarters  at  Peking.  The  American 
Minister,  Mr.  Anson  Burlingame,  at  that  time  made  the  statement, 
“Mr.  Hart  has  deserved  their  (the  Chinese)  confidence.  For  two 
years  past  he  has  acted  in  the  place  of  Mr.  Lay,  and  by  his  tact  and 
ability  has  won  the  regard  of  everyone.  Our  countrymen  were  par¬ 
ticularly  well  pleased  with  him.” 

On  February  10,  1898,  the  Tsung  Li  Yamen,  which  functioned  in 
foreign  affairs,  in  reply  to  a  British  note,  stated  that  it  agreed,  in 
view  of  the  immense  preponderance  of  British  trade  with  China  over 
that  of  other  countries,  that  the  Inspector  General  of  Customs  should 
in  the  future  as  in  the  past  be  of  British  nationality.  (In  1885  Sir 
Robert  Hart  resigned  to  accept  the  post  of  British  Minister  to  China, 
recommending  his  brother  as  his  successor.  At  first  the  Chinese  sug¬ 
gested  the  appointment  of  an  American  and  later  a  German  to  the 
post  of  Inspector  General,  whereupon  Sir  Robert  Hart  withdrew  his 
resignation  and  retained  his  post  as  Inspector  General  until  his 
death  in  1911.) 

CUSTOMS  ADMINISTRATION 

The  customs  administration  is  under  the  immediate  direction  of 
the  Shui  Wu  Chu  (Revenue  Council),  and  the  Inspector  General 
functions  directly  under  this  branch  of  the  central  Government. 
The  foreign  personnel  is  of  international  character  and  has  been 
presumed  to  reflect  the  proportionate  interests  which  the  various 
foreign  nations  have  in  China’s  foreign  trade.  Of  the  total  number 
of  978  foreign  employees  in  the  Chinese  Maritime  Customs  in  1923, 
however,  one-half  were  British,  about  one-quarter  Japanese,  and  only 
one-nineteenth  American. 

CUSTOMS  FUNCTIONS 

The  Chinese  Maritime  Customs  collects  duties  on  imports  and 
exports,  duties  on  coasting  trade  in  foreign-built  bottoms,  tonnage 


TARIFFS  AND  INTERNAL  TAXES 


333 


dues  on  shipping,  and  transit  dues.  It  has  charge  of  lighthouses, 
harbor  works,  pilotage,  and  conservancy  works.  Since  1901  the  native 
or  regular  customs  within  a  15-mile  radius  from  each  Maritime 
Customs  station  came  under  the  direction  of  the  commissioner  of 
customs  of  that  port.  It  must  be  borne  in  mind,  however,  that  the 
Maritime  Customs  functions  only  at  treaty  ports.  There  are  now 
about  50  Maritime  Customs  posts  in  China,  which  correspond  some¬ 
what  to  ports  of  entry  in  the  United  States.  The  Maritime  Customs 
has  under  its  jurisdiction  the  creation  and  management  of  a  loan  and 
indemnity  service  in  connection  with  loans  and  indemnities  secured 
by  the  customs  revenues. 

CUSTOMS  VALUATIONS 

The  schedule  of  valuations  as  agreed  upon  in  1843,  which  supple¬ 
mented  the  British  treaty  of  1842,  had,  by  1858,  resulted  in  giving 
the  Chinese  more  than  a  uniform  5  per  cent  ad  valorem;  hence, 
according  to  Article  XXVI  of  the  Tientsin  treaty,  provision  was 
made  for  a  revision  of  this  schedule.  A  joint  commission  drafted 
a  new  schedule  of  valuations  both  for  imports  and  for  exports  which 
embodied  also  10  rules  of  trade,  defining  customs  procedure,  English 
equivalents  of  Chinese  weights  and  measures,  etc. 

Article  XXVII  of  the  British  treaty  of  1858  provides  that  either 
contracting  party  may  by  six  months’  previous  notice  call  for  a 
revision  of  the  tariff  at  the  end  of  each  10-year  period.  Li  Hung 
Chang,  in  1896,  made  an  unsuccessful  effort  to  get  the  foreign  powers 
to  agree  to  a  revision,  rightly  contending  that  China  was  not  getting 
more  than  2  or  3  per  cent  on  the  important  items  in  its  foreign  trade 
under  the  schedule  of  valuations  of  the  1858  supplementary  agree¬ 
ment. 

The  final  protocol  following  the  settlement  of  the  Boxer  uprising 
provided  that  the  specific  duties  of  the  customs  tariff  on  imports 
should  be  raised  to  an  effective  5  per  cent  ad  valorem.  The  com¬ 
mission  for  the  adjustment  of  values  chose  the  average  market 
values  for  the  three  years  1898  to  1900.  The  new  schedule  became 
effective  October  31,  1902. 

During  1918  the  second  readjustment  of  values  since  1858  was 
made,  the  international  commission  choosing  the  averages  of  the  val¬ 
uations  for  the  years  1912  to  1915,  inclusive.  This  schedule  became 
effective  in  April,  1919.  It  provided  that  a  further  revision  might 
be  requested  after  two  years  following  the  close  of  the  European 
war.  The  Washington  conference  likewise  made  provision  for  a 
postwar  revision  of  valuations.  Accordingly,  in  1922,  an  international 
commission  sat  at  Shanghai,  at  China’s  request,  and  again  adjusted 
the  values  for  the  import  tariff  so  as  to  give  China  an  effective  full 
5  per  cent  ad  valorem  tariff.  This  schedule  became  operative  Jan¬ 
uary  17,  1923.  Several  important  changes  were  also  made  in  the 
customs  rules  which  form  a  part  of  the  schedule  of  duty-paying 
values.  It  is  estimated  that  about  80  per  cent  of  the  aggregate 
value  of  China’s  imports  pay  duty  on  a  fixed  value  basis  as  stipu¬ 
lated  in  this  schedule,  while  about  20  per  cent  are  subject  to  a  direct 
5  per  cent  ad  valorem  levy. 


334 


COMMERCIAL  HANDBOOK  OF  CHINA 


EXPORT  TARIFF 

The  schedule  of  export  values  for  duty- paying  purposes,  against 
which  a  5  per  cent  rate  is  imposed,  has  not  been  revised  since  1858, 
although  certain  alterations  have  been  made  which  have  not  called 
for  protests  from  the  foreign  powers. 

FRONTIER  CUSTOMS  TARIFF 

A  special  rebate  of  one-third  on  the  regular  import  and  export 
duties  is  granted  on  overland  or  frontier  trade.  The  idea  originated 
with  a  Russo- Chinese  agreement,  before  China  had  railway  connec¬ 
tions  with  adjoining  nations,  to  help  an  expansion  in  the  overland 
caravan  trade.  Taking  advantage  of  the  most- favored-nation  clause 
of  their  treaties,  this  special  privilege  has  been  appropriated  by 
those  neighbors  who  subsequently  developed  railway  communications. 
For  instance,  the  one-third  saving  in  duty  for  Japanese  goods  enter¬ 
ing  Manchuria  through  Chosen  (Korea)  covers  the  freight  charges 
and  has  resulted  in  probably  75  per  cent  of  Japan’s  imports  with 
Manchuria  going  by  rail  through  Chosen  instead  of  by  sea  to  Dairen. 
At  the  port  of  Dairen,  which  is  in  the  Japanese  leased  territory, 
there  is  a  free-trade  zone.  By  agreement  with  China  the  personnel 
of  the  Chinese  customs,  under  the  direction  of  a  Japanese  commis¬ 
sioner  of  customs,  is  employed  in  the  Chinese  customs  service. 

FUTURE  CUSTOMS  REVISIONS 

The  nine  powers  treaty  of  the  Washington  conference  relating  to 
China’s  customs  tariff  stipulates  that  immediate  steps  shall  be  taken 
looking  to  a  special  conference  in  China  to  prepare  the  way  for  the 
speedy  abolition  of  likin,  in  accord  with  the  treaties  with  China  of 
Great  Britain,  the  United  States,  and  Japan,  of  1902  and  1903.  The 
special  conference  is  empowered  to  authorize  the  levying  of  a  surtax 
at  a  uniform  rate  of  2 %  per  cent,  with  a  special  provision  for  a 
maximum  5  per  cent  ad  valorem  tax  on  articles  of  luxury,  pending 
the  conclusion  of  an  agreement  for  the  abolition  of  likin  and  the 
raising  of  the  Chinese  import  tariff  to  a  uniform  12%  per  cent  ad 
valorem.  The  treaties  above  mentioned  provide  for  the  abandon¬ 
ment  of  likin  and  all  other  transit  dues  throughout  China  and  the 
abolition  of  the  institutions  maintained  for  their  collection,  in  lieu 
of  which  these  treaty  powers  agree  to  a  maximum  additional  7% 
per  cent  ad  valorem  import  tariff.  The  treaties  also  stipulate  that 
taxation  on  native  goods  intended  for  export  abroad  shall  in  the 
aggregate  not  exceed  7%  per  cent  ad  valorem,  and  provide  for  an 
adjustment  of  the  schedule  of  valuations  every  seven  years. 

CHINESE  CUSTOMS  PROCEDURE 

UNITS  OF  CURRENCY,  WEIGHT,  AND  MEASURE 

Because  of  the  lack  of  a  uniform  currency  or  a  uniform  standard 
of  weights  and  measures,  the  foreign  powers  in  treaty  negotiations 
with  China  fixed  the  units  of  currency  and  weight  for  customs  pur¬ 
poses. 


TARIFFS  AND  INTERNAL  TAXES 


335 


All  duties  are  payable  on  the  basis  of  the  haikwan  tael,  a  fictitious 
unit  equal  to  584  grains  of  silver  of  992.3  fineness.  A  tael  is  a 
Chinese  ounce  equal  to  1  %  avoirdupois  ounces  of  silver.  The  Chinese 
currency  is  based  on  a  decimal  scale,  the  mace  being  one-tenth  of  a 
tael,  the  candareen  one-tenth  of  a  mace,  and  the  cash  one-tenth  of  a 
candareen.  The  duties  are  paid  in  local  taels  or  in  Mexican  dollars 
converted  into  haikwan  taels  at  the  prevailing  bank  rates  of  the  day. 

Weights  are  computed  on  the  basis  of  the  picul  (133%  pounds 
avoirdupois),  the  catty  (1%  pounds),  and  the  liang  (1%  ounces). 

One  Chinese  chang  is  equal  to  10  Chinese  feet,  or  141  English 
inches.  One  Chinese  chih  is  equal  to  one-tenth  of  a  chang,  or  14.1 
English  inches. 

These  are  the  weights  and  measures  fixed  for  customs  purposes  for 
the  whole  of  China,  but  not  those  that  are  current  throughout  China 
otherwise. 

ASCERTAINING  VALUES  FOR  AD  VALOREM  DUTIES 

Imports  unenumerated  in  this  tariff  will  pay  duty  at  the  rate  of 
5  per  cent  ad  valorem ;  and  the  value  upon  which  duty  is  to  be  cal¬ 
culated  shall  be  the  wholesale  market  value  of  the  goods  in  local 
currency.  This  market  value,  when  converted  into  haikwan  taels, 
shall  be  considered  to  be  higher  than  the  duty-paying  value  by  the 
amount  of  the  duty  on  the  goods  and  7  per  cent  of  the  duty-paying 
value  of  the  goods. 

If  the  goods  have  been  sold  before  presentation  to  the  customs  of 
the  application  to  pay  duty,  the  gross  amount  of  the  bona  fide  con¬ 
tract  will  be  accepted  as  evidence  of  the  market  value.  Should  the 
goods  have  been  sold  on  c.  i.  f.  terms,  that  is  to  say,  without  inclu¬ 
sion  in  the  price  of  duty  and  other  charges,  such  c.  i.  f.  price  shall 
be  taken  as  the  value  for  duty-paying  purposes  without  the  deduc¬ 
tion  mentioned  in  the  preceding  paragraph. 

FILING  PROTESTS  AGAINST  ASSESSMENTS 

The  importer,  if  dissatisfied  with  the  decision  of  the  customs  as 
to  the  value  or  classification  of  imported  goods,  or  the  amount  of 
duty  or  charges  assessed  thereon,  may,  within  20  days  after  the 
filing  of  the  application  to  pay  duty  or  other  customs  entry,  file  a 
protest  in  writing  with  the  commissioner  of  customs,  setting  forth 
specifically  his  objection  thereto.  Pending  a  final  decision  in  the 
case,  the  merchandise  may  be  released  to  the  importer  upon  the 
deposit  of  full  duties  and  such  additional  duties  as  may  be  claimed 
by  the  customs,  provided  that  the  case,  in  the  opinion  of  the  cus¬ 
toms,  can  be  heard  satisfactorily  after  the  release  of  the  merchandise 
from  customs  custody.  Upon  the  filing  of  protest  the  commissioner 
shall,  within  15  days  thereafter,  review  his  decision,  and  if  the 
protest  is  not  sustained  the  case  shall  be  referred  to  a  board  of 
arbitration,  composed  as  follows :  An  official  of  the  customs ;  a 
merchant  selected  by  the  consul  of  the  importer;  and  a  merchant, 
differing  in  nationality  from  the  importer,  selected  by  the  senior 
consul. 

Questions  regarding  procedure,  etc.,  which  may  arise  during  the 
sittings  of  the  board,  shall  be  decided  by  the  majority.  The  final 
finding  of  the  majority  of  the  board,  which  must  be  announced 


336 


COMMERCIAL  HANDBOOK  OF  CHINA 


within  15  days  of  the  reference  (not  including  holidays),  will  be 
binding  upon  both  parties.  Each  of  the  two  merchants  on  the 
board  will  be  entitled  to  a  fee  of  10  haikwan  taels.  Should  the 
board  sustain  the  customs  valuation,  or  in  the  event  of  not  sustain¬ 
ing  that  valuation  should  it  decide  that  the  goods  have  been  under¬ 
valued  by  the  importer  to  the  extent  of  not  less  than  7!/2  per  cent, 
the  importer  will  pay  the  fees;  if  otherwise,  the  fees  will  be  paid 
by  the  customs.  Should  the  board  decide  that  the  correct  value 
of  the  goods  is  20  per  cent  (or  more)  higher  than  that  upon  which 
the  importer  originally  claimed  to  pay  duty,  the  customs  authorities 
may  retain  possession  of  the  goods  until  full  duty  has  been  paid 
and  may  levy  an  additional  duty  equal  to  four  times  the  duty  sought 
to  be  evaded. 

INVOICES 

In  all  cases,  invoices,  when  available,  must  be  produced  if  re¬ 
quired  by  the  customs. 

DUTY-FREE  ARTICLES 

The  following  will  not  be  liable  to  import  duty:  Foreign  rice, 
cereals,  and  flour;  gold  and  silver,  both  bullion  and  coin;  printed 
books,  charts,  maps,  periodicals,  and  newspapers. 

A  freight  or  part  freight  of  duty-free  commodities  (gold  and 
silver  bullion  and  foreign  coins  excepted)  will  render  the  vessel  car¬ 
rying  them,  though  no  other  cargo  be  on  board,  liable  to  tonnage 
dues. 

Drawbacks  will  be  issued  for  ships’  stores  and  bunker  coal  when 
taken  on  board. 

PROHIBITED  ARTICLES 

Except  at  the  requisition  of  the  Chinese  Government,  or  for  sale 
to  Chinese  duly  authorized  to  purchase  them,  import  trade  is  pro¬ 
hibited  in  all  arms,  ammunition,  and  munitions  of  war  of  every 
description.  No  permit  to  land  them  will  be  issued  until  the  customs 
officials  have  proof  that  the  necessary  authority  has  been  given  to  the 
importer.  Infraction  of  this  rule  will  be  punishable  by  confiscation 
of  all  the  goods  concerned.  The  importation  of  salt  is  absolutely 
prohibited. 

The  importation  of  opium  and  poppy  seeds  is  absolutely  pro¬ 
hibited.  The  importation  of  the  following  articles  is  prohibited 
except  under  bond  by  qualified  medical  practitioners,  druggists,  and 
chemists:  Morphia  and  cocaine  and  hypodermic  syringes;  anti¬ 
opium  pills  containing  morphia,  opium,  or  cocaine ;  stovaine,  heroin, 
thebaine,  ganja,  hashish,  bhang,  Cannabis  Indicw, ,  tincture  of  opium, 
laudanum,  codeine,  dionin,  and  all  other  derivatives  of  opium  and 
cocaine. 

FOREIGN  GOODS  IMPORTED  FROM  CHINESE  PORTS 

All  foreign  goods  imported  from  a  Chinese  port,  unless  they  are 
covered  by  exemption  certificate  or  are  exempted  from  duty  by  an 
entry  on  the  cargo  certificate  issued  at  the  port  of  shipment  (cf. 
below,  “Foreign  goods  sent  to  a  Chinese  port”),  are  charged  duty 
according  to  the  revised  import  tariff  of  1922. 


TARIFFS  AND  INTERNAL  TAXES 


337 


FOREIGN  GOODS  REEXPORTED  TO  FOREIGN  COUNTRY 

Foreign  goods  reexported  to  a  foreign  country  within  three  years 
from  the  date  of  importation  are  passed  free  of  duty  and  given  a 
drawback  for  the  amount  of  import  duty  originally  paid  on  them, 
provided  that  they  remain  intact  and  unchanged  in  their  original 
packages. 

Goods  of  undoubtedly  foreign  origin,  which  have  been  in  port 
more  than  three  years  or  whose  date  of  importation  can  not  be  traced, 
are  passed  free  of  duty  on  shipment  to  a  foreign  country. 

FOREIGN  GOODS  SENT  TO  CHINESE  PORT 

Foreign  goods,  the  particulars  of  whose  importation  can  be  traced, 
which  remain  in  their  original  packages  without  these  packages  hav¬ 
ing  been  opened,  are  passed  free  of  duty  when  shipped  to  another 
treaty  port,  and  an  exemption  certificate  is  issued  freeing  them  from 
duty  at  the  port  to  which  they  are  shipped. 

FOREIGN  GOODS  SENT  INLAND 

w 

Foreign  goods  sent  inland  for  which  a  transit  pass  is  taken  out  are 
charged  transit  duty  at  the  rate  of  half  the  import  duty  originally 
paid  on  them.  Goods  which  are  free  of  duty  are  charged  transit 
duty  at  the  rate  of  2 y2  per  cent  ad  valorem. 

DUTY  ON  NATIVE  GOODS  EXPORTED 

Native  goods  exported  from  a  treaty  port  in  China  to  a  foreign 
country  pay  according  to  the  schedule  of  the  export  tariff  of  1858, 
reprinted  in  1920  with  certain  alterations  as  made  by  the  Chinese 
Government.  Goods  not  enumerated  in  this  schedule  pay  5  per  cent 
ad  valorem. 

Chinese  goods  moved  from  place  to  place  in  China  are  subject  to 
inland  taxation.  But  as  an  importer  can  escape  payment  of  divers 
inland  taxes  on  foreign  goods  shipped  inland  from  a  treaty  port  by 
taking  out  an  inward  transit  certificate,  the  exporter  of  Chinese 
goods  may  escape  payment  of  the  inland  taxes  accruing  on  their 
way  out  by  taking  out  an  outward  transit  certificate.  The  transit 
dues,  equal  to  half  the  export  duty,  are  levied  at  the  treaty  port  upon 
the  arrival  of  the  goods  and  are  paid  to  the  Maritime  Customs. 
Transit  certificates  can  be  taken  out  only  on  goods  destined  to  a 
foreign  country.  Native  goods  not  covered  by  an  outward  transit 
certificate  are  subject,  when  moved  from  place  to  place,  to  internal 
taxes,  usually  greatly  in  excess  of  the  dues  imposed  under  transit 
certificate.  In  addition  to  the  ordinary  inland  taxation,  from  which 
goods  under  transit  pass  are  exempt,  native  goods  shipped  from  one 
treaty  port  to  another  pay  at  the  point  of  shipment  full  export  duty, 
and  at  the  port  of  destination  a  coast-trade  duty  equal  to  half  the 
export  duty.  If  the  goods  are  subsequently  shipped  to  a  foreign 
country  the  coast-trade  duty  is  refunded. 

CHINESE  GOODS  IMPORTED  FROM  CHINESE  PORT 

Chinese  goods  imported  from  a  Chinese  treaty  port  are  charged  a 
coast-trade  duty  at  half  the  rate  of  export  duty;  but  the  following 

100020°— 26 - 23 


338 


COMMERCIAL  HANDBOOK  OF  CHINA 


goods — Chinese  factory  products,  rice,  and  raw  cotton — although 
they  pay  export  duty,  are  exempt  from  coast-trade  duty. 

CHINESE  GOODS  REEXPORTED 

To  a  foreign  country . — Chinese  goods  that  have  been  imported 
from  another  treaty  port  and  reexported  to  a  foreign  country  within 
one  year  of  their  arrival  in  Shanghai  are  passed  free  of  duty  and 
given  a  drawback  for  the  coast-trade  duty  paid  on  importation,  pro¬ 
vided  that  they  remain  in  their  original  packages  or  have  been 
granted  permission  to  be  repacked. 

To  a  Chinese  port. — Chinese  goods  that  have  been  imported  from 
a  treaty  port  and  are  reexported  to  another  treaty  port  within  one 
year  of  their  arrival  in  Shanghai,  are  passed  free  of  duty,  provided 
that  they  remain  in  their  original  packages, 

BONDED  CARGO 

If  applications  are  not  entered  with  the  customs  for  goods,  or 
payment  of  duty  is  not  effected  within  15  days  after  their  arrival, 
they  must  enter  bond,  either  through  the  agents  or  the  consignees. 
Bonded  cargo  may  be  released  upon  the  payment  of  a  fee  of  5  taels 
for  each  invoice  in  addition  to  duties  and  storage  dues.  The  time 
limit  for  storage  in  bonded  warehouses  is  12  months;  the  storage 
charges  are  determined  by  the  nature  of  the  article  stored. 

TONNAGE  DUES  AND  DUES  CERTIFICATE 

Tonnage  dues  are  payable  at  the  rate  of  4  mace  per  ton  by  vessels 
of  more  than  150  tons  burden,  and  1  mace  per  ton  by  vessels  of  150 
tens  or  under. 

Tonnage  dues  having  been  paid,  a  four  months’  certificate  is 
issued  on  clearance,  from  which  date  the  vessel  is  exempt  from 
tonnage  dues. 

CHINESE  FACTORY  PRODUCTS  EXEMPTION 

In  order  to  encourage  the  manufacture  in  China  of  foreign-type 
products,  the  Chinese  Government  grants  to  factories  and  mills, 
foreign  or  Chinese,  in  China  special  privilege  treatment,  whereby 
their  products  pa}r  a  single  duty  once  and  are  thereafter  free  from 
any  further  taxation.  The  British  treaty  of  1902,  which  makes 
provision  for  an  increase  in  China’s  import  tariff  to  a  12y2  per  cent 
ad  valorem  and  a  7 y2  per  cent  ad  valorem  export  duty,  also  provides 
for  an  excise  of  10  per  cent  on  products  of  foreign  type  manufac¬ 
tured  by  factories  and  mills  in  China — goods,  however,  paying  this 
excise  to  be  free  of  all  export  duties  and  consumption  taxes.  It  also 
makes  provision  for  a  rebate  of  10  per  cent  (out  of  a  12 y2  per  cent 
ad  valorem)  of  the  import  duty  for  all  materials  used  in  the  manu¬ 
facture  in  China  of  articles  of  foreign  type.  These  provisions  were 
made  to  protect  British  imports,  especially  yarns  and  cloths. 

TIENTSIN  TRADE  WITH  MANCHURIA 

Tientsin  enjoys  special  privileges  in  business  with  Manchurian 
trade  marts  such  as  Mukden,  Harbin,  Antung,  etc.  Foreign  goods 


TARIFFS  AND  INTERNAL  TAXES 


339 


having  paid  import  duty  or  native  goods  having  paid  export  and 
coast-trade  duties  may  be  sent  to  these  ports  without  further  duty 
treatment. 

INTERNAL  TAXES 

It  is  only  since  the  Taiping  rebellion  (1853-1867)  that  internal 
taxes  in  China  have  developed  into  a  matter  of  serious  concern. 
Since  the  Boxer  disturbances  of  1900,  and  more  particularly  follow¬ 
ing  the  revolution  of  1911,  these  internal  taxes  have  become  severe 
handicaps  to  China’s  internal  trade.  China’s  standing  army  of  up¬ 
wards  of  a  million  men,  who  are  allied  with  various  independent 
military  governors  since  the  weakening  of  central  Government  au¬ 
thority  over  the  Provinces  after  the  downfall  of  the  monarchy,  is  a 
drain  on  the  country,  being  in  the  main  responsible  for  the  develop¬ 
ment  of  the  numerous  and  irregular  internal  taxes. 

There  are  but  few  American  business  men  who  are  in  intimate 
contact  with  the  internal  tax  situation  in  China  because  they  are 
mostly  concerned  only  with  the  disposition  of  their  goods  or  the 
purchase  of  Chinese  goods  at  the  principal  treaty  ports.  On  the 
other  hand,  American  companies  who  follow  their  goods  from  the 
treaty  ports  to  the  consumers  in  the  interior  get  these  goods  to  the 
consumers  with  lighter  tax  burdens  than  when  these  commodities 
are  left  to  reach  them  through  the  ordinary  channels  of  trade. 

VARIETIES  OF  INTERNAL  TAXES 

China’s  internal  taxes  on  trade  may  be  listed  as  follows : 

Transit  taxes. — By  payment  of  one-half  of  the  import  duty,  about 
2y2  per  cent  ad  valorem,  foreign  goods  transported  into  the  interior 
away  from  treaty  ports  are  entitled  to  transportation  to  destination 
free  of  further  taxes.  Similarly,  foreigners  may  purchase  Chinese 
products  in  the  interior  and  ship  them  to  a  treaty  port  with  a  transit 
pass  for  which  they  pay  2y2  per  cent  ad  valorem  tax.  Theoretically 
the  system  is  admirable,  but  in  practice  it  is  subject  to  irregularities. 
Inspection  fees  are  charged  at  the  likin  barriers  for  examination  of 
the  goods  covered  with  the  pass,  and  more  often  than  otherwise  they 
are  assessed  a  destination  tax  when  they  reach  the  Chinese  consignees. 
Thus,  in  some  cases,  foreigners  find  it  more  profitable  to  pay  the  likin 
and  other  assessments  than  to  take  out  transit  passes,  especially  if 
the  point  in  the  interior  is  in  relatively  close  contact  with  a  treaty 
port. 

Likin. — Of  the  various  internal  taxes,  likin  is  the  best  known.  The 
word  is  sometimes  used  by  foreigners  to  cover  all  sorts  of  internal 
taxes  on  trade.  The  Government  was  obliged  during  the  trying 
years  of  the  Taiping  rebellion  to  devise  new  forms  of  taxation.  It 
was  then  that  likin  was  instituted.  The  words  “  lee-kin  ”  mean 
literally  “  one  one-thousandth  contribution.”  The  original  idea  was 
a  levy  of  one-tenth  of  1  per  cent  on  the  value  of  commodities  enter¬ 
ing  into  the  internal  trade  of  the  country.  This  would  impose  no 
great  burden  on  trade;  but  it  did  not  stop  there.  This  tax  has  been 
increased  to  such  proportions  and  has  taken  on  such  forms  as  to 
constitute  a  serious  menace  to  foreign  as  well  as  native  trade  in  the 
interior  of  China. 


340 


COMMERCIAL  HANDBOOK  OF  CHINA 


At  one  time  likin  constituted  the  only  form  of  internal  tax  on 
trade.  Originally  it  was  a  pure  ad  valorem  tax,  but  it  is  now  both 
ad  valorem  and  specific.  On  the  average,  it  amounts  to  about  2  per 
cent  ad  valorem,  but  in  some  sections  it  reaches  as  much  as  5  per 
cent.  In  some  cases  the  rate  is  high,  but  the  schedule  of  valuations 
of  commodities  against  which  it  is  assessed  is  considerably  below 
actual  market  rates. 

As  stated  elsewhere  in  this  chapter,  one  of  the  important  items  in 
the  Washington  conference  agreements  is  an  arrangement  for  the 
abolition  of  likin  and  other  forms  of  internal  taxes  on  trade. 

Loti  shui  or  destination  tax. — A  destination  tax  is  almost  uni¬ 
versally  applied  in  the  interior  of  China  on  foreign  goods  shipped 
on  transit  passes  when  they  reach  the  Chinese  consumers.  It  is  not 
a  substitute  for  likin,  but  an  additional  tax.  It  averages  about  2 
per  cent.  The  foreign  treaty-power  representatives  have  found  this 
tax  the  most  difficult  against  which  to  make  effective  protests. 

T'ung  chuan  or  tfung  shui. — A  through  tax  intended  to  replace 
other  transit  charges  within  a  Province  with  one  levy  made  at  the 
first  likin  barrier  would  be  of  much  advantage  to  the  trade,  even 
though  the  rate  were  double  the  usual  likin.  However,  owing  to 
lack  of  coordination  in  tax  assessments  and  collections,  this  tax  has 
not  fulfilled  its  purpose,  and  hence  has  fallen  in  popularity. 

Jen  chuan  and  pao  chuan. — Upon  the  basis  of  the  agreement  be¬ 
tween  the  authorities  and  an  association  of  producers  or  shippers,  it 
is  possible  in  some  quarters  to  make  lump-sum  payments.  It  is  no 
definite  amount,  but  depends  upon  the  strength  of  the  organization 
as  to  the  nature  of  the  arrangements.  Transportation  and  forward¬ 
ing  companies  and  larger  concerns  often  find  this  arrangement 
satisfactory. 

Monopoly  hong  taxes. — Following  the  general  principle  of  farm¬ 
ing  out  tax  collections  to  the  highest  bidders,  in  some  places  certain 
Chinese  hongs,  or  companies,  are  granted  a  monopoly  of  collecting 
production  taxes  for  definite  commodities.  The  taxes  are  paid  to 
these  hongs  in  a  lump  sum  by  the  guild  controlling  a  certain  industry 
in  a  particular  community.  The  members  of  the  guild  are  assessed 
on  a  prorata  basis  for  the  taxes  paid,  and  purchasers  of  the  products 
in  question  pay  this  tax  on  a  price  basis  as  fixed  by  the  guild  to  in¬ 
clude  the  tax  in  question. 

CK'an  hsiao  shui ,  or  production  and  consumption  tax. — This  form 
of  tax  obtains  in  certain  sections  of  the  country.  For  instance,  in 
the  Manchurian  Provinces  it  is  assessed  in  lieu  of  likin.  It  takes 
the  form  of  one  tax  at  the  place  of  production  and  another  tax  at 
the  place  of  consumption,  averaging  about  2 y2  per  cent  for  each  tax. 
It  is  fairly  equitably  administered  in  the  three  eastern  Provinces. 

Wine  and  tobacco  taxes. — These  probably  represent  the  highest 
tax  exactions  on  commodities  of  trade,  but  at  the  same  time  the 
larger  concerns  dealing  in  cigarettes  and  wines  have  been  able  to 
effect  agreements  whereby,  through  the  payment  of  definite  stated 
sums,  goods  bearing  stamps  indicating  the  payment  have  been  more 
successfully  marketed  in  the  interior,  without  further  embarrass¬ 
ments,  than  has  been  possible  in  general  lines  of  trade.  Here,  again, 
there  is  considerable  irregularity  in  the  assessments  in  different  sec¬ 
tions,  some  Provinces  raising  the  rates  to  almost  prohibitive  propor- 


TARIFFS  AND  INTERNAL  TAXES 


341 


tions.  In  some  sections  of  the  country  manufacturers  of  cigarettes 
have  found  it  impossible  at  times  to  keep  certain  brands  of  cigarettes 
on  a  fixed  price  basis  on  account  of  increased  tax  exactions  in  that 
section,  and  they  have  been  forced  to  withdraw  these  brands  and  to 
substitute  others.  Foreign  wines  and  tobaccos  pay  an  import  duty 
of  approximately  5  per  cent,  having  the  same  status  as  other  com¬ 
modities  in  the  import  tariff. 

Boat  taxes. — Boat  taxes  exist  throughout  the  country  wherever 
there  is  boat  traffic.  They  are  numerous,  and  work  on  the  basis  of 
taxing  the  traffic  what  it  will  bear.  Boat  guilds,  however,  have  some 
influence  in  holding  the  rate  down  to  fairly  reasonable  proportions  in 
some  sections.  Again,  in  some  places  the  military  officials  have  taxed 
the  native  boat  traffic  so  heavily  as  to  force  many  out  of  the  business. 

Railway  goods  taxes. — While  there  are  certain  agreements  with 
some  of  the  railways  for  paying  lump-sum  taxes  in  lieu  of  other 
internal  exactions  on  commodities  carried  by  these  railways  through 
the  territory  of  likin  barriers,  yet,  on  the  whole,  the  rail  traffic  is 
less  hampered  by  these  exactions  than  is  native  traffic  otherwise.  The 
Harbin  customs  returns  of  trade  for  1923  show  that  Manchouli  in 
north  Manchuria  has  10  different  organizations  for  levying  duties 
or  taxes  on  goods.  In  north  Manchuria  the  brigand  organizations 
demand  and  collect  regular  tax  levies  on  every  cube  of  firewood 
prepared  as  fuel  for  steamers  and  on  other  commodities.  In  Mon¬ 
golia  an  entirely  new  set  of  taxes  for  import  and  export  trade  has 
been  devised  and  put  into  effect.  One  of  the  factors  which  has  made 
for  the  success  of  the  South  Manchuria  Railway  is  the  exemption 
of  likin  charges  for  goods  carried  over  the  railroad.  By  way  of 
contrast  the  junk  traffic  on  the  Liao  River  using  the  port  of  New- 
chwang  is  subject  to  likin  charges.  Internal  tax  barriers  assess 
goods  transported  to  and  from  trains  away  from  treaty  ports. 

Peking  Octroi. — Peking  is  not  a  treaty  port.  Upon  entering  the 
city  gates  foreign  goods  are  assessed  a  3  per  cent  ad  valorem  duty, 
in  addition  to  the  2%  per  cent  transit  dues  in  carrying  the  goods 

from  a  treaty  port.  Chinese  goods  pay  4  per  cent  octroi. 

% 

SUMMARY 

In  connection  with  the  above  taxes  there  is  no  uniformity  as  to 
impositions  or  methods  of  collection.  Some  taxes  are  imposed  in 
one  place  and  not  in  another ;  some  are  peculiar  to  certain  Provinces. 
In  some  Provinces  similar  taxes  take  on  different  names.  However, 
throughout  the  country  generally,  there  are  upwards  of  a  thousand 
internal  tax  barriers,  commonly  called  likin  stations.  These  local 
taxes  are  handled  under  provicial  rather  than  central  Government 
auspices.  Thus  excepting  transit  dues  practically  none  of  the  revenue 
collected  from  the  above-mentioned  taxes  reaches  the  central  Gov¬ 
ernment.  The  provincial  governors  farm  out  the  privileges  to  the 
highest  bidders.  Chinese  merchants  secure  a  certain  amount  of  pro¬ 
tection  through  their  guild  organizations,  but  on  the  whole  are  taxed 
more  heavily  than  are  foreign  merchants.  In  other  words,  they  have 
less  protection. 

It  is  to  the  interests  of  the  provincial  taxgatherers  to  discourage 
as  much  as  possible  the  use  of  transit  passes  held  by  foreigners  and 
covering  foreign  goods  or  native  goods  destined  to  foreign  countries, 


342 


COMMERCIAL  HANDBOOK  OF  CHINA 


as  the  transit  fees  are  collected  by  the  customs  and  go  to  the  central 
Government.  The  provincial  authorities  often  make  special  induce¬ 
ments  or  place  particular  obstacles  in  the  way  of  goods  covered  by 
transit  passes  so  as  to  encourage  the  payment  of  likin  or  other 
internal  taxes  in  lieu  of  transit  dues.  Thus  the  transit-pass  system 
serves  as  a  weapon  tending  to  beat  down  the  internal  tax  impositions 
on  goods  handled  by  foreigners. 

It  may  thus  be  stated  that  foreign  imports  pay : 

1.  An  import  duty  approximating  5  per  cent  ad  valorem  entitling 
reshipment  to  any  other  treaty  port  in  China  without  further 
assessments. 

2.  An  additional  2 y2  per  cent  duty  wThen  shipped  to  the  interior — 
that  is,  to  any  place  other  than  a  treaty  port — under  a  transit-pass 
system.  In  lieu  of  a  transit  pass,  they  may  pay  likin  or  similar  taxes, 
or  both;  and  also  are  likely  to  have  to  pay  something  in  addition  to 
the  transit  fees — at  least,  fees  for  examination  at  likin  stations  en 
route.  To  enter  Peking  an  additional  3  per  cent  octroi  tax  is  as¬ 
sessed,  or,  on  the  aggregate,  10 per  cent. 

3.  A  destination  tax  of  about  2  per  cent  when  goods  are  shipped 
to  the  interior.  This  tax  is  imposed  in  most  places  in  China  at  the 
time  the  goods  reach  the  Chinese  consignee  after  shipment  on  a 
transit  pass. 

Native  or  Chinese  goods  pay : 

1.  Approximately  5  per  cent  ad  valorem  duty  when  exported  from 
a  treaty  port  to  a  foreign  country. 

2.  An  additional  2 V2  per  cent  at  port  of  arrival  when  shipped 
from  one  treaty  port  to  another. 

3.  A  2 %  per  cent  transit  duty,  or,  in  lieu  thereof,  the  usual  likin 
and  similar  charges  plus  the  5  per  cent  export  duty,  when  purchased 
or  shipped  from  the  interior  by  a  foreign  merchant  for  export  to  a 
foreign  country. 

4.  Likin  and/or  similar  levies,  when  transported  in  the  interior 
in  any  other  way  than  above  described. 

BIBLIOGRAPHY 

Chinese  Maritime  Customs.  Annual  returns  of  trade.  These  reports  contain 
excellent  summaries  of  China’s  trade  and  industry. 

Chinese  Maritime  Customs.  Regulations  general  and  local  for  China’s  cus¬ 
toms  districts.  2  vols.  Shanghai,  1921. 

Chu,  Dr.  Chun.  The  Tariff  Problem  in  China,  1916.  Columbia  University 
Studies.  Longmans,  Green  &  Co. 

Handbook  of  Customs  Procedure  at  Shanghai.  Shanghai,  Kelly  &  Walsh.  Con¬ 
tains  reproductions  of  all  forms  used  in  customs  work. 

Morse,  H.  B.  The  International  Relations  of  the  Chinese  Empire.  Volumes 
2  and  3  will  afford  the  reader  an  excellent  description  of  the  development 
of  the  Chinese  customs  service. 

Schedule  of  the  Export  Tariff  for  China.  Reprinted,  1920.  Shanghai,  Kelly 
&  Walsh. 

Schedule  of  the  Revised  Import  Tariff  for  China,  with  Tariff  Rules,  1922. 
Shanghai,  Kelly  &  Walsh. 


TRADE-MARKS,  COPYRIGHTS,  AND  PATENTS 


By  Commercial  Attache  Julean  Arnold 

TRADE-MARKS 

Of  all  the  factors  that  enter  into  the  successful  marketing  of  an 
imported  article  in  China,  one  of  the  most  important  is  its  chop, 
or  trade-mark.  The  chop,  once  it  becomes  widely  known  and  asso¬ 
ciated  with  a  particular  kind  and  quality  of  goods,  sells  the  goods. 
So  potent  is  its  influence  with  the  buying  public  that  its  importance 
can  hardly  be  overemphasized.  The  Chinese  customer  asks  for  the 
chop  he  knows  and  will  not  easily  take  any  other.  Clever  imitation 
of  a  favorite  trade-mark  is  about  the  only  stratagem  that  succeeds 
in  enticing  him  away  from  the  line  of  goods  which  has  gained  his 
confidence.  Similar  goods  at  a  lower  price,  but  under  a  trade-mark 
which  he  can  distinguish  as  different  from  that  to  which  he  has  been 
accustomed,  will  not  ordinarily  tempt  him. 

Some  manufacturers  appear  to  have  the  opinion  that  on  account  of 
the  low  purchasing  power  of  the  masses,  price  is  the  only  considera¬ 
tion  with  buyers  in  China.  But  of  the  7,000,000  cans  of  condensed 
milk  imported  into  China  each  year  over  80  per  cent  is  of  one  brand, 
which  is  sold  at  a  higher  price  merely  on  the  strength  of  its  familiar 
trade-mark.  Through  years  of  advertising  and  use  the  Chinese 
have  come  to  regard  it  as  the  only  brand.  Manufacturers  of  other 
brands  have  offered  special  inducements,  prices  10  or  20  per  cent 
lower  than  the  favorite,  but  have  succeeded  in  capturing  very  little  of 
the  trade.  The  owners  of  this  trade-mark  have  guarded  it  with  ex¬ 
treme  jealousy,  and  have  successfully  protected  it  against  many  at¬ 
tempts  at  imitation. 

At  one  time  a  certain  brand  of  American  underwear  commanded 
a  very  extensive  sale  throughout  China.  Through  effective  adver¬ 
tising  and  by  keeping  up  the  quality  of  the  goods  the  chop,  or  trade¬ 
mark,  of  this  underwear  came  to  be  recognized  by  the  Chinese  public 
as  the  symbol  of  a  superior  article.  Its  sales  amounted  to  an  average 
of  500  cases  a  week.  Unluckily  the  manufacturers  took  no  steps  to 
safeguard  their  trade-mark  against  imitations,  and  to-day  there  are 
several  imitations  on  the  market  which  after  a  period  of  years  have 
now  practically  replaced  the  original.  Thus,  by  his  failure  to  pro¬ 
tect  his  chop,  the  American  manufacturer  has  lost  a  valuable  mar¬ 
ket  to  competitors  of  another  nationality,  who  have  profited  by  his 
pioneering  work. 

The  choice  of  a  trade-mark  for  use  in  China  should  never  be  hap¬ 
hazard,  but  should  be  the  result  of  careful  consideration  of  many 
factors  peculiar  to  the  Chinese  people.  The  trade-mark  should  be 
simple,  graphic,  and  distinctive.  As  the  Chinese  masses  have  little 
acquaintance  with  the  English  language,  words  or  names  in  English 
have  no  meaning  for  them.  Furthermore,  such  words,  so  far  as 

343 


344 


COMMERCIAL  HANDBOOK  OF  CHINA 


the  Chinese  are  concerned,  are  easily  imitated,  as  the  Chinese,  un¬ 
familiar  with  the  letters  of  our  alphabet,  will  often  count  the  letters 
in  a  word,  and  if  the  general  formation  appears  similar  to  that  to 
which  they  are  accustomed  in  connection  with  a  certain  trade-mark, 
they  will  confuse  the  genuine  with  an  imitation.  This  result  is  almost 
certain  where  color  and  details  of  the  mark  seem  to  offer  an  equal 
similarity. 

Pictures  and  graphic  symbols  easily  understandable  to  the  eye  are 
the  preferable  forms  of  trade-marks  for  use  in  China,  but  if  it  is 
necessary  to  use  words  because  the  commodity  is  marketed  elsewhere 
under  such  words  as  a  trade-mark,  great  care  should  be  taken  to 
accentuate  in  advertising  any  distinctive  features  which  might  be 
difficult  of  imitation.  In  using  a  picture  trade-mark  it  is  advisable 
also  to  incorporate  the  name  in  the  picture,  as  a  double  safeguard 
against  the  possibilities  of  imitation. 

In  the  choice  of  pictures  for  trade-mark  purposes  much  caution 
must  be  exercised  to  avoid  selecting  something  which  may  not  har¬ 
monize  with  Chinese  customs  or  which  may  give  offense  to  Chinese 
tastes  and  superstitions.  For  example,  the  dog  does  not  stand  high 
in  Chinese  regard  and  carries  no  complimentary  significance  when 
used  for  advertising  purposes.  A  rabbit  is  far  worse,  and  the  use 
of  a  turtle  would  condemn  from  the  outset  the  article  carrying  it 
as  a  trade-mark.  A  green  hat  carries  a  very  sinister  meaning,  and 
Chinese  refrain  from  wearing  this  color  of  headgear.  There  are 
many  other  phases  of  Chinese  customs  and  points  of  view  which, 
as  distinguished  from  those  obtaining  in  the  West,  must  be  given 
consideration  before  a  choice  is  made  of  the  trade-mark  for  articles 
designed  for  sale  in  China. 

Hardly  less  care  must  be  exercised  in  the  translation  of  English 
into  Chinese  in  the  use  of  literature  descriptive  of  American  trade¬ 
marks  or  American  products.  For  use  in  China,  some  manufac¬ 
turers  have  distinctive  trade-marks  bearing  Chinese  characters;  some 
have  Chinese  characters  printed  on  the  English  labels;  some,  in 
order  to  preserve  the  original  label  and  yet  add  sufficient  Chinese 
descriptive  matter  to  enlighten  the  public  as  to  the  character  and 
application  of  the  article,  use  special  labels  of  transparent  paper 
upon  which  are  printed  Chinese  characters  descriptive  of  the  article. 
But  in  any  use  of  Chinese  characters  it  is  necessary  to  exercise  care 
against  poor  translations,  or  translations  which  carry  misconcep¬ 
tions.  Merely  because  a  man  is  Chinese,  does  not  necessarily  qualify 
him  to  make  a  translation  which  will  convey  the  right  idea  to  the 
public.  An  American  manufacturer  who  wished  to  market  in 
(Tina  a  product  bearing  his  trade-mark  had  the  characters  trans¬ 
lated  into  Chinese  quite  correctly,  but,  as  ordinarily  interpreted  by 
the  Chinese  public,  they  meant  something  very  different  from  the 
English  interpretation.  It  was  then  necessary  to  change  the  trans¬ 
lation  and  the  character  so  as  to  convey  the  idea  that  the  American 
trade-mark  represented. 

It  is  advisable  to  check,  from  several  sources,  translations  into 
Chinese,  if  one  wishes  to  be  sure  that  the  article  will  not  be  ridiculed 
or  that  the  business  will  not  be  injured  by  the  use  of  wrongly  selected 
characters. 


TRADE-MARKS,  COPYRIGHTS,  AND  PATENTS  345 

The  protection  of  trade-marks  in  China  is  a  matter  of  much 
importance  to  any  manufacturer  who  would  market  in  that  country 
a  commodity  bearing  a  trade-mark  and  whose  business  might  be 
damaged  through  placing  upon  the  same  market  an  imitation  of 
this  trade-mark.  Now  that  the  Chinese  are  developing  modern 
manufacturing  plants  and  are  manufacturing  articles  similar  to 
those  imported  from  abroad,  it  becomes  even  more  necessary  that 
the  trade-marks  of  foreign  manufactured  products  be  protected 
against  Chinese  imitations  of  these  commodities. 

The  United  States  Government,  in  appreciation  of  the  necessity 
of  the  development  of  the  machinery  for  the  proper  protection  of 
American  trade-marks,  prescribed  in  Article  IX  of  its  treaty  of 
1903  with  China  as  follows : 

Art.  IX.  Protection  of  trade-marks. — Whereas  the  United  States  undertakes 
to  protect  the  citizens  of  any  country  in  the  exclusive  use  within  the  United 
States  of  any  lawful  trade-marks,  provided  that  such  country  agrees  by  treaty 
or  convention  to  give  like  protection  to  citizens  of  the  United  States : 

Therefore,  the  Government  of  China,  in  order  to  secure  such  protection  in 
the  United  States  for  its  subjects,  now  agrees  to  fully  protect  any  citizen,  firm, 
or  corporation  of  the  United  States  in  the  exclusive  use  in  the  Empire  of  China 
of  any  lawful  trade-mark  to  the  exclusive  use  of  which  in  the  United  States 
they  are  entitled,  or  which  they  have  adopted  and  used,  or  intend  to  adopt  and 
use  as  soon  as  registered,  for  exclusive  use  within  the  Empire  of  China.  To 
this  end  the  Chinese  Government  agrees  to  issue  by  its  proper  authorities  proc¬ 
lamations,  having  the  force  of  law,  forbidding  all  subjects  of  China  from 
infringing  on,  imitating,  colorably  imitating,  or  knowingly  passing  off  an 
imitation  of  trade-marks  belonging  to  citizens  of  the  United  States,  which  shall 
have  been  registered  by  the  proper  authorities  of  the  United  States  at  such 
offices  as  the  Chinese  Government  will  establish  for  such  purpose,  on  payment 
of  a  reasonable  fee,  after  due  investigation  by  the  Chinese  authorities  and  in 
compliance  with  reasonable  regulations. 

During  May,  1923,  the  President  of  China  promulgated  the 
Chinese  trade-mark  law  and  detailed  regulations  as  enacted  by  the 
Chinese  Parliament.  Except  for  the  recognition  of  the  general 
principle  of  priority  of  use  rather  than  priority  of  registration,  the 
trade-mark  law  and  regulations  of  China  follow  the  Japanese  and 
continental  systems.  The  methods  of  adjudicating  disputes,  however, 
under  the  China  trade-mark  law  are  similar  to  those  prescribed  in 
the  Japanese  patent  law. 

The  representatives  of  the  treaty  powers,  whose  nationals  in 
China  are  under  extraterritorial  jurisdiction,  are  in  communication 
with  the  Chinese  Government  for  the  purpose  of  securing  for  their 
respective  nationals  certain  safeguards  in  harmony  with  their  stipu¬ 
lated  treaty  rights,  as  precedent  to  the  acceptance  of  the  trade¬ 
mark  law  and  regulations  as  applicable  to  the  nationals  of  these 
powers.  In  the  meanwhile  many  holders  of  foreign  trade-marks 
have  registered  under  the  new  law.  In  fact,  a  very  large  number 
of  business  houses  in  China  seem  to  find  it  necessary  to  register  their 
trade-marks  to  safeguard  their  interests. 

Under  date  of  September  15,  1924,  the  Bureau  of  Trade-Marks, 
issued  a  statement  regarding  the  method  of  procedure  in  the  regis¬ 
tration  of  trade-marks.  The  substance  of  these  regulations  is  as 
follows : 

1.  Application. — First,  there  should  be  drawn  up  an  application,  for  which 
no  official  form  is  necessary.  (For  the  convenience  of  applicants  the  Bureau 
of  Trade-Marks  in  Peking  has  at  its  office  printed  forms  which  may  be  obtained 


346 


COMMERCIAL  HANDBOOK  OF  CHINA 


gratis  on  application  in  person  or  by  letter.)  The  form  should  be  rendered  in 
duplicate  for  each  trade-mark  to  be  registered. 

2.  What  must  accompany  application. — The  application  should  be  accom¬ 
panied  by  the  following : 

(a)  A  zinc  block  of  the  trade-mark  measuring  not  more  than  4  inches  by 
4  inches  (new  standard  measurement,  i.  e.,  12.8  centimeters)  in  length  and 
breadth  and  eight-tenths  of  an  inch  (i.  e.,  2.56  centimeters)  in  thickness. 

(&)  Five  black  and  white  prints  of  the  block  made  on  strong  paper,  not 
exceeding  5  inches  by  5  inches  (i.  e.,  16  centimeters). 

(c)  Ten  colored  specimens  of  the  trade-marks,  in  case  of  colored  trade¬ 
marks. 

(d)  The  necessary  fees. 

(The  above  requirements  are  increased  pro  tanto  in  case  the  same  trade¬ 
mark  is  for  more  than  one  class  of  goods.) 

3.  Fees. — The  fees  payable  for  each  trade-mark  for  each  class  of  goods  are : 
(a)  Application,  Mex.  $5;  (&)  registration,  Mex.  $40. 

A  trade-mark  which  is  filed  at  the  Bureau  for  Provisional  Registration  of 
Trade-Marks,  Chinese  Maritime  Customs,  Shanghai,  1919,  and  for  which  the 
requisite  fee  has  been  paid  in  connection  therewith,  is  exempt  from  payment 
of  the  above-mentioned  application  fee  of  $5,  on  production  of  the  receipt  of 
such  payment  and  a  certificate  from  the  Chinese  Maritime  Customs,  Shanghai, 
giving  the  date  and  number  under  which  it  is  filed.  This  certificate  should  be 
attached  to  the  application. 

4.  Nationality  of  applicant. — A  foreigner  should  submit  evidence  of  nation¬ 
ality.  For  this  purpose  a  declaration  signed  by  a  consular  official  is  admitted 
as  evidence.  In  case  of  registered  companies  or  corporations  a  declaration 
signed  by  the  registrar  of  companies  is  also  acceptable.  The  requirement  of 
evidence  of  nationality  applies  also  to  agents  acting  on  behalf  of  their  prin¬ 
cipals. 

5.  Authority  of  agents. — Any  person  acting  as  agent  for  another  in  applying 
for  the  registration  of  trade-marks  must  be  provided  with  a  power  of  attorney, 
which,  together  with  its  translation  in  Chinese,  must  be  presented  to  the  China 
Trade-Mark  Bureau  at  the  time  of  application. 

The  owner  of  a  trade-mark  who  has  no  residence  or  a  business  office  in 
China  must  make  his  application  through  an  agent  having  such  residence 
or  office.  (Art.  8  of  the  trade-mark  law.) 

It  appears  that  the  China  Trade-Mark  Bureau  has  ruled  that  if 
priority  of  use  in  China  can  be  established  for  a  trade-mark  over 
one  that  has  had  priority  of  registration,  the  cancellation  of  the 
latter  may  be  effected  by  following  the  procedure  stipulated  in  the 
trade-mark  law. 

The  China  Trade-Mark  Bureau  publishes  a  monthly  gazette  in 
English  as  well  as  in  Chinese.  The  subscription  price  for  the  Eng¬ 
lish  edition  is  $4.48  silver  (including  postage  to  foreign  countries) 
per  year.  Arrangements  have  been  made  by  the  China  Trade-Mark 
Bureau  to  secure  the  services  of  a  foreign  trade-mark  expert  through 
the  International  Trade-Mark  Bureau  at  Berne.  The  bureau  is 
planning  to  open  branch  offices  at  Shanghai  and  other  important 
commercial  centers  in  China. 

COPYRIGHTS 

No  copyright  law  has  been  enacted  by  the  Chinese  Government. 
Americans  desirous  of  securing  protection  for  their  copyrights  in 
China  are  obliged  to  rely  on  Article  XI  of  their  commercial  treaty 
of  1903,  which  reads  as  follows: 

Art.  XI.  Protection  of  copyrights. — Whereas  the  Government  of  the  United 
States  undertakes  to  give  the  benefits  of  its  copyright  laws  to  the  citizens  of 
any  foreign  State  which  gives  to  the  citizens  of  the  United  States  the  benefits 
of  copyright  on  an  equal  basis  with  its  own  citizens : 

Therefore,  the  Government  of  China,  in  order  to  secure  such  benefits  in 
the  United  States  for  its  subjects,  now  agrees  to  give  full  protection,  in  the 


347 


TRADE-MARKS,  COPYRIGHTS,  AND  PATENTS 

same  way  and  manner,  and  subject  to  the  same  conditions  upon  which  it 
agrees  to  protect  trade-marks,  to  all  citizens  of  the  United  States  who  are 
authors,  designers,  or  proprietors  of  any  book,  map,  print,  or  engraving  es¬ 
pecially  prepared  for  the  use  and  education  of  the  Chinese  people,  or  transla¬ 
tion  into  Chinese  of  any  book,  in  the  exclusive  right  to  print  and  sell  such 
book,  map,  print,  engraving,  or  translation  in  the  Empire  of  China  during  10 
years  from  the  date  of  registration.  With  the  exception  of  the  books,  maps, 
etc.,  specified  above,  which  may  not  be  reprinted  in  the  same  form,  no  work 
shall  be  entitled  to  copyright  privileges  under  this  article.  It  is  understood 
that  Chinese  subjects  shall  be  at  liberty  to  make,  print,  and  sell  original 
translations  into  Chinese  of  any  works  written  or  of  maps  compiled  by  a 
citizen  of  the  United  States.  This  article  shall  not  be  held  to  protect  against 
due  process  of  law  any  citizen  of  the  United  States  or  Chinese  subject  who 
may  be  author,  proprietor,  or  seller  of  any  publication  calculated  to  injure  the 
well-being  of  China.  * 

It  is  suggested  that  those  interested  in  securing  protection  for 
copyrights  in  China  consult  the  American  Legation  at  Peking. 


PATENTS 

Article  X  of  the  United  States  commercial  treaty  with  China, 
1903,  reads  as  follows : 

Art.  X.  Protection  of  patents. — The  United  States  Government  allows 
subjects  of  China  to  patent  their  inventions  in  the  United  States  and  protects 
them  in  the  use  and  ownership  of  such  patents.  The  Government  of  China 
now  agrees  that  it  will  establish  a  patent  office.  After  this  office  has  been 
established  and  special  laws  with  regard  to  inventions  have  been  adopted  it 
will  thereupon,  after  the  payment  of  the  prescribed  fees,  issue  certificates  of 
protection,  valid  for  a  fixed  term  of  years,  to  citizens  of  the  United  States  on 
all  their  patents  issued  by  the  United  States,  in  respect  of  articles  the  sale  of 
which  is  lawful  in  China,  which  do  not  infringe  on  previous  inventions  of 
Chinese  subjects,  in  the  same  manner  as  patents  are  to  be  issued  to  subjects 
of  China. 

The  Government  of  China  has  not  yet  established  a  patent  office. 
As  China  is  only  at  the  inception  of  modern  industrialism,  the  ques¬ 
tion  of  protection  of  patents  has  not  become  one  of  commanding 
importance.  However,  it  is  advisable  to  protect  certain  devices  against 
infringement,  and  the  only  means  at  present  available  for  securing 
this  protection  is  by  making  application  to  an  American  consulate 
in  China,  at  the  same  time  depositing  the  duly  certified  records  of  the 
patent  granted  by  the  United  States  Government.  This  will  serve  to 
place  on  record  local  evidence  of  the  assertion  of  certain  patent  rights 
on  a  particular  date  and  will  indicate  priority  of  use  as  a  basis  upon 
which  protection  may  be  claimed  from  the  Chinese  authorities  in  the 
event  of  infringement. 

TREATIES  REGARDING  RECIPROCAL  PROTECTION 

The  nationals  of  certain  treaty  powers  in  China  are,  by  virtue  of 
extraterritorial  treaty  rights,  under  the  jurisdiction  of  their  own 
respective  laws  and  courts  rather  than  those  of  China.  The  United 
States  Government  concluded  agreements  with  certain  of  these 
powers  for  the  reciprocal  protection  of  inventions,  copyrights,  and 
trade-marks  in  China.  Of  these,  that  with  Japan  is  probably  the 
most  significant  to  holders  of  American  trade-marks,  copyrights,  and 
patents.  The  text  of  the  agreement  reads  as  follows : 

Article  I.  Inventions,  designs,  and  trade-marks  duly  patented  or  registered  by 
citizens  or  subjects  of  one  high  contracting  party  in  the  appropriate  office  of 


348 


COMMERCIAL  HANDBOOK  OF  CHINA 


the  other  contracting  party  shall  have  in  all  parts  of  China  the  same  protec¬ 
tion  against  infringement  by  citizens  or  subjects  of  such  other  contracting 
party  as  In  the  dominions  and  possessions  of  such  other  contracting  party. 

Art.  II.  The  citizens  or  subjects  of  each  of  the  two  high  contracting  parties 
shall  enjoy  in  China  the  protection  of  copyright  for  their  works  of  literature 
and  art,  as  well  as  photographs,  to  the  same  extent  as  they  are  protected  in 
the  dominions  and  possessions  of  the  other  party. 

Art.  III.  In  case  of  infringement  in  China  by  a  citizen  or  subject  of  one  of 
the  two  high  contracting  parties  of  any  invention,  design,  trade-mark,  or  copy¬ 
right  entitled  to  protection  in  virtue  of  this  convention,  the  aggrieved  party 
shall  have  in  the  competent  territorial  or  consular  courts  of  such  contracting 
party  the  same  rights  and  remedies  as  citizens  or  subjects  of  such  contracting 
party. 

Art.  IV.  Each  high  contracting  party  engages  to  extend  to  the  citizens  or 
subjects  of  the  other  contracting  party  the  same  treatment  in  China  in  the 
matter  of  protection  of  their  commercial  names  as  they  enjoy  in  the  dominions 
or  possessions  of  such  contracting  party  under  the  convention  for  the  protec¬ 
tion  of  industrial  property  signed  at  Paris  March  20,  1883.  “  Hong  ”  marks 

shall  be  considered  to  be  commercial  names  for  the  purpose  of  this  convention. 

Art.  V.  Citizens  of  possessions  belonging  to  the  United  States  and  subjects 
of  Korea  shall  have  in  China  the  same  treatment  under  the  present  convention 
as  citizens  of  the  United  States  and  subjects  of  Japan,  respectively. 

Art.  VI.  It  is  mutually  agreed  between  the  high  contracting  parties  that  the 
present  convention  shall  be  enforced  so  far  as  applicable  in  any  other  country 
in  which  either  contracting  party  may  exercise  extraterritorial  jurisdiction. 

All  rights  growing  out  of  the  present  convention  shall  be  recognized  in  the 
insular  and  other  possessions  and  leased  territories  of  the  high  contracting 
parties  and  all  legal  remedies  provided  for  the  protection  of  such  rights  shall 
be  duly  enforced  by  the  competent  courts. 

Art.  VII.  Any  person  amenable  to  the  provisions  of  this  convention  who 
possesses,  at  the  time  the  present  convention  comes  into  force,  merchandise 
bearing  an  imitation  of  a  trade-mark  owned  by  another  person  and  entitled  to 
protection  under  said  convention  shall  remove  or  cancel  such  false  trade-mark 
or  withdraw  such  merchandise  from  market  in  China  within  six  months  from 
the  date  of  the  enforcement  of  this  convention. 

Art.  VIII.  Unauthorized  reproductions  by  the  citizens  or  subjects  of  one 
high  contracting  party  prior  to  the  operation  of  this  convention  of  the  works 
of  literature  and  art,  as  well  as  photographs,  of  the  citizens  or  subjects  of  the 
other  contracting  party  published  after  the  10th  of  May,  1906,  and  entitled  to 
protection  in  virtue  of  this  convention  shall  be  withdrawn  from  sale  or  circu¬ 
lation  in  China  within  one  year  from  the  date  of  the  enforcement  of  this 
convention. 

Particular  attention  may  perhaps  be  directed  to  Article  I  of  the 
above  convention;  and  it  should  be  specifically  pointed  out  that  the 
registration  of  trade-marks  with  the  Japanese  Patent  Office  in  Tokyo 
is  thereby  provided  as  a  necessary  condition  precedent,  in  order  that 
the  remedies  contemplated  by  the  convention  may  be  available  to 
Americans  for  the  protection  of  their  trade-marks  against  infringe¬ 
ment,  in  the  market  of  China,  by  Japanese  subjects. 

TRADE-MARKS,  COPYRIGHTS,  AND  PATENTS  IN  HONGKONG 

Hongkong  is  a  British  Crown  colony,  and  Hongkong  Ordinance 
No.  40  of  December  10,  1909,  prescribes  the  procedure  for  the  pro¬ 
tection  of  trade-marks  and  copyrights  in  the  territory  under  the 
jurisdiction  of  the  Hongkong  authorities. 

AMERICAN  OFFICIAL  AID 

The  American  consular  officers  in  China  are  ready  at  all  times  to 
render  to  Americans  all  possible  assistance  in  connection  with  the 
protection  of  their  rights  covering  trade-marks,  copyrights,  and 


TRADE-MARKS,  COPYRIGHTS,  AND  PATENTS  349 

patents  in  China.  Those  desiring  legal  counsel  in  China  in  connec¬ 
tion  with  this  subject  may  obtain  from  the  Bureau  of  Foreign  and 
Domestic  Commerce  at  Washington  lists  of  attorneys  at  law  in  the 
principal  commercial  centers  of  China. 

BIBLIOGRAPHY 

Bryan,  jr.,  Robert  T.  American  Trade-marks,  Trade  Names,  and  Copyrights 
and  Patents  in  China.  Shanghai,  The  Millard  Publishing  Co. 

Bureau  of  Trade-Marks,  Peking.  China  Trade-Mark  Law  and  the  China  Trade- 
Mark  Bulletin. 

MacMurray,  J.  V.  A.  Treaties  and  Agreements  with  and  Concerning  China, 
1894-1921.  Consult  general  index  for  references  to  treaties  regarding  trade¬ 
marks,  copyrights,  and  patents. 

Ruege  and  Graham.  Trade-Mark  Laws  of  the  World.  1002  pp.  New  York, 
Trade  Mark  Law  Publishing  Co.,  1922. 


AMERICANS  IN  CHINA 


AMERICAN  POPULATION  IN  CHINA 


By  Commercial  Attache  Julean  Arnold 

American  firms  in  China  aggregate  GIT  and  American  citizens 
12,530.  According  to  the  customs  reports,  there  were  in  China  24 
American  firms  and  410  resident  Americans  in  1882,  compared  with 
32  American  firms  and  1,152  resident  Americans  in  1890.  Accord¬ 
ing  to  reports  from  the  same  source,  other  nationals  resident  in 
China  for  1882,  1890,  and  1923,  respectively,  numbered  as  follows: 


Nationalities 

1882 

1890 

1923 

British: 

Firms _ _ _ _  _ _  _  _ 

298 

327 

661 

Residents.  _  _ _ _ _ _  _ 

2,  402 

3, 317 

14,  775 

German: 

Firms _ _ _ 

56 

80 

244 

Residents _  . 

474 

648 

2, 233 

242 

French: 

Firms _ _ _  _ _ _ _ _ 

12 

19 

Residents _ 

335 

589 

3, 361 

Russian: 

Firms  . .  .  _ .  . .  .  . .  _  .  _ _ 

17 

12 

1,034 
85,  856 

Residents  .  ...... 

78 

131 

Japanese: 

Firms  __  ... 

12 

29 

4, 067 
201,  704 

Residents  . 

472 

883 

One-half  of  the  American  citizens  registered  in  China  is  embraced 
in  the  missionary  population,  which  comprises  4,000  adults,  of  whom 
2,500  are  women  and  1,500  men.  The  children  of  missionary  parent¬ 
age  resident  in  China  number  about  2,100.  Of  Americans  in  the  mer¬ 
cantile  population,  there  are  about  1,200  adult  men,  TOO  women,  and 
600  children.  In  professional  employment  the  figures  show  200  men, 
nearly  200  women,  and  180  children.  United  States  Government 
service  accounts  for  1T5  men,  100  Avomen,  and  90  children.  In  the 
Chinese  Government  service  we  have  100  men,  whose  wives  and 
children  bring  the  total  up  to  about  225.  The  register  shows  about 
400  Americans  of  nonspecified  occupations.  This  is  probably  due 
to  difficulty  in  securing  fully  accurate  data  in  consular  registrations. 

There  is  included  in  the  American  population  in  China  a  certain 
number  of  American-born  Chinese,  who,  according  to  the  United 
States  Constitution,  are  entitled  to  American  citizenship  and  who 
have  claimed  and  continue  to  claim  American  citizenship.  Of  those, 
400  are  men,  250  women,  and  600  children,  making  a  total  of  1,250. 

The  Philippine  population  in  China  is  very  small.  It  is,  however, 
under  the  American  flag,  and  includes,  as  registered  in  the  consu¬ 
lates,  T5  men,  50  women,  and  about  100  children. 

If  we  allow  for  about  1,000  Americans  who  are  resident  in  China 
but  not  registered  at  the  consulates,  it  would  about  offset  those  of 

350 


AMERICANS  IN  CHINA 


*  351 


the  Chinese  race  who  are  registered,  thus  leaving  the  total  number 
at  about  12,000. 

The  largest  American  population  in  China  is  located  at  Shanghai, 
where  there  are  nearly  4,000.  At  Shanghai  the  mercantile  popula¬ 
tion  is  considerably  in  excess  of  that  of  the  missionary  element. 
In  fact,  over  half  of  the  American  mercantile  population  in  China 
is  resident  in  Shanghai.  Next  to  Shanghai  is  Tientsin,  where  we 
have  a  very  large  mercantile  population,  aggregating  about  400. 
Hankow  ranks  third  in  American  mercantile  population  and  Hong¬ 
kong  fourth.  As  for  those  in  professional  pursuits,  the  Tientsin 
consular  district,  which  includes  Peking,  has  the  largest  number. 
This  is  accounted  for  by  the  fact  that  the  Rockefeller  Foundation’s 
medical  school  and  hospital  at  Peking  carry  a  very  large  American 
personnel. 

Canton  and  Hongkong  absorb  the  bulk  of  the  population  of 
American-born  Chinese,  as  practically  all  of  the  Chinese  who  have 
gone  to  America  are  from  Canton.  Shanghai  shows  a  number  of 
Americans  of  the  Chinese  race.  These  also  are  of  Cantonese  extrac¬ 
tion.  The  Americans  of  Chinese  race  accredited  to  the  Amoy  con¬ 
sular  district  number  about  90  and  are  Philippine  born,  hence, 
strictly  speaking,  might  well  be  included  in  the  Philippine  popula¬ 
tion,  the  bulk  of  which  is  resident  in  Shanghai. 

There  are  in  the  aggregate  about  4,000  children  of  American  par¬ 
ents  resident  in  China,  half  of  whom  are  of  missionary  families. 

Of  the  4,100  American  women  in  China,  1,600  are  unmarried,  the 
majority  engaged  in  missionary  wTork.  It  is  interesting  to  note  that 
there  are  fewer  single  men  than  single  women  in  the  American 
population  in  China,  there  being  but  1,400  unmarried  men.  The 
married  men  number  about  2,500. 

In  short,  the  American  population  in  China  has  increased  fourfold 
during  the  past  20  years.  This  is  indicative  of  the  substantial  devel¬ 
opment  of  American  interests  in  the  country. 

Of  American  firms  established  in  China,  Shanghai  can  claim 
3,200.  This  is  in  keeping  with  the  commercial  and  industrial  impor¬ 
tance  of  that  great  city  at  the  base  of  the  Yangtze  Valley,  which 
has  now  become  China’s  most  populous  city.  Many  American  estab¬ 
lishments  in  other  sections  of  China  are  in  reality  branches  of 
houses  at  Shanghai.  In  order  of  importance  from  an  American 
trade  standpoint,  following  Shanghai  are  Tientsin,  Hongkong,  Han¬ 
kow,  Canton,  and  Harbin. 

The  following  table  shows  the  number  of  American  firms  and 
American  citizens  in  the  various  consular  districts  in  China : 


Consular  districts 

American 

firms 

American 

citizens 

North  China: 

Harbin...  _ _  _  _  _  _. _ . 

32 

104 

Mukden _ _ _  .  _  _  _  _  . 

10 

85 

Antung _  _ _ _  _  _ 

2 

7 

Kalgan _  _ 

11 

49 

Dairen _ _ _ _ 

7 

43 

Tientsin  _  _  _ 

95 

1,904 

Cheefoo.. _ _  _ 

6 

'  137 

Tsingtao _ _ _ 

12 

69 

Tsinan _ _ _ _ _ _ 

4 

472 

352 


COMMERCIAL.  HANDBOOK  OF  CHINA 


Consular  districts 


Central  China: 
Nanking... 
Shanghai  L 

Hankow _ 

Changsha.. 
Chungking 
South  China: 
Foochow... 

Amoy _ 

Swatow _ 

Canton 1  2 ... 
Hongkong. 
Yunnanfu.. 

Total 


American 

firms 

American 

citizens 

12 

1,041 

302 

4,000 

28 

1, 300 

2 

366 

17 

259 

6 

474 

2 

156 

8 

108 

30 

1,377 

30 

537 

1 

42 

617 

12,  530 

1  Including  400  of  Chinese  race  and  Filipinos. 

2  Including  613  Chinese  born  in  United  States. 


RIGHTS  OF  AMERICAN  CITIZENS 


The  first  foreign  community  in  China  of  any  commercial  impor¬ 
tance  was  the  one  that  grew  up  in  Canton,  beginning  at  the  end  of 
the  eighteenth  century.  Merchants  of  British  and  other  nationalities 
resided  there  in  considerable  numbers  until  as  late  as  1840,  transact¬ 
ing  their  business  and  pursuing  their  affairs  generally  without  their 
respective  Governments  having  come  to  an}^  definite  understanding 
with  the  Chinese  Government  relative  thereto.  Foreign  residents 
were  under  strict  Chinese  regulations,  and  their  business  was  con¬ 
fined  to  a  semiofficial  group  of  Chinese  monopolists  called  the  ko 
hong.  The  British  merchants,  preponderating  in  the  community, 
were  not  satisfied  with  the  situation  at  Canton,  but  to  no  avail  were 
repeated  efforts  to  conclude  a  treaty  between  Great  Britain  and 
China  which  would  establish  a  more  satisfactory  basis. 

The  war  of  1840  between  China  and  Great  Britain  resulted  in  the 
treaty  of  Nanking,  concluded  in  1842,  by  which  adjustment  of  many 
of  the  causes  of  dispute  was  undertaken  and  through  which  the 
acquiescence  of  the  Chinese  Government  was  obtained  to  an  extension 
of  the  privileges  accorded  British  subjects. 

In  1844  the  United  States  sent  Caleb  Cushing  to  China  for  the 
purpose  of  negotiating  a  treaty  between  the  two  Governments.  Mr. 
Cushing  arrived  at  the  Portuguese  port  of  Macao  in  February  and 
immediately  set  to  work.  In  June  the  Imperial  Chinese  commis¬ 
sioner  arrived,  and  after  a  fortnight's  negotiations  the  treaty  of 
1844  between  the  United  States  and  China  was  signed  at  the  village 
of  AVanghia,  near  Macao.  The  British  treaty  was  accepted  as  its 
basis,  but  the  American  commissioner  did  not  fail  to  consult  the 
American  community  as  to  the  modifications  that  should  be  made. 

This  document,  supplemented  by  subsequent  American  and  other 
treaties  and  by  usage,  constitutes  the  foundation  of  the  rights  en¬ 
joyed  by  American  citizens  in  China  to-day.  Most  of  the  treaties 
concluded  by  China  with  foreign  nations  provide  that  the  citizens  of 
such  foreign  nations  shall  enjoy  all  of  the  privileges  accorded  to 
“  the  most  favored  nation”;  and  the  rights  enjoyed  by  American  citi¬ 
zens  in  China,  therefore,  include  all  rights  granted  to  the  citizens  or 
subjects  of  any  nation  more  favored.  European  and  American  mer¬ 
chants  residing  in  Canton  had  developed  evidence  that  the  Chinese 


AMERICANS  IN  CHINA 


353 


judicial  system  was  unsuited  for  application  to  the  citizens  of  mod¬ 
ern  Christian  nations,  and  it  was  provided  in  the  treaties  of  1842 
and  1844  that  British  and  American  citizens  residing  in  China  should 
be  amenable  to  the  jurisdiction  of  their  own  courts. 

TREATY  OF  1844 

The  more  important  subjects  dealt  with  in  the  treaty  of  1844  are 
summarized  in  the  succeeding  paragraphs. 

Tariffs. — Since  a  fixed  scale  of  import  and  export  tariff  duties  was 
of  great  importance  to  the  merchants,  the  treaty  provided  that 
American  citizens  should  pay  these  duties  in  accordance  with  a  tariff 
which  was  made  a  part  of  the  treaty.  The  intention  was  to  fix  the 
duty  at  approximately  5  per  cent  ad  valorem,  which  rate  was  con¬ 
firmed  in  subsequent  treaties  and  continues  to  the  present  day. 

Treaty  ports. — Prior  to  1842  the  residence  of  foreigners  had  been 
restricted  to  Macao  and  Canton.  The  new  treaty  provided  that  for¬ 
eigners  might  reside  at  four  additional  ports — Amoy,  Foochow, 
Ningpo,  and  Shanghai.  Subsequent  treaties  opened  “  ports  ”  in  all 
parts  of  the  country  generally,  but  not  always  on  the  seacoast  or  on 
rivers;  and  in  addition  to  these  places  the  Chinese  Government  has 
of  itself  designated  “  self-opened  ports  ”  as  places  wherein  foreign¬ 
ers  may  reside  and  transact  business. 

Consuls. — The  treaty  provided  that  the  American  Government 
might  appoint  consuls  or  other  officers  “  for  the  superintendence  and 
negotiation  of  the  concerns  of  citizens  of  the  United  States  ”  doing 
business  at  the  open  ports.  It  further  provided  that  American  citi¬ 
zens  should  be  permitted  to  hire  Chinese  for  the  performance  of  “  any 
necessary  service  ”  without  interference  on  the  part  of  local  officers 
of  the  Chinese  Government. 

Internal  taxation  and  prohibition  of  monopolies. — An  important 
article  of  this  treaty  is  the  one  that  permits  citizens  of  the  United 
States  engaged  in  the  purchase  or  sale  of  goods,  of  import  or  export, 
to  trade  with  any  and  all  subjects  of  China  without  distinction,  and 
provides  that  they  shall  not  be  subject  to  any  new  limitations  nor 
impeded  in  their  business  by  monopolies  or  other  injurious  restric¬ 
tions.  The  internal  taxation  of  commerce,  principally  of  merchan¬ 
dise  in  course  of  transportation,  is  a  serious  factor;  and  the  treaty 
wisely  provided  that  all  such  internal  taxation  of  goods  of  import 
or  export  might  be  compounded  by  the  payment  of  an  additional 
2 y2  per  cent  transit  tax. 

The  injunction  against  monopolies  has  been  of  great  service  in 
keeping  open  to  American  citizens  lines  of  enterprise  that  might  have 
been  closed  by  monopolistic  concessions. 

Recovery  of  debts. — The  treaty  provides  that  a  debtor  shall  be  sued 
in  his  own  court,  the  redress  in  each  case  being  sought  through  the 
assistance  of  the  American  consul — that  is  to  say,  an  American 
creditor  seeking  to  recover  his  money  shall  present  his  complaint 
to  his  consul,  who  will  thereupon  negotiate  with  the  competent  Chi¬ 
nese  local  authority  to  obtain  satisfaction  of  the  debt;  and  if  a 
Chinese  citizen  is  creditor  he  shall  file  his  suit  in  the  American 
consular  court. 


100020°— 26 - 24 


354 


COMMERCIAL  HANDBOOK  OF  CHINA 


Residence  in  open  ports. — Although  four  additional  ports  were 
opened  to  foreign  residence  and  trade  by  the  earliest  treaties,  such 
residence  was  strictly  circumscribed.  No  particular  areas  were  pro¬ 
vided  for  at  the  open  ports,  but  in  later  years  areas  known  as  “  con¬ 
cessions  ”  and  “  settlements  ”  were,  at  many  of  the  treaty  ports, 
assigned  either  to  one  nation  or  to  foreign  nations  in  general,  and 
in  such  districts  foreigners  might  reside  under  the  municipal  control 
of  the  nation  or  nations  concerned.  The  “  area  of  open  ports  ” 
is  a  matter  that  has  no  so  far  proved  itself  susceptible  to  rigid 
definition. 

Chinese  protection  of  American  citizens. — The  treaty  provides 
that  citizens  of  the  United  States  in  China  who  peaceably  attend  to 
their  own  affairs  shall  enjoy  for  themselves  and  everything  apper¬ 
taining  to  them  the  special  protection  of  the  local  authorities,  who 
shall  defend  them  from  all  insult  or  injury  of  any  sort  on  the  part 
of  the  Chinese;  and  that  if  the  consul  shall  warn  the  local  authori¬ 
ties  of  impending  danger  from  mobs  or  other  lawless  persons  the 
local  authorities  shall  immediately  dispatch  a  military  force  to 
disperse  such  rioters,  apprehend  the  guilty  individuals,  and  punish 
them  with  the  utmost  rigor  of  the  law.  It  is  on  the  basis  of  this  and 
similar  provisions  of  the  treaties,  under  which  the  Chinese  Govern¬ 
ment  assumes,  on  its  own  behalf  and  on  behalf  of  the  provincial 
authorities,  an  especial  responsibility  for  the  protection  of  foreigners 
residing  or  traveling  in  China  in  conformity  with  rights  granted 
them  by  the  treaty,  that  foreign  governments  hold  the  Chinese 
Government  to  strict  account  in  such  matters. 

Extraterritorial  'jurisdiction. — It  is  expressly  provided  that  Chi¬ 
nese  citizens  guilty  of  any  criminal  act  toward  citizens  of  the  United 
States  shall  be  arrested  and  punished  by  the  Chinese  authorities 
according  to  the  laws  of  China,  and,  reciprocally,  that  citizens  of 
the  United  States  who  may  commit  any  crime  in  China  shall  be 
subject  to  trial  and  punishment  by  the  consul  or  other  public 
functionary  of  the  United  States  authorized  thereto,  according  to 
the  laws  of  the  United  States.  To  provide  the  machinery  required  by 
this  system  of  extraterritorial  jurisdiction,  the  United  States  Govern- 
men  has  created  a  consular  court  (of  which  the  consul  or  consul  gen¬ 
eral  is  the  judge)  in  each  consular  district,  and  the  United  States 
Court  for  China,  a  court  of  original  and  appellate  jurisdiction  over 
all  American  citizens  in  China. 

Communication  between  Americans  and  Chinese  authorities. — The 
treaty  provides  that  American  citizens  desiring  to  communicate  with 
the  Chinese  authorities  shall  do  so  through  the  American  consuls, 
and  that  Chinese  citizens  desiring  to  communicate  with  American 
consuls  shall  do  so  through  the  Chinese  authorities.  This  provision 
undoubtedly  serves  to  prevent  a  great  deal  of  friction  between  the 
citizens  and  officials  of  the  two  nationalities. 

Suits  between  Americans  and  other  foreign  residents. — The  treaty 
provides  that  controversies  occurring  in  China  between  citizens  of 
the  United  States  and  citizens  of  any  other  government  not  Chinese 
shall  be  regulated  by  the  treaties  existing  between  the  United  States 
and  such  governments.  Consequently,  in  the  case  of  the  foreign 
plaintiff,  the  defendant  being  an  American,  the  action  is  brought  in 
an  American  consular  court.  If  the  defendant  is  a  foreigner  of 


AMERICANS  IN  CHINA 


355 


another  extraterritorial  power,  the  suit  is  brought  in  a  court  of  the 
defendant’s  nationality.  If  the  plaintiff  is  an  American  and  the 
defendant  a  foreigner  not  possessed  of  extraterritorial  rights,  the 
suit  is  brought  in  a  Chinese  court. 

TREATY  OF  1858 

In  1858  another  treaty  was  negotiated  between  the  United  States 
and  China  largely  reaffirming  the  older  one. 

Immunity  from  religious  'persecution. — The  treaty  of  1858  guar¬ 
antees  that  no  person,  whether  Chinese  or  American,  engaged  in 
peaceably  teaching  or  promoting  the  principles  of  Christianity  shall 
be  molested  or  interfered  with.  This  article  of  the  treaty  has  been 
frequently  invoked  for  the  assistance  of  the  missionary  enterprises 
conducted  in  China  by  citizens  of  the  United  States,  although  it 
should  be  stated  that,  by  and  large,  neither  the  authorities  nor  the 
citizens  of  China  have  ever  shown  pronounced  antagonism  to  Chris¬ 
tianity  or  to  Christian  missionaries. 

M ost-favored-nation  treatment. — Allusion  has  already  been  made 
to  the  most-favored-nation  clause  which  is  found  in  most  treaties 
between  foreign  countries  and  China.  In  the  treaty  of  1858  it  was 
agreed  that  should  China  at  any  time  “grant  to  any  nation,  or  the 
merchants  or  citizens  of  any  nation,  any  right,  privilege,  or  favor 
connected  either  with  navigation,  commerce,  political  or  other  inter¬ 
course  which  is  not  covered  by  this  treaty,  such  right,  privilege,  and 
favor  shall  at  once  freely  inure  to  the  benefit  of  the  United  States, 
its  public  officers,  merchants,  and  citizens.”  It  is  this  clause  and 
similar  ones  found  in  other  treaties  that  have  given  to  the  citizens 
of  all  countires  having  such  agreements  with  China  what  amounts 
substantially  to  a  common  body  of  rights  in  the  country,  and  that 
have  created  a  remarkable  uniformity  of  interests. 

TREATY  OF  1880 

In  1880  there  was  negotiated  a  short  supplementary  treaty,  the 
most  important  provisions  of  which  are  summarized  as  follows : 

Trade  in  opium. — It  wTas  agreed  that  Chinese  and  American 
citizens  should  be  prohibited  absolutely  from  engaging  in  trade 
in  opium  between  the  two  countries.  This  prohibition  was  sub¬ 
sequently  embodied  by  Congress  in  legislative  enactments. 

Assessors. — The  treaty  elaborate#  the  method  by  which  the  citi¬ 
zens  of  one  country  may  secure  legal  redress  from  the  citizens  of 
the  other,  by  adding  that  a  properly  authorized  official  of  the 
plaintiff's  nationality  may  attend  the  trial,  which,  as  already  stated, 
must  be  held  in  the  court  of  the  defendant’s  nationality.  This  of¬ 
ficial,  who  is  called  an  “  assessor,”  is  to  be  granted  all  proper  facilities 
for  watching  the  proceedings  in  the  interests  of  justice.  He  may 
present,  examine,  and  cross-examine  witnesses,  and  if  he  is  dissatisfied 
with  the  proceedings  he  may  protest  against  them  in  detail.  In 
cases  of  original  jurisdiction  the  judge  is  generally  a  Chinese  dis¬ 
trict  magistrate  and  the  assessor  a  vice  consul;  in  appealed  cases 
the  judge  is  customarily  the  provincial  commissioner  of  foreign 
affairs  and  the  assessor  may  be  a  consular  officer  of  higher  rank. 


356 


COMMERCIAL  HANDBOOK  OF  CHINA 


COMMERCIAL  TREATY  OF  1903 

In  1903  a  commercial  treaty  was  negotiated  between  China  and 
the  United  States  which  was  designed  to  enlarge  the  status  of  Amer¬ 
ican  citizens  in  China  so  as  to  make  it  more  in  accord  with  the 
changed  conditions  of  their  economic  and  social  environment.  It 
also  provided  additional  facilities  for  the  protection  of  American 
interests,  such  as  copyright  and  trade-mark  protection. 

Open  ports. — The  treaty  is  most  specific  in  defining  the  rights  of 
American  citizens  at  ports  or  localities  open  to  foreign  residence 
and  trade.  It  states  that  American  citizens  at  such  places  may 
“  carry  on  trade,  industries,  and  manufactures  or  pursue  any  lawful 
avocation  ”  and  may  rent  or  purchase  houses  or  rent  or  lease  land 
in  perpetuity  and  build  thereon. 

Mining  regulations. — The  treaty  provides  that  the  Chinese  Gov¬ 
ernment  shall  enact  mining  regulations  which,  “  while  promoting  the 
interests  of  Chinese  subjects  and  not  injuring  in  any  way  the  sov¬ 
ereign  rights  of  China,  will  offer  no  impediment  to  the  attraction  of 
foreign  capital,  nor  place  foreign  capitalists  at  a  greater  disadvantage 
than  they  would  be  under  generally  accepted  foreign  regulations.” 
Up  to  the  present  time  no  such  regulations  have  been  agreed  upon. 
Consequently  the  employment  of  American  capital  in  mining  enter¬ 
prises  in  China  is  attended  with  many  difficulties. 

Trade-mark  regulations. — The  Chinese  Government,  the  treaty 
provides,  shall  arrange  for  the  establishment  of  offices  for  the  regis¬ 
tration  and  protection  of  trade-marks  in  accordance  with  “  reasonable 
regulations. ’’  Attempts  have  been  made  by  the  Chinese  Government 
from  time  to  time  to  provide  these  essential  facilities,  but  at  the 
present  writing  no  regulations  which  have  been  promulgated  by  the 
Chinese  Government  have  been  of  a  nature  to  receive  the  unqualified 
approval  of  the  foreign  governments.  There  have  been  trade-mark 
regulations  promulgated,  however,  under  which,  to  a  certain  extent, 
foreign  citizens  have  registered  their  trade-marks,  but  without  the 
formal  acceptance  of  these  regulations  by  their  respective  govern¬ 
ments. 

Patents  and  copyrights. — The  Government  of  China  has  not  yet 
established  a  patent  office  nor  provided  machinery  for  the  protection 
of  patents.  Protection  to  copyrights  is  provided  under  the  terms  of 
the  treaty,  but  the  subject  can  not  be  considered  to  have  been  satis¬ 
factorily  disposed  of. 

Inland  steam  navigation . — The  treaty  confirms  regulations  issued 
by  the  Chinese  Government  in  1898  opening  u  the  navigable  inland 
waters  of  the  Empire  to  commerce  by  all  steam  vessels,  native  or 
foreign,  that  may  be  specially  registered  for  the  purpose,  for  the 
conveyance  of  passengers  and  lawful  merchandise,”  and  provides  that 
American  citizens,  firms,  and  corporations  may  engage  in  such  com¬ 
merce  on  equal  terms  with  those  granted  to  the  citizens  of  any  foreign 
power.  As  an  instance  of  the  restricted  interpretation  which  is 
sometimes  offered  upon  treaty  provisions,  however,  it  may  be  noted 
that  Chinese  authorities  are  not  always  inclined  to  admit  to  vessels 
of  native  type  the  navigation  rights  thus  granted  steam  vessels.  In 
one  of  the  Provinces  the  question  has  recently  arisen  of  the  right, 
under  the  treaty,  of  an  American  firm  to  own  and  operate  craft  of 


AMERICANS  IN  CHINA  357 

native  type  on  inland  waterways  for  the  transportation  of  its  own 
merchandise. 

Missionary  enterprise. — The  treaty  reaffirms  with  greater  minute¬ 
ness  the  freedom  of  American  and  Chinese  citizens  alike  to  practice 
and  peaceably  teach  the  principles  of  Christianity.  Since  a  great 
deal  of  American  money  has  been  invested  in  real  property  in  China 
for  the  purposes  of  missionary  work,  it  may  be  pertinent  to  quote 
verbatim  the  wording  of  the  treaty,  as  it  is  the  latest  definition  of 
the  rights  under  which  such  land  is  acquired. 

Missionary  societies  of  the  United  States  shall  be  permitted  to  rent  and 
to  lease  in  perpetuity,  as  the  property  of  such  societies,  buildings  or  lands  in 
all  parts  of  the  Empire  for  missionary  purposes  and,  after  the  title  deeds  have 
been  found  in  order  and  duly  stamped  by  the  local  authorities,  to  erect  such 
suitable  buildings  as  may  be  required  for  carrying  on  their  good  work. 

Extraterritoriality . — The  United  States  Government  agrees  in 
the  treaty  of  1903  to  give  every  assistance  to  the  Chinese  Government 
in  the  re-formation  of  its  judicial  system  and  indicates  its  readiness 
“  to  relinquish  extraterritorial  rights  when  satisfied  that  the  state 
of  the  Chinese  laws,  the  arrangements  for  their  administration,  and 
other  considerations  warrant  it  in  so  doing.”  Recent  internal  dis¬ 
sensions  in  the  country  and  the  consequent  delay  in  perfecting  the 
Chinese  judicial  system,  as  well  as  the  weakening  of  the  general 
administrative  system,  have  tended  to  caution  foreign  nations 
against  a  too  precipitate  relinquishment  of  the  extraterritorial  po¬ 
sition  in  China. 


PRESENT  TREATMENT  NOT  EXHAUSTIVE 

The  foregoing  is  no  more  than  a  brief  summary  of  the  more  im¬ 
portant  aspects  in  which  the  treaties  between  the  United  States  and 
China  have  established  the  foundations  of  American  life  and  enter¬ 
prise  in  that  country.  There  are  many  subjects,  controversial  and 
otherwise,  discussed  in  the  treaties,  to  which  the  limitations  of  space 
permit  no  allusion  here.  The  reader  is  referred  to  the  treaties  con¬ 
cluded  by  China  with  foreign  nations  and  to  the  many  instructive 
and  interesting  books  which  have  been  written  about  them,  also 
to  officials  of  the  United  States  Government,  for  more  specific  in¬ 
formation  in  regard  to  the  rights  and  privileges  enjoyed  by  Amer¬ 
ican  citizens  in  their  pursuits  in  China. 

AMERICAN  COURTS  IN  CHINA 

By  Charles  Sumner  Lobingier,  Formerly  Judge  of  the  United  States  Court  for  China 

The  United  States  seems  to  have  been  the  first  power  to  commis¬ 
sion  a  consul  in  China.  The  other  countries  do  not  appear  to  have 
sent  such  representatives  until  after  the  treaty  of  Nanking  in  1842 
had  opened  five  great  ports  to  trade.1  But  as  early  as  1790  Maj. 
Samuel  Shaw,2  who  had  arrived  at  Canton  in  1784  as  supercargo  of 
the  ship  Empress ,  was  given  a  commission  3  as  American  consul  at 
Canton  by  President  Washington. 


1  Williams,  The  Middle  Kingdom,  II,  567. 

2  A  sketch  of  Major  Shaw  and  an  account  of  the  voyage  appears  in  Asia,  XVII,  in  an 
article  by  John  Ford,  entitled  “  Outward  Bound.” 

3  Reprinted  in  American  Journal  of  International  Law,  V,  426. 


358 


COMMERCIAL  HANDBOOK  OF  CHINA 


But  Americans,  as  well  as  others,  found  it  impracticable  to  live 
and  conduct  business  under  existing  native  laws,  which  were  fun¬ 
damentally  different  from  those  to  which  they  had  been  accustomed. 
The  Chinese  authorities,  too,  found  it  annoying,  and  often  embar¬ 
rassing,  to  decide  questions  and  dispose  of  cases  involving  the  rights 
of  foreigners,  and  they  desired  to  be  relieved  of  the  whole  burden. 

The  solution  of  this  common  difficulty  was  found  in  the  adoption 
by  China  of  the  system  known  as  extraterritoriality,  by  which  for¬ 
eigners  were  accorded  the  same  legal  status  as  if  living  in  their  own 
country,  and  the  authorities  of  each  treaty-making  power  were  made 
responsible  for  punishing  crime  and  administering  justice  among 
their  own  nationals. 

There  was,  of  course,  nothing  novel  in  the  adoption  of  the  system 
in  China,  for  it  had  long  been  in  vogue  in  other  parts  of  the  world. 
Indeed,  there  is  reason  to  believe  that  it  was  once  in  vogue  every¬ 
where.  An  eminent  authority  4  has  recently  said : 

We  venture  to  suggest,  with  diffidence,  that  the  naturalness  of  the  extra¬ 
territorial  privilege  as  explained  by  the  author  might  be  more  emphatically 
illustrated  by  the  “  personality  ”  of  all  law,  as  distinguished  from  its  “  terri¬ 
toriality,”  which  prevailed  throughout  the  vast  Carlovingian  Empire  till  nearly 
1000  A.  D. ;  that  is,  instead  of  saying,  with  the  author,  that  extraterritoriality 
was  “  in  accordance  with  usage  which  became  generally  recognized  with  the 
gradual  extension  of  commerce,”  we  should  prefer  to  believe  that  it  was  in 
accord  with  a  universal  prior  custom  prevailing  in  the  first  half  of  the 
Middle  Ages. 

For  the  United  States  this  arrangement  with  China  was  effected 
by  the  treaty5  signed  at  Wanghia,  a  suburb  of  Macao,  on  July  3, 
1844.  It  was  drafted  by  Caleb  Cushing,  afterwards  Attorney  General 
of  the  United  States,  and  Article  XII  provided  that  “  citizens  of  the 
United  States  who  may  commit  any  crime  in  China  shall  be  s'ubject 
to  be  tried  and  punished  only  by  the  consul,  or  other  public  function¬ 
ary  of  the  United  States  thereto  authorized,  according  to  the  laws 
of  the  United  States”;6  and  Article  XXV  declared  that  “all  ques¬ 
tions  in  regard  to  rights,  whether  of  property  or  person,  arising 
between  citizens  of  the  United  States  in  China,  shall  be  subject  to 
the  jurisdiction  of  and  regulated  by  the  authorities  of  their  own 
Government.  And  all  controversies  occurring  in  China  between 
citizens  of  the  United  States  and  the  subjects  of  any  other  govern¬ 
ment  shall  be  regulated  by  the  treaties  existing  between  the  United 
States  and  such  governments,  respectively,  without  interference  on 
the  part  of  China.”7 

ORGANIZATION 


CONSULAR  COURTS 


The  “  authorities  ”  to  which  this  extensive  responsibility  was  com¬ 
mitted  were  the  consuls,  and,  as  each  consul  became  thereby  a  judge, 
the  consular  courts  were  thus  brought  into  existence.  For  more  than 
60  years  these,  as  reviewed  and  supervised  by  the  Minister,  were  the 


4  John  H.  Wigmore,  reviewing  Brown’s  “  Foreigners  in  Turkey,”  Illinois  Law  Review, 
X,  451. 

5  “  Its  fullness  of  details  and  clear  exhibition  of  the  rights  conceded  by  the  Chinese 
Government  to  foreigners  dwelling  within  its  borders  made  it  the  leading  authority  in 
settling  disputes  among  them  until  1860.”  Williams*  “  The  Middle  Kingdom,”  II,  567. 

6  Malloy,  Treaties,  etc.,  I,  202. 

7  Id.  203, 


AMERICANS  IN  CHINA 


359 


only  American  courts  in  China.  Their  jurisdiction  as  to  subject 
matter  was  unlimited,8  and  questions  coming  before  them  were  often 
of  the  highest  importance. 

In  1906,  when  the  United  States  Court  for  China  was  created,  the 
jurisdiction  of  the  consular  courts  was  left  to  be  exercised  “  in  civil 
cases  where  the  sum  or  value  of  the  property  involved  in  the  contro¬ 
versy  does  not  exceed  five  hundred  dollars  United  States  money  and 
in  criminal  cases  where  the  punishment  for  the  offense  charged  can 
not  exceed  by  law  one  hundred  dollars’  fine  or  sixty  days1  imprison¬ 
ment,  or  both,  and  shall  have  power  to  arrest,  examine,  and  dis¬ 
charge  accused  persons  or  commit  them  to  the  said  courts.”9 

There  are  now  15  American  consular  courts  in  China,  and  it  will 
be  seen  that  the  jurisdiction  retained  by  them  is  important,  even  if 
limited.  Especially  in  the  probate  of  wills  and  administration  of 
estates  they  are  the  only  courts  to  which  a  considerable  section  of 
Americans  in  China  have  occasion  to  resort. 

UNITED  STATES  COURT 

History . — As  American  interests  in  the  Far  East  gradually  ex¬ 
panded  it  became  apparent  that  the  important  and  far-reaching 
judicial  power  which  the  Nation  had  acquired  there  should  be  exer¬ 
cised,  or  at  least  supervised,  by  those  trained  especially  for  that 
purpose.  Our  ministers  and  consuls  doubtless  made  the  best 
of  a  difficult  situation,  but  they  were  laymen,  as  a  rule,  and  it 
was  not  to  be  expected  that  they  should  find  themselves  at  home 
in  the  technical  field  of  law. 

In  1881  Secretary  Blaine,  in  an  opinion  which  was  transmitted  to 
Congress  by  President  Arthur,  recommended  that  “men  of  legal 
training  should  be  chosen  for  certain  judicial  offices  independent 
of  the  consular  system,  and  the  establishment  of  a  separate  system 
of  courts,  at  least  in  China,  with  an  appellate  court  at  Shanghai.” 
Bills  embodying  these  recommendations  were  introduced  into  Con¬ 
gress  in  1882  and  1884,  but  were  not  acted  upon.  Nothing  daunted, 
Ihe  advocates  of  a  better  system  continued  their  efforts.  In  March, 
1906,  Congressman  Edwin  Denby,  son  of  a  former  Minister  to 
China,  introduced  his  bill.  It  passed  the  House  under  his  guidance, 
received  the  support  of  Senator  Spooner  in  the  Senate,  and  became 
a  law. 

Elsewhere,10  Mr.  Denby  has  said  of  the  conception  and  purpose  of 
his  measure : 

I  thought  of  our  United  States  judge  as  much  in  the  light  of  an  ancillary, 
unofficial  ambassador  of  the  United  States,  as  of  a  judge  of  a  court  for  the 
trial  of  cases  in  which  Americans  were  concerned.  I  had  hoped  at  that  time, 
judging  of  conditions  as  I  had  known  them  before,  that  this  high  judicial 
officer,  the  highest  American  official  in  the  land  next  only  to  the  minister,  un¬ 
hampered  by  diplomatic  restrictions  and  with  an  eye  single  to  the  best  interests 
of  the  Chinese  Empire  and  of  the  United  States,  might,  having  placed  himself  on 
terms  of  friendship  and  confidence  with  the  chief  officials  of  the  Empire, 
exercise  in  an  entirely  unofficial  wTay  a  considerable  influence  in  matters 
affecting  foreign  relations.  The  court’s  sittings  were  to  be  at  the  points  indi¬ 
cated — four  great  viceregal  seats — and  I  hoped  that  perhaps  some  good  might 


8  There  are  several  recorded  cases  where  they  granted  divorces  ;  Moore,  Int.  Law  Dig., 
Ill,  459  ;  North  China  Herald,  LXIX,  1138,  1194. 

9  Act  of  June  30,  1906,  34  U.  S.  Stat.  L.,  Pt.  I.  814,  sec.  2. 

10  Far  Eastern  American  Bar  Association  Publications,  I,  14,  15. 


360 


COMMERCIAL  HANDBOOK  OF  CHINA 


be  accomplished  through  the  influence  of  the  court  in  an  entirely  unofficial  and 
friendly  way,  relying  upon  the  judge  himself  to  exercise  tact  and  discretion 
and  to  use  whatever  influence  he  might  acquire  in  the  best  manner. 

Thus  to  Dean  Wigmore’s  conception  of  a  a  judicial  superintendent,” 
elsewhere  noted,  must  be  added  that  of  Mr.  Denby — of  an  “  unofficial 
ambassador  ” — if  we  would  comprehend  the  purposes  that  under¬ 
lay  the  creation  of  the  United  States  Court  for  China.  How  far 
these  purposes  have  been  carried  out  is  not,  of  course,  for  those 
administering  the  court  to  say;  but  the  latter  can  be  materially 
assisted  by  their  own  nationals  in  attaining  such  purposes,  if  these 
are  clearly  understood  and  if  all  unite  in  seeking  their  achievement. 

Both  United  States  and  consular  courts  exist  in  order  to  serve 
Americans  in  China  and  those  who  deal  with  them.  The  measure 
of  their  success  is  the  degree  of  serviceability  attained,  and  in  this 
respect  their  founders  anticipated  and  applied  an  ideal  that  is  only 
now  being  ditfused  by  the  most  advanced  school  of  law  reformers 
in  America. 

While  nominally  established  by  the  act  of  June  30,  1906,  the  court 
was  not  actually  opened  for  business  until  early  in  1907.  Of  the 
nearly  700  cases  disposed  of  by  it  since  then,  there  have  been  some  of 
unusual  importance  either  in  the  legal  questions  arising  or  in  the 
amounts  involved. 

Jurisdiction. — A  court’s  jurisdiction  may  be  considered  under  three 
aspects:  (1)  Territorial,  (2)  personal,  and  (3)  topical — the  last  be¬ 
ing  known  in  technical  parlance  as  jurisdiction  of  the  subject  matter. 
This  third  jurisdiction  is  again  subdivided  into  (a)  original,  (b)  ap¬ 
pellate,  and  (in  this  instance)  (c)  supervisory. 

The  territorial  jurisdiction  of  this  United  States  Court  extends 
to  and  its  process  runs  throughout  all  Chinese  territory.  Sessions  of 
the  court  are  held  almost  continuously  at  Shanghai,  and  one  regular 
term  is  held  each  year  at  Tientsin  in  the  north,  Hankow  in  Central 
China,  and  Canton  in  the  south.  Special  sessions  are  authorized  at 
any  place  in  China  having  an  American  consulate.  The  organic  act 
also  conferred  jurisdiction  in  Korea,  but  while  this  provision  has 
never  been  repealed  the  jurisdiction  has  not  been  exercised  in  recent 
years.  Should  the  Government  ever  decide  to  extend  the  court’s 
jurisdiction  to  Siam,  where  extraterritoriality  was  granted  in  1856, 11 
it  would  require  no  more  than  the  addition  of  a  couple  of  words  to 
the  organic  act  and  the  slight  expense  of  a  yearly  session  at  Bangkok. 

The  test  of  jurisdiction  over  the  person  in  all  these  extraterritorial 
courts  is  the  nationality  of  the  defendant.  Anyone  may  be  a  plain¬ 
tiff,  but  there  must  be  a  defendant  subject  to  American  authority 
in  order  to  confer  jurisdiction.  This  includes  Filipinos,  of  whom 
there  are  many  in  China,  and  also  Porto  Ricans,  as  well  as  regular 
American  citizens,  and  all  such  in  China  are  amenable  to  these  courts 
in  any  cause,  criminal  or  civil,  which  may  be  instituted  therein 
against  them.  And  where  the  cause  is  what  is  technically  known  as 
“in  rem”  (concerns  property  or  status  alone)  it  may  be  brought  in 
these  courts,  though  there  is  no  such  defendant,  or  even  where  the 
nominal  defendant  is  an  alien.12  Original  jurisdiction  of  the  subject 


11  Treaty  of  May  29,  1856.  Malloy,  Treaties,  etc.,  I,  1629. 

12  See  Richards  v.  Richards,  United  States  Court  for  China,  No.  424,  where  the 
defendant  was  a  Chinese  woman  but  the  object  of  the  action  was  divorce  without  ali¬ 
mony — i.  e.,  change  of  status  only. 


AMERICANS  IN  CHINA 


361 


matter  is  exercised  by  the  United  States  Court  in  all  cases  arising 
within  its  territory  which  are  not  recognizable  by  the  consular 
courts — that  is,  in  all  civil  cases  where  the  amount  involved  exceeds 
$500  and  in  all  criminal  cases  where  the  penalty  prescribed  exceeds 
“one  hundred  dollars  fine  or  sixty  days’  imprisonment  or  both.”13 

It  sometimes  happens,  especially  in  administration  matters,  that 
a  cause  is  commenced  in  a  consular  court  under  the  belief  that  it 
involves  less  than  $500  and  is  afterwards  found  to  involve  more. 

'  In  that  event  it  is  transferred  to  the  United  States  Court  and  the 
prior  proceedings  are  treated  as  having  been  conducted  under  its 
authority.14  The  grant  of  jurisdiction  in  “  all  civil  cases  ”  of  the 
prescribed  amount  is  an  extensive  one  and  includes  proceedings  of 
every  recognized  class  without  limit  as  to  the  maximum  amount  or 
character  of  relief  sought.  Thus  while  the  United  States  Court  for 
China  is  a  part  of  the  Federal  judicial  system,  corresponding  in 
grade  mainly  to  the  district  courts,  it  assumes  cognizance  of  certain 
causes  (such  as  probate,  divorce,  and  adoption)  which,  in  America, 
are  entertained  only  by  the  State  courts.  The  amounts  involved 
are  often  very  large,  running  into  hundred  of  thousands. 

All  judgments  of  the  consular  courts  are  subject  to  review  by  the 
United  States  Court  for  China  on  appeal,  while  from  the  latter, 
which  is  considered  as  located  in  the  ninth  judicial  circuit,  appeals 
lie  to  the  court  of  appeals  sitting  at  San  Francisco. 

But  besides  its  ordinary  appellate  cognizance  the  United  States 
Court  also  exercises  a  supervisory  or  administrative  jurisdiction  in 
all  probate  and  administration  causes,  whether  appealed  or  not. 
Thus  it  is  provided  that  the  consular  judge  “  shall  pay  no  claims 
against  the  estate  without  the  written  approval  of  the  judge  of  said 
(United  States)  court,  nor  shall  he  make  sale  of  any  of  the 
assets  of  said  estate  without  first  reporting  the  same  to  said  judge 
and  obtaining  a  written  approval  of  said  sale  *  *  *.”  15  The  lat¬ 

ter  is  also  empowered  “  to  require  at  any  time  reports  from  consuls 
or  vice  consuls  in  respect  of  all  their  acts  and  doings  relating  to  the 
estate  of  any  such  deceased  person.”  10  The  statute  further  provides 
“  that  the  procedure  of  the  said  court  shall  be  in  accordance,  so  far 
as  practicable,  with  the  existing  procedure  prescribed  for  consular 
courts  in  China  in  accordance  with  the  Revised  Statutes  of  the 
United  States:  Provided ,  however ,  That  the  judge  of  the  said  United 
States  Court  for  China  shall  have  authority  from  time  to  time  to 
modify  and  supplement  said  rules  of  procedure.”  17 

The  relation  between  the  two  is,  therefore,  something  more  than 
that  usually  existing  between  appellate  and  “nisi-prius”  courts. 
What  Congress  apparently  intended  by  this,  particularly  as  regards 
probate  and  administration  matters,  was  the  creation  of  an  office  re¬ 
sembling  the  “  chief  judicial  superintendent  ”  of  the  up-to-date  law 
reformers,  who  is  invested,  among  other  things,  with  the  rule-making 
function. 


13  U.  S.  Stat.  L.,  ch.  3934,  sec.  2. 

14  In  re  Jaeger’s  Estate  (Apr.  26,  1918),  No.  613,  Millard’s  Review,  IV,  374. 

15  Act  of  June  30,  1906,  34  U.  S.  Stat.  L.,  ch.  3934,  Pt.  I,  814,  sec.  2. 

16  Id. 

17  Id.,  sec.  5. 


362 


COMMERCIAL  HANDBOOK  OF  CHINA 


John  H.  Wigmore,  a  leader  of  advanced  legal  thought  in  America, 
expresses  18  this  conception  as  follows : 

What  we  preach  is  a  chief  judicial  superintendent,  who  shall  have  the  power 
and  the  duty  to  inquire  into  each  and  every  sort  of  botch-product  of  our  justice 
system,  and  to  take  measures  to  improve  it  against  the  recurrence  of  such  fail¬ 
ures.  When  the  people  bring  themselves  to  permitting  and  demanding  such  an 
innovation,  they  will  be  in  a  fair  way  of  getting  substantial  improvements  in 
their  justice — but  not  before  then. 

JURISPRUDENCE  AND  LEGISLATION 

LAWS  OF  THE  UNITED  STATES 

The  treaty  cession  to  the  United  States  Government  of  extraterri¬ 
torial  jurisdiction  from  China  was  first  rendered  effective  by  the  act 
of  Congress  of  August  11,  1848,  which  contained  the  following  pro¬ 
vision  : 

Such  jurisdiction  in  criminal  and  civil  matters  shall,  in  all  cases,  be  exer¬ 
cised  and  enforced  in  conformity  with  the  laws  of  the  United  States,  which 
are  hereby,  so  far  as  is  necessary  to  execute  said  treaty,  extended  over  all  citi¬ 
zens  of  the  United  States  in  China  (and  over  all  others  to  the  extent  that  the 
terms  of  the  treaty  justify  or  require),  so  far  as  such  laws  are  suitable  to  carry 
said  treaty  into  effect.19 

In  1860  a  more  elaborate  act 20  was  passed  in  which  the  foregoing 
section  was  almost  literally  repeated,  so  that  it  affords  the  basis  of 
American  jurisprudence  in  China. 

The  practice  of  extending  over  one  jurisdiction  laws  originally 
passed  for  another  is  not  new  in  American  jurisprudence.  It  was 
often  resorted  to  during  the  formative  period  of  western  America 
when  new  territories  were  created.  Thus  the  laws  of  Iowa  were  ex¬ 
tended  over  the  newly  formed  Territory  of  Nebraska  in  1855,  while 
a  generation  later  the  Nebraska  laws  were  extended  to  Oklahoma, 
organized  in  1889.  Meanwhile,  in  1884,  the  laws  of  Oregon  had  been 
extended  over  Alaska.21 

It  is  said  22  also  that  the  laws  of  Arkansas  were  once  extended  over 
the  Indian  Territory. 

Congress  had  applied  the  same  principle  as  early  as  1825,  when  it 
extended  the  criminal  laws  of  each  State  over  all  Federal  territory 
and  property  within  its  boundaries,23  thus  making  a  violation  of 
such  State  law  “  an  offense  against  the  Uinted  States.”  Congress 
was  merely  following  precedent,  therefore,  in  enacting  the  laws  above 
noted.25 

“  What  are  ‘  the  laws  of  the  United  States  ’  referred  to  so  frequently 
in  these  quotations?”  is  the  question  sought  to  be  answered  as  follows 
in  one  26  of  the  earliest  cases  presented  to  the  writer  after  he  had 
assumed  charge  of  the  court : 

Not  the  treaties,  for  they  are  mentioned  separately ;  hardly  the  Constitution, 
for  it  has  been  declared  27  to  have  no  extraterritorial  operation ;  certainly  not 


18  Illinois  Law  Review,  XI,  49. 

10  9  U.  S.  Stat.  L.,  276,  sec.  4. 

20  12  U.  S.  Stat.  L.,  74.  sec.  4. 

n  United  States  ex  rel.  Raven  v.  McRae,  United  States  Court  for  China,  No.  586,  Mil¬ 
lard’s  Review,  I,  7. 

22  Hearing  before  Committee  on  Foreign  Affairs,  Sept.  27,  1917  ;  H.  R.  4281,  p.  6. 

23  4  U.  S.  Stat.  L.,  c-h.  LXV,  sec.  3. 

24  Biddle  v.  United  States,  156  Fed.  759,  763. 

25  United  States  ex  rel.  Raven  v.  McRae,  Millard's  Review,  I,  7. 

26  United  States  v.  Allen,  United  States  Court  for  China,  No.  89. 

27  In.  re  Ross,  140  U.  S.,  433,  35  Law  Ed,  581. 


AMERICANS  IN  CHINA 


363 


State  legislation ;  principally,  therefore,  the  acts  of  Congress  then  or  subse¬ 
quently  in  force.  And  their  extension  results  quite  independently  of  the  orig¬ 
inal  purpose  of  the  acts  themselves.  Thus  Congress  may  enact  a  law  for  a 
limited  area  under  its  exclusive  jurisdiction,  such  as  Alaska  or  the  District  of 
Columbia  ;  by  its  terms  it  may  have  no  force  whatever  outside  of  such  area ; 
but  if  it  is  “  necessary  to  execute  such  treaties  ”  (with  China)  and  “  suitable  to 
carry  the  same  into  effect  ”  it  becomes  operative  here  by  virtue  of  the  act  of 
1860  above  quoted.  Such  we  understand  to  be  the  doctrine  announced  by  the 
Court  of  Appeals  in  a  leading  case. 

This  last 28  was  a  prosecution  for  obtaining  money  under  false  pre¬ 
tenses,  and  in  upholding  the  lower  court’s  jurisdiction  of  such  a  crime 
the  appellate  tribunal  observed : 

It  is  true  there  is  no  general  statute  applicable  to  every  State  in  the  Union 
making  this  an  offense  against  the  United  States ;  nor  could  there  be,  in  view 
of  the  fact  that  under  our  system  of  government  the  right  to  punish  for  such 
acts,  committed  within  the  political  jurisdiction  of  the  State  is  reserved  to 
the  several  States.  But  in  legislating  for  territory  over  which  the  United  States 
exercises  exclusive  legislative  jurisdiction,  Congress  has  made  the  act  of  ob¬ 
taining  money  under  false  pretenses  a  crime  *  *  *. 

In  view  of  the  legislation  of  Congress  to  which  we  have  referred  (the  acts 
relating  to  Alaska  and  the  District  of  Columbia,  and  the  statute  of  July  7,  1898), 
our  conclusion  is  that  obtaining  money  or  goods  under  false  pretenses  is  an 
offense  against  the  laws  of  the  United  States  within  the  meaning  of  the 
statute  conferring  jurisdiction  upon  the  United  States  Court  for  China.28 

Though  the  laws  there  involved  were  criminal  ones,  the  funda¬ 
mental  basis  of  the  decision  applies  equally  well  to  civil  laws  which 
have  since  been  treated  by  the  United  States  Court  for  China29  as 
extended  here. 

For  there  can  be  no  half-way  adoption  of  that  doctrine ;  it  includes  all  such 
laws  or  none.  It  can  not  logically  be  restricted  to  any  particular  class  of  acts. 
It  is  just  as  applicable  to  civil  laws  as  to  criminal ;  just  as  necessary  in  respect 
to  corporations  as  to  procedure.30 

It  is  true  that  the  phrase  “  law  of  the  United  States  ”  as  used  in  one 
paragraph  of  that  section  of  the  Judicial  Code 31  relating  to  appeals 
has  been  construed  as  not  including  an  act  of  Congress  for  the 
District  of  Columbia.32  But  the  “ratio  decidendi”  was  the  declared 
purpose  of  the  paragraph  to  limit  appeals,33  and  it  Avas  conceded 
that  the  same  phrase  in  another  paragraph  might  be  construed  dif¬ 
ferently.34  In  fact,  it  had  been  so  construed  in  an  earlier  case  35 
which  was  not  overruled  by  those  above  cited.  Moreover,  in  a  de¬ 
cision  later  than  any  of  them  the  Supreme  Court  in  construing  a 
similar  statute  36  regulating  appeals  from  the  Philippines  declared 
the  Philippine  tariff  act,  which  applied  to  the  archipelago  alone,  “  a 


28  Biddle  v.  United  States,  156  Fed.  Rep.  759. 

29  Cavanaugh  v.  Worden,  No.  313. 

30  United  States  ex  rel.  Raven  v.  McRae,  No.  586,  Millard’s  Review,  I,  9. 

31  Sec.  250  ;  36  U.  S.  Stat.  L.  1159. 

32  American  Security,  etc.,  Co.  v>.  District  of  Columbia,  234  U..  S.  491,  56'  Law  Ed. 
856,  32  Sup.  Ct.  553  ;  Washington,  etc.,  R.  Co.  v.  Downey,  236  U.  S.,  190, ;  59  Law  Ed. 
533  ;  35  Sup.  Ct.  406 ;  American  Surety  Co.  v.  American  Fruit  Product  Co.,  238  U.  S. 
140,  59  Law  Ed.  1238 ;  35  Sup.  Ct.  828 ;  American  Security,  etc.,  Co.  v.  Rudolph,  38 
App.  Cas.  (D.  C.)  32. 

33  American  Security,  etc.,  Co.  v.  District  of  Columbia,  224  U.  S.  491,  56  Law  Ed.  856  ; 
32  Sup.  Ct.  553. 

34  “  Of  course  there  is  no  doubt  that  the  special  act  of  Congress  was  in  one  sense  a 
law  of  the  United  States.  It  well  may  be  that  it  would  fall  within  the  meaning  of  the 
same  words  in  the  third  clause  of  the  same  section  :  ‘  Cases  involving  the  constitu¬ 
tionality  of  any  law  of  the  United  States.’  ”  Id.  Cf.  American  Surety  Co.  v.  American 
Fruit  Product  Co.,  238  United  States  140,  59  Law  Ed.  533,  35  Sup.  Ct.  406. 

36  Parsons  v.  District  of  Columbia,  170  U.  S.,  45  Law.  Ed. 

36  36  U.  S.  Stat.  L.,  Ch.  1369,  sec.  10. 


364  COMMERCIAL  HANDBOOK  OF  CHINA 

statute  of  the  United  States.37  The  doctrine  of  the  Court  of  Appeals 
would  seem,  therefore,  to  be  quite  consistent  with  that  of  the  Supreme 
Court. 

It  appears  to  be  settled  then  that  the  phrase,  “  laws  of  the  United 
States,”  as  used  in  the  legislation  first  above  quoted,  includes  all 
applicable  acts  of  Congress  regardless  of  the  locality  for  which  they 
were  originally  intended.  This  rule  provides  for  American  courts 
in  China  a  mass  of  legislation  without  which  they  would  be  sadly 
handicapped;  for  the  general  acts  of  Congress  contain  little  con¬ 
cerning  the  subjects  with  which  those  courts  are  most  called  upon 
to  deal,  such  as  crimes,  domestic  relations,  contracts,  etc.  It  happen¬ 
ed,  however,  that,  shortly  before  the  establishment  of  the  United 
States  Court  for  China,  Congress  had  enacted  for  various  juris¬ 
dictions  a  series  of  fairly  satisfactory  codes  and  statutes,  which 
covered  these  and  kindred  subjects,  and  which,  by  the  rule  above 
stated,  were  rendered  available  to  said  courts.38  Where  two  or  more 
of  such  acts  cover  the  same  subject  and  are  equally  suitable,  a  rule 
of  statutory  construction  as  old  as  the  Twelve  Tables39  requires  that 
the  latest  enactment  be  applied.  Moreover,  although  Alaska  was 
provided  in  1913  with  a  legislature  of  its  own,  Congress  will  doubt¬ 
less  continue  to  legislate  indefinitely  for  the  District  of  Columbia, 
and  a  fair  supply  of  new  legislation  may  be  expected  from  that 
source.  The  statutory  equipment  of  American  courts  in  China  is, 
therefore,  on  the  whole,  about  as  complete  as  that  of  most  courts. 

UNWRITTEN  LAW 

In  any  jurisdiction  there  are,  of  course,  many  subjects  not  covered 
by  legislation  and  these  “  lacunae  ”  were  early  provided  for  in  extra¬ 
territorial  countries  by  enacting  that  “  in  all  cases  where  such  laws 
are  not  adapted  to  the  object,  or  are  deficient  in  the  provisions  neces¬ 
sary  to  furnish  suitable  remedies,  the  common  law,  including  equity 
and  admiralty,  shall  be  extended  in  like  manner  over  such  citizens 
and  others  in  the  said  countries.”40  The  “  common  law  ”  here  speci¬ 
fied  has  been  “interpreted  to  mean  those  principles  of  the  common 
law  of  England  and  those  statutes  passed  in  aid  thereof,  including 
the  law  administered  in  the  equity,  admiralty,  and  ecclesiastical 
tribunals,  which  were  adapted  to  the  situation  and  circumstances  of 
the  American  colonies  at  the  date  of  the  transfer  of  sovereignty,  as 
modified,  applied,  and  developed  generally  by  the  decisions  of  the 
State  courts  and  by  the  decisions  of  the  United  States  courts,  and 
incorporated  generally  into  the  statutes  and  constitutions  of  the 
States.” 41 


37  Gsell  v.  Insular  Collector,  239  U.  S.  93,  affirming  24  Philippine  369,  which  in  turn 
affirmed  the  decision  of  Lobingier,  J.,  in  Philippine  Law  Rev.  229—233. 

38  Act  of  Mar.  3,  1899,  30  U.  S.  Stat.  L.,  1253  et.  seq.  (Criminal  Code  for  Alaska)  ; 
act  of  June  6,  1900,  31  U.  S.  Stat.  L.,  ch.  786  (Civil  Laws  for  Alaska)  ;  act  of  Mar. 
3,  1901,  31  U.  S.  Stat.  L.,  ch.  854  (General  Code  for  the  District  of  Columbia)  ;  act  of 
July  1,  1902,  32  U.  S.  Stat.  L.  ch.  1369  (Organic  Act  for  the  Philippines  but,  with  its 
successor,  containing  provisions  which  may  prove  useful  in  China).  This  was  supple¬ 
mented  though  not  entirely  repealed  by  the  act  of  Aug.  29,  1916,  39  U.  S.  Stat.  L ., 
ch.  416. 

30  XII,  5  ;  36  Cyc.  1130  ;  Cavanaugh  v.  Worden,  No.  313. 

40  Act  of  Congress  of  June  22,  1860,  12  U.  S.  Stat.  p.  73,  ch.  179,  sec.  4. 

41  United  States  v.  Biddle  (United  States  Court  for  China),  American  Journal  of  Inter¬ 
national  Law,  I,  793,  796,  reversed  on  another  point,  156  Fed.  759. 


AMERICANS  IN  CHINA 


365 


THE  RULE-MAKING  AUTHORITY 

Finally,  as  supplementing  all  of  the  above,  the  act  of  1860,  follow¬ 
ing  closely  upon  that  of  1848,  further  provided  that  “  if  defects  still 
remain  to  be  supplied,  and  neither  the  common  law,  including  equity 
and  admiralty,  nor  the  statutes  of  the  United  States  furnish  appro¬ 
priate  and  suitable  remedies,  the  ministers  in  the  said  countries,  re¬ 
spectively,  shall,  by  decrees  and  regulations  which  shall  have  the 
force  of  law,  supply  such  defects  and  deficiencies.”  42 

In  exercise  of  this  authority,  the  Minister  to  China,  prior  to  1906, 
promulgated  various  “  Consular  Court  Regulations,” 43  and  these, 
though  recognized  in  part  as  “  gravely  defective,”  have  been  given 
force  in  China  even  over  acts  of  Congress.44 

A  communication  to  the  minister  from  the  Department  of  State 
in  1917  announces  “  that  the  department  is  clearly  of  the  opinion  that 
section  5  of  the  act  of  June  30,  1906, 45  should  be  construed  as  effecting 
a  transfer  of  the  authority  to  modify  and  supplement  existing  rules 
of  procedure  from  the  minister  to  the  United  States  Court  for 
China.” 

Here,  then,  we  have  the  “  judicial  superintendent,”  in  fact  if  not 
in  name,  with  not  only  “  the  power  and  duty  to  inquire  into  each  and 
every  ”  important  act  of  the  primary  courts  and  to  require  reports 
from  them  but  also  to  frame  the  rules  by  which  all  these  courts 
shall  operate.  When  it  is  remembered  that  American  jurisprudence 
in  China  is  a  new  field,  and  that  these  “  rules  of  procedure  ”  may  be 
made  to  cover  nearly  the  whole  subject  of  remedial  law,  it  will  be 
seen  that  the  possibilities  involved  in  this  idea  of  superintendency 
are  very  extensive. 

Acting  under  this  authority  the  writer  has  already  promulgated 
rules  for  admission  to  practice  in  all  of  these  courts46  and  has  sent 
out,  for  comment  and  suggestion  before  promulgation,  a  draft  of 
proposed  rules  of  evidence 47  which  aim  to  cover  in  brief  space  the 
whole  field  of  that  subject.  So  far  as  the  growing  business  of  the 
court  will  permit,  it  is  the  writer’s  intention  to  follow  these  with 
successive  drafts  of  rules  on  various  procedural  subjects  until  the 
whole  field  of  remedial  law  is  completed.  The  full  realization  of  that 
plan  may  have  to  be  deferred  for  some  time,  but  it  will  be  pursued  as 
steadily  as  conditions  allow,  for  the  opportunity  is  unique  and  the 
task  inviting. 


42 12  U.  S.  Stat..  L.,  eh.  179,  sec.  4. 

43  Reprinted  in  Hinckley,  American  Consular  Jurisdiction  in  the  Orient,  pp.  226—236. 

44  U.  S.  v.  Engelbracht  (United  States  Court  for  China,  Oct.  25,  1909),  American  Jour¬ 
nal  of  International  Law,  III,  735. 

46  See  ante,  p.  48. 

46  Millard’s  Review,  IV,  68. 

47  Id.,  I,  164-168,  192-196;  American  Bar  Association  Journal,  IV,  218,  242. 


JUDICIAL  PROCEDURE  IN  CHINA 


By  judicial  procedure  in  China  is  meant  not  only  Chinese  judicial 
procedure  but  that  of  those  other  powers  which  maintain  courts  in 
China  in  accordance  with  the  provisions  of  the  system  known  as 
extraterritoriality.  In  respect  to  any  claim  involving  court  proceed¬ 
ings,  therefore,  the  first  step  in  determining  what  judicial  procedure 
will  apply  is  to  make  sure  of  the  nationality  of  the  defendant,  since 
this  factor  determines  the  court  in  which  the  action  must  be  brought. 
Claims  against  persons  or  firms  in  China  naturally,  then,  fall  into 
three  classes:  (1)  Claims  against  Chinese;  (2)  claims  against  for¬ 
eigners  enjoying  extraterritoriality;  (3)  claims  against  foreigners 
not  enjoying  extraterritoriality. 

In  accordance  with  the  treaties  granting  extraterritorial  priv¬ 
ileges,  the  powers  which  negotiated  such  treaties  with  China  have 
established  courts  in  that  country  wherein  claims  and  complaints 
against  other  nationals  mav  be  tried.  Such  courts  are  extraterrito- 
rial  courts,  but  are  more  commonly  known  as  consular  courts,  since 
the  trial  officers  in  general  have  been  and  still  are  officers  of  the  Con¬ 
sular  Service. 

The  laws  which  are  applied  when  Chinese  citizens  are  defendants 
are  Chinese  laws.  When  foreigners  enjoying  extraterritorial  rights 
are  defendants  the  laws  of  the  country  or  countries  of  which  they 
are  citizens  apply.  If  foreigners  not  enjoying  extraterritorial  rights 
are  defendants,  Chinese  law  is  applied  except  in  certain  matters  such 
as  family  questions  and  the  like.  The  nationality  of  the  plaintiff  or 
complainant  has  no  bearing  upon  the  law  applicable  in  either  civil 
or  criminal  suits,  the  nationality  of  the  defendant  being  the  sole  de¬ 
termining  factor. 

AMERICAN  CONSULAR  OFFICERS  IN  RELATION  TO  AMERICAN 

CLAIMS 

American  citizens  and  firms  having  claims  against  persons  or 
firms  in  China  may  always  consult  their  consuls  regarding  their 
claims.  In  claims  against  ‘Chinese  citizens  or  firms  the  treaties  pro¬ 
vide  that  the  claim  be  forwarded  through  the  medium  of  the  con¬ 
sulate  to  the  proper  Chinese  authorities.  In  the  case  of  American 
claimants  against  foreigners  in  China,  consular  officers  of  the  United 
States  are  frequently  able  to  be  of  much  assistance;  but  consular 
officers  can  not  become  the  attorneys  or  business  agents  for  the 
handling  of  these  cases. 

In  the  larger  ports,  such  as  Shanghai,  Tientsin,  Hankow,  and  Har¬ 
bin,  there  are  American  attorneys  who  handle  legal  claims,  and  in 
important  and  complicated  cases  it  is  usually  advisable  that  an 
attorney  be  engaged,  since  the  consular  officers  can  not  act  in  such  a 
capacity.  Lists  of  these  attorneys  may  always  be  obtained  upon 
application  to  the  consulate. 

366 


JUDICIAL  PROCEDURE  IN  CHINA 


367 


China  is  divided  into  a  number  of  consular  districts,  and  claims 
arising  in  any  particular  consular  district  should  be  taken  up  with 
the  consulate  located  in  the  district.  As  American  consular  officers 
can  act  only  in  the  interests  of  bona  fide  American  citizens  and 
firms,  application  for  consular  assistance  should  invariably  state  the 
applicant’s  American  nationality.  In  some  instances  satisfactory 
proof  of  such  nationality  may  be  required  before  the  consular  officer 
will  undertake  to  proceed  with  the  claim. 

CLAIMS  AGAINST  CHINESE  CITIZENS 

When  an  American  has  a  claim  against  a  Chinese,  the  claimant 
should  formally  address  his  claim  to  the  consulate  of  the  consular 
district  in  which  the  Chinese  is  domiciled,  setting  forth  the  nature 
of  his  claim  and  the  evidence  in  support  of  it,  together  with  the 
statement  or  proof  of  the  claimant’s  American  citizenship.  It  is  im¬ 
portant  that  the  Chinese  characters  for  the  names  of  places  and  per¬ 
sons  be  given  along  with  the  English  text.  Upon  receipt  of  a  claim 
so  framed,  the  consular  officer,  if  satisfied  of  the  bona  tides  of  the  case, 
will  communicate  with  the  proper  Chinese  authorities.  Often  the 
case  is  settled  without  further  recourse  than  an  exchange  of  letters 
between  the  consular  officers  and  the  Chinese  authorities.  If  not 
thus  settled,  the  case  may  come  to  trial. 

The  trial  is  held  in  the  court  of  the  district  magistrate  having 
jurisdiction  over  the  defendant.  The  plaintiff  has  the  right — and 
usually  exercises  it — to  have  a  consular  assessor  present.  Appeals 
from  the  decision  of  the  magistrate  are  heard  by  the  commissioner 
of  foreign  affairs,  with  whom  consular  officers  may  also  sit  to  ob¬ 
serve  the  proceedings  in  the  interest  of  the  plaintiff. 

In  certain  ports  where  the  number  of  foreign  claims  against 
Chinese  are  numerous,  special  courts  have  been  created  to  try  these 
cases.  Since  they  involve  the  nationals  of  two  governments,  they  are 
often  termed  mixed  courts.  A  consular  representative,  usually  des¬ 
ignated  an  assessor,  almost  invariably  attends  trials  in  the  mixed 
courts.  In  Shanghai  there  exists  two  highly  specialized  mixed  courts 
known  as  the  International  Mixed  Court  of  Shanghai  and  the 
French  Mixed  Court  of  Shanghai.  The  International  Mixed  Court 
hears  cases  arising  in  the  International  Settlement  in  which  Chinese 
and  subjects  of  those  powers  which  do  not  enjoy  extraterritoriality 
are  defendants.  The  claims  of  American  citizens  against  Chinese 
in  and  about  Shanghai  are  all  heard  in  the  International  Mixed 
Court. 

To  hear  cases  involving  only  Chinese  and  nationals  of  nonextra¬ 
territorial  powers,  the  consular  body  of  Shanghai  elects  from  among 
the  national  assessors  a  number  of  assessors  to  sit  with  the  Chinese 
magistrates.  These  assessors  are  known  as  consular  body  assessors, 
and  their  powers  are  coequal  with  those  of  the  magistrate. 

When  an  American  citizen  or  firm  desires  to  file  a  civil  claim  or 
criminal  complaint  against  a  Chinese  under  the  jurisdiction  of  the 
International  Mixed  Court,  he  must  first  submit  his  claim  or  com¬ 
plaint  to  the  American  consulate  general  in  triplicate,  two  copies  of 
which  must  be  in  the  Chinese  language.  Petition  or  complaint  is 
then  forwarded  by  the  consulate  general  to  the  court,  after  which  it 


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comes  up  for  trial  before  a  Chinese  magistrate  and  the  American 
assessor,  who  hand  down  a  joint  judgment. 

CLAIMS  AGAINST  FOREIGNERS 

Claims  against  foreigners  in  China  fall  into  two  classes:  (i) 
Against  foreigners  who  enjoy  extraterritorial  status,  and  (2)  against 
foreigners  who  do  not  enjoy  extraterritorial  status.  The  principal 
powers  whose  citizens  enjoy  extraterritorial  rights  by  treaty  are 
United  States,  Great  Britain,  France,  Italy,  Belgium,  Spain,  Nether¬ 
lands,  Sweden,  Norway,  Portugal,  Peru,  Japan,  Denmark,  Brazil,  and 
Switzerland.  In  the  event  of  litigation  with  the  nationals  of  these 
powers  the  case  will  come  up  in  the  court  of  the  defendant,  and  the 
laws  of  the  defendant’s  country  will  govern.  This  is  a  point  that  can 
not  be  overemphasized.  An  American  entering  into  a  contract  with  a 
citizen  of  one  of  these  powers  may  view  the  transaction  from  the 
standpoint  of  American  law,  only  to  find  when  he  undertakes  to 
sue  the  other  party  to  the  contract  that  a  law  and  judicial  procedure 
totally  different  must  apply.  In  business  transactions  of  any  mag¬ 
nitude  entered  into  by  Americans  with  the  nationals  of  extrater¬ 
ritorial  powers,  it  is  highly  advisable,  therefore,  to  consult  an  at¬ 
torney  as  to  the  laws  involved. 

UNITED  STATES  COURT  FOR  CHINA 

The  United  States  maintains  a  special  court  in  Shanghai  known  as 
the  United  States  Court  for  China,  which  also  holds  sessions  in 
Hankow,  Tientsin,  and  Canton  each  year;  and  it  may,  if  deemed 
necessary  or  expedient  by  the  judge  of  the  court,  hold  session  in  any 
of  the  consular  districts.  In  addition  there  is  a  consular  court  for 
each  American  consular  district  in  China — 18  in  number — with  the 
consular  officer  in  charge  as  judge.  The  jurisdiction  of  the  American 
consular  courts  is  limited  to  criminal  cases  in  which  the  penalty  does 
not  exceed  60  days’  imprisonment  or  $100  fine.  In  civil  cases  the 
amount  involved  must  not  exceed  $500.  Cases  involving  larger  pen¬ 
alties  or  amounts,  and  appeals  from  the  decisions  of  the  consular 
courts,  must  go  before  the  United  States  Court  for  China.  Appeals 
from  the  decision  of  the  latter  may  be  made  to  the  United  States 
Circuit  Court  of  Appeals  of  the  Ninth  Judicial  District  of  San 
Francisco;  and  final  appeal  may  be  had  to  the  Supreme  Court  of 
the  United  States.  Trial  by  jury  is  not  a  part  of  the  present  Ameri¬ 
can  judicial  system  in  China. 

OTHER  EXTRATERRITORIAL  COURTS 

Great  Britain  maintains  a  special  court  at  Shanghai  known  as 
His  Majesty’s  Supreme  Court  for  China  and  a  court  in  each  British 
consular  district — 25  in  number — known  as  a  provincial  court,  with 
powers  not  quite  so  limited  as  those  of  the  American  consular  courts. 
Appeals  from  the  provincial  court  decisions  may  be  made  to  the 
supreme  court  in  Shanghai,  and  thence  to  the  Privy  Council  at 
London. 

The  other  powers  enjoying  extraterritorial  rights  in  China  also 
maintain  a  consular-court  system — that  is  to  say,  each  consul  is,  or 
may  be,  a  judicial  officer  authorized  to  try  his  nationals. 


JUDICIAL  PROCEDURE  IN  CHINA 


369 


When  an  American  citizen  or  firm  undertakes  to  sue  a  national 
of  an  extraterritorial  power,  he  must  prepare  his  petition  in  ac¬ 
cordance  with  the  procedure  of  the  court  of  the  defendant’s  nation¬ 
ality  and  file  it,  together  wih  the  required  fees,  with  that  court. 
Such  petitions  are  filed  strictly  with  the  court  concerned,  and  not 
through  the  American  consulate.  They  must  generally  be  in  the 
language  of  the  court. 

INFRINGEMENT  OF  TRADE-MARKS,  PATENTS,  AND  COPYRIGHTS 

With  regard  to  claims  growing  out  of  the  infringement  in  China 
of  American-owned  trade-marks,  patents,  and  copyrights  by  na¬ 
tionals  of  extraterritorial  powers,  there  exists  a  peculiar  situation. 
Extraterritorial  nationals,  being  subject  to  the  laws  of  their  own 
countries,  can  not  be  prosecuted  for  the  infringement  in  China  of 
trade-marks  owned  by  another  extraterritorial  national  unless  there 
is  some  agreement  existing  between  the  powers  relative  thereto. 
The  United  States  has  entered  into  such  agreements  with  Great 
Britian,  France,  Japan,  Italy,  the  Netherlands,  Belgium,  Sweden, 
Denmark,  Germany,  and  Russia.  These  agreements  provide,  as  a 
requisite  for  the  protection  of  trade-marks,  patents,  and  copyrights 
belonging  to  the  nationals  of  one  power  by  the  courts  in  China  of 
another  power,  that  the  marks,  patents,  and.  copyrights  be  registered 
with  the  proper  departments  of  the  respective  governments  con¬ 
cerned,  and  registration  in  China  in  accordance  with  the  laws  and 
regulations  of  China  confers  no  protection  in  this  respect. 

If,  for  instance,  an  American  citizen  desires  to  prosecute  a  British 
subject  for  the  infringement  of  his  trade-mark,  the  mark  must  first 
have  been  duly  registered  at  the  British  Trade-Mark  Bureau  in 
London  before  the  British  courts  in  China  can  render  any  protec¬ 
tion,  even  though  the  mark  might  be  registered  in  China  under  the 
provisional  system  of  registration  now  in  existence.  It  is  highly 
important,  therefore,  that  the  American  owners  of  trade-marks, 
patents,  and  copyrights  register  them  in  the  countries  above  named 
if  they  expect  protection  in  China  in  respect  to  infringements  by  the 
nationals  of  these  powers. 

With  regard  to  the  other  extraterritorial  powers,  namely,  Norway, 
Peru,  Spain,  Portugal,  Brazil,  and  Switzerland,  there  exists  no 
agreements  between  them  and  the  United  States  for  the  mutual 
protection  in  China  of  the  trade-marks,  patents,  and  copyrights  of 
their  respective  nationals. 

With  respect  to  the  infringement  of  trade-marks,  patents,  and 
copyrights  of  treaty-power  nationals  by  nationals  of  powers  who  do 
not  enjoy  the  extraterritorial  privilege,  an  interesting  question  has 
arisen  in  connection  with  the  new  Chinese  trade-mark  law  which 
was  promulgated  in  May,  1923.  This  law  has  not  been  recognized 
by  the  extraterritorial  powers  as  applicable  to  their  nationals,  but 
it  is  operative  in  so  far  as  Chinese  citizens  and  the  nationals  of  non- 
extraterritorial  powers  are  concerned.  The  nationals  of  the  extra¬ 
territorial  powers  continue  as  formerly  to  file  their  trade-marks  with 
the  Maritime  Customs,  which  gives  protection  as  against  Chinese 
citizens,  but  not  as  against  the  nationals  of  nonextraterritorial 
powers. 

U)0020°— 26 - 25 


TRADE  ORGANIZATIONS 

CHINESE  GUILDS  AND  CHAMBERS  OF  COMMERCE 

By  Commercial  Attache  Julean  Arnold 


A  few  years  ago  a  Chinese  lad  was  run  over  and  killed  in  the 
streets  of  Peking  by  a  motor  car  owned  by  a  Chinese.  Ordinarily 
the  court  would  have  awarded  the  deceased  lad’s  family  a  few 
hundred  dollars1  damages  and  the  matter  would  have  been  closed. 
In  this  case,  however,  the  family  happened  to  be  connected  with 
the  provincial  guild  representing  citizens  of  the  Province  of  the 
family’s  ancestors,  and  through  the  influence  of  the  guild  such 
pressure  was  brought  to  bear  upon  the  owner  of  the  car  that  $10,000 
damages  were  paid  over  to  the  family. 

GUILDS 

The  incident  is  indicative  of  the  power  of  the  guilds  in  China.  In 
every  city  there  are  guild  organizations  representing  the  citizens 
of  other  sections  of  the  country,  but  representing  more  particularly 
specific  trades  and  crafts.  Some  of  the  guilds  are  of  such  strength 
and  wealth  that  they  maintain  guildhalls  which  vie  in  magnificence 
with  the  best  of  China’s  temples.  Other  guilds  in  more  humble 
circumstances  meet  in  ordinary  temples,  in  shops,  or  in  private 
establishments. 

Though  China  is  now  emerging  from  a  civilization  analogous  in 
many  respects  to  that  of  the  Middle  Ages  in  Europe,  the  guild  will 
continue  as  an  institution  in  China  for  many  decades.  The  guilds 
developed  through  the  course  of  centuries  in  which  the  laissez  faire 
policy  of  government  in  China  left  it  to  the  merchants,  craftsmen, 
and  people  far  removed  from  the  power  of  their  clan  or  family  ties 
to  devise  ways  and  means  of  protecting  themselves.  The  govern¬ 
ment  existed  as  a  thing  apart  from  the  people.  They  were  left  to 
manage  their  own  affairs,  so  long  as  they  contributed  the  taxes 
exacted  of  them.  But  when  the  government  exactions  became 
heavier  than  the  tradesmen  felt  they  could  bear,  it  was  the  guild 
organizations  which  came  to  their  rescue. 

With  no  definite  body  of  law,  no  reliable  machinery  for  the 
execution  of  such  law  as  existed,  and  little  or  no  confidence  in  the 
administration  of  government,  the  guild  organizations  came  to  oc¬ 
cupy  an  essential  position  in  the  body  politic  of  the  country.  Under 
the  monarchy  no  official  was  allowed  to  hold  office  in  his  native 
Province;  hence,  higher  officials  and  the  magistrates  who  presided 
over  the  courts  were  never  in  intimate  touch  with  local  conditions. 
Even  though  they  wished  to  adjudicate  disputes  in  a  spirit  of  equity, 
their  ignorance  of  local  practices  frequently  made  it  difficult  for 
them  to  dispense  justice  in  cases  that  would  ordinarily  arise  between 

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371 


members  of  a  guild.  Guild  committees,  therefore,  especially  desig¬ 
nated  for  the  purpose,  handled  most  of  these  cases,  and  though  the 
parties  to  the  disputes  were  always  privileged  to  appeal  the  com¬ 
mittees’  decisions,  it  is  worthy  of  note  that  but  few  appeals  are 
recorded.  The  guild,  in  fact,  was  inclined  to  assist  its  members  in 
appeal  cases,  but  of  the  appeals  noted  it  is  found  that  the  courts 
more  often  than  otherwise  confirmed  the  findings  of  the  guild  com¬ 
mittees,  whose  evidence  was  admitted  by  the  courts  in  hearing  the 
cases.  It  would  thus  seem  apparent  that  in  the  great  majority  of 
cases  the  judicial  functions  of  the  guild  have  been  satisfactorily  dis¬ 
charged. 

CLASSES  OF  GUILDS 

Chinese  guilds  may  be  divided  into  two  classes:  (1)  Trade  and 
craft  guilds,  and  (2)  the  provincial  guilds. 

Trade  and  craft  guilds. — All  important  trade  and  handicrafts  have 
guilds  throughout  the  cities  of  China  where  their  interests  are  of 
sufficient  importance  to  encourage  organizations.  The  lot  of  the 
tradesman  or  of  the  craftsman  who  remains  outside  his  guild  is  an 
unhappy  one.  In  a  society  such  as  the  Chinese,  where  competition 
is  so  severe  and  where  means  of  individual  self-protection  are  so 
inadequate,  few  indeed  are  there  who  do  not  find  it  to  their  advan¬ 
tage  to  seek  membership  and  subscribe  to  the  rules  of  the  guild. 

There  is,  generally  speaking,  no  distinction  between  the  trade 
and  craft  guilds  throughout  China.  That  is,  craftsmen  or  workers 
often  belong  to  the  same  guilds  as  their  employers.  The  purpose 
of  the  guild  is  to  protect  the  monopoly  of  interest,  both  for  the 
workers  and  the  proprietors,  which  the  members  have  in  their 
special  line  of  industry.  With  handicraft  industry,  and 
with  individual  rather  than  corporate  business,  this  is  possible,  but 
so  soon  as  modern  manufacturing  with  division  of  labor  and  corpo¬ 
rate  capital  become  general,  the  guild  in  this  form  can  not  longer 
endure.  Already  in  Canton,  even  in  cases  where  domestic  handi¬ 
craft  industry  still  prevails,  workers’  guilds  have  been  organized 
as  distinct  from  merchants’  guilds.  Also,  in  North  China  the  rail¬ 
way  workers  in  the  Government  railway  have  their  workers’  guilds. 
For  some  years,  and  possibly  decades,  however,  the  old  type  guild 
will  undoubtedly  continue  to  be  a  force  of  much  consequence  in 
China’s  economic  life. 

Sidney  D.  Gamble’s  excellent  book,  “  Peking,  a  Social  Survey,” 
describes  the  guild  apprentice  system  as  follows: 

The  boy  who  plans  to  enter  manufacturing  or  selling  ordinarily  starts  his 
training  when  he  is  14  or  15  years  of  age.  At  that  time  he  is  bound  to  a 
master  by  a  contract,  drawn  according  to  the  rules  of  the  guild.  This  con¬ 
tract  is  usually  for  a  three-year  term,  though  it  may  be  for  only  a  one-year 
term,  as  in  the  Confectionery  and  Incense  and  Cosmetic  Gilds;  or  it  may  be 
for  even  11  years,  as  it  is  for  the  most  expert  workers  in  the  Jade  Gild.  The 
apprentice  is  required  to  serve  out  his  full  time,  or  his  master  will  expect 
to  be  reimbursed  for  the  money  that  he  has  spent  for  his  board  and  lodging, 
and  in  some  gilds  will  collect  damages  for  the  breaking  of  the  contract.  The 
apprentices  of  the  Cooks’  Gild  who  do  not  complete  their  term  must  pay  for 
their  board  and  also  pay  a  fine  of  a  feast  of  10  tables  and  300  catties  of  rice. 
Such  payments  are  always  made,  as  two  men  must  act  as  guarantors  for  the 
apprentice  when  this  contract  is  signed. 

During  the  time  of  his  apprenticeship,  the  boy  is  entirely  under  the  control 
of  his  master.  He  lives  in  his  store,  eats  his  rice,  is  subject  to  his  disci- 


372 


COMMERCIAL  HANDBOOK  OF  CHINA 


pline,  does  any  work  that  is  given  him,  and  has  a  elianoe  to  go  home  only  on 
vacation  days  or  when  there  is  a  wedding  or  funeral  in  the  family.  All  of 
the  reports  telling  of  the  duties  of  the  apprentice  state  that  he  is  to  sweep 
out  the  store,  make  his  master’s  bed,  do  the  cooking  and  other  menial  tasks, 
and  then  work  at  his  trade. 

In  return  for  the  services  of  the  apprentice,  the  master  is  required  by  all  the 
gilds  to  give  him  his  food  and  lodging,  and  teach  him  the  trade.  Some  gilds 
also  require  the  master  to  furnish  clothes  for  the  apprentice,  and  still  others 
that,  besides  clothes,  he  supply  medicine  or  doctor’s  services  when  needed. 
In  Peking  there  seems  to  be  no  limit  to  the  number  of  apprentices  that  may 
enter  any  gild.  An  employer  is  apparently  allowed  to  have  all  the  apprentices 
for  whom  he  can  find  work.  It  has  been  impossible  to  find  in  Peking  any 
trace  of  regulations,  known  to  exist  in  other  cities,  that  limit  apprenticeship 
to  the  sons  or  relatives  of  the  men  already  engaged  in  the  trade. 

Although  there  is  no  limit  to  the  number  of  apprentices,  and  the  proportion 
of  apprentices  and  graduate  workers  varies  from  gild  to  gild,  most  of  the  gilds 
have  one  apprentice  to  every  three  or  four  workers.  The  extremes  are  found 
in  the  Fur  Gild,  where  the  apprentices  outnumber  the  workers  3  to  1,  and  in 
the  Cotton  Dyeing  Gild  where  there  are  9  workers  to  every  apprentice.  The 
detailed  study  of  all  the  stores  in  a  district  of  Peking  showed  that  there  the 
proportion  was  1  apprentice  to  every  5.8  workers. 

Many  of  the  rules  for  apprentices  and  some  of  the  philosophy  of  the  Chinese 
concerning  the  man  who  is  beginning  his  business  life  have  been  written  down 
and  are  taught  apprentices  by  constant  drill. 

When  he  has  finished  his  term  of  service,  an  apprentice  is  graduated  and 
received  as  a  regular  member  of  the  gild.  Some  gilds  require  a  man  to  work 
in  his  master’s  shop  for  a  year  after  his  graduation,  but  ordinarily  he  is  free 
to  work  wherever  he  can  find  employment.  If  the  apprentice  has  any  real 
ability,  his  former  master  is  usually  willing  to  employ  him,  and  so  most  of  the 
men  stay  right  on  in  the  shop  where  they  have  received  their  training.  It 
is  this  close  relationship  between  the  employers  and  the  employees  that  makes 
it  possible  for  both  to  belong  to  the  same  organization  without  a  clash  of  in¬ 
terests,  and  this  explains  how  it  is  that  the  employers  are  willing  to  raise 
wages  even  when  the  workers  do  not  force  the  increase. 

At  the  time  of  graduation  the  apprentices  usually  give  some  public  recog¬ 
nition  and  thanks  to  the  master  who  has  trained  them.  In  some  cases  they 
simply  bow  to  him  before  the  shrine  of  the  patron  saint  of  the  gild,  but  in 
others  the  rules  of  the  gild  require  that  they  give  a  feast  to  their  master  and 
some  of  the  gild  members.  The  rules  of  the  Cooks’  Gild  require  an  apprentice 
to  give  his  master  a  pair  of  shoes,  a  hat,  a  belt,  and  a  long  coat. 

Whatever  we  may  think  of  the  apprenticeship  system  as  compared  with 
our  western  methods  of  training,  it  has  undoubtedly  fitted  well  with  the 
Chinese  life.  In  the  past  there  has  been  but  little  chance  for  a  boy  to  get  an 
education  unless  he  studied  the  classics — a  long  and  laborious  process.  It  led 
to  official  position  if  a  man  kept  at  it  long  enough  and  had  the  necessary 
ability,  but  it  wras  too  expensive  a  process  for  most.  The  apprenticeship  train¬ 
ing  gave  the  boy  the  education  he  needed  for  his  trade,  made  him  thoroughly 
acquainted  with  hard  menial  work,  and  then  taught  him  his  trade  by  constant 
daily  contact.  It  also  made  it!  possible  for  him  to  get  his  training  without 
expense  to  his  family,  a  very  considerable  item  when  so  many  families  have 
just  enough  to  live  on. 

For  the  master  it  supplied  cheap  labor  for  the  menial  work  around  the  store 
and  house,  while  for  the  gild  it  secured  the  strength  and  solidarity  of  the 
organization.  With  a  three  years’  apprenticeship  required,  there  could  not 
be  a  rapid  influx  of  men  in  times  of  prosperity,  and  the  men  could  not  leave 
in  times  of  depression.  Gild  traditions  and  customs  were  easily  maintained, 
as  a  boy  in  constant  contact  with  them  for  three  years  would  be  ready  to 
accept  them  without  question,  particularly  when  he  had  learned  them  from 
his  master  and  teacher.  In  China  the  relation  between  the  teacher  and  pupil 
is  such  that  what  the  teacher  says  is  accepted  without  question,  and  a  pupil 
is  always  unwilling  to  do  anything  that  will  go  against  his  teacher. 

The  development  of  the  national  educational  system  and  the  increase  of 
new  manufacturing  methods  will  end  the  apprenticeship  system  in  time,  par¬ 
ticularly  as  the  schools  develop  methods  whereby  the  boys  can  get  more  and 
better  training  in  industrial  lines  in  a  shorter  time ;  but  during  the  transition 
period  many  of  those  with  the  school  training  are  going  to  find  it  hard  to, 
make  use  of  their  skill  because  of  the  conservatism  of  the  gilds. 


TRADE  ORGANIZATIONS 


373 


There  is  little  that  is  autocratic  about  the  internal  administration 
of  the  guild.  The  elections  of  the  officers  are  generally  by  popular 
vote  and  are  frequent,  the  nominees  being  men  of  good  standing  and 
generally  popular  with  the  members.  The  ordinary  craftsmen  or 
workers  in  a  guild,  while  eligible  to  office,  seldom  hold  office,  mainly 
because  of  lack  of  influence  and  education.  An  instance  is  cited  of 
one  guild  whose  rules  prescribed  that  12  of  the  28  directors  must  be 
workers,  the  others  being  either  storekeepers  or  managers.  Gamble 
refers  to  geographical  representation  on  the  board  of  directors  of 
the  Peking  Fur  Guild  in  the  following: 

Its  members  are  almost  all  natives  of  Chihli,  Shansi,  and  Shantung  Prov¬ 
inces,  and  it  is  a  rule  of  the  gild  that  natives  of  each  of  these  three  Provinces 
constitute  not  less  than  one-quarter  and  not  more  than  one-tliird  of  the  board. 
The  48  members  of  the  board  are  divided  into  12  committees,  each  of  which 
is  responsible  for  the  affairs  of  the  gild  for  one  month  each  year.  These  com¬ 
mittees  must  include  a  native  of  each  of  the  three  Provinces,  so  that  every 
man  may  be  able  to  get  a  sympathetic  hearing  by  bringing  his  case  before  one 
of  his  fellow  provincials. 

In  and  about  Canton  there  are  upward  of  a  hundred  trade 
guilds,  some  of  which  have  been  in  existence  for  more  than  500 
years.  These  are  the  rice  merchants’,  pawn  shops’,  coffin  merchants’, 
drug  merchants’,  poultry  merchants’,  vegetable-oil  merchants’,  silk- 
piece-goods  merchants’,  timber  merchants’,  and  wine  merchants’ 
guilds.  There  are  also  among  the  merchant  guilds  of  Canton 
abacus  merchants,  secondhand-clothing  merchants,  actors’  clothes 
tailors,  Chinese  clothes  tailors,  pig  butchers,  ginseng  and  deerhorn 
merchants,  silk-shawl  merchants,  oil  merchants,  restaurant  and  tea¬ 
house  proprietors,  junk  owners,  joss-stick  merchants,  pawnshop 
brokers,  pills  and  powders  merchants,  and  vermicelli  merchants. 
These  guilds  make  regulations  governing  prices  of  their  products, 
working  hours,  rules  for  apprenticeship,  and  matters  generally  con¬ 
cerning  their  interests. 

When  the  local  authorities  become  unduly  autocratic,  to  the  detri¬ 
ment  of  the  guilds,  the  latter  come  forward  and  protest,  often  with 
salutary  effects.  In  cases  of  excessive  or  unjust  tax  impositions 
against  members  of  the  guild,  influence  is  brought  to  bear  by  the 
guild  to  overcome  these  impositions. 

The  principle  of  arbitration  is  probably  more  thoroughly  estab¬ 
lished  in  China  than  elsewhere.  Reputable  Chinese  refrain  from 
taking  cases  into  court  except  as  a  last  resort.  However,  in  Shang¬ 
hai  there  is  a  noted  weakening  of  the  legal  functions  of  the  guilds 
due  to  the  position  achieved  by  the  Shanghai  International  Mixed 
Court  in  the  adjudication  of  disputes,  even  among  the  Chinese  mer¬ 
cantile  community.  In  Shanghai  also  the  street  associations,  which 
are  organizations  of  Chinese  shopkeepers  on  certain  streets,  have 
cut  in  heavily  on  the  functions  of  some  of  the  guilds.  These  asso¬ 
ciations,  of  recent  development  and  less  conservative  in  policy,  con¬ 
cern  themselves  in  a  larger  way  than  do  the  guilds  in  civic  and  politi¬ 
cal  matters.  At  present  they  are  confined  to  Shanghai. 

The  Chinese  guilds  generally  are  concerned  with  defensive  and 
protective  functions.  They  have  shown  but  little  disposition  to  in¬ 
terest  themselves  in  measures  for  extending  or  improving  civic 
conditions.  They  are  distinctly  individualistic  institutions,  almost 
wholly  concerned  with  the  immediate  welfare  of  their  members. 


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The  guild  regulations  provide  punishment  for  many  offenses.  If 
a  member  is  charged  with  having  sold  goods  below  a  rate  fixed  b;y 
the  guild  and  confesses  to  his  guilt,  he  is  punished  but  not  expelled. 
Competition  in  China  is  severe;  hence  it  is  difficult  for  guilds  to 
prevent  members  from  underselling  so-called  fixed  market  rates. 
A  common  form  of  punishment  is  to  inscribe  the  guilty  person’s 
name  and  address  on  a  piece  of  red  paper,  along  with  the  nature  of 
the  offense  and  a  statement  of  the  fine  imposed  by  the  guild.  This 
fine  generally  takes  the  nature  of  a  feast  to  the  members  of  the  guild 
at  an  appointed  time,  accompanied  by  a  theatrical  entertainment, 
after  which  the  recalcitrant  member  is  admitted  back  into  the  fold. 
For  a  second  offense  the  guilty  member  may  be  expelled.  Similarly, 
wages  are  fixed  and  employers  are  fined  for  paying  their  labor  less 
than  the  established  rate.  Piecework  wages  are,  however,  common 
where  conditions  will  permit  their  application.  Hours  of  work  are 
long  and  trying.  The  lot  of  the  apprentice  is  particularly  hard. 
Most  of  the  guilds  maintain  fairly  elaborate  sets  of  rules,  with 
provision  of  punishment  for  infraction,  which,  however,  vary  with 
different  guilds  and  in  different  places. 

In  the  benevolent  sense  the  guild  looks  after  the  welfare  of  its 
members.  Bonuses  are  given  to  store  managers  and  oftentimes  to 
workers  at  the  end  of  the  year.  At  a  member’s  death  the  guild  do¬ 
nates  a  coffin,  if  the  family  is  unable  to  defray  this  expense.  It 
also  arranges  for  the  sending  of  the  body  to  the  ancestral  burying 
ground  if  the  deceased  was  away  from  home  or  the  family  poor. 

Each  guild  has  its  patron  saint,  and  days  are  set  aside  for  special 
worship  before  the  special  deity  or  hero  of  the  guild.  It  appears, 
however,  that  the  trade  and  craft  guilds  of  any  one  city  are  inde¬ 
pendent  of  those  in  other  cities,  although  the  rules,  regulations,  and 
administrative  practices  for  the  same  trades  and  crafts  seem  to  fol¬ 
low  similar  lines. 

Provincial  guilds. — The  provincial  guilds  are  more  general  in 
character  than  the  trade  or  craft  guilds.  These  have  to  do  mainly 
with  the  interests  of  individuals  of  one  Province  who  are  domiciled 
in  another.  The  active  members  are  of  the  middle  or  wealthier 
classes,  but  the  guild  is  bound  to  render  assistance  to  needy  fellow 
provincials  if  they  are  deserving.  One  of  the  strongest  provincial 
guilds  in  Peking  is  the  Canton  guild,  which  in  a  sense  is  the  club¬ 
house  of  the  Cantonese  residents.  Under  the  monarchy  and  before 
the  abolition  of  the  civil-service  system  natives  of  Canton  who  came 
to  Peking  to  take  civil-service  examinations  were  privileged  to  oc¬ 
cupy  quarters  in  the  Canton  guildhouse.  If  Cantonese  in  Peking 
are  involved  in  litigation,  the  guild  offers  its  services  in  settling  the 
difficulty  peacefully.  It  looks  after  stranded  or  destitute  Cantonese 
who  may  be  handed  over  to  it  by  local  courts,  and  arranges,  if  possi¬ 
ble,  for  their  return  to  their  homes.  It  maintains  its  own  cemetery, 
where  deceased  members  are  temporarily  interred  until  relatives 
or  friends  may  arrange  for  the  transportation  of  the  bodies  to  the 
native  district.  Periodical  sacrifices  are  offered  to  the  dead  on 
festival  days,  and  religious  rites  are  peformed  for  fellow  pro¬ 
vincials.  Ceremonies  are  held  at  stated  times  honoring  the  guild’s 
patron  saint.  The  Cantonese  guild  pays  obeisance  to  Kwan  Ti, 
the  god  of  war,  mainly  because  of  his  reputed  high  business  qualities. 


TRADE  ORGANIZATIONS 


375 


This  guild  also  assists  worthy  students  domiciled  at  the  capital  city 
and  helps  in  the  education  of  children  of  Cantonese  residents. 

The  Canton  guild  in  Shanghai  was,  until  1918,  a  far  more  influ¬ 
ential  and  a  wealthier  institution  than  its  counterpart  in  other  cities 
in  China.  It  maintains  in  Shanghai  schools  for  children  of  Can¬ 
tonese  parents.  It  retains  a  paid  secretary  and  staff  which  function 
under  the  board  of  directors.  In  1918  disagreement  among  its  mem¬ 
bers  caused  the  wealthier  and  more  influential  of  the  Cantonese  to 
withdraw  from  the  guild  and  form  the  Cantonese  Merchants’  Asso¬ 
ciation  of  Shanghai.  The  guild  still  functions,  but  is  far  less  influ¬ 
ential  since  the  organization  of  the  new  association.  The  Cantonese 
Merchants’  Association  at  Shanghai  has  a  membership  of  120  firms 
and  400  individuals.  It  has  constructed  and  equipped,  at  a  cost  of 
$300,000  silver,  a  modern  hospital  building  on  a  3-acre  plot  of 
ground,  with  both  modern  and  old  style  Chinese  physicians  in 
attendance.  The  hospital  has  300  beds  and  cares  for  Cantonese 
patients  at  nominal  charges.  This  association  incorporates  in  its 
activities  many  of  the  features  of  a  modern  club. 

Among  Chinese  resident  in  the  United  States  the  counterpart  of 
the  provincial  guild  is  seen  in  the  so-called  “  six  companies,”  or 
“  tongs,”  which  represent  groups  of  Chinese  from  different  sections 
of  Kwangtung  Province,  all  the  permanent  Chinese  residents  in  the 
United  States  being  from  the  neighborhood  of  Canton. 

The  spirit  which  tends  to  the  perpetuation  of  this  provincialism 
on  the  part  of  the  Chinese  generally  has  commendable  as  well  as 
disadvantageous  features.  It  serves  to  protect  and  assist  those  who 
otherwise  would  receive  little  protection  or  assistance  from  any  other 
source.  It  has,  however,  the  objection  that  it  perpetuates  a  clan 
spirit  which  is  the  natural  outgrowth  of  the  family  system  in  China, 
which  decrees  that  every  man  is  his  brother’s  keeper,  but  imposes 
little  responsibility  upon  him  in  his  relations  to  the  larger  unit,  the 
State. 

While  there  is  evidence  of  the  scrapping  of  the  guild  of  the  old 
China  in  its  transition  to  a  new  order  because  of  its  inadaptability 
to  a  modern  economic  system,  yet,  in  the  process  of  evolution,  we 
shall  probably  find  that  the  tracU  and  craft  guilds  will  separate,  the 
one  incorporating  the  features  of  the  merchants’  associations  and  the 
other  probably  that  of  the  modern  trade-unions.  It  is  only  to  be 
expected  that  the  guilds  will  play  a  prominent  and  powerful  part  in 
the  molding  of  the  new  China. 

Modern  transportation  and  improved  communication  facilities  will 
lead  to  a  greater  intermingling  of  the  peoples  of  the  different  sec¬ 
tions  of  the  country,  with  the  eventual  eradication  of  provincialities 
and  dialectic  differences.  These,  with  a  uniform  system  of  schools, 
a  uniform  currency,  a  uniformity  of  institutions  generally,  and  more 
effective  governmental  agencies,  together  with  the  development  of  a 
code  of  law  and  the  machinery  essential  to  its  equitable  administra¬ 
tion,  will  gradually  remove  the  necessities  which  called  into  existence 
the  Hui-kuan,  or  provincial  clubhouse,  in  its  present  form.  However, 
it  is  well  to  bear  in  mind  that,  through  the  agencies  of  their  guilds, 
the  Chinese  have  acquired  capacity  for  organization  and  for  the 
settlement  of  disputes  by  arbitration,  two  valuable  contributions  to 
their  social  system, 


376 


COMMERCIAL  HANDBOOK  OF  CHINA 


In  whatever  capacity  a  foreigner  may  have  to  deal  with  the 
Chinese,  particularly  as  regards  the  relations  of  the  foreign  business 
man  and  capitalist  to  the  Chinese  trader  and  laborer,  he  will  find 
that  it  will  be  necessary  to  continue  to  reckon  with  the  influence  and 
power  of  the  varied  Chinese  guilds. 

CHINESE  CHAMBERS  OF  COMMERCE 

The  Chinese  guilds  lacked  a  coordinate  agency.  They  functioned 
independently  of  each  other,  although  a  neutral  guild  was  often 
called  upon  to  settle  a  dispute  between  members  of  different  guilds. 
Thus  it  was  not  difficult  for  the  chamber-of-commerce  idea  to  take 
root  in  China,  for  it  could  fill  a  gap  as  a  clearing  house  for  the 
guilds.  This  was  not  only  true  with  regard  to  its  position  as  arbi¬ 
trator  of  disputes  between  members  of  different  guilds,  but  it  also 
served  as  a  medium  through  which  the  guilds  could  secure  unity  of 
action. 

The  first  Chinese  chamber  to  be  organized  was  in  Canton,  prob¬ 
ably  owing  to  the  larger  contact  of  Cantonese  with  westerners  and 
their  earlier  appreciation  of  the  advantages  which  such  a  trade  or¬ 
ganization  might  have  to  offer.  The  Canton  chamber  came  into 
being  about  40  years  ago.  It  was  not,  however,  until  after  1900 
that  Chinese  chambers  of  commerce  became  more  general.  The  Man- 
chu  dynasty  discouraged  in  every  possible  way  the  development  of 
new  organizations  or  associations  among  the  people  for  fear  of  their 
political  influence.  It  was  after  the  founding  of  the  Republic  that 
chambers  of  commerce  spread  rapidly  over  the  country,  although 
during  the  five  years  leading  up  to  the  revolution  they  had  already 
achieved  strong  positions  in  the  leading  commercial  centers. 

At  the  end  of  the  year  1914  there  were  1,243  ordinary  chambers 
of  commerce  and  55  general  chambers  of  commerce  among  the 
Chinese  mercantile  communities.  Szeclnvan  Province,  in  West 
China,  where  they  number  130,  boasts  the  largest  number  of  ordinary 
chambers.  Shantung  ranks  next  with  93. 

The  provisions  for  the  organization  of  chambers  of  commerce  in 
China  were  promulgated  September  12,  1914,  and  revised  on  De¬ 
cember  14,  1915.  These  serve  as  the  organic  law  under  which  cham¬ 
bers  of  commerce  function. 

Considerable  latitude  is  allowed  the  mercantile  communities  in  the 
handling  of  the  details  of  organization  maintenance.  Some  months 
ago  the  Shanghai  General  Chamber  of  Commerce  became  involved  in 
a  dispute  over  the  election  of  a  new  chairman.  The  Ministry  of 
Agriculture  and  Commerce  sent  its  representative  to  Shanghai  and 
the  dispute  was  settled  in  accord  with  the  ministry’s  ruling. 

The  Shanghai  General  Chamber  of  Commerce  at  the  end  of  1924 
had  518  members,  of  whom  123  were  representatives  of  guilds. 
Among  the  395  individual  members  are  26  compradors  of  foreign 
firms.  There  are  also  11 T  “special  individual  members,”  who  are 
members  in  good  standing  for  upward  of  five  years  in  the  Chinese 
company  of  the  Shanghai  Volunteer  Corps  and  who  were  elected  to 
a  sort  of  honorary  membership  as  a  testimonial  of  the  Chinese  mer¬ 
cantile  community’s  appreciation  of  their  services.  As  for  the  actual 
governing  force,  however,  the  Shanghai  chamber  is  in  the  main  a 
federation  of  trade  guilds.  There  are  about  150  guilds  represented 


TRADE  ORGANIZATIONS 


377 


in  the  chamber’s  membership.  Some  of  the  larger  guilds,  such  as 
the  Native  Bankers’  Guild,  which  represents  120  member  banks,  pay 
annual  dues  as  high  as  1,000  taels.  A  designated  number  of  repre¬ 
sentatives  in  the  chamber  is  allowed  each  guild  in  proportion  to  its 
wealth  and  influence.  In  some  chambers — Canton,  for  instance — only 
representatives  of  guilds  are  accepted  into  membership,  and  in  all 
Chinese  chambers  the  local  merchant  or  trade  guilds  either  com¬ 
pletely  control  the  affairs  of  the  chamber  or  exert  a  dominating 
influence. 

The  Chinese  chamber  of  commerce  is  an  intermediary  between  the 
Government  and  the  merchant  classes.  Its  assistance  is  often  solic¬ 
ited  by  the  Government  authorities  in  securing  the  enforcement  of 
a  new  law  or  regulation  affecting  mercantile  interests.  A  Chinese 
court  will  often  refer  cases  to  a  chamber  for  its  opinion  or  ask  the 
chamber  to  arbitrate  in  disputes  between  individuals.  Information 
regarding  trade  practices  and  customs  will  be  sought  by  officials  in 
adjusting  difficulties  with  the  people,  and  the  chamber’s  opinion  in 
these  matters  will  carry  much  weight  with  both  the  officials  and  the 
people  generally.  For  this  purpose  the  Shanghai  chamber  maintains 
a  “  commercial  certification  department,”  which  renders  service  as 
witness  in  arbitration  courts  and  gives  information  to  official  courts 
concerning  (1)  commercial  agreements  and  contracts;  (2)  actual 
capital  of  business  firms;  (3)  firms’  trade  names;  (4)  trade-marks. 
Firms  applying  for  such  certification  service  must  pay  a  minimum  fee 
of  $20  silver  per  case,  graduated  upward  to  a  maximum  fee  of  $100 
silver. 

One  of  the  very  useful  functions  of  the  Chinese  chamber  of  com¬ 
merce  is  its  judicial  capacity.  Although  efforts  are  being  made 
under  the  Republic  to  build  up  a  code  of  civil  law  and  develop  courts 
competent  to  administer  it,  yet  for  some  years  established  customs 
and  usages  will  continue  to  receive  recognition.  In  China  the  guild 
and  the  chamber  of  commerce  serve  as  the  interpreters  of  the  com¬ 
mon  law  of  business  practices.  Before  these  tribunals  the  majority 
of  disputes  in  the  Chinese  mercantile  community  are  settled.  In 
Shanghai  the  International  Mixed  Court  has  come  to  occupy  such  a 
prominent  position  in  the  handling  of  disputes  between  Chinese,  as 
well  as  between  foreigners  and  Chinese,  that  the  judicial  functions  of 
both  the  guild  and  the  Chinese  chamber  of  commerce  have  been  de¬ 
creasing  in  importance.  This  is  a  situation,  however,  which  is  some¬ 
what  exceptional  for  China  as  a  whole.  Even  in  Shanghai  the  cham¬ 
ber  does  maintain  an  arbitration  court  which  transacts  a  very  con¬ 
siderable  amount  of  business.  Its  court  is  made  up  of  a  president,  26 
arbitrators  and  investigators,  4  clerks,  and  1  legal  adviser.  A  fee 
of  not  more  than  2  per  cent  of  the  amount  involved  is  charged  on 
the  losing  party,  but  this  is  equally  shared  by  the  disputing  parties 
where  both  sides  show  good  cause  for  bringing  their  case  to  arbitra¬ 
tion.  In  case  of  refusal  by  the  disputing  parties  to  abide  by  its 
awards,  the  tribunal  may  petition  the  court  to  enforce  the  award. 

In  order  to  develop  uniformity  in  methods  of  procedure  in  the 
chamber  of  commerce  arbitration  courts  and  to  prevent  clashes 
with  the  regularly  constituted  legal  authorities,  the  Ministry  of 
Justice,  in  cooperation  with  the  Ministry  of  Agriculture  and  Com¬ 
merce,  drafted  a  set  of  regulations  for  the  Arbitration  Court  of 


378 


COMMERCIAL  HANDBOOK  OF  CHINA 


Commerce  as  promulgated  January  28,  1913,  and  revised  detailed 
regulations  relating  to  the  administration  of  the  Arbitration  Court 
of  Commerce  were  promulgated  June  10,  1917. 

The  failure  of  the  Chinese  to  have  developed,  up  to  this  time, 
a  strong  central  Government  militates  against  strict  enforcement  of 
these  regulations.  Their  degree  of  application  varies  with  various 
communities.  It  is  anticipated,  however,  that  the  regulations  will 
become  increasingly  effective,  as  there  appears  to  be  no  opposition  to 
them  and  they  are  generally  recognized  to  be  helpful  for  the  purpose 
for  which  they  were  devised. 

In  consequence  of  the  visit  to  China  in  1910  of  the  representatives 
of  the  Affiliated  Chambers  of  Commerce  of  the  Pacific  Coast,  the 
Chinese  chambers  a  few  years  later  organized  the  Associated  Cham¬ 
bers  of  Commerce  of  China.  At  the  annual  conferences  of  this 
association  matters  of  nation-wide  importance  to  the  business  men 
of  the  country  are  considered,  and  representations  are  made  upon 
behalf  of  the  commercial  interests  of  the  country  generally.  There 
is,  however,  a  noticeable  tendency  upon  the  part  of  this  organization 
to  interest  itself  in  politics.  The  Chinese  bankers’  associations  are 
probably  accomplishing  more  in  a  constructive  way  for  the  business 
interests  of  the  country  through  their  annual  conferences  because  of 
their  freedom  from  petty  political  influence. 

Americans  desirous  of  communicating  with  the  Shanghai,  Canton, 
Hongkong,  Tientsin,  Hankow,  or  Peking  Chinese  chambers  of 
commerce  may  do  so  directly  and  in  English.  Communications 
to  other  Chinese  chambers  may  best  be  addressed  through  the  Ameri¬ 
can  consuls  who  function  for  the  districts  in  which  these  chambers 
are  located.  It  is  necessary  in  all  cases  to  use  the  designation 
Chinese  Chamber  of  Commerce,  as  there  are  also  chambers  of  other 
nationalities  in  the  important  commercial  centers  of  China. 

FOREIGN  CHAMBERS  OF  COMMERCE 

By  J.  B.  Powell,  Honorary  Secretary  American  Chamber  of  Commerce,  Shanghai 

There  is  said  to  be  filed  away  somewhere  in  the  records  of  the 
State  Department  at  Washington  a  letter  which  was  written  by  an 
association  of  American  merchants  in  Canton,  between  1806  and 
1815,  which  contained  a  petition  to  the  President  of  the  United 
States  asking  for  a  more  efficient  American  consular  establishment 
in  China. 

This  letter  is  of  historical  interest  because  it  indicates  the  existence 
of  an  organization  corresponding  to  a  chamber  of  commerce,  com¬ 
posed  of  American  merchants  on  the  coast  of  Asia,  at  a  date  preced¬ 
ing  by  many  years  the  establishment  of  some  of  the  oldest  cham¬ 
bers  of  commerce  in  the  United  States,  and  also  because  it  shows 
that  associations  of  merchants,  even  in  the  early  days  of  American 
commerce  in  the  Orient,  provided  an  important  point  of  contact 
whereby  the  American  Government  and  people  were  kept  in  touch 
with  problems  affecting  the  welfare  of  their  commercial  and  other 
interests  in  that  part  of  the  world. 

According  to  the  Encyclopedia  Sinica,  the  first  definite  organiza¬ 
tion  of  a  foreign  chamber  of  commerce  in  China  was  that  estab¬ 
lished  by  British  merchants  in  Canton  on  August  25,  1834,  the 


TRADE  ORGANIZATIONS 


379 


purpose  being  to  “insure  unity  of  action  at  the  time  when  Lord 
Napier  was  trying  to  force  open  the  door  of  China.”  According 
to  the  same  source  of  information,  a  general  chamber  including  all 
foreign  merchants  was  formed  in  Canton  in  November,  1836,  but 
was  dissolved  in  1839  owing  to  trouble  arising  between  the  foreign 
merchants  and  the  Chinese  over  the  question  of  opium  importation. 
A  statement  published  at  the  time  of  dissolution  is  significant: 
“The  chamber  dissolves  until  the  restoration  of  our  trade,  the  lib¬ 
erty  of  egress  from  Canton  *  *  *  enables  the  chamber  to  serve 

the  community  in  a  legitimate  manner.” 

A  chamber  of  commerce  was  formed  in  Hongkong  on  May  29, 
1861,  composed  of  some  60  firms,  and  some  insight  into  its  purpose 
and  activity  is  shown  in  the  statement  that  “  from  the  beginning  it 
has  frequently  communicated  directly  with  the  (British)  minister 
in  Peking,  and  it  rejected  the  suggestion  of  a  consul  some  years  ago 
that  all  communications  should  be  with  the  colonial  government. 
In  1884  it  received  the  privilege  of  electing  one  member  to  the 
Hongkong  Legislative  Council.” 

Although  there  doubtless  had  existed  associations  of  merchants 
in  Shanghai  for  purposes  of  mutual  protection  from  the  time  the 
port  was  opened  to  foreign  trade  on  November  17,  1843,  there  is  no 
record  of  a  chamber  of  commerce  until  1847,  when  the  Shanghai 
General  Chamber  of  Commerce  wTas  formed.  The  General  Chamber 
of  Commerce,  which  is  still  in  existence,  was  international  as  to 
membership,  and  differed  from  the  general  idea  of  a  chamber  of 
commerce  in  the  United  States  in  that  it  was  not  a  “  trade  promo¬ 
tion  ”  body.  The  primary  interest  of  the  general  chamber  from  its 
beginning,  and  even  to-day,  is  the  standardization  of  trade  practices, 
the  settlement  of  misunderstandings,  and  the  correction  of  trade 
abuses  which  may  develop  between  foreign  merchants  as  a  body  and 
the  Chinese.  For  example,  in  the  report  for  the  year  1923,  we  find 
published  a  “  scale  of  fees  for  arbitrators  and  umpires,”  a  “  scale  of 
commissions  and  brokerages,”  and  a  mass  of  correspondence  between 
the  chamber  and  the  Chinese  chambers  of  commerce  on  matters 
affecting  trade.  We  also  find  a  general  report  on  political  and 
financial  conditions  of  the  Chinese  Republic.  Among  the  subjects 
covered  are  the  problems  of  cargo  pilferage  at  Chinese  ports,  con¬ 
gestion  on  Soochow  Creek  (an  important  trade  artery  connecting 
Shanghai  with  the  hinterland),  cotton  and  silk  testing  stations, 
negotiations  with  the  licensed  pilots’  association  over  the  subject  of 
fees,  standard  forms  of  contract  for  dealers  in  raw  cotton,  a  protest 
against  bandit  outrages  upon  foreigners,  and  so  on  through  the 
scale  of  relations  between  the  foreign  merchants  and  the  Chinese. 

Owing  to  the  fact  that  the  general  chamber  for  a  long  period  of 
years  was  the  chief  organization  of  consequence  among  foreign 
merchants  at  Shanghai,  it  came  to  exercise  broad  powers  and  was 
looked  upon  by  the  foreign  consular  authorities  and  the  Chinese  as 
having  almost  semiofficial  status.  In  brief,  if  the  general  chamber 
recommended  certain  action  in  reference  to  trade  matters  it  usually 
was  adopted  as  a  matter  of  course,  the  foreign  consuls  recommending 
the  action  to  their  own  nationals  as  well  as  to  the  Chinese  Govern¬ 
ment.  This  situation  continued  up  to  the  outbreak  of  the  World 
War. 


380 


COMMERCIAL  HANDBOOK  OF  CHINA 


Although  the  general  chamber  at  Shanghai  was  the  principal 
organization  dealing  with  trade  matters,  it  would  be  incorrect  to 
infer  that  it  was  the  only  organization.  On  December  16,  1898,  there 
was  organized  at  Shanghai  the  American  Association  of  China,  the 
membership  being  open  to  “  citizens  of  the  United  States  residing  in 
China,  Japan,  Korea,  the  Philippine  Islands,  and  elsewhere  in 
Asia,”  and  the  purpose  of  which  was  to  “  foster  and  safeguard  the 
commercial  and  other  interests  of  the  citizens  of  the  United  States.” 
British  subjects  in  the  Far  East  had  a  similar  organization  in  the 
British  China  Association,  and  there  doubtless  were  others.  But  in 
view  of  the  fact  that  membership  in  these  bodies  was  not  strictly 
confined  to  persons  directly  interested  in  commercial  matters,  a 
detailed  consideration  is  not  pertinent. 

At  the  beginning  of  the  World  War,  1914,  the  national,  as  distinct 
from  the  international,  chamber  of  commerce  came  into  being  in  the 
commercial  history  of  Shanghai.  The  Americans  and  British  or¬ 
ganized  their  chambers  of  commerce  in  1915,  and  since  then  other 
foreign  nationals  have  established  chambers,  until  we  now  find 
listed  also  in  the  Shanghai  directory  Belgians,  French,  Germans, 
Italians,  Japanese,  Dutch,  Norwegians,  and  Russians,  organized 
in  chambers  of  commerce  for  the  purpose  of  protecting  and  pro¬ 
moting  their  national  commercial  interests  in  China.  The  relation¬ 
ship  between  these  national  chambers  and  the  general  or  international 
chamber  has  not  yet  been  definitely  defined,  but  the  American 
Chamber  of  Commerce  has  adopted  the  policy  that  American  repre¬ 
sentation  on  the  committee  of  the  general  chamber  should  be  sub¬ 
ject  to  the  recommendation  of  the  American  chamber.  If  this  pro¬ 
cedure  is  ultimately  followed  by  the  other  national  chambers,  the 
general  chamber  in  time  will  come  to  occupy  the  position  of  a  central 
clearing  house  or  coordinating  body,  where  the  composite  viewpoint 
of  the  foreign  commercial  interests  may  be  expressed  either  to  the 
Chinese  Government  or  to  the  foreign  governmental  representatives 
in  China. 

Although  entirely  unofficial,  the  foreign  chambers  of  commerce 
in  China  exercise  an  important  influence  upon  the  relations  of  the 
various  foreign  nations  in  respect  to  policies  adopted  toward  China. 
They  accomplish  this  largely  through  the  adoption  and  circulation 
at  home  of  resolutions  pertaining  to  problems  in  their  field,  which 
have  the  effect  of  stimulating  public  opinion  and  often  of  encourag¬ 
ing  definite  diplomatic  action,  and,  upon  occasion,  even  legislation. 

In  recent  years  the  Americans,  British,  and  some  other  nationals 
have  formed  associations  of  their  chambers  of  commerce  located 
in  the  various  Chinese  ports,  such  as  Canton,  Tientsin,  Peking, 
Hankow,  Harbin,  Hongkong,  and  elsewhere.  These  bodies  meet 
annually,  discuss  problems  affecting  the  commerce  of  their  nationals 
in  the  Chinese  Republic,  and  adopt  resolutions  which  are  circulated 
among  their  nationals  in  China  and  to  chambers  of  commerce  and 
Government  officials  in  the  respective  homelands.  At  the  present 
time  the  American  chambers  of  commerce  in  China,  in  association 
with  the  American  Chamber  of  Commerce  in  the  Philippine  Islands 
and  the  American  Merchants’  Association  of  Tokyo,  are  considering 
a  plan  for  the  formation  of  an  association  of  all  American  chambers 
of  commerce  in  the  Far  East. 


TRADE  ORGANIZATIONS 


381 


NATIONAL  ORGANIZATIONS 

Since  Shanghai  is  the  chief  commercial  port  of  China,  it  is  of  in¬ 
terest  to  summarize  briefly  the  following  information  regarding  the 
various  national  chambers  of  commerce : 

American. — The  American  Chamber  of  Commehce  was  formed  in 
1915  as  a  direct  outgrowth  of  the  problems  affecting  the  development 
and  maintenance  of  American  trade  and  commerce  on  the  Pacific 
Ocean  at  the  opening  of  the  World  War.  Among  its  early  activities 
were  the  advocacy  of  (1)  an  American  merchant  marine  on  the 
Pacific;  (2)  development  of  American  business  in  China;  (3)  the 
passage  of  an  American  Federal  incorporation  law  providing  uni¬ 
form  corporate  regulations  for  American  companies  trading  in 
China,  in  order  to  place  them  on  an  equal  footing  with  competing 
foreign  companies.  The  chamber  also  promoted  the  formation  of 
American  chambers  of  commerce  in  other  Chinese  ports,  an  im¬ 
provement  and  increase  in  the  trade  promotion  activities  of  the 
American  commercial  attache  in  China,  and  better  facilities  for  the 
exchange  of  news  between  America  and  China.  It  urged  the  placing 
of  the  United  States  consular  and  diplomatic  services  in  China  on  a 
better  footing,  supported  a  proposal  for  the  American  Government 
to  purchase  property  and  erect  suitable  buildings  for  the  housing  of 
its  consular  officers  in  China,  and  it  has  continuously  actively  fav¬ 
ored  the  development  of  an  intelligent  and  sustained  policy  on  the 
part  of  the  American  Government  in  respect  to  China  and  the  Far 
East. 

The  Associated  American  Chambers  of  Commerce  in  China  was 
formed  on  October  23,  1922,  when  delegates  of  the  American  cham¬ 
bers  of  commerce  in  Shanghai,  Tientsin,  Peking,  Hankow,  and 
Harbin  met  in  Shanghai.  Since  that  time  three  annual  conferences 
have  been  held,  which  have  had  the  effect  of  coordinating  American 
commercial  and  industrial  activities  in  China. 

British. — The  British  Chamber  of  Commerce  was  a  war  product, 
though  for  many  years  prior  to  the  war  the  desirability  of  such  an 
institution  had  been  discussed  among  British  firms.  It  had  long 
been  felt  that,  while  in  certain  respects  the  interests  of  the  various 
nationals  doing  business  in  China  were  to  a  great  extent  identical, 
interests  distinctively  British  ought  to  be  looked  after  by  an  associa¬ 
tion  distinctively  British.  This  feeling,  however,  was  not  strong 
enough  to  break  through  the  very  cosmopolitan  atmosphere  of  pre¬ 
war  Shanghai.  It  was  not,  in  fact,  until  the  eleventh  month  of  the 
war  that  it  was  given  expression. 

In  May,  1915,  at  a  meeting  of  British  piece-goods  firms,  called  pri¬ 
marily  to  discuss  ways  and  means  of  preventing  trading  with  the 
enemy,  it  was  resolved  to  invite  British  firms  in  Shanghai  to  meet 
with  the  object  of  inaugurating  a  British  chamber  of  commerce,  and 
at  this  second  meeting  the  British  Chamber  of  Commerce  of  Shang¬ 
hai  came  into  being.  In  moving  the  resolution  which  created  it  the 
chairman  said : 

For  years  past  British  firms  in  China  have  been  compelled  to  fight  their 
own  battles,  and  it  is  to  their  credit  that  handsome  results  have  been  achieved 
in  the  face  of  strong  competition  from  alien  combines.  Now  is  our  opportunity, 
gentlemen,  to  form  a  combination  of  our  own  wnich  will  add  to  our  strength,  a 
combination  which  will  work  strenuously  for  the  expansion  of  British  trade  and 
which  will  uphold  British  prestige. 


382 


COMMERCIAL  HANDBOOK  OF  CHINA 


Belgian. — The  Belgian  Chamber  of  Commerce  in  China  was 
started  in  January,  1922.  Every  commercial  firm  and  every  finan¬ 
cial  or  industrial  concern  of  Belgian  nationality  in  China  took  part 
in  the  organization,  which  was  definitely  concluded  in  March,  1922. 
The  central  committee  was  established  in  Shanghai,  with  branches  in 
Peking,  Tientsin,  and  Hankow.  Each  of  the  local  committees,  being 
part  of  the  Belgian  Chamber  of  Commerce  in  China,  adheres  to  the 
general  rules  and  statutes,  but  has  authority  to  resolve  questions 
of  local  interest. 

The  Belgian  Chamber  of  Commerce  does  not  limit  its  activity  to 
questions  of  general  interest.  Many  decisions  have  been  given  by  the 
committees  or  their  delegate,  acting  as  arbitrator,  in  regard  to  dif¬ 
ferences  between  exporters  and  importers. 

French. — The  French  Chamber  of  Commerce  in  China  was  estab¬ 
lished  in  Shanghai  at  a  general  meeting  of  26  French  firms  on  Janu¬ 
ary  13,  1916.  It  was  originally  intended  to  be  a  purely  local  cham¬ 
ber,  but  as  early  as  March  of  the  same  year  it  was  requested  by 
French  firms  in  Tientsin  and  Hankow  to  extend  its  organization 
throughout  China.  Its  present  organization  is  as  follows : 

One  central  committee  of  nine  members  in  Shanghai,  the  central 
.committee  having  full  responsibility  for  all  matters  of  management 
and  direction  of  the  chamber  and  the  exclusive  right  to  speak  and 
write  in  the  name  of  the  chamber;  six  branch  committees  in  Tientsin 
(one  delegate  for  Peking,  Harbin,  Hankow,  Hongkong,  Canton,  and 
Yunnanfu).  Every  branch  of  the  chamber  enjoys  full  administrative 
autonomy  and  acts  as  a  local  chamber  for  any  question  of  local 
interest.  Where  questions  of  general  interest  are  concerned,  the 
branch  committee  refers  it  to  the  central  committee  in  Shanghai. 

The  French  Chamber  of  Commerce  has  been  approved  and  recog¬ 
nized  by  the  French  Government  as  an  official  corporation  by  minis¬ 
terial  decree  of  May  13,  1918.  It  is  associated  with  the  leading  eco¬ 
nomic  associations  of  France  and  has  the  privilege  of  direct  corre¬ 
spondence  with  the  Board  of  Trade  of  Paris.  The  French  commer¬ 
cial  attache  for  China  is  a  statutory  member. 

Japanese. — The  Japanese  Chamber  of  Commerce  of  Shanghai  was 
the  outgrowth  of  the  Japanese  Business  Men’s  Association  of  Shang¬ 
hai,  organized  in  November,  1911.  In  April,  1919,  the  name  was 
changed  to  Japanese  Chamber  of  Commerce.  At  the  present  time 
the  organization  has  103  individuals  and  73  firms  as  members,  of 
which  number  20  constitute  the  general  committee.  The  chamber 
publishes  weekly  and  annual  reports  and,  in  addition,  an  extensive 
monthly  and  annual  statistical  report  of  Japanese  commercial  activi¬ 
ties  in  China. 

German. — The  German  Chamber  of  Commerce  was  founded  in 
March,  1923,  at  a  general  meeting  of  the  members  of  the  German 
Association.  The  German  Association  existed  in  China  long  before 
the  outbreak  of  the  war. 

Any  German  firm  registered  with  the  German  consulate  general 
or  with  predominating  German  interests  may,  according  to  the  stat¬ 
utes,  become  an  ordinary  member  of  the  chamber.  Individuals  may, 
on  certain  conditions,  become  extraordinary  members.  The  chamber 
consists  at  present  of  about  50  ordinary  members  and  issues  annual 
reports  dealing  with  German  trade  in  China. 


TRADE  ORGANIZATIONS 


383 


Netherlands. — The  Netherlands  Chamber  of  Commerce  of  China 
was  formed  in  1922.  It  confines  itself  to  questions  affecting  foreign 
trade  between  the  Netherlands  and  the  Far  East,  and  among  matters 
considered  in  recent  years  are  the  Chinese  trade-mark  law,  China’s 
import  duty,  and  extension  of  river  police  for  the  protection  of  for¬ 
eign  shipping.  The  general  purpose  is  to  establish  the  point  of  view 
of  Dutch  merchants  in  Central  China.  The  chamber  maintains  close 
relations  with  sister  institutions  in  the  Netherlands,  and,  in  matters 
arising  in  the  Far  East  affecting  manufacturers  at  home,  obtains 
the  views  of  home  interests  before  adopting  resolutions  or  making 
specific  suggestions. 

N orwegian. — The  Norwegian  Chamber  of  Commerce  for  China 
was  founded  at  Shanghai  on  November  30,  1920.  The  chamber’s 
object  is  to  further  Norwegian  commerce  with  China,  to  enable  Nor¬ 
wegian  exporters  and  importers  to  obtain  advice  and  reliable  infor¬ 
mation  about  business  possibilities  in  China,  and  to  act  as  arbitrators 
or  to  appoint  arbitrators  in  cases  of  disputes  and  claims.  Eligible  to 
membership  are  all  Norwegian  firms  in  China  and  at  home,  and  also 
individuals  residing  in  China.  The  chamber  is  registered  in 
Shanghai. 

Russian. — The  Russian  Chamber  of  Commerce,  composed  of  Rus¬ 
sian  business  men,  was  organized  in  Shanghai  on  April  21,  1917. 
The  main  principle  of  the  organization  was  to  unite  the  Russian  com¬ 
mercial  firms  in  the  F ar  East  and  to  promote  Russian  trade  in  China. 
Since  its  formation  the  general  work  of  the  chamber  of  commerce  has 
been  handicapped  because  of  political  conditions  in  Russia. 

Italian. — The  Italian  Chamber  of  Commerce  of  China  was  organ¬ 
ized  in  1903,  but  remained  comparatively  inactive  until  the  }^ear  1917, 
when  it  was  reorganized  and  its  jurisdiction  was  extended  over  other 
sections  of  the  Far  East.  It  has  now  a  branch  in  Tientsin,  which  has 
jurisdiction  over  North  China.  The  total  membership  of  the  Italian 
chamber  is  120,  and  the  Italian  consul  general  at  Shanghai  is  ex 
officio  honorary  president.  The  chamber  claims  the  credit  of  having 
secured  the  inauguration  of  the  Italian  navigation  steamship  service, 
the  Lloyd  Triestino,  with  direct  communication  between  Italy  and 
China. 

BIBLIOGRAPHY 

Gamble,  Sidney  D.  Peking,  a  Social  Survey.  New  York,  George  H.  Doran  Co., 

1923. 

MacGowan,  Rev.  J.  Chinese  Guilds.  Journal  North  China  Branch  Royal 

Asiatic  Society.  1886. 

Morse,  H.  B.  Guilds  of  China.  New  York,  Longmans,  Green  &  Co.,  1909. 


THE  COMPRADOR 


By  Commercial  Attache  Julean  Arnold 

In  their  early  relations  with  China  foreign  traders  were  obliged 
to  confine  their  transactions  to  Chinese  hong  merchants,  who  held 
monopoly  rights  conferred  upon  them  by  the  Chinese  Government 
officials.  Up  to  the  early  decades  of  the  nineteenth  century  British 
trade  was  for  the  most  part  in  the  hands  of  the  East  India  Company, 
which  held  a  royal  charter. 

Morse,  in  The  International  Relations  of  the  Chinese  Empire,  says : 

The  hong  merchant  was  responsible  for  every  act  of  the  foreign  trader  and 
his  ships ;  and,  to  enable  him  to  carry  the  burden,  he  alone  could  buy  from 
the  foreigner  and  sell  to  him  ;  he  provided  house  accommodation,  compradors, 
and  servants,  and  every  act  of  the  foreigner  was  under  his  control  and  super¬ 
vision.  By  the  Nanking  treaty  of  1842,  “All  this  monopoly  was  swept  away, 
and  the  foreign  merchant  was  now  free  to  buy  and  sell  with  whom  he 
pleased,  at  prices  to  be  settled  by  mutual  agreement ;  engage  without  restraint 
his  own  compradors  and  servants,  *  *  *  .” 

CHANGES  IN  TRADE  METHODS 

Up  to  the  beginning  of  the  twentieth  century  foreign  trade  with 
China  was  in  the  main  concerned  with  staples  of  commerce,  such  as 
cotton  piece  goods  and  yarn,  tea,  and  silk.  Since  1900  conditions  in 
China  which  concern  foreign  trade  have  changed  very  considerably. 
China  has  been  brought  into  much  closer  communication,  both  in¬ 
tellectually  and  physically,  with  the  occidental  world.  Modern  in¬ 
dustrial  developments  in  China  have  opened  new  channels  for  trade. 
Improved  internal  transportation,  responding  to  better  oversea  ship¬ 
ping  facilities,  have  opened  the  markets  of  the  world  to  the  products 
of  China.  Foreign  traders  have  penetrated  into  the  interior  of  the 
country  with  the  opening  of  many  new  treaty  ports.  Many  of  these 
foreign  traders  have  familiarized  themselves,  to  some  degree  at  least, 
with  Chinese  customs  and  the  language  of  the  Chinese  people.  On 
the  other  hand,  during  the  past  few  decades  many  Chinese  have  gone 
abroad  and  have  become  familiar  with  western  ideas  and  with  the 
English  language.  Furthermore,  the  dissemination  of  western  ideas 
and  learning  in  China  have  produced  substantial  changes  in  the 
commodities  of  commerce  and  in  trading  methods. 

POSITION  OF  THE  COMPRADOR 

In  connection  with  these  changes  it  is  only  natural  that  the  posi¬ 
tion  of  the  comprador,  the  intermediary  between  the  foreign  and  Ihe 
Chinese  business  man,  should  have  evolved  into  a  position  of  less  rela¬ 
tive  importance  than  that  which  it  formerly  enjoyed.  Formerly  the 
comprador  guaranteed  the  obligations  with  Chinese  dealers  which 
were  entered  into  by  the  foreign  firm  whom  he  served.  His  salary 
was  nominal  compared  with  the  aggregate  of  the  commissions  allowed 

384 


THE  COMPRADOR 


385 


on  the  business  which  passed  through  his  hands.  He  had  to  be  a 
man  of  capital,  to  have  a  knowledge  of  business,  and  to  be  influential 
in  Chinese  mercantile  circles.  In  the  days  when  the  teacup  and  the 
opium  pipe  were  more  potent  factors  in  business  than  the  telephone 
or  the  telegraph  it  was  the  comprador  who  at  all  hours  of  the  day 
or  night  entertained  Chinese  merchants,  dealers,  and  brokers  and 
handled  their  business  transactions  involving  the  exchange  of  com¬ 
modities  with  foreign  countries. 

In  years  gone  by  the  word  of  the  Chinese  merchant  was  as  good 
as  gold.  In  a  tribute  to  the  character  of  the  Chinese  business  man 
the  manager  of  the  Hongkong  and  Shanghai  Banking  Corporation 
stated  some  years  ago  that  he  had  never  known  a  Chinese  defaulter. 
However,  during  the  past  decade  or  two  adventurers  from  abroad 
are  partially  responsible  for  the  introduction  of  questionable  meth¬ 
ods  involving  trading  on  Chinese  credit  money  advanced  through 
compradors  who  were  often  left  in  the  lurch.  Furthermore,  the 
increase  in  the  numbers  of  foreign  business  men  in  China  stimulated 
the  demand  for  Chinese  compradors,  so  that  some  concerns  took  on 
men,  who,  they  later  found,  to  their  regret,  pretended  to  be  more 
than  they  actually  were. 

To  the  majority  of  foreign  business  concerns  in  China  the  compra¬ 
dor  is  still  an  indispensable  factor,  and  will  probably  so  continue 
for  some  time,  but  in  a  decreasingly  effective  way.  With  no  com¬ 
mercial  credit  rating  agency,  with  a  complicated  currency,  with  dif¬ 
ficulties  in  realizing  on  native  securities  because  of  the  treaty  stipula¬ 
tions  whereby  foreign  business  activity  is  confined  to  certain  treaty 
ports,  and  with  differences  between  Chinese  and  foreign  business 
customs,  the  importance  of  the  comprador’s  position  in  the  foreign 
firm  becomes  apparent. 

It  is  a  noteworthy  fact,  however,  that  during  the  past  10  years 
many  well-established  foreign  business  houses  in  China  have  come  to 
depend  upon  their  compradors  much  less  than  formerly.  In  many 
cases  the  compradors  are  no  longer  obliged  to  guarantee  the  full 
amount  of  the  monetary  transactions  with  Chinese  dealers.  It  is  not 
uncommon  now,  in  contracts  with  compradors,  to  specify  a  25  per 
cent  limit  of  responsibility.  The  functions  of  the  comprador  in 
South  China,  particularly  in  Canton,  have  changed  less  during  the 
past  decade  than  in  Shanghai  and  North  China.  In  most  cases  in 
Canton  a  comprador  still  gives  a  full  guaranty  against  loss,  to  the 
extent  of  his  liability  under  his  agreement,  although  there  are  in¬ 
stances,  even  in  Canton,  where  the  comprador’s  guaranty  has  been 
cut  down  to  75  per  cent  of  his  contractual  liability. 

In  Canton  the  Chinese  “  broker  ”  is  becoming  an  important  in¬ 
termediary  between  foreign  firms  and  Chinese  dealers.  He  is  a 
free  lance,  and  in  export  lines,  for  instance,  visits  the  Chinese  mer¬ 
chants  daily,  secures  prices  on  merchandise,  then  shops  around 
among  the  foreign  concerns,  seeking  the  best  offer  which  he  can 
secure.  In  import  commodities  he  makes  connections  with  a  num¬ 
ber  of  export  houses  and  goes  out  among  the  Chinese  merchants  to 
secure  sales  commitments.  In  Shanghai  and  North  China  the  mar¬ 
ket  shroff,  who  is  definitely  attached  to  a  certain  foreign  firm  and 
functions  under  the  compradors,  partially  performs  this  service. 

100020°— 26 - 26 


386 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  day  has  passed  when  the  foreign  trader  can  come  to  China, 
engage  a  comprador,  intrust  him  with  advances  greater  in  amount 
than  the  actual  amount  of  his  security,  and  expect  that  business  will 
move  smoothly  with  a  net  profit  to  the  foreign  trader  concerned  and 
with  no  obligations  on  his  part  to  safeguard  himself  against  losses 
through  an  intimate  knowledge  of  the  situation.  In  other  words, 
it  is  necessary  for  one  to  know  one’s  comprador  and  to  inform  one¬ 
self  on  the  details  of  the  transactions  intrusted  to  him.  The  firms 
that  proceed  in  this  manner  are  having  little  or  no  difficulties  with 
their  compradors.  They  use  the  same  degree  of  common  sense  in 
handling  their  business  in  China  as  they  would  in  handling  it  in 
their  own  home  communities. 

There  is  a  distinct  tendency  on  the  part  of  many  Chinese  dealers 
to  purchase  directly  from  manufacturers  abroad.  This  obligates  the 
foreign  business  house  in  China  to  be  on  the  alert  in  seeking  Chinese 
customers,  rather  than  to  intrust  the  sales  entirely  to  its  Chinese  staff. 
This  fact  influences  considerably  the  functions  of  the  comprador.  It 
places  him  more  in  the  position  of  credit  man,  Chinese  adviser,  and 
Chinese  assistant  than  in  that  of  intermediary  between  the  foreign 
concern  and  the  Chinese  dealers.  Owing  to  the  clannish  spirit  of 
the  Chinese,  there  is  a  tendency  on  the  part  of  a  comprador  to  cul¬ 
tivate  a  clientele  among  his  friends,  his  fellow  clansmen,  or  fellow 
provincials.  Sometimes  he  depends  too  much  upon  this  small  cir¬ 
cle  for  his  business  contacts  and  thereby  limits  the  activities  of  the 
firm  which  he  represents. 

The  comprador  of  an  ordinary  foreign  import  firm  will  receive  a 
salary  of  about  150  taels  a  month  (about  $100  United  States  gold) 
and  will  provide  a  native  bookkeeper  and  shroff.  His  contract  will 
allow  him  a  certain  commission  on  all  business  done,  depending  on 
the  volume  and  character  of  the  business.  In  some  cases  the  com¬ 
prador  hires  and  is  responsible  for  the  native  salesmen. 

THE  BANK  COMPRADOR 

The  position  of  the  bank  comprador  is  different  from  that  of  the 
comprador  of  an  import  or  export  firm.  In  former  days  a  bank 
comprador  was  permitted  to  offer  as  security  bonds  signed  by  a 
guarantor  for  a  certain  maximum  amount,  with  a  cash  deposit  equal 
to  one-quarter  of  the  bonds.  On  this  cash  deposit  the  bank  allowed 
an  interest  of  5  to  6  per  cent.  At  present  most  of  the  banks 
require  a  cash  deposit,  usually  about  100,000  taels.  The  bank  com¬ 
prador  receives  a  salary  of  200  to  500  taels  a  month,  from  which  he 
pays  his  staff.  He  receives  brokerage  allowances  of  1  to  1%  Per  cent 
on  sums  deposited  through  the  comprador,  on  the  principal  of  loans 
issued  by  the  bank  and  negotiated  through  the  comprador,  on  the 
interest  on  renewed  loans,  on  the  purchase  and  sale  of  drafts  and 
telegraphic  transfers,  and  on  the  purchase  and  sale  of  dollars  and 
taels;  y2  to  1%  per  cent  on  the  purchase  and  sale  of  drafts  and 
telegraphic  transfers  in  gold  currency,  and  on  the  purchase  and 
sale  of  coins  and  bank  notes  in  the  gold  currency  of  various  countries. 
The  brokerage  to  the  comprador  for  special  transactions  must  be 
fixed  before  the  closing  of  the  transactions.  In  the  issuance  of 
loans  to  Chinese  firms  or  individuals  through  the  comprador,  he 


THE  COMPRADOR 


387 


Fig.  13. — International  Banking  Corporation’s  building  at  Peking 


388 


COMMERCIAL  HANDBOOK  OF  CHINA 


must  countersign  the  loan  contracts  or  promissory  notes;  in  buying 
drafts  or  telegraphic  transfers  from  native  banks,  he  must  guar¬ 
antee  against  nonpayment  or  delays  in  payment.  He  usually  car¬ 
ries  on  his  staff  an  assistant  comprador,  a  market  reporter,  a  silver 
expert,  one  or  two  bookkeepers,  and  several  shroffs,  through  whose 
hands  coins  received  and  paid  out  must  pass  in  order  that  counter¬ 
feits  may  be  detected  and  the  various  silver  dollars  current  in  the 
market  handled  to  the  best  advantage.  He  usually  employs  several 
money  collectors,  who  count  the  coin,  who  are  responsible  for  deliv¬ 
ery  of  the  money  to  customers  outside  the  bank,  and  who  collect 
money  due  the  bank.  He  has  also  a  cashier,  who,  jointly  with  a 
foreign  cashier,  keeps  the  two  or  more  keys  to  the  bank  vault. 

AGREEMENT  FOR  SERVICES 

There  appears  below  a  sample  form  of  agreement  for  the  services 
of  a  comprador,  which  is  representative  of  the  forms  used  by  import 
and  export  houses  and  which  enumerates  in  detail  the  functions, 
responsibilities,  and  remunerations  of  the  comprador.  By  a  perusal 
of  this  document  the  American  business  man  should  be  better  able 
to  gauge  the  nature  of  the  relations  of  foreign  business  men  with 
their  compradors  than  they  could  do  from  a  mere  description  of 
details. 

The  old-time  comprador  is  becoming  an  institution  of  the  past. 
While  he  is  still  an  indispensable  factor  to  the  business  of  the 
majority  of  the  foreign  firms  in  China,  yet  it  is  inevitable  that  he 
will,  in  the  not  distant  future,  give  way  to  Chinese  assistants  trained 
under  modern  methods  and  placed  in  positions  of  responsibility  as 
managers  of  agencies  in  the  interior,  as  salesmen,  or  as  credit  men, 
leaving  to  foreigners  only  the  executive  and  supervisory  positions. 

FORM  OF  AGREEMENT 

The  following  is  given  as  illustrative  of  the  form  of  agreement 
used  in  employing  a  comprador : 

This  Agreement  made  and  entered  into  this _ day  of _ ,  19 _ ,  by 

and  between  the _ (name  of  company)  and _ (nationality) 

corporation  having  offices  and  transacting  business  at _ (name  of  port) 

and _ (name  of  port)  (hereinafter  called  the  “company”)  party  of  the 

first  part,  and _ a  Chinese  citizen  of _ (name  of  city 

in  China)  (hereinafter  called  the  “comprador”),  party  of  the  second  part, 

Witnesseth  :  The  said  company  hereby  agrees  to  employ  the  comprador, 
and  the  comprador  hereby  agrees  faithfully  and  diligently  to  serve  the 
company  as  comprador  for  the  period  of  three  (3)  years,  commencing  on 
the _ day  of _ , _ ,  and  this  agreement  shall  bind  the  parties 


hereto  and  apply  to  all  business  transacted  from  the _ day  of _ , 

Salary. — The  comprador  shall  receive  a  salary  of _  (kind  of  dol¬ 
lars)  dollars _ 


Staff. — The  comprador  shall  engage  and  pay  at  his  own  expense  a  sufficient 
Chinese  staff  to  consist  of  not  less  than  the  following :  1  assistant  comprador ; 
1  Chinese  accountant 1  delivery  order  and  invoice  shroff;  1  small  shroff; 
3  special  import  commodity  shroffs ;  1  sundry  commodities  shroff ;  2  office  coolies, 
and  any  other  additional  Chinese  staff  as  the  company  may  require  from  time 
to  time  without  extra  charge. 

The  appointment  of  each  and  every  member  of  the  Chinese  staff  shall  be 
subject  to  approval  by  the  company  and  the  comprador  shall  dismiss  any 
member  or  members  of  the  Chinese  staff  when  directed  so  to  do  by  the  com¬ 
pany. 


THE  COMPRADOR 


389 


The  comprador  shall  be  responsible  for  the  honesty  and  good  conduct  of 
each  and  every  member  of  the  Chinese  staff  and  shall  indemnify  the  company 
against  any  loss  or  damage  caused  by  the  default  or  misconduct  of  any  mem¬ 
ber  or  members  of  such  Chinese  staff. 

The  comprador  further  agrees  that  the  said  staff  and  every  member  thereof 
shall  be  amenable  and  subject  at  all  times  to  the  supervision  and  management 
of  the  company.  The  comprador  further  agrees  to  suitably  furnish  and  equip 
at  his  own  expense  such  office  room  or  rooms  as  shall  be  assigned  to  him 
and  his  said  staff  by  the  company. 

Guarantee. — The  comprador  agrees  to  deposit  with  the  company  at  the  time 
of  the  execution  of  this  agreement,  as  security  for  the  fulfillment  and  per¬ 
formance  by  the  comprador  of  all  the  terms,  convenants,  and  conditions  and 
obligations  of  this  agreement  on  his  part  to  be  kept,  performed,  and  observed : 

(1)  Foreign  title  deeds  for  property  in  value  not  less  than _ thousand 

taels _  (name  of  city  in  China)  sycee,  which  said  title  deeds  shall 

after  the  execution  hereof  be  transferred  into  the  name  of  the  company ; 

(2)  _  (name  of  Chinese  currency)  dollars  _  cash  to  be 

deposited  in  such  bank  as  shall  be  designated  by  the  party  of  the  first  part, 
and  to  remain  there  until  all  obligations  under  this  contract  are  completed ; 
the  regular  bank  interest  on  this  amount  to  be  paid  to  the  party  of  the  second 
part.  Provided  that  whenever  the  guarantee  shall,  in  the  opinion  of  the 

manager  of  the  company  for  the  time  being  at _ (place),  China,  become 

insufficient  security  for  the  aforesaid  sum,  the  comprador  shall  within  one  (1) 
week  after  notice  thereof  furnish  other  additional  satisfactory  security  to 
make  up  such  deficiency ;  and  provided  further  that  the  amount  of  such 
security  shall  be  increased  from  time  to  time  by  the  deposit  of  further  title 
deeds  and  the  transfer  of  the  same  into  the  name  of  the  company,  whenever 

in  the  opinion  of  the  manager  of  the  company  for  the  time  being  at _ 

(place  in  China)  the  volume  of  the  business  transacted  by  the  company  shall 
require  it. 

C ommission. — The  company  agrees  to  pay  the  comprador  a  one  per  cent 
(1  per  cent)  commission  upon  all  import  contracts  obtained  and  guaranteed 
by  the  comprador  in  connection  with  the  import  business  of  the  company. 
Said  commission  shall  be  computed  and  figured  on  the  gold  f.  o.  b.  cost  price 
of  the  goods  covered  by  said  contracts,  exclusive  of  advances,  charges,  and 
commissions. 

Said  commissions  shall  be  settled  every  month,  as  early  as  the  accounts 

can  be  presented,  and  checked  and  approved  by  the  _  (name  of 

location  in  China)  office,  and  are  due  and  payable  to  the  comprador  when  said 
goods  have  been  delivered  to  the  local  merchants  and  the  company  has  received 
payment  in  full  for  the  same. 

Advances. — The  comprador  shall  during  the  term  of  this  agreement  make 
advances  to  the  company  from  time  to  time  to  the  extent  of  not  more  than 

_  (designation  of  currency)  taels _ per  month,  for  proper 

and  necessary  expenses  in  connection  with  the  business,  upon  instructions 
or  written  orders  duly  signed  by  the  manager.  Whatever  sum  or  sums  shall 
have  been  so  advanced  by  the  end  of  each  calendar  month  the  same  shall  be 
repaid  to  the  comprador  by  the  10th  day  of  the  ensuing  month,  in  default 
of  which  the  comprador  shall  not  be  obliged  to  advance  any  further  money 
until  such  sum  or  sums  so  advanced  have  first  been  repaid,  and  even  though 
the  agreed  amount  to  be  advanced,  namely, -  (designation  of  cur¬ 
rency)  taels _ ,  shall  not  have  then  been  exhausted.  It  is  agreed 

that  there  shall  be  no  interest  due  or  payable  on  such  advances,  if  paid  when 
due,  but  if  not  so  paid,  then  such  advances  shall  draw  interest  at  the  rate 
of  seven  per  cent  (7  per  cent)  from  due  date  until  paid. 

Books. — The  comprador  undertakes  and  agrees  to  keep  just  and  true  accounts 
of  all  sums  of  money  passing  through  his  hands  in  connection  with  the 
business  of  the  company  and  of  all  matters  connected  therewith,  said  accounts 
to  be  kept  in  book  form  in  the  English  language,  which  said  book  or  books  shall 
be  at  all  times  accessible  to  the  company. 

Collections. — The  comprador  agrees  to  report  within  24.  hours  of  collection 
all  cash,  checks,  or  native  orders  in  his  hands  belonging  to  the  company  and  to 
deliver  to  the  company  immediately  at  its  request  any  sum  or  sums  of  money  or 
negotiable  papers  belonging  to  the  company,  and  to  be  prepared  to  report  daily 
the  balance  brought  forward  from  collections  and  all  other  sources. 

Godotvns. — The  comprador  shall  have  the  charge,  care,  and  supervision  of 
the  safe  and  proper  storage  and  keeping  of  all  goods  in  the  godowns  of  the 


390 


COMMERCIAL  HANDBOOK  OF  CHINA 


company  or  in  godowns  or  part  of  godowns  hired  for  the  purpose  by  the  com¬ 
pany,  and  while  such  goods  or  samples  are  under  his  care  and  custody  as 
aforesaid  he  shall  be  responsible  for  any  loss  thereof  or  damage  thereto  by 
reason  of  theft,  pilferage,  or  otherwise,  except  of  fire,  flood,  riot,  or  by  any 
reason  or  cause  beyond  the  control  of  the  comprador.  The  comprador  shall  be 
responsible  that  goods  in  his  care  and  custody  as  aforesaid  are  delivered 
from  godowns  only  against  delivery  orders  signed  jointly  by  himself  and  by 

the  company.  The  comprador  shall  inspect  the  cargoes  on  arrival  at _ 

(name  of  port  in  China)  to  ascertain  whether  the  packages  be  in  a  good  and 
sound  condition  and  shall  report  to  the  company  immediately  if  any  of  such 
cargoes  are  being  short  landed  and  shall  report  the  discovery  of  any  damage  or 
other  defect  in  the  general  condition  of  the  packages,  so  as  to  enable  the  com¬ 
pany  to  take  such  action  as  may  be  necessary  against  insurance  companies  or 
others  responsible  for  the  loss  or  damage  to  recover  for  said  loss  or  damage. 

The  company  shall  lie  responsible  for  the  payment  of  storage,  insurance, 
transportation,  and  other  proper  charges  for  the  transmission  of  any  goods 
from  steamer  to  wharf  and  from  wharf  to  godown  or  other  destination,  or 
vice  versa,  if  for  export,  and  the  comprador  shall  be  responsible  for  the  de¬ 
livery  of  all  cargo-  to  be  taken  from  wharf  or  godown  or  other  destination 
after  such  cargo  has  been  delivered  by  the  wharf  authorities  to  the  compra¬ 
dor  or  to  any  other  person  acting  in  his  behalf,  and  shall  be  responsible  for 
the  delivery  on  board  carrier  of  all  export  cargo. 

Responsibilities  for  payment  of  bills,  orders,  and  checks. — The  comprador 
shall  not  be  responsible  for  the  payment  of  any  bills,  native  orders,  or  checks 
received  in  the  course  of  business  by  the  company  from  others,  unless  before 
such  bills,  native  orders,  or  checks  are  accepted  by  the  company  they  are  first 
approved  and  chopped  by  the  comprador  with  a  special  chop  to  be  used  and 
kept  solely  for  that  purpose. 

And  in  the  event  that  any  such  bill,  native  order,  or  check  be  due  or  not 
paid  or  dishonored,  the  parties  hereto  agree  to  give  each  other  mutual  assist¬ 
ance  to  enforce  payment  of  such  bill,  native  order,  or  check,  or  any  claim 
in  connection  therewith. 

Responsibilities  for  losses. — In  the  event  delivery  of  goods  sold  to  local 
merchants  on  contracts  guaranteed  and  signed  by  the  comprador  shall  not 
be  taken  within  contract  time  or  not  at  all  and  said  goods  can  not  be  resold 
to  other  parties  at  invoice  cost,  together  with  expense  incident  to  delivering 

such  goods  into  godowns  in _ (name  of  place  in  China),  the  comprador 

undertakes  and  agrees  to  be  responsible  for  and  to  pay  the  company  the  total 

loss  or  difference  between  the  actual  cost  at _  (port  in  China),  as 

above  stated  and  the  amount  realized  on  resale.  The  company  agrees  and 
undertakes  in  all  instances  when  delivery  of  goods  is  not  taken  as  aforesaid  to 
use  its  best  efforts  and  endeavors  to  dispose  of  said  goods  upon  the  most  ad¬ 
vantageous  conditions  possible,  and  the  comprador  agrees  to  render  the  com¬ 
pany  all  possible  assistance  in  recovering  losses  sustained  by  it  on  contracts 
not  guaranteed  by  the  comprador. 

Responsibilities  for  export  cargo. — The  comprador  agrees  and  undertakes 
to  be  responsible  that  all  goods  intended  for  export  conform  to  sample  sub¬ 
mitted  and  agree  with  specifications  of  the  seller  and  are  in  first-class  con¬ 
dition  in  every  respect  as  regards  quality  and  packing ;  and  in  event  that 
the  company  shall  question  the  quality  of  goods  offered  by  the  comprador 
from  time  to  time  for  export  the  comprador  agrees  to  abide  by  the  decision 
of  such  qualified  chemist  or  surveyor  as  may  be  selected  by  the  company  to 
examine  the  same. 

In  respect  to  goods  purchased  for  export  by  the  company  from  or  through 
the  comprador,  terms  as  to  payment  shall  in  each  case  be  first  arranged  be¬ 
tween  the  parties.  In  arranging  for  payment  it  is  understood  and  agreed 
that  the  company  shall  pay  for  cargo  when  delivered  to  them  according  to 
the  terms  and  conditions  under  which  said  cargo  was  purchased  or  agreed  to 
be  purchased. 

Exclusive  service. — The  comprador  undertakes  and  agrees  to  devote  his 
entire  time  to  the  business  of  the  company. 

Notice. — It  is  mutually  understood  and  agreed  that  this  agreement  may  be 
terminated  by  either  party  by  giving  sixty  (60)  days’  notice  in  writing  to  the 
other  party,  provided  all  claims  and  accounts  between  the  parties  are  settled 
within  said  sixty  (60)  days,  and  provided  further  that  this  agreement  may  be 
extended  or  redrawn  at  any  time  by  mutual  agreement  of  the  parties  hereto, 


THE  COMPRADOR 


391 


and  it  is  further  mutually  agreed  and  understood  between  the  parties  that 
upon  the  termination  of  this  agreement  as  aforesaid  or  otherwise,  the  guar¬ 
antee  hereinbefore  mentioned  shall  remain  in  full  force  and  effect  until  all 
contracts  connected  with  the  business  of  the  company  and  guaranteed  by 
the  comprador  have  been  fulfilled  and  all  sums  of  money  due  upon  said  contracts 
or  in  connection  therewith  have  been  duly  paid  to  the  company,  but  in  any 
case  the  full  amount  of  the  monthly  advances  made  by  the  comprador  shall 
be  repaid  by  the  end  of  a  period  of  one  (1)  month. 

In  witness  whereof  the  parties  have  hereunto  set  their  hands  this _ 

day  of _ ,  19 - 

[Signed]  - , 


Witnesses  ; 


Oriental  Manager. 


CHINESE  SOCIAL  CUSTOMS  AND  ETIQUETTE 


By  Commercial  Attache  Julean  Arnold 

The  days  when  the  American  or  English  merchant  in  China  could 
complacently  leave  all  his  Chinese  business  transactions  to  the  com¬ 
prador  are  gone.  The  commission  house  which  handled  everything 
from  garters  to  locomotives  is  also  a  phase  that  is  passing  in  foreign 
trade  with  China.  The  Chinese  buyer  wants  to  deal  with  the  spe¬ 
cialist  who  knows  his  line,  and  the  tendency  to  eliminate  unnecessary 
intermediary  agencies  is  becoming  more  pronounced.  Hence,  knowl¬ 
edge  of  the  social  customs  and  etiquette  of  the  people  is  of  increas¬ 
ing  importance  to  the  American  who  would  be  successful  in  his  busi¬ 
ness  with  the  Chinese.  The  Chinese  knows  the  American  better 
than  the  American  knows  the  Chinese.  This  condition  can  not  be 
perpetuated  to  the  advantage  of  American  trade  in  China. 

There  is  no  cast  in  China.  The  people  are  very  democratic.  It 
can  hardly  be  said  that  there  is  an  aristocracy,  unless  it  be  that  of 
the  educated  man.  In  the  social  scale  the  official  and  the  scholar  stand 
first,  followed  by  the  farmer  and  the  merchant.  In  modern  China, 
however,  the  merchant  is  forging  to  the  front.  The  soldier,  who  once 
occupied  a  very  lowly  position  in  the  Chinese  social  order,  is  now  a 
factor  of  some  consequence,  although  the  reputation  of  the  military 
element  is  not  always  such  as  to  command  respect. 

The  greater  part,  probably  at  least  80  per  cent,  of  China’s  popula¬ 
tion  is  agricultural.  The  rural  population  lives  in  villages,  under  the 
patriarchal  system.  All  the  members  of  a  family,  including  several 
generations,  live — figuratively  speaking — under  one  roof.  In  reality 
the  Chinese  household  comprises  a  number  of  separate  buildings, 
and  the  larger  or  the  wealthier  the  family,  the  greater  the  number  of 
buildings,  though  they  are  in  connecting  series  and  are  generally 
surrounded  by  one  wall.  The  family  and  not  the  individual  is  the 
unit  in  Chinese  society. 

The  villages  and  cities  of  North  China  are,  for  the  most  part, 
walled,  and  the  people  live  within  walled  compounds.  The  Chinese 
village  or  city  has  no  sidewalks  and  seldom  has  suburban  residential 
sections.  In  the  south,  and  in  a  large  section  of  the  great  Yangtze 
Valley  region,  where  rice  is  the  main  crop  and  where  the  country 
abounds  in  waterways,  there  are  no  roads  as  Americans  understand 
the  word.  There  are  paths,  only,  and  with  the  exception  of  wheel¬ 
barrows — and,  in  some  cities,  rickshas — no  wheeled  vehicles  are  in 
use  in  those  regions.  However,  railways  are  gradually  making  their 
appearance,  and  a  few  miles  of  modern  roads  permit  the  use  of 
motor  cars. 

RESPECT  FOR  ANCESTORS 

Chinese  everywhere  have  great  respect  for  the  dead.  The  graves 
of  the  departed  are  sacred  spots.  In  sections  where  there  are  hill 
lands,  the  people  generally  bury  their  dead  on  the  sides  of  the  hills; 

392 


CHINESE  SOCIAL  CUSTOMS  AND  ETIQUETTE 


393 


but  on  the  plains,  they  are  interred  on  the  family  estates,  often  in 
spots  planted  with  clusters  of  trees.  In  some  respects,  the  dead  ap¬ 
pear  to  receive  more  attention  than  the  living.  Ancestral  tablets  are 
kept  in  the  households,  and  ceremonies  are  performed  before  them  on 
days  designated  for  the  purpose.  Ancestry  worship  is  common 
throughout  China.  These  ideas  are  inextricably  interwoven  with 
that  remarkable  institution,  the  Chinese  family. 

It  is  not  uncommon  for  a  Chinese  to  trace  his  ancestry  back  a 
thousand  or  more  years.  The  seventy-fifth  lineal  descendant  of 
Confucius  lives  to-day  in  Shantung  on  the  Confucian  estate,  where 
the  great  sage  was  buried  during  the  fifth  century  before  the  Chris¬ 
tian  era.  Practically  ever  Chinese  has  an  ancestral  home.  For 
this  reason,  the  remains  of  Chinese  who  have  died  abroad  or  away 
from  their  ancestral  homes  are  sent  back  to  the  ancestral  burying 
ground. 

SOCIAL  CUSTOMS 

According  to  Chinese  customs,  white  is  used  for  the  mourners  at 
a  funeral,  while  red,  which  is  symbolic  of  joy,  is  the  color  for  the 
bride.  Some  modern  Chinese  respect  western  conventions  for 
funerals  and  weddings. 

The  bride  in  China  is  married  at  the  home  of  the  groom  and  enters 
his  family.  An  important  part  of  the  marriage  ceremony  is  the 
prostration  of  the  bride  and  groom  before  the  ancestral  tablet  of 
the  groom.  Marriages  or  courtships  are  arranged  by  the  parents 
and  go-betweens,  and  the  sons  and  daughters  are  by  duty  bound  to 
accept  these  arrangements.  Often  bride  and  groom  meet  for  the 
first  time  on  the  wedding  day.  In  making  wedding  gifts,  custom 
among  the  Chinese  decrees  that  they  be  in  pairs.  Those  invited  to 
the  wedding  feast,  who  have  not  given  a  present  to  the  married 
couple,  often  make  a  gift  in  money,  which  goes  toward  the  expenses 
of  the  feast.  Western  marriage  customs  are  in  favor  among  some 
of  the  modernized  Chinese  in  some  of  the  larger  commercial  centers 
where  foreign  influence  is  a  factor  of  consequence. 

There  is  much  rejoicing  in  the  Chinese  family  on  the  birth  of  a 
son.  The  primary  object  of  marriage  is  a  male  heir  to  carry  on  the 
continuity  of  the  family  and  to  worship  at  the  graves  and  before 
the  tablets  of  the  ancestors.  One  does  not  inquire  of  a  Chinese 
“  How  many  children  have  you  ?  ”  but  rather,  “  How  many  sons 
have  you  ?  ”  and  “  How  many  daughters  have  you  ?  ”  While  every 
father  must  have  sons,  and  sons  are  encouraged  to  marry  at  an  early 
age  so  as  to  present  their  fathers  with  grandsons,  daughters  are  not 
slighted  in  the  manner  which  some  westerners  seem  to  imagine, 
although  it  is  anticipated  that  they  will  leave  at  a  marriageable  age 
to  join  another  family.  The  way  to  the  heart  of  a  Chinese  is  through 
consideration  for  his  children. 

China  is,  however,  still  a  country  where  men  take  precedence  over 
women.  While  concubinage  is  doomed  when  the  Chinese  woman  will 
have  acquired  a  position  sufficiently  powerful  to  enforce  its  discon¬ 
tinuance,  yet,  the  concubine  has  a  recognized  social  position  analog¬ 
ous  to  that  of  a  secondary  wife.  The  children  of  a  concubine  are 
on  an  equality  with  those  of  the  wife.  They  are  nominally  the  chil¬ 
dren  of  the  wife,  who  is  the  mother  of  the  family.  A  man  can  not 
put  aside  a  concubine  at  will.  He  must  provide  for  her  throughout 


394 


COMMERCIAL  HANDBOOK  OF  CHINA 


life.  Hence,  it  is  only  the  wealthy  who  can  take  on  concubines,  al¬ 
though  in  South  China,  as  a  satisfactory  business  arrangement,  a 
man  will  often  take  on  a  woman  employee  in  the  capacity  of  a  con¬ 
cubine.  Few,  indeed,  are  the  bachelors  and  spinsters  in  Chinese  so¬ 
ciety.  There  is  a  very  limited  social  intermingling  of  the  sexes. 
First  and  last,  woman’s  place  is  considered  to  be  the  home.  Accord¬ 
ing  to  Chinese  etiquette,  the  man’s  wife  does  not  appear  when  he 
is  entertaining  his  freinds.  Much  of  the  entertaining,  however,  is 
done  in  restaurants  and  cafes,  where  men  and  women  do  not  sit 
down  together.  Generally  speaking,  respectable  Chinese  women  do 
not  frequent  restaurants  and  cafes.  When  women  go  to  the  old- 
type  Chinese  theater,  they  are  seated  in  a  section  set  aside  for  them. 
Even  in  churches,  two  sections  are  usually  provided,  one  for  the  men 
and  the  other  for  women.  In  such  cities  as  Shanghai,  Tientsin, 
Peking,  and  Canton,  one  may  see  Chinese  men  and  women  inter¬ 
mingling  at  functions.  Beyond  the  primary  schools,  boys  and  girls 
are  educated  in  separate  schools.  The  idea  of  coeducation  is  becom¬ 
ing  popular  in  some  sections,  but  it  is  not  in  general  favor. 

In  Shanghai,  the  New  York  and  Paris  of  China,  many  Chinese 
are  adopting  western  social  customs.  As  Shanghai  sets  the  stand¬ 
ard  for  the  rest  of  the  country,  it  may  be  expected  that  western  ideas 
will  gain  gradually  in  popularity,  modifying  certain  old  Chinese 
customs.  In  Peking  and  Shanghai  some  of  the  Chinese  women  have 
taken  to  dancing  and  to  western  forms  of  social  entertainment. 

AMUSEMENTS 

The  Chinese  are  a  theater-loving  people.  Many  of  them  seem  to  be 
born  actors.  Famous  Chinese  actors  command  big  pay.  Contrary  to 
the  common  impression  in  America,  the  usual  Chinese  play  is  not  a 
two  or  three  days’  performance.  It  is  usually  a  short  sketch,  con¬ 
suming  upon  the  average  about  half  an  hour’s  time,  one  number  fol¬ 
lowing  another.  There  are  some  historical  plays  that  are  put  on  in 
serial  form  and  continued  over  several  days,  but  these  are  very  un¬ 
usual.  The  popularity  of  a  Chinese  actor  depends  more  upon  his 
voice  than  upon  his  acting.  This  adds  to  the  difficulties  of  popular¬ 
izing  the  Chinese  motion-picture  play.  However,  historical  plays, 
with  elaborate  settings  depicting  famous  historical  events,  as  well  as 
modern-style  Chinese  plays  featured  in  the  movies,  are  popular  with 
Chinese  audiences. 

It  is  because  of  the  great  difference  between  the  social  customs  of 
the  Chinese  and  western  peoples  that  to  the  ordinary  Chinese  audi¬ 
ence  American  photoplays  seem  curious  productions.  The  animated 
cartoons,  and,  in  fact,  humorous  productions  generally,  are  greatly 
appreciated,  as  the  Chinese  possess  a  marked  sense  of  humor.  On  the 
other  hand,  the  sensational  photoplay  does  westerners  more  damage 
than  good,  because  of  the  misconceptions  to  which  such  plays  give 
rise  in  the  Chinese  mind. 

The  Chinese  are  fond  of  festivities  of  all  sorts.  In  fact,  without 
the  wedding  and  funeral  festivities,  the  itinerant  theatrical  troupes, 
and,  last  but  not  least,  the  New  Year  celebration,  the  Chinese  vil¬ 
lage  would  be  a  very  sordid  institution.  There  is  no  Sabbath  Day  in 
the  Chinese  calendar.  Officially  China  observes  the  Gregorian  calen- 


CHINESE  SOCIAL  CUSTOMS  AND  ETIQUETTE  395 

dar,  but  unofficially  the  full  moon  continues  to  appear  on  the  15th  day 
of  the  month.  The  whole  nation  drops  its  work  and  closes  shop  on 
the  Chinese  New  Year.  For  10  days  everybody  who  can  possibly 
do  so  joins  his  family  and  relatives,  even  at  the  expense  of  traveling 
a  long  distance,  to  enjoy  the  festivities  of  a  real  holiday.  Prior  to 
the  dawn  of  the  New  Year  every  Chinese  is  supposed  to  have  settled 
all  outstanding  accounts.  He  must  at  least  have  made  satisfactory 
arrangements  with  his  creditors  for  those  accounts  which  can  not  be 
settled.  The  New  Year  does  not,  supposedly,  dawn  until  this  is  clone, 
hence,  it  is  related  that  there  are  some  whose  lights  are  still  burning 
on  New  Year  morning.  They  have  been  a  bit  tardy  in  ushering  out 
the  old  year.  The  servants  in  a  household  receive  a  half  or  a  full 
month’s  extra  pay  as  a  New  Year’s  gratuity.  Employees  are  gener¬ 
ally  given  bonuses  as  New  Year’s  gifts. 

DRESS 

In  South  China  the  men  have  discarded  the  use  of  the  queue, 
which  was  in  reality  the  emblem  of  loyalty  to  the  Manchu  dynasty. 
In  the  central  or  Yangtze  Valley  region,  the  queue  is  still  to  be  seen 
among  the  country  people.  In  the  north  the  queue  is  more  frequently 
seen,  although  it  is  said  that  in  Shansi  Province  a  queue  on  an  adult 
male  is  about  as  scarce  as  are  snakes  in  Alaska. 

Among  the  men  of  China  foreign  shoes  and  hats  are  popular, 
but  the  number  adopting  foreign  dress  is  increasing  very  slowly. 
The  gentleman  still  clings  to  his  long  gown,  which  is  preferably  of 
silk.  The  Chinese  lady  wears  trousers,  preferably  of  silk,  but  the 
skirt  is  growing  in  popularity.  Customs  in  dress,  among  both  men 
and  women  of  the  better  classes,  change  with  as  great  frequency  as 
in  the  West.  The  women  of  China  wear  no  millinery,  but  adorn 
themselves  with  jewels  and  hair  ornaments.  Foreign-style  shoes 
are  gaining  in  popularity  among  the  Chinese  women,  but  brocades 
are  the  preferred  material.  The  binding  of  girls’  feet  is  gradually 
dying  out.  In  some  sections  it  is  a  custom  of  bygone  days,  and  the 
next  generation  will  appear  with  normal  feet. 

Most  Chinese  dress  for  the  weather,  hence  there  is  not  a  heavy 
demand  for  heating  stoves.  In  the  north,  where  the  people  are 
obliged  on  account  of  the  severe  cold  to  provide  heat  in  addition  to 
heavily  padded  clothing  or  furs,  charcoal  and  briquet  braziers  and 
oven  beds  are  used,  but  comparatively  few  heating  stoves.  Modern 
buildings  and  modern  sanitary  and  heating  appliances  are  gaining 
favor  among  the  wealthier  classes. 

ETIQUETTE 

The  Chinese  are  a  very  polite  people.  The  child  is  taught  good 
manners  from  the  beginning.  During  the  many  centuries  of  Chinese 
civilization,  a  certain  degree  of  culture  has  filtered  down  through 
the  masses.  Even  the  servant  or  coolie  is  able  to  render  thanks  in  a 
graceful  manner  for  a  gratuity  or  favor.  Fistic  encounters  are  of 
infrequent  occurrence.  Disputes  are  generally  settled  by  peaceful 
means.  The  important  consideration  in  the  mind  of  the  Chinese 
involved  in  a  dispute  is  what  is  known  as  “  face.”  Compromise 
settlements  through  which  the  “  face  ”  of  the  parties  to  the  dispute 


396 


COMMERCIAL  HANDBOOK  OF  CHINA 


will  be  saved  are  the  usual  practice.  Thus  it  is  essential  in  dealing 
with  a  Chinese  that  due  consideration  be  given  to  avoid  placing  him 
in  a  position  to  lose  “  face.’'  Also  it  is  well  in  disputes  with  Chinese 
to  settle  them  through  the  friendly  mediation  of  a  third  party,  if 
possible,  rather  than  to  drag  the  case  into  a  court. 

While  the  western  salutation  of  a  handshake  is  being  received 
with  increasing  favor  among  the  Chinese,  yet  one  would  do  better 
in  calling,  to  let  the  advances  come  from  the  Chinese  themselves,  as 
many  are  still  unfamiliar  with  this  form  of  greeting  and  their  method 
of  bowing  and  raising  clasped  hands  to  the  chin  is  simple  and  cordial. 

The  Chinese  reception  room  usually  has  a  divan  at  the  end  farthest 
from  the  entrance,  with  chairs  arranged  along  the  sides.  For  serving 
tea  and  light  refreshments  small  tables  are  interspersed  between  the 
chairs.  Even  if  the  arrangement  is  not  strictly  in  this  order,  more 
often  than  otherwise  it  will  be  based  upon  this  plan.  The  seat  of 
honor  is  that  on  the  left  of  the  divan.  (In  some  sections  of  the 
country  local  customs  make  for  deviations  from  this  rule.)  The  visi¬ 
tor  or  guest  should  not,  until  after  he  is  pressed  by  his  host  and  until 
he  is  satisfied  that  others  present  have  not  a  greater  right  to  this  con¬ 


sideration  than  he,  accept  the  invitation  to  occupy  this  seat.  He 
should,  when  he  enters  the  room,  act  at  least  as  though  he  is  prepared 
to  take  the  seat  farthest  removed  from  the  seat  of  honor,  which 
under  his  arrangement,  is  the  one  nearest  the  entrance.  In  awaiting 
the  host,  he  should  never  occupy  the  seat  of  honor  or  any  in  imme¬ 
diate  contact  with  it.  When  entering  a  room  with  a  number  of  guests 
already  assembled,  one  is  expected  to  bow  first  to  those  on  the  right, 
then  to  those  on  the  left,  after  which  one  may  greet  any  particular 
friends  or  acquaintances  individually.  In  conversation  it  is  not  bad 
form — in  fact,  it  is  the  usual  thing — to  inquire  as  to  a  man’s  age,  his 
position,  his  plans  for  the  future,  the  price  paid  by  him  for  this  or 
that.  One  is  always  expected  to  inquire  as  to  a  man’s  sons  and 
parents  and  their  welfare. 

The  order  of  seating  at  a  Chinese  dinner  differs  greatly  from  that 
in  vogue  in  the  West.  The  order  of  seats  for  square  and  round  tables 
is  shown  in  Figure  14.  Hound  tables  are  less  formal.  The  seat 
marked  1  in  the  plan  is  the  place  of  honor.  That  marked  6  in  plan 
No.  1  and  8  in  plan  No.  2  or  No.  3  are  the  seats  for  the  host.  Some 
Chinese  who  are  familiar  with  western  customs  respect  the  western 
seating  arrangements. 

The  Chinese  feast  is  a  most  elaborate  affair.  The  Chinese  have 
been  at  work  for  4,000  years  on  a  menu,  and,  in  the  opinion  of  many, 


CHINESE  SOCIAL  CUSTOMS  AND  ETIQUETTE 


397 


they  are  the  greatest  epicures  on  the  face  of  the  earth.  The  Chinese 
cook  is  an  artist  and  is  keen  on  getting  out  new  dishes.  The  saving 
grace  of  their  food  is  the  fact  that  it  is  thoroughly  cooked.  The 
Chinese  host  serves  his  honorable  guest  with  a  great  variety  of  dishes, 
hoping  that  among  these  humble  dishes  the  guest  may  find  some 
which  may  be  to  his  liking.  The  feast  begins  by  the  host’s  raising 
his  wine  cup  to  the  guests,  who  are  supposed  to  empty  their  cups  in 
response.  The  ricksha  coolie  or  the  chauffeur  who  brings  the  guest 
should  be  given  a  gratuity  while  waiting.  The  guests  at  a  Chinese 
dinner  are  supposed  to  take  their  leave  shortly  after  the  feast  is 
actually  concluded;  in  fact,  it  is  permissible  for  the  guest  to  excuse 
himself  after  indulging  in  a  few  courses  and  leave  before  the- feasting 
is  over. 

According  to  Chinese  etiquette,  gifts  or  other  objects  presented 
by  one  person  to  another  are  presented  and  received  with  both  hands. 
When  a  Chinese  sends  a  number  of  articles  as  a  gift  to  a  friend,  the 
recipient  is  supposed  to  choose  one  or  two  and  return  the  others.  He 
is  also  expected  to  give  about  one-tenth  of  the  value  of  the  gift  ac¬ 
cepted,  in  a  monetary  gratuity  to  the  servant  bearing  the  gift.  One 
should  be  careful  not  to  be  too  effusive  in  admiration  of  objects  of 
art  in  the  home  of  a  Chinese,  as  to  the  mind  of  the  Chinese  this 
savors  of  a  hint  that  the  guest  would  appreciate  being  presented 
with  it.  It  is  well  politely  to  refuse  offers  of  presents  unless  one  is 
convinced  that  there  exists  a  genuine  reason  for  their  presentation. 

The  foreigner  should  bear  in  mind  that  Chinese  are  accustomed 
to  taking  time  to  come  to  decisions,  that  business  is  done  over  the 
teacup  rather  than  over  the  telephone,  and  that  friendship  plays  an 
important  part.  The  people  are  kindly,  polite,  reasonable,  good- 
natured,  possessed  of  a  sense  of  humor,  and  respond  generously  to 
friendly  consideration  from  others. 

CHINESE  NAMES 

One  should  be  careful  in  speaking  of  the  Chinese  to  use  the  appella¬ 
tion  “Chinese,”  and  not  “Chinamen,”  “John  Chinaman,”  or 
“  Chinks,”  all  of  which  are  objectionable  to  these  people.  Thus  one 
should  speak  of  a  “  Chinese  ”  and  not  a  “  Chinaman.”  Similarly, 
Chinese  object  strongly  to  the  use  of  the  appellation  “heathen.”  To 
make  a  distinction  of  this  nature,  the  appellation  “  non-Christian  ” 
is  not  objectionable. 

Americans  intending  to  conduct  business  or  maintain  social  inter¬ 
course  with  Chinese  should  provide  themselves  with  calling  cards 
bearing  on  one  side  their  names  and  occupations  and  addresses  in 
English,  and  on  the  other,  in  Chinese.  It  is  customary  to  have  a 
three-character  name. 

Foreigners  usually  aim  to  get  Chinese  characters  that  resemble  in 
sound  the  foreign  name.  For  instance,  the  name  “Wilson”  may  be 
rendered  in  Chinese  by  the  three  characters  “Way-Lee-Son.”  It 
must  be  borne  in  mind  that  Chinese  custom  places  the  family  name 
first;  thus,  “George  Wilson”  in  Chinese  would  appear  “Wilson 
George.”  Mr.  Wu  Ting  Fang  is  Mr.  Wu,  and  not  Mr.  Fang.  Chi¬ 
nese  often  try  to  assist  the  foreign  to  understand  the  English 
rendition  of  their  names  by  hyphenating  the  given  names,  thus, 
“Wu  Ting-Fang,”  or,  if  placed  in  English  style,  “Ting-Fang  Wu.” 


398 


COMMERCIAL  HANDBOOK  OF  CHINA 


In  choosing  Chinese  names  it  is  preferable  to  take  them  from  the 
recognized  surnames  in  China,  of  which  there  are  about  150.  It 
is  well  to  consult  several  Chinese,  including  a  scholar,  so  as  to  secure 
names  the  meaning  of  which  will  not  tend  to  subject  their  bearer 
to  ridicule.  It  is  preferable  to  have  a  name  that  bears  a  good  mean¬ 
ing  from  a  Chinese  viewpoint  rather  than  one  that  attempts  to  carry 
the  English  sound  but  conveys  a  ridiculous  meaning.  Similarly, 
American  business  men,  in  choosing  Chinese  firm  names,  should  do 
so  with  the  utmost  care  and  only  after  consulting  those  who  are 
able  to  give  good  counsel.  Merely  because  a  man  is  Chinese,  should 
not  be  conclusive  evidence  that  his  education  and  training  are  such 
as  to  entitle  him  to  speak  with  authority  upon  delicate  shades  of 
meaning  of  various  Chinese  characters.  Chinese  do  not  usually 
employ  family  names  in  designation  of  their  business.  They  choose 
such  appellations  as  the  house  of  “  abundant  prosperity  ”  or  “  pre¬ 
cious  virtue,"’  etc.  These  shop  signs  become  valuable  assets  to  estab¬ 
lished  business  concerns.  Any  American  Government  official  in 
China  will  gladly  assist  his  nationals  in  securing  good  counsel  for 
the  choosing  of  Chinese  personal  or  business  names. 

PERSISTENCE  OF  TRADITIONS 

In  spite  of  the  fact  that  China  is  now  in  the  midst  of  an  intel¬ 
lectual  renaissance  and  is  undergoing  a  transition — which  is  prob¬ 
ably  the  most  momentous  in  the  several  thousands  of  years  of  its 
history — yet  customs  and  practices  which  are  the  resultant  of  cen¬ 
turies-old  traditions  will  not  soon  disappear.  Outwardly  many  rad¬ 
ical  changes  may  take  place,  but  the  essence  and  influence  of  the  old 
institutions  will  long  persist  in  coloring  the  thoughts  and  actions  of 
the  people.  That  remarkable  institution,  the  Chinese  family,  which 
decrees  that  a  man  is  his  brother’s  keeper,  will  continue  to  project 
that  principle  for  many  decades  after  legal  enactment  may  have 
decreed  otherwise. 

An  interesting  compilation,  which  throws  considerable  light  on 
Chinese  customs  and  traditions,  is  a  set  of  eight  beautifully  illus¬ 
trated  volumes  under  the  title,  “  Researches  into  Chinese  Supersti¬ 
tions,’"  by  Henri  Dori,  S.  J.,  translated  by  M.  Kennedy,  S.  J., 
T’usewei  Printing  Press,  Shanghai. 


KEEPING  WELL  IN  CHINA 

Dr.  W.  W.  Peter,  Director,  Council  on  Health  Education,  China 

A  POINT  OF  VIEW 


This  is  written  primarily  for  foreigners,  particularly  newcomers 
and  travelers,  rather  than  for  Chinese,  but  the  rules  of  the  road  to 
health  are  the  same  for  all.  That  Chinese  often  observe  them  in  the 
breach  is  no  reason  why  you  should  do  so ;  and  their  average  length 
of  life  is  probably  much  shorter  than  you  want  yours  to  be. 

Health  is  a  purchasable  thing.  More  of  it  can  be  bought  by  brains 
than  by  money.  You  will  see  many  rich  Chinese  (and  foreigners) 
die  because  they  used  the  one  and  not  the  other.  Use  both. 

Certain  major  rules  of  health  apply  to  everybody  everywhere  in 
China.  Some  of  these  will  be  suggested  later.  Other  minor  ones 
depend  upon  such  factors  as  environment,  occupation,  individual 
habits,  and  geographical  location.  China  is  a  big  country  with 
widely  differing  health  assets  and  health  hazards.  Seasons,  climate, 
food,  and  living  conditions  are  not  the  same  everywhere.  Orient 
yourself  and  ascertain,  for  the  locality  in  which  you  are,  just  what 
you  are  up  against 

Only  a  crank  or  a  fool  would  attempt,  therefore,  to  enumerate 
minor  health  rules  in  minute  detail.  There  is  no  such  manual  of 
healthy  living  prescribable  to  everybody  everywhere  under  all  cir¬ 
cumstances.  One  must  use  discrimination  and  common  sense. 

If  you  want  to  keep  well  in  China  you  must  acquire  one  thing 
which  is  indispensable — an  inquisitive,  but  not  morbidly  disposed, 
mind  on  health  subjects.  Learn  how  the  best  players  where  you 
live  play  the  game.  Be  constantly  on  the  alert  to  secure  reliable 
information  from  those  around  you  on  what  health-conserving  prac¬ 
tices  are  commonly  followed  by  the  intelligent  healthy  who  have 
learned  to  overcome  health  hazards.  Should  you  change  residence, 
your  health  practices  may  have  to  be  changed  also.  The  health  game 
varies  markedly  as  between  north  and  south;  between  living  in  an 
international  settlement  and  a  place  10  miles  away;  between  port 
cities  and  the  interior.  You  will  have  to  work  out  your  own  health 
“  dope  sheet  ”  as  you  move  around. 

You  could  take  many  things  for  granted  u  back  home.”  Better 
not  do  too  much  of  that  in  this  land,  which  has  often  been  stigma¬ 
tized  as  “  the  fountainhead  of  epidemic  diseases.”  Nose  around  and 
get  such  facts  as  how  your  household  is  run.  It  will  pay  to  visit 
your  own  and  your  servants’  kitchens,  latrines,  servants’  living  quar¬ 
ters,  and  outhouses  frequently.  Get  to  know  the  health  habits  of 
your  entire  household.  Occasionally  have  a  qualified  doctor  check  up 
on  these  and  throw  light  on  any  problems  which  reveal  themselves. 
Then,  if  you  wish  to  take  things  for  granted,  you  can  do  so  with 
your  eyes  open.  Practice  vigilance,  which  is  for  the  larger  part 
just  another  word  for  cleanliness. 


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COMMERCIAL  HANDBOOK  OF  CHINA 


The  sciences  of  medicine  and  public  health  have  developed  certain 
safeguards  which  may  be  relied  upon.  Many  others  are  still  in  the 
making.  The  use  of  the  known  safeguards  demands  three  things: 
Intelligence,  knowledge,  and  common  sense.  By  the  proper  exercise 
of  them  all  there  is  no  reason,  under  the  ordinary  circumstances  of 
living  which  obtain  in  China,  why  you  can  not  live  as  happily,  as 
effectively,  and  as  long  here  as  you  would  back  home,  where  profes¬ 
sional  experts  think  through  many  of  your  health  problems  for  you 
and  hand  out  the  answer  in  the  form  of  prescribed  health  laws.  In 
China,  unfortunately,  health  maintenance  is  still  very  largely  an 
individual  and  not  a  community  matter.  This  means  that  you  will 
have  to  keep  your  eyes  and  mind  open  and  work  a  little  harder  at  it. 
The  responsibility  is  yours.  You  can  not  “pass  the  buck.” 

So  much  for  this  subject  of  a  point  of  view.  I  consider  it  of 
greater  importance  for  me  to  have  stressed  this  than  to  have  started 
right  in  to  enumerate  a  list  of  “  dos  ”  and  “  don’ts.”  Also,  if  you 
acquire  the  right  point  of  view,  it  will  not  be  a  serious  matter  how 
many  important,  definite  “  rules  ”  I  may  omit.  You  will  discover 
them  for  yourself. 

The  rest  of  this  article  is  only  for  healthy,  normal  persons  who 
wish  to  remain  such.  They  are  the  only  kind  who  should  be  allowed 
to  come  to  China  to  live.  If  you  are  sick,  go  to  see  a  doctor.  What 
follows  may  explain  perhaps  how  you  got  that  way  and  how  to 
watch  your  step  next  time,  but  it  is  not  meant  to  be  a  consulting 
room  in  print. 

HEALTH  INSPECTION 

The  time  is  soon  coming  when  no  American  w-ill  be  sent  to  China 
permanently  who  has  not  passed  a  standard  physical  and  medical 
examination.  If  you  did  not  have  one  before  you  came,  take  it 
upon  yourself  to  secure  a  trained  worker  familiar  with  the  intri¬ 
cacies  of  the  human  machine  to  do  this.  You  owe  it  to  yourself  and 
to  those  dependent  upon  you  to  know  your  physical  assets  and 
liabilities.  Do  not  go  blindly  along  on  the  mere,  but  unestablished, 
hope  that  your  machine  is  functioning  properly.  It  probably  is — 
but  knowT.  This  physical  and  medical  examination  should  be  re¬ 
peated  annually.  It  is  a  form  of  health  insurance  which  everyone 
should  carry. 

IMMUNIZATION 

Be  vaccinated  against  smallpox  every  three  years.  Be  inoculated 
against  typhoid  and  paratyphoid  fevers  every  two  years.  If  you 
have  children,  do  not  neglect  giving  them  this  protection  also.  I 
vaccinated  my  last  baby  during  a  smallpox  epidemic  at  the  age  of 
3  days.  I  inoculated  her  against  typhoid  and  paratyphoid  at 
the  age  of  5  years.  You  will  find  that  authorities  differ  on 
the  subject  of  both  age  and  frequency.  Follow  your  doctor’s  advice 
and  hold  him  responsible  for  results. 

It  would  be  interesting  to  know  in  terms  of  dollars  just  how 
much  the  failure  on  the  part  of  Americans  in  China  to  acquire  and 
maintain  immunity  against  these  diseases  is  costing  our  Government, 
business  concerns,  and  missionary  organizations  annually.  One  of 
the  largest  missions  in  China  still  reports  typhoid  fever  as  standing 
at  the  top  of  the  list  of  diseases  causing  death  and  incapacitation. 


KEEPING  WELL  IN  CHINA 


401 


All  this  lost  money  and  time,  this  inefficiency  and  disruption  of 
plans  and  hopes  in  the  lives  of  individuals  and  families,  is  quite 
unnecessary.  It  is  sheer  waste. 

These  diseases  are  rife  in  China.  They  are  to  be  found  in  almost 
all  parts  of  the  country,  for  the  total  absence  of  quarantine  regula¬ 
tions,  the  system  of  sewage  disposal,  and  the  sources  of  our  food  and 
water  supplies  all  combine  to  facilitate  easy  communication  of  these 
diseases  from  the  sick  to  the  well.  The  barriers  are  all  down  or  do 
not  exist  at  all.  Play  safe. 

The  value  of  the  protection  which  modern  medical  science  offers 
you  against  these  diseases  is  better  and  more  spectacularly  estab¬ 
lished  than  almost  anything  else.  If  you  neglect  these  simple,  fun¬ 
damental,  but  far-reaching  precautions,  you  may  as  well  ditch  all 
other  precautions  as  well.  I  am  not  striking  at  air.  Sickness  and 
death  from  these  preventable  causes  still  occur  all  too  frequently 
among  Americans  in  China.  * 

I  stress  this  point  also  because  there  are  not  yet  available  similar 
preventives  against  some  of  the  other  communicable  diseases  found 
in  China.  The  application  of  the  Schick  test  will  indicate  those  who 
are  susceptible  to  diphtheria.  A  small  prophylactic  dose  of  toxin- 
antitoxin  will  confer  immunity,  but  it  lasts  for  only  a  very  short 
time.  Similarly,  there  are  preventives  against  cholera  and  bubonic 
plague,  but  these  too  are  short-term  insurance  and  vary.  Against  cer¬ 
tain  other  major  diseases — typhus,  pneumonic  plague,  pneumonia, 
dysentery,  scarlet  fever,1  measles,  and  others — there  is  nothing.  Also, 
for  some  on  this  list  there  is  no  specific  treatment.  Treatment  is 
palliative  and  symptomatic ;  diet  and  nursing  are  important,  but  you 
either  get  well  or  you  don’t.  Therefore,  take  what  established  pro¬ 
tection  you  can  get  and  reduce  the  total  possible  risks  by  at  least  that 
much.  In  the  organization  to  which  I  belong  these  immunizations 
are  compulsory.  Anyone  who  does  not  wish  to  comply  for  reasons  of 
his  own  is  permitted  to  take  his  chances  elsewhere. 


THE  GASTROINTESTINAL  TRACT 


Into  the  gastrointestinal  tract  go  all  of  the  solid  and  liquid  raw 
materials  which  are  used  to  maintain  our  bodily  machine  and  pro¬ 
duce  energy  for  work.  Not  counting  the  luxury  of  the  afternoon- 
tea  habit,  three  main  shipments  of  raw  stock  daily  are  sufficient.  Not 
all  of  the  stock  is  sterile,  nor  should  it  be. 

This  gastrointestinal  trunk  line  in  an  adult  is  about  30  feet  long, 
not  counting  the  numerous  branch  lines  along  the  way.  The  line 
twists  and  turns,  has  dilated  and  contracted  points,  and  the  whole  of 


1  Regarding  scarlet  fever,  the  following  statement  based  upon  the  latest  medical  dis¬ 
covery  is  worthy  of  consideration  : 

The  streptococcus  hemlyticus  found  in  the  throats  of  scarlet-fever  patients  has  been 
shown  by  Dochez,  Avery,  and  Bliss  to  belong  to  a  separate  biological  group.  Drs. 
Gladys  and  George  Dick  have  produced  scarlet  fever  in  human  volunteers  with  strep¬ 
tococci  from  the  throats  of  scarlet-fever  patients.  They  have  made  a  toxin  from  these 
strains  and  have  shown  that  the  skin  of  susceptible  individuals  is  injured  by  it,  while 
the  skin  of  immune  individuals  is  not.  They  have  produced  active  immunity  by  suit¬ 
able  doses  of  the  toxin.  Dochez  and  the  Dicks  have  produced  antitoxin  in  the  horse. 
This  has  been  used  therapeutically  and  prophylactically  with  marked  success  by  Blake 
and  Trask  in  New  Haven.  It  is  known,  therefore,  that  scarlet  fever  is  caused  by  the 
absorption  of  a  toxin  produced  by  the  growth,  in  the  t.hroa,t  of  a.  certain  type  of 
streptococcus.  An  antitoxin  is  produced  in  the  process  of  immunity.  This  antitoxic 
immunity  is  measured  by  the  skin  test  with  the  toxin.  Active  or  passive  immunity 
to  the  disease  can  be  produced  by  the  injection  of  toxin  or  antitoxin. 


100020°— 26 - 27 


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COMMERCIAL  HANDBOOK  OF  CHINA 


it  is  operated  in  darkness.  It  is  a  warm,  roomy,  well-stocked  breed¬ 
ing  place  for  germs  or  worms,  once  they  get  in. 

Apart  from  insects,  most  of  the  communicable  ailments  to  which 
we  are  subject  concern  this  gastrointestinal  tract.  We  get  cholera, 
typhoid,  the  various  dysenteries,  and  a  marvelous  assortment  of 
worms  through  the  mouth.  Our  intake  is  bulky  and  frequent.  It 
passes  through  many  hands  before  it  reaches  ours.  The  organisms 
and  worm  eggs  are  microscopic,  and  there  you  are.  We  have  only 
to  eat  a  sufficient  number  of  these  bolshevik  organisms  to  start 
things  going.  If  our  bodily  resistance  is  unable  to  arrest  them,  they 
succeed  in  blowing  up  the  government.  Sometimes  it  is  the  doctor 
and  nurse  who  succeed  in  pulling  us  through.  Sometimes  the  under¬ 
taker.  To  avoid  this  kind  of  a  showdown,  certain  precautions  are  in 
order. 

The  chief  precaution  you  have  to  take  is  simple  cleanliness.  It 
sounds  simple,  but  !t  is  not  always  so  easy  to  execute.  Flies,  fingers, 
and  filth  are  three  fundamental  objects  of  concern.  Without  piling 
in  too  many  details,  this  means  stamping  out  fly  breeding  places  to 
the  limit.  But  you  can  do  this  only  on  your  own  property.  Hence 
it  means  further  proper  screening  (and  this  is  quite  a  subject  by 
itself)  and  swatting.  It  means  washing  your  hands  before  you  eat 
and  seeing  to  it  that  the  servants  have  adequate  facilities  in  soap, 
hot  water,  and  towels,  and  that  they  are  used.  The  hands  and  finger 
nails  of  your  servants  should  be  kept  as  clean  as  your  own.  Do  not 
permit  them  to  wear  white  gloves  while  serving.  They  can  not  wear 
them  while  preparing  food.  It  means  the  application  of  the  point 
of  view  I  stressed  in  the  beginning. 

A  lot  of  nonsense  has  been  written  and  passed  on  by  word  of  mouth 
about  the  danger  of  Chinese  food.  If  you  have  a  passably  fair  di¬ 
gestion  you  can  eat  almost  any  kind  of  food.  Our  gastrointestinal 
system  is  so  marvelously  constructed  that  one  of  its  chief  character¬ 
istics  is  its  adaptability  to  handle  without  ill  effects  all  kinds  of 
raw  stock. 

The  Chinese  are  unexcelled  in  preparing  delicious  foods.  In  many 
respects  Chinese  food  surpasses  foreign  food.  But  no  food  is  safe 
if  it  is  not  prepared  in  a  cleanly  manner,  served  in  clean  dishes,  by 
clean  servants,  and  eaten  properly.  The  danger  of  Chinese  food 
lies  right  at  this  point.  Chinese  cooks  never  heard  of  bacteria,  or  if 
they  did,  they  probably  do  not  believe  in  them.  Soap  costs  money 
and  takes  time  to  use.  The  constant  changing  of  garments;  scrubbing 
of  this,  that,  and  the  other  thing  in  kitchen  and  dining  room — well, 
no  Chinese  cook  in  good  standing  believes  in  it,  if  left  to  his  own 
devices.  The  solution  of  the  difficulty  is  not  to  refuse  invitations 
to  eat  Chinese  food,  but  to  confine  your  intake  to  the  foods  which  are 
served  hot.  Chinese  food  is  as  good  as  foreign  food.  The  risk  in 
either  is  not  the  make-up  but  the  manner  of  preparation,  serving,  and 
eating. 

Eat  plenty  of  raw  fruits.  China  abounds  in  fine  fruits.  First 
wash  it  in  ordinary  water.  Safety  is  acquired  bv  dipping  the  fruit 
in  boiling  water.  You  will  not  be  safe  if  the  fruit  is  cracked,  blem¬ 
ished,  or  bruised.  Peel  after  the  dipping  and  not  before.  Use 
a  clean  knife. 


KEEPING  WELL  IN  CHINA 


403 


The  eating  of  raw  salads  is  attended  with  risk.  There  is  no  known 
method  whereby  such  vegetables  as  lettuce  can  be  sterilized  and  used 
safely  in  this  manner.  Make  exceptions  only  in  the  case  of  vegetables 
which  you  know  are  grown  in  soil  not  fertilized  by  human  excreta. 
All  ordinary  vegetables  should  be  thoroughly  cooked. 

All  raw  milk  should  be  boiled  or  Pasteurized,  covered  with  clean 
cloth  while  cooling,  and  kept  cool  till  used. 

Chinese  prefer  hot  tea  to  cold  water,  and  that  for  a  very  good 
reason.  Empirically,  if  not  rationally,  they  have  discovered  that 
somehow  raw  water  is  not  safe.  Drink  plenty  of  water,  but  have 
it  boiled  and  stored  as  carefully  as  in  the  case  of  milk. 

The  use  of  native  ice  is  dangerous.  Great  care  should  be  exercised 
in  the  making  of  ice  cream  and  in  the  preparation  of  cold  drinks,  in 
order  to  avoid  consuming  some  of  the  ice  or  the  ice  water. 

All  left-over  foods  should  be  stored  in  a  “  safe  made  of  fine-mesh 
screen  and  kept  in  a  cool  place.  In  hot  climates  food,  especially 
meat  and  fish,  deteriorates  rapidly. 

Constipation  can  be  generally  avoided  by  cutting  down  on  the 
meats  and  increasing  the  vegetables,  especially  those  with  plenty 
of  fiber,  like  celery,  spinach,  and  native  oranges.  Some  people  sit 
around  so  much  in  their  offices,  clubs,  and  homes  that  their  abdo¬ 
mens  might  as  well  be  encased  in  a  plaster  cast.  At  the  same  time 
they  keep  on  stoking  in  the  food.  Naturally  their  food  line  becomes 
clogged  up.  Play  something  requiring  vigorous  bodily  movement. 
This  excludes  the  phonograph  and  table  games.  If  you  do  not 
known  how  to  play,  take  exercise.  Just  walking  and  walking  is 
bitter  medicine  to  many,  but  at  that  it  is  better  than  caseara  or  some 
other  blockade  remover.  Do  not  get  into  the  habit  of  depending 
upon  cathartics.  Get  a  doctor’s  advice,  if  necessary,  and  change 
your  habits  of  living. 

Certain  ailments  have  their  origin  in  a  chronically  foul  mouth  and 
decayed  teeth.  Your  teeth  should  be  kept  clean  by  brushing  twice 
daily  and  should  be  cleaned  by  a  dentist  twice  each  year.  On  these 
occasions  he  should  examine  your  teeth  for  decay  and  should  per¬ 
form  any  necessary  repairs.  Most  dentists  need  no  urging  to  do 
this.  Your  grinding  outfit  requires  this  care,  for  upon  it  falls  the 
task  of  giving  the  first  treatment  to  the  raw  stock  which  you  take  in 
daily.  By  proper  attention  you  avoid  the  much  advertised  halitosis 
(bad  breath),  as  well  as  rheumatism  and  other  ailments,  to  say  noth¬ 
ing  of  preventing  or  postponing  your  having  to  sit  for  one  or  two 
artificial  plates. 

FLUSHING 

Sweat,  Produce  it  from  within.  Work  up  a  sweat  or  two  every 
week  even  in  the  winter  time.  In  summer  in  many  parts  of  China 
nature  will  give  you  generous  assistance,  but  even  in  hot  weather 
work  your  bones  and  muscles  up  to  the  point  where  you  really 
sweat.  What  method  you  use  to  secure  this  is  largely  immaterial. 
Do  not  let  your  body  become  soft,  flabby,  and  nothing  more  than  a 
self-propelling  vehicle  to  carry  around  your  head. 

Over  80  per  cent  of  the  body  is  made  up  of  water.  Each  cell  is 
surrounded  by  it.  Each  cell  eats,  works,  and  produces  wastes.  If 
the  wastes  are  not  removed  the  cell  and  its  neighbors  and  the  whole 
body  become  unfit  for  their  maximum  output.  The  tang  is  taken 


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out  of  living.  Work  remains  work  and  is  no  longer  a  great  game. 
The  processes  by  which  you  sweat  flush  out  the  body.  The  circula¬ 
tion  increases.  Stored-up  food  is  rushed  to  the  working  parts,  and 
the  toxic  wastes  are  flushed  away  through  skin,  bowels,  kidneys,  and 
lungs.  The  idea  back  of  a  cold  shower  followed  by  a  brisk  rub 
is  not  only  cleanliness  but  flushing  the  inside  of  the  body.  Play  and 
exercise  are  physiological  requirements  unless  you  wish  to  go  pre¬ 
maturely  stale.  Hence  mere  sweat  resulting  from  hot  weather  is  not 
sufficient.  That  is  a  thermal  arrangement  whereby  the  body  is  kept 
at  a  normal  temperature  by  evaporation  on  the  surface. 

CLOTHING 

By  observing  local  practices  you  will  be  able  to  make  a  selection 
suitable  to  your  own  comfort.  I  have  no  opinion  as  to  the  relative 
merits  of  wool,  cotton,  or  silk.  Some  people,  especially  from  con¬ 
tinental  countries,  will  try  to  persuade  you  to  lay  in  a  stock  of  so- 
called  “  cholera  belts.”  In  my  opinion,  these  wool  contraptions  are 
an  awkward,  irritating,  worthless  abomination. 

INSECT  BITES 

The  bites  of  certain  insects  may  be  dangerous.  Their  great  num¬ 
ber  and  small  size  constitute  their  defense  and  our  danger.  Unless 
infected  from  biting  a  previously  infected  person,  their  bites  are 
harmless,  but  as  to  this,  one  can  never  tell.  Malaria  in  its  several 
forms,  and  dengue  (“  bone-break  fever  ”)  are  transmitted  by  the 
mosquito;  typhus  fever  through  lice;  bubonic  plague  by  the  rat  flea; 
“  three-day  fever  ”  by  the  sand  fly ;  and  tuberculosis,  intestinal  dis¬ 
eases,  and  perhaps  others,  by  the  ever-present,  common  house  fly. 

PROTECTION  FROM  SUN 

Wear  a  pith  hat  in  summer  to  protect  the  temples  and  the  back 
of  the  neck.  The  hat  should  have  apertures  for  ventilating  the  top 
of  the  head.  The  use  of  colored  glasses  decreases  eyestrain.  If  you 
wear  lenses,  have  a  pair  of  colored  glasses  ground  to  your  refraction. 
The  difference  in  sunlight  in  China  is  probably  chemical  rather  than 
thermal. 

MENTAL  ATTITUDE 

Your  mental  attitude  will  influence  your  physical  health.  If  the 
Chinese  people  were  like  your  people  in  every  respect  and  in  all  their 
ways  of  doing  things  you  probably  would  have  stayed  at  home. 

Cultivate  tolerance  and  patience.  Learn  to  laugh.  It  requires 
some  thirty  different  muscles  to  produce  a  good  laugh,  but  it  is 
easy  once  you  know  how.  You  will  And  enough  in  the  course  of 
time  in  your  surroundings  and  your  work  to  make  you  weep.  Do 
that,  too,  if  you  must,  but  then  laugh.  Learn  from  the  Chinese. 
Even  the  poor,  oppressed,  ignorant,  hardworking  coolie  has  an  en¬ 
viable  sense  of  humor  and  can  smile.  Avoid  imitating  such  foreign¬ 
ers  as  you  may  see  stalking  about  China,  each  like  Atlas  with  a 
world  on  his  shoulder,  growling  at  the  slightest  pretext  and  dissatis¬ 
fied  with  everything  generally.  You  are  a  guest  here,  and  every 


KEEPING  WELL  IN  CHINA 


405 


decent  guest  should  be  easy  to  please.  For  purely  health  reasons 
it  might  be  well  for  all  Americans  to  come  up  annually  for  an  ex¬ 
amination  in  humor.  All  those  found  to  have  lost  this  gift  should 
be  returned  home  on  the  next  ship  at  half  pay. 

BIBLIOGRAPHY 

Association  of  Medical  Officers  of  Missionary  Societies,  London.  Health  In¬ 
structions  for  Missionaries  in  the  Tropics. 

Boone.  Cousland,  and  Davenport.  Health  Hints  for  Missionaries  to  China. 

Shanghai,  China  Medical  Missionary  Association. 

China  Inland  Mission,  Shanghai.  Health  pamphlets : 

No.  1.  General  Introduction  and  the  Prevention  of  Fly-Borne  Diseases. 

No.  2.  Eleven  Topics,  Including  Malaria,  Plague,  Tuberculosis. 

No.  3.  Typhus,  Typhoid,  Dysentery,  and  Cholera. 

Council  on  Health  Education,  Shanghai.  Health  Magazine. 

Lennox.  Dr.  W.  G.  (Peking  Union  Medical  College.)  Wasted  Lives. 
Muirhead,  W.  Practical  Tropical  Sanitation.  London.  John  Murray,  1921. 
Barrie-Peter.  Famine  Fever.  Council  on  Health  Education. 

Peter.  The  Heavenly  Flower.  Council  on  Health  Education. 


PART  II 


CANTON  CONSULAR  DISTRICT 


By  Consul  M.  M.  Hamilton  and  Trad©  Commissioner  Osborn  S.  Watson 

LOCATION  AND  AREA 

The  Canton  consular  district  extends  from  18° 'to  26°  north  lati¬ 
tude,  thus  corresponding  in  latitude  to  the  area  between  the  island 
of  Jamaica  on  the  south  and  the  city  of  New  Orleans  on  the  north. 
Its  area  is  160,000  square  miles,  comprising  the  entire  Province  of 
Kwangsi  and  the  portion  of  Kwangtung  Province  west  of  longitude 
115°.  The  average  annual  rainfall  is  80  inches,  the  average  minimum 
temperature  35°  F.,  and  the  average  maximum  temperature  95°  F. 
There  are  two  seasons — the  rainy  season,  from  April  to  July,  and  the 
dry  season,  from  August  to  March. 

POPULATION 

The  population  of  the  district  is  estimated  by  the  Chinese  Maritime 
Customs  at  30,000,000,  without  reference  to  territory  included  in  the 
Swatow  consular  district.  The  average  density  of  population  for 
the  whole  consular  district  is  187.5  per  square  mile,  for  Kwangtung 
Province  265  per  square  mile,  and  for  Kwangsi  Province  104  per 
square  mile. 

CITIES 

Important  cities  of  the  district  are : 


Cities  or  districts 

Population 

(estimated) 

Euro¬ 

peans 

Ameri¬ 

cans 

American 

business 

firms 

Kwangtung  Province: 

Canton l. _ _  _  .  _ _  _  _ 

900, 000 
77,  000 

988 

790 

25 

Kongmoon  1  _  -  _ _  _ -  ..  _  - _ 

20 

15 

2 

Samshui 1  _ _ _ _ 

7'  400 

8 

3 

0 

Kiungchow  1 _  _ _ _  _  _ 

59,  000 

30 

13 

1 

Pakhoi 1  _  _  .  _ 

35,  000 
1, 145,  000 
1, 988,  000 
1,  230,  000 
1, 039,  000 

50,  000 
67,  400 
20,  000 
526,  000 

14 

0 

Heungshan  (district).  __  _ _ _ _ -  .  _ 

13 

0 

Namhoi  (district  _  ..  _  _ _  . _ _ 

1 

0 

Sunwui  (district),  _ *. _ 

0 

Taileung  (district) _ .  ..  _  .  _ _ 

0 

Kwangsi  Province: 

Wuchow  1 _ _  ...  _  _  _  _ 

26 

25 

1 

Nanning1 _  ...  ...  _ _ _ _ _ 

8 

17 

1 

Lungchow  l__.  _  ..  _  _ 

10 

Kweilin  (district).  ...  .  _  .. 

10 

21 

0 

Liuchow  (district) _ _  _ _ _ 

575,  000 

0 

1  Treaty  ports  where  foreigners  are  entitled  to  reside  for  trade  purposes. 


Canton  is  the  chief  assembling  and  distributing  port  for  both 
imports  and  exports.  The  main  channel  of  the  West  River,  over 
which  moves  practically  all  trade  between  Kwangsi  Province  and 
the  outside  world,  does  not  enter  Canton  directly  but  runs  in  a 

407 


408 


COMMERCIAL  HANDBOOK  OF  CHINA 


general  southeasterly  course  from  Kwangsi  to  the  ocean.  Conse¬ 
quently,  a  certain  trade  exists  between  West  River  ports  and  Hong¬ 
kong  wherein  Canton  plays  no  part.  However,  Canton  remains  an 
outstanding  factor  in  the  trade  of  southern  China.  The  chief  place 
of  foreign  residence  and  trade  at  Canton  is  the  island  of  Shameen, 
which  was  taken  over  by  the  British  and  French  in  1859.  On  it  are 
located  most  of  the  foreign  banks,  residences  of  foreigners,  consu¬ 
lates,  and  commission  houses. 

Kongmoon ,  on  the  West  River,  taps  the  populous  Sunning  district 
in  the  southeastern  part  of  Kwangtung  Province.  There  is  a  large 
junk  trade  and  daily  steam  communication  between  Hongkong  and 
Kongmoon.  •  Trading  with  the  interior  is  facilitated  bv  a  branch 
of  the  Sunning  Railway  that  runs  into  Kongmoon. 

Samshui ,  some  30  miles  west  of  Canton,  near  the  junction  of  the 
West  and  North  Rivers,  is  an  important  port  of  call  for  West  River 
vessels  and  is  connected  by  train  with  Canton. 

Kiungchow  is  on  the  island  of  Hainan,  for  which  Hoihow  serves 
as  a  seaport.  The  two  cities  are  only  3  miles  apart.  The  commercial 
possibilities  of  Hainan  are  reported  to  be  large,  but  are  practically 
undeveloped. 

Pakhoi ,  a  port  in  the  southern  end  of  Kwangtung  Province,  serves 
as  a  distributing  center  for  the  important  cities  of  Limchow  and 
Chinchow. 

Wuchow ,  in  Kwangsi  Province,  is  a  natural  distributing  center 
for  the  trade  between  eastern  Yunnan,  Kweichow,  and  Kwangsi, 
on  the  one  hand,  and  Canton  and  Hongkong  on  the  other.  Ocean¬ 
going  vessels  ply  between  Wuchow,  Hongkong,  and  Canton. 

Nanning,  in  southern  central  Kwangsi,  was  opened  to  foreign 
trade  in  1907.  Of  recent  years  the  development  of  the  city  has  been 
retarded  bv  unsettled  conditions. 


AGRICULTURE 

The  following  table  indicates  the  principal  products  of  the  district : 


Products  (in 
order  of  im¬ 
portance) 

Planting  season 

Harvesting  sea¬ 
son 

Average 
produc¬ 
tion  per 
acre 

Estimated  annual 
production 

Use  or  disposition 

1.  Silk _ 

Throughout 

Throughout 

Pounds 

(9 

6,000,000  pounds _ 

Available  for  ex- 

2.  Rice _ 

year;  7  crops. 
March  and  Au- 

year. 

July  and  De- 

1,800 

No  data . . 

port  trade. 

Local  consumption. 

3.  Sugar  cane 

4.  Matting 

gust;  2  crops. 

\  pril 

cember. 

November  .  . 

810, 000 
12,000 

...  .do _ _ _ 

_ do  . . 

Do. 

Manufacture  of 

November. 

July-August _ 

matting  and  rugs 

straw. 

R  Cassia 

Throughout 

year. 

January-Feb- 

May _ _ 

16,  000,  000-20,  000,  000 

for  export  abroad 
and  for  local  use. 
Export  trade. 

6.  Tobacco... 

July- August - 

1,100 

pounds  available 
for  export. 

50, 000,  000-60,  000, .000 

Mainly  for  export. 

7.  Tea 

ruary 

Throughout 

year. 

..do  ...  _ 

June-July _ 

0) 

pounds. 

1, 000,  000-3, 000,000 

Local  use  and  ex- 

8.  Ginger 

August _ 

(') 

pounds  exported. 
10,000,000  pounds  ex- 

port. 

Export  trade. 

Q  Fruits 

do 

T  hroughout 
year. 

(2) 

ported. 

No  data _ _ 

Local  consump- 

tion. 

1  No  data. 


s  Varies. 


CANTON  CONSULAR  DISTRICT 


409 


Silk  is  the  premier  export  of  South  China  and  constitutes  in 
value  from  87  to  92  per  cent  of  the  total  exports  of  Canton  to  the 
United  States.  The  production  of  rice  is  insufficient  for  local  de¬ 
mands.  In  recent  years  tobacco  has  come  to  the  foreground  among 
the  exports,  while  tea  has  fallen  oft'.  Hongkong  handles  a  con¬ 
siderable  share  of  the  trade  in  cassia  and  ginger,  although  both  are 
produced  in  the  Canton  district. 

MANUFACTURING  AND  INDUSTRIAL  DEVELOPMENT 

The  figures  given  below  with  respect  to  manufacturing  industries 
are  estimates  made  by  representative  business  men ;  no  responsibility 
is  assumed  for  their  reliability. 


Industries  (in  order 
of  importance) 

Capacity 

Approxi¬ 
mate 
number 
of  em¬ 
ployees 

Approxi¬ 
mate 
capital  in 
industry 

Estimated 

output 

Disposition 

United 

States 

currency 

1.  Silk  filatures . 

8,000,000  pounds . 

500,000 

$14,  000,  000 

6,500,000  pounds. 

2.  Boat  building - 

No  data _ _ 

10,000 

150,  000 

Junks,  3  per 

Exported. 

month;  Sam- 

Local  use. 

pans,  75  per 

month;  motor 

boats,  6-8  per 

month. 

3.  Native  piece 

-Do. 

goods. 

4.  Knitting  and 

200  power  machines. 

1,000 

400,  000 

8,000  dozen  per 

Local  use  and  ex- 

weaving  fac- 

day. 

port  to  Chinese 

tories  (hosiery) 

communities 

abroad. 

5.  Marine  engines. . 

20-30  per  month _ 

2,000 

300,000 

20  per  month _ 

Local  use. 

6.  Match  factories.. 

2,000,000  small  boxes 

4,000 

1,  500,  000 

2,000,000  small 

Do. 

per  day. 

boxes  per  day. 

7.  Rubber-sole  fac- 

10,000  pairs  per  day.. 

1,  750 

625,  000 

10,000  paiis  per 

Do. 

tories. 

day. 

8.  Cement  works... 

187,500  pounds  per 

0) 

0) 

(>) - 

Do. 

day. 

9.  Tanneries _ 

500  pieces  per  day... 

2,000 

500,  000 

1,500  per  day _ 

Local  use  and  ex- 

port. 

10.  Copper  mills..  .. 

10,000  pounds _ 

1,  000,  000 

10,000  pounds 

Local  use. 

per  day. 

11.  Soda-water  fac- 

11,000  dozen  per  day. 

350 

100,000 

1,000,000  dozen 

Do. 

tories. 

per  year. 

12.  Brick  kilns _ 

100,000  per  day . . 

1,  000 

450,  000 

100,000  per  day.. 

Canton  and  Hong- 

kong  consump- 

tion. 

13.  Ice-making  plants 

50.25  short  tons  per 

20 

250,  000 

32  short  tons  per 

Local  use. 

24  hours. 

24  hours. 

14.  Rice  mills... . 

700,000  pounds  per 

1,000 

1,000,000 

650,000  pounds 

Do. 

day. 

per  day. 

15.  Mint . . 

1,700,000  silver  20- 

1,000 

750,  000 

750,000  silver  20- 

Local  use  and  ex- 

cent  pieces  per 

cent  pieces 

ports  to  China 

day. 

per  day. 

ports. 

i  Closed. 

HOME  INDUSTRIES 

The  above  are  industries  that  have  shown  a  tendency  to  modernize 
their  methods  and  equipment.  No  mention  has  been  made  of  the 
decentralized  native  industries  which  are  carried  on  by  hand  in 
the  homes  of  the  workers.  Among  such  industries  are  those  for 
which  Canton  has  long  been  noted — the  carving  of  jade  and  ivory; 
the  mother-of-pearl  industry;  the  manafacture  of  brass  ware,  silver¬ 
ware,  rattan  ware,  blackwood  ware,  fans  (palm  leaf  and  other), 
embroideries,  leather  goods.  The  painting  of  porcelains  and  china- 


410 


COMMERCIAL  HANDBOOK  OF  CHINA 


ware  is  another  important  activity  at  Canton,  as  is  the  turning  out 
of  native  shoes  and  clothing.  The  preparation  and  exportation  of 
essential  and  other  oils  from  the  district  calls  for  special  mention. 
Among  the  oils  which  are  found  in  the  district  are  the  following: 
Bean,  groundnut,  sesamum  seed,  tea,  aniseed,  camphor,  cardamon, 
cassia  leaf,  cinnamon,  clove,  ginger,  gum  benjamin,  lucraban  seed, 
peppermint,  rose,  sandalwood,  and  wood. 

MANUFACTURE  OF  MATCHES 

Canton  has  made  commendable  efforts  to  supply  its  own  matches 
during  the  last  few  years.  Not  long  ago  there  was  a  large  importa¬ 
tion  of  foreign  manufactured  matches,  chiefly  of  Japanese  origin. 
With  the  establishment  of  match  factories  at  Canton,  foreign  impor¬ 
tations  naturallv  fell  oil'  and  the  city  became  a  center  from  which 
matches  were  shipped  to  the  interior  districts  and  to  other  parts  of 
China. 

Practically  all  of  the  machinery  used  in  the  match-making  industry 
has  been  imported  from  Japan,  but  one  factory,  the  largest  in  the 
district,  is  equipped  with  American  machinery.  Chemicals  and  other 
materials  utilized  in  the  industry  are  supplied  chiefly  by  Japan, 
although  there  have  been  several  shipments  of  wood  from  the  United 
States. 

RUBBER-SOLE  FACTORIES 

Another  innovation  in  Canton  has  been  the  development  of  rubber- 
sole  factories.  Shoes  with  rubber  soles  have  long  been  popular 
among  the  Cantonese,  and  many  of  the  shoes  were  turned  out  locally 
by  hand  labor,  the  soles  being  imported  from  Singapore.  The 
present  trend  of  the  industry  is  to  import  the  rubber  in  bulk  and 
to  manufacture  the  soles  at  Canton.  About  20  small  factories  have 
sprung  up.  Simple  types  of  machinery  are  used,  supplied  by  Japan, 
Germany,  and  Great  Britain.  New  installations  contain  some  Can¬ 
ton-made  machinery. 

•/ 

TANNERIES 

Of  the  45  tanneries  in  the  district,  15  are  in  Canton.  With  one  ex¬ 
ception,  these  tanneries  turn  out  their  products  by  crude,  hand  meth¬ 
ods.  All  the  old-style  tanneries  had  a  bad  year  during  1923,  due  in 
part  to  general  business  stagnation  and  in  part  to  the  inability  of 
such  factories  to  compete  with  the  machine-made  product.  However, 
a  Chinese  concern  equipped  entirely  with  American  machinery  re¬ 
ported  an  average  monthly  net  profit  of  $600  United  States  currency. 
This  company  imports  all  its  chemicals  from  the  United  States.  A 
new  plant  was  in  process  of  erection  during  1923  and  was  ready  for 
occupancy  by  the  middle  of  1924. 

COPPER  MILLS 

Fifteen  copper  mills  operate  within  the  Canton  district,  all  of 
which  are  owned  and  managed  by  Chinese.  The  only  mill  which  uses 
machinery  has  a  reported  capital  of  $100,000  United  States  currency, 
while  the  average  capital  of  the  more  primitive  mills  is  estimated  at 
$75,000  each.  The  raw  materials  consist  largely  of  scrap  copper,  oh- 


CANTON  CONSULAR  DISTRICT 


411 


tained  at  Canton  and  from  importations  originating  in  Yunnan 
Province.  The  native  method  of  manufacturing  is  to  employ  a  bam¬ 
boo  mold  and  subject  the  copper  to  hammering  by  hand.  It  some¬ 
times  requires  more  than  10  days  to  finish  one  sheet. 

BRICK  KILNS 

Of  the  200  brick  kilns  in  the  Canton  district,  only  one  is  modern — 
reported  to  be  the  only  one  of  its  kind  in  China.  The  plant  is 
equipped  with  machines  of  German  make,  and  is  now  producing 
60,000  bricks  per  day.  The  bricks  find  a  ready  market  and  the  fac¬ 
tory  operated  on  a  profitable  basis  during  1923,  the  gross  sales 
amounting  to  about  $240,000  United  States  currency. 

CEMENT  PLANT 

The  cement  plant  at  Canton  is  owned  by  the  provincial  govern¬ 
ment  and  was  not  in  operation  in  1922.  Its  operation  in  the  latter 
part  of  1923  was  spasmodic  and  uncertain.  Because  of  constant 
changes  in  the  administrative  staff  of  the  plant,  no  definite  and  relia¬ 
ble  information  as  to  its  output  has  been  ascertainable.  Cement  is 
turned  out  at  present  in  cloth  bags,  with  a  net  weight  of  250  pounds, 
and  sells  for  $2  United  States  currency  per  bag.  The  output  is  re¬ 
ported  to  be  of  inferior  grade,  unsuitable  for  reinforcing  purposes 
and  used  only  for  brick  mortar  and  mass  foundation  work. 

MARINE  ENGINES 

During  the  World  War  the  building  of  marine  engines  assumed 
considerable  proportions  at  Canton.  Unsettled  conditions  in  the 
Canton  delta  harmed  the  industry  in  1923  and  little  activity  was 
apparent.  A  few  steam,  oil,  and  gasoline  engines  were  turned  out, 
the  former  finding  the  biggest  demand.  Until  the  middle  of  1923 
the  Chinese-made  engine  undersold  any'  imported  engines  on  the 
market.  As  first  price  is  the  prime  consideration  in  most  purchases, 
higher  costs  of  operation  and  the  comparatively  rapid  deteriora¬ 
tion  of  the  Chinese  engine  did  not  seriously  hinder  sales.  But  about 
July  1,  1923,  German  engines  appeared  on  the  market  at  a  retail 
price  of  approximately  $70  United  States  currency  per  horsepower. 
They  competed  favorably  with  the  Canton  makes  on  the  basis  of 
price  as  well  as  quality,  and  hence  the  building  of  marine  engines  at 
Canton  declined  during  1923. 

ICE-MAKING  PLANTS 

There  are  two  ice-making  plants  in  Canton.  The  oldest,  a  Chi¬ 
nese  concern,  has  a  paid-in  capitalization  of  about  $50,000  United 
States  currency.  Both  refrigerating-plant  and  power  engines  were 
•  imported  from  the  United  States.  The  other  plant  is  a  British  con¬ 
cern  with  a  paid-in  capital  of  about  $200,000  United  States  currency. 
This  plant  is  also  equipped  with  American  machinery. 

The  knitting  and  weaving  industry  is  just  beginning  at  Canton. 
The  output  is  reported  to  be  of  fairly  good  quality  and  enjoys  a 
favorable  market.  Daily  production  of  the  hosiery  factories  is 
estimated  at  8,700  dozen  pairs,  97  per  cent  being  of  cotton  and  3  per 


412 


COMMERCIAL  HANDBOOK  OF  CHINA 


cent  silk.  The  majority  of  the  factories  are  equipped  with  Chinese- 
made  hand  machines,  but  power  machines  from  America  and  hand 
machines  from  England  and  Japan  are  increasingly  popular.  The 
cheaper  cottons  used  come  from  Japan,  while  the  better  qualities  are 
imported  from  the  United  States  and  England. 

MINERALS  AND  MINING 

The  following  table  indicates  the  character  of  the  mineral  re¬ 
sources  in  the  Canton  consular  district : 


Minerals 


1.  Tungsten. 


2.  Coal. 


3.  Gold . 

4.  Silver _ 

5.  Antimony. 

6.  Tin _ 


7.  Lead . 

8.  Copper _ 

9.  Manganese. 


10.  Molybdenum. 

11.  Bismuth . 


12.  Iron. 


Nature  of  ore 


Wolframite- 


Anthracite.. 
Bituminous. 
Lignite . 


Stibnite,  valentinite. 
Alluvial  cassiterite... 


Braunite,  pyrolusite, 
psilomelane. 

Molybdenite . . 

Bisnite;  a  little  native 
bismuth  hand  sorted 
and  washed  to  50 
per  cent. 

Hematite . . . 


Annual  production 


No  data. 


100,000  tons. 


Negligible . 

. do. . 

Variable,  no  data. 


Maximum  of  400  tons 
pig  tin. 

Negligible _ _ 

. do . . 

Estimated  at  5,000 
tons. 

Small. . . . 

No  data . 


Negligible. 


Extent  of  resources 


Unknown;  a  great 
number  of  small 
pockets . 

Estimated  at  200,000,- 
000  tons. 

Estimated  at  600,000,- 
000  tons. 

Unknown . 

No  data . 

_ do . 

Unknown;  many 
small  deposits. 
Unknown,  but  exten¬ 
sive  and  important. 

No  data . 

_ do . 

Unknown,  but  im¬ 
portant. 

No  data . . 

Unknown;  occurs  with 
ores  of  tin  and  tung¬ 
sten. 

No  data . 


Export  in 
1923 


Pounds 
3, 120, 047 

None. 

None. 

None. 
None. 
None. 
77, 805 

21, 945 

None. 

None. 

None. 

133 
26,  999 


None. 


Most  of  the  tungsten  exported  from  the  Canton  consular  district 
comes  from  Kiangsi  Province,  where  the  best  deposits  are  found. 
Coal  is  found  in  both  Kwangtung  and  Kwangsi.  In  Kwangtung 
mines  are  located  southeast  of  Lotingchow,  northeast  of  Yeungkong, 
southwest  and  northeast  of  Shiuchow,  and  north  of  Shiuhing.  The 
best  coal  is  from  the  vicinity  of  Shiuchow  on  the  North  River. 
Kwangtung  coal  may  be  classed  as  semianthracite.  In  Kwangsi  Prov¬ 
ince  coal-producing  regions  are  reported  southeast  of  Chenan,  north¬ 
west  of  Pinglo,  in  the  Hohsien  district,  and  on  the  Kwangtung- 
Kwangsi  border.  Kwangsi  appears  to  contain  large  reserves  of  high- 
grade  bituminous  coking  coal. 

Small  deposits  of  gold  are  reported  near  Kweihsien  in  Kwangsi 
Province.  A  mine  has  been  operated  in  the  vicinity  of  Chaoyang, 
Kwangtung  Province,  while  some  gold  is  washed  from  the  sand  of 
the  Linchow  River.  A  little  alluvial  gold  mining  is  done  in  the 
Pakhoi  district,  and  scattered  deposits  are  stated  to  exist  in  the 
Haikin  district. 

Of  silver  the  only  known  deposits  in  the  consular  district  are  in 
the  Province  of  Kwangsi.  The  Kweihsien  neighborhood  contains 
the  chief  veins.  An  antimony  zone  has  been  revealed  by  geological 
surveys  as  extending  from  the  Chukiang  district  of  northern  Kwang¬ 
tung  through  the  Province  of  Kwangsi  to  the  Wenshan  and  Ami 
districts  of  eastern  Yunnan.  Antimony  is  obtained  in  the  stibnite 
form  from  the  districts  of  Fengyi  and  Penchow  in  Kwangsi.  While 


CANTON  CONSULAR  DISTRICT  •  413 


there  are  some  small  smelting  plants  in  Kwangtung,  they  are  not 
large  enough  to  be  of  much  commercial  importance.  Deposits  are 
found  along  the  southern  border  of  the  Province  and  in  the  district 
north  of  Shiuchow. 

Tin  is  said  to  exist  in  the  Province  of  Kwangtung  at  Waichow 
and  in  the  Taan  district  of  Hainan  Island.  Tin  has  been  mined 
for  many  years  in  the  Fuchwan  and  Hohsien  districts  of  Kwangsi. 
Small  deposits  of  lead  are  reported  to  exist  near  Kweihsien  in 
Kwangsi,  and  other  small  deposits  occur  in  the  Kwangtung  districts 
of  Koyao  and  Sunon.  The  chief  copper  region  in  Kwangsi  is  near 
Kweihsien,  though  additional  deposits  are  said  to  occur  in  Hainan 
Island.  The  most  important  manganese  mines  are  in  the  Pakhoi, 
Chingchow,  and  Fangcheng  districts  of  Kwangtung.  Deposits  are 
also  found  in  Kwangsi. 

Molybdenum  is  found  in  both  Kwangtung  and  Kwangsi.  Some 
discoveries  have  been  reported  along  the  coast  of  Kwangtung,  but 
there  has  been  no  active  mining.  The  sulphide  form  was  formerly 
mined  in  the  Tungyuen  district  of  Kwangtung,  but  the  work  is  now 
abandoned. 

Bismuth  is  widely  scattered  throughout  the  district,  being  gen¬ 
erally  found  with  tungsten. 

Kwangtung  is  reported  to  be  rich  in  iron  deposits,  but  its  resources 
have  not  been  developed  to  any  extent.  The  richest  deposits  occur 
north  of  Waichow  on  the  East  River,  hematite  being  the  principal 
ore.  Deposits  occur  also  near  Shiuhing.  Some  iron  ore  is  produced 
and  smelted  in  the  Sunwui  district  and  in  the  coast  region  farther 
south,  the  Pakhoi  region  containing  some  ore. 

The  mines  which  are  in  operation  in  the  Canton  consular  district 
employ  primitive,  native  methods.  The  output  is  largely  for  local 
consumption.  The  most  serious  obstacles  in  the  way  of  rapid  de¬ 
velopment  of  the  mining  possibilities  of  the  district  are  the  lack  of 
adequate  transportation  facilities,  the  imposition  of  various  taxes 
at  the  producing  centers  and  along  the  transporation  routes,  and  the 
absence  of  sufficient  capital  to  install  modern  equipment. 

The  table  below  gives  data  concerning  the  principal  mines,  which 
are  grouped  here  according  to  products : 


Names  of  mines 

Mineral 

Capital 
paid  up 

Nationality 
of  company 

Tung  Fong  Siao  Ta  Tze 
Kow  Gold  Mining  Co. 
(Ltd.).1 

Mo  Fung  Shan  Gold  Mining 
Co. 

Sancha  Mountain  Silver 
mines.2 

Tienping  Mountain  silver 
mines. 3 

Pao-hua  Co.. . . 

Gold. . 

U.  S.  currency 
$20, 000 

No  data. 

No  data. 

1, 000, 000 

Chinese _ 

. do _ 

Silver _ 

. do _ 

_do_ 

. do _ 

Antimony... 

_ do _ 

Yuching  Co..  _ _ _ _ 

Manganese.. 
_ do. 

No  data. 
No  data. 
No  data. 

Chinese  . 

Hoyeh  Co _  _ 

_ do _ 

VuYam  Manganese  Mining 
Co. 

_ do _ 

- do - 

Head  office 


Siao  Ta  Tze  Kow,  Chaoyang, 
Kwangtung. 

Tsengshing  district,  Kwang¬ 
tung. 

Near  Kweihsien,  Kwangsi. 

Do. 

Mengtsz,  Yunnan. 

Chingchow  district. 

No  data. 

Fangchew  district,  Kwang¬ 
tung. 


1  Established  1904;  capital,  40,000  taels. 

2  Worked  during  past  20  years  by  several  Chinese  companies.  Some  modern  machinery  installed. 
Reported  to  be  operated  at  a  loss. 

3  No  working  reports  available.  Surface  mining  carried  on  by  Chinese  syndicate.  Survey  shows 
existence  of  20  veins  of  silver. 


414 


COMMERCIAL  HANDBOOK  OF  CHINA 


LABOR  CONDITIONS 

W  a^es  have  been  increasing  steadily  during  the  last  few  years, 
and  there  has  been  a  growing  tendency  on  the  part  of  the  laborers 
to  use  the  strike  to  gain  advances.  Local  labor,  under  proper  train¬ 
ing  and  supervision,  is  able  to  turn  out  good  work.  Indeed,  in  cer¬ 
tain  specialized  hand  labor  calling  for  patience  and  infinite  atten¬ 
tion  to  detail,  the  Cantonese  workman  has  no  superior. 

The  following  table  summarizes  certain  aspects  of  labor  condi¬ 
tions  in  the  Canton  district: 


Industry 

Wages  (in  U.  S. 
currency) 

Board  and  lodging 
considerations 

Hours  of  work 

Estimated  capacity 
per  person 

Stocking  and  sock 

Female;  $0.55  per 

Lodging  supplied 

8  a.  m.  to  10  p.  m. 

1)4-2  dozen  pairs 

knitters. 

dozen  pair. 

without  meals. 

per  day. 

Weavers . . 

Female;  $0.04-$0.06 
per  10  Chinese 
feet  of  cloth. 

Male;  $0. 50-$0.  70 

_ do _ 

9  a.  m.  to  6  p.  m._ 

10  a.  m.  to  6  p.  m. . 

50  Chinese  feet  per 
day. 

250  cubic  feet  per 

Painters _ _ 

Lodging  and  meals 

Towel  knitters _ 

per  day. 

Female;  $0.18  per 

supplied. 

Lodging  supplied 

9  a.  m.  to  6  p.  m.. 

day. 

2  dozen  per  day. 

Tobacco  “godown” 

dozen. 

Male;  $6-$8  per 

without  meals. 
Lodging  and  meals 

8  a.  m.  to  6  p.  m. . 

coolies. 

Tobacco  “godown” 
sorters. 

Tobacco-packing 

month. 

Female;  $0.30  per 
picul  (133)4 
pounds) . 

Male;  $0.40  per  picul 

supplied. 

_ do _ 

.do 

1 XA  piculs  per  day. 

Packing  materials 

9  a.  m.  to  6  p.  m.. 

coolies. 

China  ware  porters. 

Male;  $0.:;0-$0.50  per 

supplied  by  pack¬ 
ers. 

Lodging  and  meals 

Varies . . . 

China  ware  decora- 

day. 

Male  and  female; 

supplied. 

- do. . 

9  a.  m.  to  6  p.  m._ 

tors. 

Wharf  coolies _ 

$0.50- $0.75  per 

day. 

Male  and  female; 

$0.25  per  day. 

Male  and  female; 

$0.50  per  day. 
Female;  $0.15-$0.20 

Meals  supplied _ 

8  hours  per  day _ 

_ do _ 

9  a.  m.  to  5  p.  m. . 

Matting  weavers... 

Waste-silk  selectors 

- do _ 

Meals  and  lodging 

22  square  yards  per 
day. 

30-35  pounds  per 

General  coolie  labor 

per  day. 

Male  and  female; 

not  supplied. 

_ do _ 

8  hours  per  day. .  _ 

day. 

Mechanics  and 

$0.25-$0.35  per  day. 
Male;  $0.50-$l  per 

_ do.  ..  ..  _ 

10  hours  per  day.  _ 

skilled  workmen. 
Emroidery  work- 

day. 

Female;  $0.15  per 

Lodging  and  meals 

_ do . . 

ers.i 

Silk  filatures.. . 

day. 

Female;  $0.30-$0.75 

supplied. 

Lodging  and  meals 

11  hours  per  day.- 

Y^-XVi  pounds  per 

per  day,  depend¬ 
ing  on  degree  of 
skill. 

not  supplied. 

day,  depending 
on  size  of  silk. 

1  Many  embroidery  workers  are  employed  by  the  piece,  performing  the  work  in  their  homes.  The 
pay  varies  according  to  the  design. 

TRANSPORTATION  AND  COMMUNICATION 

WATERWAYS 

The  following  table  gives  certain  significant  facts  regarding  the 
principal  waterways  is  the  Canton  consular  district : 


Distance  navigable — 

Name  of  waterway 

For  15-foot-draft  steamers 

For  6-foot-draft  steamers 

For  motor 
launches 

West  River  .  _ 

230  miles  in  flood  season 

230  miles  in  low  water _ 

700  miles. 

North  River  (above  Sanshui). 

60  miles  during  2  months  of 

60  miles  during  7  months  of 

93  miles. 

East  River  (above  Whampoa) 

year. 

year. 

68  miles  during  2)4  months 
of  year. 

124  miles. 

Kwai  or  Fu  River  _ _ 

200  miles. 

Pearl  River  and  West  River.. 

87  miles  .  _ _ _ _ 

CANTON  CONSULAR  DISTRICT 


415 


As  a  result  of  unsettled  conditions,  there  is  little  traffic  by  rail 
between  Canton  and  Hongkong.  Junk  service  has  lessened  also. 
Consequently  the  river  steamers  operating  between  the  two  ports 
carry  the  bulk  of  the  trade.  Freight  rates  between  Hongkong  and 
Canton  are  specific  ones,  varying  with  different  commodities.  The 
rate  on  silk  shipped  from  Canton  to  Hongkong  is  about  $0.80  United 
States  currency  per  bale  of  106%  pounds;  on  human  hair,  $0.34 
per  case;  on  wolfram,  $0.12  per  133%  pounds  (1  picul)  ;  and  on  gen¬ 
eral  cargo,  $0.80  per  ton  of  40  cubic  feet  net.  Representative  import 
rates  are  as  follows :  Cement,  $0.24  United  States  currency  per  cask ; 
cigarettes,  $0.70  per  case;  coal,  $1.30  per  ton;  cotton  yarn,  $0.37  per 


bale;  flour,  $3.80  per  100  sacks,  with  a  20  per  cent  rebate;  paper, 
$0.29  per  bale ;  piece  goods,  $0.95  per  package. 

The  round-trip  fare  for  first-class  passengers  is  about  $6.50  United 
States  currency ;  one-way  tickets  cost  about  $3.50. 

Most  of  the  trade  in  the  district  is  carried  by  water.  As  cargo 
gets  farther  away  from  Canton  the  tax  barriers  become  more  numer¬ 
ous  and  hinder  free  communication.  Shipments  destined  for  Wu- 
chow  and  other  points  in  Kwangsi,  as  well  as  for  that  section  of  the 
Canton  delta  drained  by  the  West  River,  should  be  transshipped 
from  Hongkong  direct  to  destination,  rather  than  being  forwarded 
first  to  Canton.  In  the  import  trade,  Canton  serves  as  a  distributing 
center  for  the  East  and  North  River  territory. 


416 


COMMERCIAL  HANDBOOK  OF  CHINA 


RAILWAYS 


The  railways  in  the  Canton  consular  district  are  shown  in  the 
following  table : 


Railways 

Head  office 

M  ileage 

Transportation  rates,  per  Eng¬ 
lish  mile 

Classes 

Freight 
per  ton 

Passen¬ 
ger  fares 

U.  S. 

U.  S. 

C  anton-  Kowloon : 

currency 

currency 

Chinese  section.. . . 

Canton . 

88.  78 

First 

$0  0124 

$0  0324 

Second _ 

.0121 

.0162 

Third _ 

.0081 

.0081 

Fourth _ 

.0054 

British  section _ _ _ 

Kowloon  (via  Hong- 

22.  50 

First 

.  0124 

0324 

kong). 

Second _ 

.0121 

.0162 

Third _ 

.0081 

.0081 

Fourth _ 

.0054 

Canton-Hankow .  . .  .. 

Canton _ _ _ _ 

140.  00 

First 

.  0900 

.  0240 

Second _ 

.0600 

.0160 

Third _ 

.0300 

.0125 

Fourth  i . . 

.  1350 

C  anton-Samshui . . . 

_ do.. . . 

31.  00 

First _ 

.  0290 

.  0125 

Second _ 

.0240 

.0090 

Third _ 

.0160 

.0065 

Sunning  Railway. . 

Sunning  (Kwangtung).. 

83.  30 

First.  _ 

.  0100 

.  0250 

Second _ 

.0050 

.0150 

Third _ 

.0025 

.0075 

1  Dangerous  goods. 


As  of  additional  interest,  the  special  reduced  basic  fares  between 
Canton  and  Hongkong  via  the  Canton-Kowloon  Railway  by  the 
express  trains  are  as  follows  (one  way)  :  First  class,  $3  United 
States  currency;  second  class,  $1.50;  third  class,  $0.60. 

During  the  past  few  years  unsettled  conditions  have  interfered 
seriously  with  the  operation  of  railways.  No  regular  schedules  have 
been  maintained.  Surcharges,  often  amounting  to  as  much  as  25 
per  cent,  have  been  imposed  by  the  authorities. 

Through  trains  have  not  operated  on  the  Canton-Kowloon  Rail¬ 
way  for  so  long  that  practically  all  traffic  has  been  deflected  to  water 
routes.  The  Samshui  Railway  is  important  chiefly  for  its  passenger 
service,  which  yields  a  good  revenue.  Tobacco  and  the  mineral  prod¬ 
ucts  of  the  North  River  region  are  conveyed  to  Canton  over  the  Yueh- 
Han  line.  Imports  reach  their  destination  over  the  same  road.  The 
Sunning  Railway  has  maintained  a  fairly  consistent  schedule  and 
plays  an  important  part  in  the  economic  life  of  probably  the  wealth¬ 
iest  section  of  the  consular  district.  Piece  goods,  cigarettes,  flour, 
metals  and  minerals,  and  other  items  of  important  trade  are  carried 
on  this  road.  In  general,  however,  conditions  on  the  railways 
are  unsatisfactory  from  the  standpoint  of  both  foreign  and  domestic 
trade. 

Of  the  four  railway  lines  in  the  Canton  district,  the  Canton- 
Samshui  and  the  Canton-Kowloon  (Chinese  section)  are  more  or  less 
under  government  ownership  and  control.  The  Canton-Hankow 
(Kwangtung  section)  was  originally  under  the  control  of  an  Amer¬ 
ican  syndicate,  which  later  disposed  of  its  interests  to  a  Chinese 
joint-stock  company  known  as  the  Kwangtung  Mercantile  Adminis¬ 
tration  of  the  Yueh-Han  Railway.  The  Sunning  Railway  enjoys 


CANTON  CONSULAR  DISTRICT 


417 


the  distinction  of  having  been  built  as  a  private  Chinese  enterprise 
and  is  owned  and  operated  exclusively  by  a  Chinese  company.  These 
railways  are  all  of  standard  gauge,  4  feet  8 y2  inches,  and  their  roll¬ 
ing  stock  is  partly  of  American  and  partly  of  British  manufacture 
and  design. 

The  completion  of  the  Canton-Hankow  Railway  is  considered  the 
most  necessary  step  in  obtaining  railway  facilities  adequate  to  the 
proper  development  of  the  trade  and  commerce  of  the  district.  The 
advantages  to  trade  of  a  trunk  line  extending  from  North  to  South 
China  are  obvious.  None  of  the  railways  in  the  district  is  connected 
with  others.  It  would  facilitate  the  transfer  of  freight  and  passen¬ 
gers  if  a  loop  line  should  be  built  at  Canton  connecting  the  Canton- 
Hankow  and  the  Canton-Kowloon  lines.  This  would  insure  through 
shipment  of  cargo  from  the  northern  terminus  of  the  Canton-Han¬ 
kow  line  to  Hongkong. 

ROADS 

Concerning  the  roads  in  the  consular  district,  it  may  be  said  that  in 
Canton  and  vicinity  there  are  25  miles  of  roads  suitable  for  motor 
transportation.  The  estimated  number  of  motor  cars  in  operation 
at  that  place  is  212.  For  passenger  transportation  of  this  class  the 
rate  is  $2  to  $3  United  States  currenc}^  per  hour;  for  freight  the 
charge  is  $2.25  per  hour  per  ton.  Lungchow  and  Nanning  each 
has  about  40  miles  of  motor  roads. 

The  motor  roads  at  Canton  have  been  constructed  during  the  last 
few  years  and  are  maintained  by  the  municipality.  There  are  no 
fees  or  tolls.  Definite  plans  for  the  extension  of  these  roads  have 
been  adopted,  but  work  is  hindered  by  the  unsettled  conditions  pre¬ 
vailing  in  the  city.  The  roads  at  Nanning  and  Lungchow  are  used 
largely  by  the  military,  although  there  is  a  certain  amount  of  civil 
traffic.  The  roads  have  deteriorated  because  of  the  lack  of  proper 
supervision  and  repair.  The  number  of  motor  cars  operating  on 
the  highways  outside  of  Canton  is  small. 

SUMMARY  OF  METHODS  OF  TRANSPORTATION 

Transportation  within  the  Canton  consular  district  is  chiefly  by 
water.  Cargo  is  transported  by  means  of  steamboats,  launches,  and 
junks,  but  it  is  impossible  to  estimate  the  average  mileage  per  day 
or  the  cost  per  ton-mile.  Likewise,  no  data  are  available  relative  to 
transportation  by  motor  cars  other  than  the  fact  that  the  load  per 
car  rarely  exceeds  V/2  tons.  Carts  are  used  only  in  the  vicinity  of 
Pakhoi.  Wheelbarrows  are  utilized  to  convey  cargo  in  the  Pakhoi 
district,  but  are  not  found  elsewhere.  Donkeys  and  mules  serve  as 
pack  animals  in  western  central  Kwangsi  near  Poseh.  Coolie  car¬ 
riers  are  very  numerous.  A  coolie  carries  an  average  load  of  70 
pounds  and  travels  some  12  miles  per  day  for  a  wage  of  about 
$0.60  United  States  currency. 

TELEGRAPHS,  CABLES,  AND  WIRELESS  SERVICE 

The  Chinese  Telegraph  Administration  has  106  stations  in 
Kwangtung  Province  and  71  in  Kwangsi.  The  rate  to  Shanghai 

100020°— 26 - 28 


418 


COMMERCIAL  HANDBOOK  OF  CHINA 


is  $0.27  Hongkong  currency  per  word  (one  Hongkong  dollar  equals 
about  $0.50  United  States  currency),  while  to  New  York  the  rate  is 
$2.10  per  word.  The  Canton  Wireless  Service,  installed  by  the 
admiralty  of  the  local  government,  has  three  stations  in  Kwangtung 
and  one  in  Kwangsi.  The  rates  are  the  same  as  those  just  men¬ 
tioned  for  the  Chinese  Telegraph  Administration. 

Business  firms  on  Shameen  Island  have  used  the  wireless  service 
regularly  for  urgent  business  during  the  time  when  the  Chinese 
Telegraph  Administration’s  line  to  Hongkong  has  not  been  in  opera¬ 
tion.  During  the  last  year  telegrams  to  and  from  Canton  and  the 
outside  world  have  usually  been  carried  between  Canton  and  Hong¬ 
kong  by  post,  as  the  telegraph  service  between  the  two  ports  has 
been  interrupted. 

Radio  messages  are  transmitted  to  any  point  of  the  world  at  pre¬ 
vailing  rates.  It  takes  an  average  of  17  hours  to  get  a  message 
through  to  New  York.  Rates  to  Hongkong  are  $0.20  for  each  plain 
word  and  $0.30  for  each  code  word.  On  messages  received  from 
Hongkong  prepaid,  an  extra  charge  of  $0.20  per  message  is  col¬ 
lected  for  the  carrying  coolie.  Messages  for  transmission  from 
Canton  are  received  from  11.30  a.  m.  to  12  m.  and  from  2  to  5 
p.  m.  Firms  making  regular  use  of  this  radio  service  report  that 
it  is  regular  and  satisfactory  for  Hongkong  and  oversea  messages. 

TELEPHONES 

There  are  four  telephone  services  in  the  Canton  district,  the 
largest  of  which,  operated  by  the  Canton  provincial  government,  has 
3,000  subscribers.  It  is  operated  by  the  manual  system,  and  the 
equipment  is  Swedish,  Japanese,  and  American.  Rates  vary  from 
$3.50  to  $5.50  per  month.  Plans  are  being  formed  for  extension 
and  improvement  of  the  telephone  service  in  the  Canton  district, 
but  it  is  not  likely  that  anything  will  be  accomplished  until  condi¬ 
tions  are  more  nearly  normal. 

POSTAL  FACILITIES 

The  post-office  system  in  the  Canton  district  is  a  part  of  the 
general  Chinese  Post  Office,  the  administration  of  which  is  centered 
in  the  Directorate  General  of  Posts  in  the  Ministry  of  Communica¬ 
tions  at  Peking.  The  rates  applicable  to  the  district  are  the  same  as 
those  prevailing  in  other  sections  of  China,  being  3  cents  for 
domestic  postage  and  10  cents  for  foreign  postage.  The  rate  to 
Hongkong  is  4  cents.  (All  rates  are  given  in  Mexican  currency,  one 
dollar  of  which  equals  approximately  $0.50  United  States  currency.) 

Canton  has  a  special  system  of  postal  zones,  which,  however, 
has  no  bearing  on  postal  rates  between  points  in  the  district  and 
other  pails  of  China  or  points  abroad. 

SHIPPING  AND  WAREHOUSING  FACILITIES 

The  harbor  facilities  at  Canton  are  indicated  in  the  following 
table ; 


CANTON  CONSULAR  DISTRICT 


419 


Name  of  landing  or  anchorage 

Depth  of  water 
at  tides 

Dock  accommo¬ 
dations 

High 

Low 

Front-reach  wharves  for  river  steamers... 

Feet 

12 

Ft.  in. 

6  6 

None _ _ 

Butterfield  &  Swire  back-reach  landing.. 

12 

6  6 

Private  wharves.  _ 

Jardine  &  Matheson  back-reach  landing.. 

12 

6  6 

_ do _ 

China  Merchants  Steam  Navigation  Co.. 

12 

6  6 

_ do _ 

Nippon  Kissen  Kaisha _ _ _ 

12 

6  6 

_ do.  ...  _ 

Method  of  transference 
of  cargo  from  ship’s 
tackle  to  port 


Cargo  boats,  lighters. 
Coolie  labor  and  ship’s 
tackle. 

Cargo  boats  and/or  light¬ 
ers  in  midstream. 

Do. 

Do. 


The  Chinese  Maritime  Customs  returns  show  that  the  amount  of 
tonnage  entered  and  cleared  at  the  port  of  Canton  during  1923 
amounted  to  6,569,457  tons,  exclusive  of  junks.  Situated  in  the  heart 
of  a  delta  formed  bv  the  confluence  of  the  East,  West,  North,  and 
Pearl  Rivers,  Canton  enjoys  excellent  water  communication  with 
the  interior  districts.  These  waterways  directly  and  indirectly  tap 
practically  every  buying  and  producing  section  of  the  consular  dis¬ 
trict.  The  railways  also  play  their  part  in  the  dissemination  of 
cargo. 

CARGO-HANDLING  FACILITIES 


There  are  five  private  landing  wharves  or  anchorages  at  docks 
belonging  to  the  front-reach  wharves  for  river  steamers  and  three 
British  and  one  Japanese  steamship  line.  These  have  no  facilities 
for. handling  heavy  cargoes  except  such  gear  as  is  carried  by  the 
ship.  Discharge  of  cargo  is  effected  wholly  by  coolie  labor  using 
bamboo  poles  and  baskets.  The  cost  of  transferring  cargo  from 
ship’s  tackle  to  the  port  varies  according  to  distance  or  destination. 

In  view  of  the  fact  that  all  cargo  is  moved  by  hand,  the  ordinary 
packing  for  export  and  marketing  is  generally  sufficient  provision 
against  damage  or  loss. 

WAREHOUSE  AND  STORAGE  FACILITIES 

There  are  no  public  warehouses,  but  the  steamship  companies  and 
large  private  import  firms  have  their  own  private  warehouse  facili¬ 
ties.  There  are  eight  of  these  altogether,  and  none  of  them  accepts 
goods  for  storage.  Company  cargo  is  usually  stored  14  days  free 
of  charge,  after  which  the  rates  are  nominal.  In  the  case  of  two 
Chinese  companies,  their  warehouses  may  be  rented  outright  at  the 
rate  of  $350  United  States  currency  per  month. 

All  these  warehouses  are  of  brick  and  steel  construction,  varying 
in  details,  and  are  of  extended  capacity.  Transfer  of  goods  from 
landing  to  warehouse  is  entirely  by  coolie  labor. 

It  should  be  emphasized  that  outside  cargo  is  not  accepted  for 
storage  by  Canton  firms  having  warehouses.  Transfer  of  goods 
from  the  warehouses  to  the  dealers  is  effected  by  coolie  labor,  light¬ 
ers,  or  cargo  boats.  Shipment  to  the  interior  is  effected  by  cargo 
junks,  by  river  steamers,  and  by  rail. 


420  COMMERCIAL  HANDBOOK  OF  CHINA 

PUBLIC  WORKS  AND  UTILITIES 

ELECTRIC  LIGHT  PLANTS 

By  far  the  most  important  electric-light  plant  in  the  Canton  dis¬ 
trict  is  the  Kwangtung  Electric  Supply  Co.  (Ltd.),  of  Canton.  It 
has  a  capacity  of  10,000  kilowatts  in  steam  turbines  and  1,875  kilo¬ 
watts  in  Diesel  engines.  Turbine  equipment  is  entirely  of  Ameri¬ 
can  origin,  and  plans  for  extension  include  the  purchase  of  an  addi¬ 
tional  5,000  or  10,000  kilowatt  turbine.  Expansion  of  this  plant  is 
hampered  by  unsettled  conditions,  as  is  the  case  with  all  others  in 
the  district.  There  are  at  least  six  other  electric-lighting  plants  in 
the  district,  notably  at  Fatshan,  Kongmoon,  and  Wuchow.  They 
are  all  under  Chinese  operation  and  are  equipped  for  the  most  part 
with  English  gas  and  oil  engines. 

WATERWORKS 

The  Kwangtung  Water  Supply  Co.  at  Canton  has  a  capacity  of 
9,000  gallons  per  minute,  and  supplies  water  at  a  rate  of  of  38  cents 
(gold)  per  1,000  gallons.  The  equipment  is  British,  consisting  of 
three  steam  reciprocating  pumps  and  steam  turbine  driven  pump. 
Additional  and  improved  water-supply  equipment  is  greatly  needed, 
but  can  not  be  undertaken  during  present  conditions.  A  separate 
waterworks  is  maintained  on  Shameen,  the  British  concession;  its 
somewhat  antiquated  equipment  is  of  British  manufacture. 

TRAMWAYS 

• 

The  Kwangtung  Tramway  Co.  (Ltd.),  of  Canton,  is  a  Chinese 
concern  with  some  British  capital  invested.  It  has  the  franchise  to 
operate  on  all  Canton  streets,  inside  the  city,  within  a  10-mile  radius. 
Because  of  disturbed  conditions  it  has  not  operated  since  June, 
1923. 

CONSERVANCY  AND  RECLAMATION  WORKS 

The  Conservancy  Board  in  Kwangtung  was  created  during  the 
latter  part  of  1914  by  presidential  mandate  of  the  Peking  Govern¬ 
ment.  From  1914  until  1919  the  work  of  the  Conservancy  Board 
was  carried  on  with  provincial  funds,  but  since  1919  it  has  been 
maintained  chiefly  with  funds  granted  out  of  the  surplus  of  the 
Maritime  Customs.  At  the  beginning  of  1924  the  board  was  faced 
by  such  a  shortage  of  money  that  the  suspension  of  all  operations 
was  threatened.  To  meet  this  situation  and  to  prevent  the  dissolu¬ 
tion  of  the  board,  two  proposals  are  being  worked  out.  The  first 
contemplates  the  imposition  of  a  direct  surtax  on  Canton  Maritime 
and  Native  Customs  revenue,  the  surtax  to  be  used  for  harbor  im¬ 
provement.  The  second  proposes  to  obtain  a  Government  grant. 
Conservancy  work  is  extremely  important  in  the  district.  Several 
steamers  have  grounded  recently  in  consequence  of  the  silting  which 
is  taking  place  in  the  Canton  Harbor  and  its  approaches.  The  dis¬ 
astrous  effects  and  economic  loss  which  result  yearly  from  floods 
could  be  minimized  if  there  were  sufficient  funds  to  carry  out  the 
plans  of  the  Conservancy  Board. 


CANTON  CONSULAR  DISTRICT 


421 


IMPORT  AND  EXPORT  TRADE 

According  to  the  annual  report  of  Consul  General  Douglas  Jen¬ 
kins  for  1924,  Canton’s  trade  in  1924  fell  considerably  below  that  of 

1923,  the  Chinese  Maritime  Customs  returns  showing  the  total  value 
of  imports  and  exports  as  $168,629,388  United  States  currency  in 

1924,  as  compared  with  $184,373,183  in  the  previous  year.  The 
shrinkage  in  imports  from  foreign  countries  was  the  most  striking 
feature  of  the  year’s  trade,  foreign  imports  for  1924  amounting  to 
only  $42,807,066  United  States  currency,  as  compared  with  $58,757,- 
435  in  1923.  Exports  to  foreign  countries  also  declined,  while  ex¬ 
ports  to  Chinese  ports  were  about  the  same  as  in  the  preceding 
year,  and  imports  from  Chinese  ports  substantially  increased.  De¬ 
clared  shipments  to  the  United  States  amounted  to  $19,859,883. 

The  following  table  shows  the  value  of  the  foreign  trade  of  the 
various  ports  in  the  Canton  consular  district  during  the  years  1903, 
1913,  1923,  and  1924: 


Forts 

1903 

1913 

1923 

1924  i 

Exports  from — 

United  States 
currency 

United  States 
currency 

United  States 
currency 

United  States 
currency 

Canton  _ 

$31, 168,  330 

$43,  875,  367 

$81,  397,  992 

$74,  312,  677 

Kiungchow _  ...  _ 

1,  270,  699 

1,  874,  406 

3,  661,  358 
2,  238,  723 

3,  087,  042 

Kongmoon...  _ 

(2) 

1,  307,  267 
3,  762, 184 

1, 444,  611 

Lappa  _ 

7, 186,  578 

3, 115,  077 

4,  054,  688 

Lungchow  .  _ 

11,004 

(2) 

7,317 

114,  521 

142,  517 

Nanning. ..  .  .  _ 

2,  398,  290 
661,  026 

1,  662,  916 

1,  899,  340 

1,  652,717 

Pakhoi _  _ 

956, 126 

1,  473,  543 

Samshui _ 

740,  582 

1,  299,  997 

1,  060,  441 

887, 405 

Wuchow _ 

1, 681,  658 

2,  672,  884 

4,  664,  956 

5, 147, 179 

Imports  to  3 — 

Canton  _ 

40,  043,  668 

38,  256,  493 

102,  975,  203 

42,  807,  066 

Kiungchow _ _ 

1,  629,  533 

2, 893,  109 

3,  402,  910 

3,  700, 868 

Kongmoon _ _ 

(2) 

4, 925,  631 

12,  444,  001 

10,  952,  282 
17,727,800 

Lappa.  ...  _ 

3,  537,  722 

9,  211, 141 

15, 173,  025 

Lungchow.  .  _ 

736,  141 

71,  465 

110,  372 

85,204 

Nanning... _ _  _ 

(2) 

3,  079,  497 

3,  069,  605 

2,  234, 423 

Pakhoi. _ _ 

1,  240,  405 

1,  335, 107 

2,  929,  634 

2,  345, 191 

Samshui...  _  _  ... 

1,  097,  236 

4,  201,  245 

7,  708,  892 

6,  622, 148 

Wuchow _ _ _ 

3,  613,  880 

8,  949,  304 

9,  727,  400 

4,  584,  400 

J  1924  figures  converted  at  the  ratio  1  tael =$0.81. 

2  No  statistics  available. 

3  Foreign  imports  only  included  in  1924. 


IMPORT  TRADE 


The  following  table  shows  the  principal  imports  at  the  port  of 
Canton  during  the  years  1913,  1923,  and  1924: 


[Quantities  are  stated  in  thousands  of  units  given;  values  in  thousands  of  United  States  dollars] 


Principal  articles 

1913 

1923 

1924 

Quantity 

Value 

Quantity 

Value 

Quantity 

Value 

Cotton  manufactures _ _ _  _  _ 

3, 461 
12 
99 
70 
116 
36 
338 
108 
88 

3 

• 

6,  224 
88 
1,009 
829 
260 
88 
752 
124 
677 
1,490 

4,719 

125 

903 

999 

472 

58 

1,309 

105 

454 

156 

Silk  piece  goods _  _ _ _  ... 

Woolen  and  cotton  mixtures  _ 

Woolen  goods . . . . .  . . . 

Brass  and  yellow  metals .. . _ _ pounds.. 

Copper  ingots  and  slabs _  _ do _ 

Iron  and  steel  products. _ _  _ 

773 

236 

1,264 

507 

1,625 

375 

Lead  pigs  and  bars.  _ _ pounds. 

Ammonia  sulphate. _ _ do _ 

Bran . . . . do — 

3,239 

2,  709 
17,  379 

2,  446 
15,  669 
136,  586 

2, 666 
11,200 
14, 133 

422 


COMMERCIAL  HANDBOOK  OF  CHINA 


Principal  articles 

1913 

1923 

1924 

Quantity 

Value 

Quantity 

Value 

Quantity 

Value 

Macaroni _ _ _ - . 

--.pounds.. 

2, 179 

97 

1,622 

170 

800 

85 

Rice  and  paddy _ _ _ 

_ -do _ 

48, 893 

839 

999,  924 

24,  299 

365,  300 

10, 171 

Cigarettes - - - -  -  . 

.number.. 

132,  585 

278 

111,737 

332 

323,  000 

820 

Clnthine 

297 

184 

379 

Dyes  .  -  _  --  -  --  _  .  _ _ 

144 

488 

772 

Electrical  supplies  ..  _ _ _  _ _ 

72 

102 

443 

Fish  and  fish  products  _ 

891 

1,834 

996 

Flo  .r -  - 

..pounds 

56,  962 

1,  228 

60,  472 

1,537 

66,  300 

1,  648 

Fruits,  dried  and  preserved _ 

_ do _ 

421 

9 

2,  521 

140 

800 

69 

Ginseng _ _ _ 

- do _ 

27 

55 

20 

68 

48 

95 

Glass  and  glassware  _ _ 

121 

201 

134 

India  rubber  and  manufactures 

9 

74 

301 

.Tade  stones  _ _ 

pounds  . 

397 

106 

475 

196 

184 

leather  and  leather  eoods 

116 

380 

405 

Petroleum  products: 

Fuel  oil.  . . . . . 

_ tons.. 

1 

17 

5 

80 

6 

104 

Kerosene  _ American  gallons.- 

14,  797 

1,587 

11,846 

2, 603 

6,  738 

1,  505 

Lubricating  oil _  _ 

_ do _ 

43 

1 

265 

100 

376 

115 

Paraffin  wax 

pounds 

2,823 

116 

6,203 

312 

Machinery  . . .  ..  _ _ _ 

147 

449 

218 

Paner 

871 

941 

1,  463 

Saltpeter 

_ .pounds 

90 

3 

1,330 

90 

'  131 

Soap  _  -  .  _  . 

68 

25 

55 

Sugar _  .  . .  . 

..  .pounds.. 

62,  902 

1,  974 

54,  474 

3, 430 

60, 133 

4,  577 

Tea...  - - -  --. 

. do _ 

687 

139 

1,460 

283 

2,000 

277 

Canton's  import  trade  had  more  than  doubled  in  value  during 
the  20-year  period  between  1903  and  1923,  but  the  figures  for  1924 
show  a  falling  off  of  more  than  50  per  cent  as  compared  with  the 
preceding  year. 

On  the  whole  the  trade  in  cotton  goods  has  been  good.  A  particu¬ 
larly  noteworthy  feature  of  the  trade  was  the  advent  of  Japanese 
competition.  In  1903  Japan  shipped  practically  no  cotton  goods  to 
the  Canton  market.  By  1923  the  Japanese  had  obtained  a  good 
share  of  the  trade,  particularly  in  gray  shirtings,  jeans,  and  yarns. 
The  United  States  has  never  been  an  important  factor  in  the  market. 

Woolen  and  cotton  goods  (mixed)  and  woolen  goods  have  main¬ 
tained  a  most  satisfactory  growth  and  now  form  a  relatively  import¬ 
ant  item  in  the  import  trade — principally  from  Great  Britain,  Japan, 
and  Germany.  Melton  cloth  and  suitings  deserve  special  mention. 

In  metals  and  minerals  satisfactory  advances  have  been  recorded 
in  brass  sheets  and  plates,  iron  and  mill-steel  bars,  and  wire  nails. 
A  fairly  static  condition  has  been  maintained  in  lead  pigs  and  bars 
(the  importation  of  which  has  averaged  more  than  $100,000  United 
States  currency  per  year)  and  in  tin  plates. 

Marked  activity  has  been  apparent  in  the  ammonia  sulphate 
market.  From  no  importations  in  1903,  shipments  advanced  to  a 
value  of  $88,402  United  States  currency  in  1913  and  to  $676,987  in 
1923.  In  1924  the  value  was  $454,000.  The  United  States  supplies 
some,  although  Great  Britain  rather  dominates  the  market. 

The  Cantonese  have  become  relatively  large  consumers  of  con¬ 
densed  milk  in  the  last  20  years.  The  United  States  has  a  fair  share 
of  this  trade. 

Imports  of  cement  also  have  shown  remarkable  growth,  due  to 
increased  demand  for  construction  purposes. 

Kice  and  rice  paddy  form  together  the  largest  item  in  the  import 
tables.  Imports  originate  largely  in  Siam  and  French  Indo-China, 


CANTON  CONSULAR  DISTRICT  423 

The  value  of  1923  shipments  amounted  to  over  $24,000,000,  while  in 
1924  there  was  a  sharp  decline,  to  $10,171,000. 

Imports  of  cigarettes  have  advanced  steadily.  The  1924  imports 
represent  more  than  15  times  those  of  1903  and  nearly  2 y2  times  the 
amount  brought  in  during  1913. 

Coal  imports  into  Canton  have  increased  steadily,  the  chief  sources 
of  supply  being  North  China,  Formosa,  and  French  Indo-China. 

Electrical  materials  did  not  appear  in  any  quantity  in  the  import 
tables  until  1923,  when  shipments  amounted  to  more  than  $200,000 
gold.  The  United  States  lias  always  been  a  strong  competitor  in 
this  line. 

Another  commodity  in  which  American  participation  has  been 
marked  and  satisfactory  is  wheat  flour.  The  quantity  shipped  into 
Canton  from  all  sources  rose  from  30,642,801  pounds  in  1903  to 
56,961,866  pounds  in  1913,  to  60,472,440  pounds  in  1923,  and  to  66,- 
300,000  in  1924.  Canada  and  Australia  are  the  chief  competitors 
that  the  United  States  faces  in  this  field. 

Imports  of  machinery  have  been  of  particular  interest  to  the 
American  trade.  It  seems  probable  that  the  Canton  market  will 
continue  to  deserve  attention,  particularly  if  conditions  revert  to  a 
more  normal  basis. 

Because  of  the  growth  of  the  match  industry  at  Canton,  there 
has  been  increasing  activity  in  the  importation  of  match-making 
materials.  These  include  chlorate  of  potash,  wood  splints,  and  par¬ 
affin  wax.  Japan  has  been  the  largest  source  of  supply. 

Imports  of  kerosene  advanced  from  $1,587,000  United  States 
currency  in  1913  and  to  $2,603,000  in  1923.  In  1924  there  was  a 
decrease  to  $1,505,000.  The  United  States,  Sumatra,  and  Borneo  con¬ 
tribute  the  supply. 

Paper  is  an  important  item  in  the  trade  of  Canton.  Imports  in 
1923  amounted  to  $941,000  United  States  curerncy,  of  which  the 
largest  items  were  common  printing  paper  and  “  machine-glazed 
cap.”  In  1924  there  was  a  notable  increase  to  $1,463,000.  Sweden, 
Norway,  Denmark,  and  Japan  have  supplied  the  bulk  of  the  demand. 

The  1924  imports  of  sugar  were  valued  at  $4,577,000,  as  compared 
with  $3,430,000  in  1923  and  $1,974,000  in  1913.  Most  of  the  supply 
comes  from  the  Netherlands  East  Indies. 

EXPORT  TRADE 

Export  statistics  are  presented  in  the  table  below  (reexports  being 
included  in  these  figures)  : 


[Quantities  are  stated  in  thousands  of  units  given;  values  in  thousands  of  United  States  dollars] 


Principal  articles 

1913 

1 

1923  1924 

Quantity 

Value 

Quantity 

Value 

Quantity 

Value 

Cotton  manufactures _ 

254 

1, 194 
254 
71 
447 
110 
187 
160 
69 

3,808 

104 

408 

443 

125 

313 

198 

28 

Wolfram  ore _ pounds-- 

3, 120 

1,  226 

1,600 
6, 418 

Bags - number. . 

Bamboo  and  bamboo  ware _  _ 

1,532 

72 

51 

83 

1.54 

115 

26 

Bean  curd,  dried _ _ _  _  pounds. 

Books,  printed _  do 

2, 193 

1,781 

1,821 

Brassware _ _  ...  ..  do 

Bristles _ do  - 

424 

121 

465 

138 

618 

37 

424 


COMMERCIAL  HANDBOOK  OF  CHINA 


Principal  articles 

1913 

1923 

1924 

Quantity 

Value 

Quantity 

Value 

Quantity 

Value 

Buttons . . ...  _  ...  ..  ... 

172 

25 

60 

Cassia _  ..  _  _  . 

..  .pounds.. 

20, 172 

1,279 

16,  339 

612 

24, 100 

1,014 

China  ware _  .  _ 

234 

245 

291 

Cement  -  -  - 

_ pounds. . 

27, 309 

128 

1,938 

36 

1,200 

8 

Eggs,  fresh _ 

_.  .number. . 

33,  431 

200 

7,  768 

93 

7,343 

80 

Fans  -  - - 

_ do _ 

107,  323 

88 

11,470 

194 

54, 376 

7.54 

Feathers...  -  - 

_ pounds. . 

42 

5 

2,099 

164 

1,240 

64 

Firecrackers  and  fireworks _  . 

_ do _ 

8,638 

1,110 

8,  769 

1,238 

9,  466 

1,419 

Fruits,  fresh,  dried,  etc  _ 

_ do _ 

13,  487 

117 

8,093 

111 

27, 866 

1,879 

Furniture  _ _  ...  _  _ 

66 

59 

114 

Garlic  _  .  ...  _ 

_ pounds. 

11,016 

170 

3,964 

88 

3,  733 

72 

Ginger,  fresh.  _ 

_ do _ 

7,231 

121 

9,  658 

194 

9,600 

258 

Glass,  all  kinds.  .  _ 

135 

167 

240 

Grass  cloth  _ _ _ _ 

_ pounds.. 

37 

74 

26 

51 

38 

59 

Groundnuts  (peanuts) ,  in  shell 

_ do _ 

9,  789 

245 

20 

1 

Hair,  human .’  _ _ _ _ 

1,590 

356 

507 

168 

533 

158 

Hides,  cow  and  buffalo  _ 

_ do _ 

893 

144 

173 

18 

296 

72 

Ivory  ware _ _ _ 

13 

56 

76 

Joss  sticks  and  powder,  etc..  .  ... 

_ pounds.. 

3,023 

89 

4,  210 

176 

5,  733 

198 

Leather  and  leatherware  _  . . 

1,  829 

89 

1,  525 

Litchis,  dried. .  _  _  . 

_ pounds.. 

827 

'  155 

867 

184 

1,733 

'330 

Matches 

eross 

2,999 

994 

2,093 

680 

Mats  and  mattinv  ... 

1,552 

2.  356 

1,210 

Meats,  dried  and  preserved... _ 

..  .pounds.. 

809 

'  178 

34,  284 

1,  390 

500 

'236 

Medicines _  ..  _ _ 

_ do _ 

4,519 

293 

4,290 

313 

4,933 

288 

Oil,  vegetable _ _ _ 

138 

48 

172 

Paper.  ... _ _ _ 

..  .pounds.. 

1,320 

139 

5,241 

454 

5,  467 

561 

Rattan  and  rattan  ware  _ _ 

_ do _ 

2,  213 

77 

58,  762 

284 

48,000 

210 

Samshu  _  _ 

_ do _ 

2,  532 

109 

2,  254 

125 

Seeds _ 

_ do _ 

877 

74 

1, 139 

123 

1,333 

149 

Shoes  and  boots...  _ 

_ pairs.. 

130 

66 

531 

308 

559 

274 

Silk,  raw.  ...  .  _ 

.  pounds.. 

6,  354 

20,886 

5,  805 

44,242 

6,  216 

37,  651 

Silk  waste _ _ _  _ 

_ do _ 

5,284 

1,979 

5,442 

3,  526 

7,866 

3,803 

Silk  piece  goods _  _ 

_ do _ 

1,240 

6, 103 

867 

6,  762 

900 

6,811 

Silk  and  cotton  mixtures _  ... 

_ do _ 

252 

232 

76 

223 

75 

194 

Silk  embroidries _  . . . 

_ do _ 

84 

556 

83 

743 

128 

1,271 

Silk  floss,  Canton _  ... 

_ do _ 

10 

29 

29 

51 

15 

62 

Silk  thread.  _  _ 

_ do _ 

30 

97 

44 

80 

17 

71 

Silverware  _  _  . 

165 

326 

383 

Sugar _ _ _  . 

...  pounds. . 

5,280 

133 

2,804 

89 

367 

20 

Tea,  black _ 

_ do _ 

1,836 

319 

3,284 

717 

2,533 

536 

Tobacco,  all  kinds.  .  _  .  . 

_ do _ 

7,  919 

660 

11,368 

1,  765 

12, 933 

1,912 

Umbrellas  _  _ 

33 

95 

297 

Vegetables,  dried,  fresh,  etc  .  _ _ _ 

132 

280 

247 

Woodware _ _ _  _  .  _ 

76 

271 

207 

Examination  of  the  export  figures  reveals  some  interesting  facts. 
A  remarkable  growth  has  occurred  in  the  value  of  the  trade  of  Can¬ 
ton.  Shipments  for  1903  amounted  roughly  to  $31,000,000  United 
States  currency  and  advanced  to  $43,000,000  in  1913  and  to  $81,000,- 
000  in  1923.  In  1924  there  was  a  slight  recession,  to  $74,000,000.1 

As  regards  cotton  goods,  the  figures  for  1923  and  1924  indicate  that 
Canton  is  becoming  a  manufacturer  and  exported  of  this  commodity. 
The  output  goes  mainly  to  Chinese  communities  abroad. 

In  metals  and  minerals  the  only  item  of  importance  is  wolfram  or 
tungsten  ore.  Xo  exportation  occurred  during  1913,  but  by  1923 
shipments  had  assumed  considerable  proportions.  The  demand  for 
this  commodity  was  particularly  keen  during  the  World  War. 

Bamboo  baskets  and  bamboo  ware  have  acquired  popularity  in 
recent  years.  The  chief  buying  center  has  been  the  United  States. 

Bristles  have  remained  a  fairly  staple  item  in  the  export  trade. 
The  demand  has  remained  steady. 

Cassia  is  an  export  commodity  of  good  proportions.  The  1924 
export  figures  are  particularly  high. 


1  In  these  discussions  the  values  of  exports  and  imports  are  stated  in  United  States 
currency. 


CANTON  CONSULAR  DISTRICT 


425 


During  the  period  under  review  shipments  of  china  ware,  espe¬ 
cially  fine  chinaware,  have  increased.  The  United  States  has  been 
a  good  buyer  of  this  commodity. 

In  general  a  big  forward  movement  has  been  evidenced  in  exports 
of  feathers,  duck  and  fowl,  though  1924  registered  a  decrease  from 
the  figures  for  1923.  The  demand  has  come  from  Europe  as  well  as 
from  the  United  States. 

Firecrackers  are  another  commodity  showing  a  rapid  advance  in 
the  export  trade.  Exports  jumped  from  $368,193  in  1903  to  more 
than  $1,100,000  in  1913,  with  this  figure  slightly  bettered  in  1923.  In 
1924  there  was  a  further  increase  to  $1,419,000.  The  United  States 
is  a  consistent  purchaser. 

F resh  ginger  has  shown  satisfactory  increases  in  both  the  value  and 
the  quantity  of  shipments  abroad.  Human-hair  exports  for  1913 
were  unusually  large.  The  figures  dropped  to  $168,451  in  1923  and 
$158,000  in  1924,  which,  however,  represents  a  substantial  advance 
over  1903.  The  foreign  demand  for  ivory  ware  has  not  been  con¬ 
sistent,  but  the  trade  has  been  fairly  brisk  during  the  past  few  years; 
in  1924  there  was  a  substantial  advance  over  the  preceding  year. 
During  the  period  under  discussion  Canton  has  become  an  exporter 
instead  of  an  importer  of  matches.  The  1913  figures  show  no  expor¬ 
tation  of  this  commodity ;  exports  for  1923  amounted  to  $994,218. 

Exportation  of  mats  has  shown  a  steady  increase.  The  foreign 
demand  for  Canton  mats  and  matting  is  quite  universal,  these  com¬ 
modities  being  particularly  popular  in  the  American  market. 

Canton  has  long  been  a  center  for  the  exportation  of  medicines. 
The  export  figures  show  a  general  forward  movement,  the  cargo 
being  destined  principally  for  other  Chinese  communities. 

The  foreign  demand  for  rattan  and  rattan  ware  revealed  a  tre¬ 
mendous  and  steady  growth  up  to  1923.  The  exports  for  1913  were 
valued  at  $77,189,  while  those  for  1923  totaled  $283,808.  In  1924 
there  was  a  decrease  to  $210,000. 

Raw  silk  has  shown  considerably  more  fluctuation  in  value  than 
in  quantity.  In  1903  there  were  exported  from  Canton  4,431,033 
pounds.  This  figure  rose  to  6,057,200  pounds  in  1913,  dropped  to 
5,739,349  in  1923,  and  rose  again  to  6,216,000  pounds  in  1924.  The 
value  of  exports  advanced  from  $13,976,627  in  1903  to  $20,094,785 
in  1913  and  to  $43,819,948  in  1923.  In  1924  the  value  declined  to 
$37,651,000.  It  is  this  commodity  that  makes  Canton  important  as 
an  export  center  for  shipments  to  the  United  States. 

Exports  of  waste  silk  reveal  some  increase  in  quantity.  Values 
advanced  from  $1,979,193  in  1913  to  $3,526,662  in  1923  and  $3,803,000 
in  1924. 

Silk  piece  goods  form  a  large  item  in  the  export  trade,  but  are 
not  of  particular  interest  to  America,  as  shipments  go  principally 
to  India  and  Chinese  communities  abroad. 

Silk  embroideries  are  entering  more  and  more  into  the  foreign 
trade  of  the  poit.  Shipments  amounted  in  value  to  more  than 
$550,000  in  1913  and  more  than  $700,000  in  1923,  while  in  1924 
there  was  a  striking  increase  to  $1,271,000. 

A  phenomenal  growth  lias  been  witnessed  in  tobacco  leaf.  Canton 
tobacco  leaf  has  become  important  as  a  filler  in  the  manufacture  of 
cheap  cigarettes. 


426 


COMMERCIAL  HANDBOOK  OF  CHINA 


Prepared  tobacco  has  revealed  a  forward  movement  so  far  as  the 
value  of  shipments  abroad  are  concerned.  The  quantity  of  exports, 
however,  remains  fairly  uniform. 

It  should  be  noted  that  exports  from  Canton  are  listed  in  the 
customs  returns  as  exports  to  Hongkong  and  as  exports  to  other  parts 
of  China.  Under  the  heading  “exports  to  Hongkong”  are  listed 
practically  all  of  the  exports  from  Canton  to  Great  Britain,  Ger¬ 
many,  France,  the  United  States,  and  Japan.  From  the  invoices 
which  have  passed  through  the  consulate  at  Canton  it  is  possible  to 
ascertain  the  percentage  of  Canton  exports  that  go  to  the  United 
States.  With  other  countries,  however,  there  is  no  way  to  determine 
the  ultimate  destination  of  Canton  exports,  which  go  first  to  Hong¬ 
kong  and  are  transshipped  from  that  port  to  various  points  abroad. 
Cargo  shipped  by  direct  steamer  from  Canton  to  foreign  countries  is 
listed  as  “  exports  to  foreign  countries,”  provided  the  steamer  does 
not  call  at  Hongkong.  With  the  exception  of  a  few  Japanese  vessels, 
however,  there  are  no  ocean-going  ships  operating  directly  from 
Canton  to  foreign  ports  exclusive  of  Hongkong.  Thus  the  quantity 
taken  by  Hongkong  includes  not  only  cargo  whose  ultimate  destina¬ 
tion  is  the  United  States  but  also  cargo  which  is  bound  for  Japan, 
France,  Great  Britain,  and  other  foreign  countries,  as  well  as  the 
majority  of  the  exports  to  other  Chinese  ports. 

BANKING  FACILITIES 

The  following  table  shows  the  leading  banks  in  the  Canton  con¬ 
sular  district  that  handle  foreign  exchange  and  bills: 


Name 

Nationality 

Head  office 

Capital 

International  Banking  Corporation- _ 

American _ 

New  York _ 

Capital  and  surplus,  $10,- 
000,000  United  States  cur¬ 
rency. 

Hongkong  &  Shanghai  Banking  Cor¬ 
poration. 

British _ 

Hongkong _ 

Authorized,  $50,000,000  Hong¬ 
kong  currency;  issued  and 
fully  paid  up,  $20,000,000. 

Chartered  Bank  of  India,  Australia 
&  China. 

..  ..do..  . . . 

London _ 

Paid  up,  £3,000,000. 

Peninsular  &  Oriental  Banking  Cor¬ 
poration. 

_ do _ 

_ do _ 

Authorized,  £5,000,000;  paid 
up,  £2,594,160. 

Banque  de  l’lndo-Chine  _ 

French...  .  ...  . 

Paris . . 

10,000,000  francs. 

Deutsche  Asiatic  Bank . 

German..  . .  . 

Berlin..  _ 

Bank  of  Taiwan  (Ltd.) _ _ 

Japanese _ _ 

Taipei, Taiwan. 

52,500,000  yen,  paid  up. 

Yokohama  Specie  Bank  (Ltd.) 

_ do _ 

Yokohama _ 

100,000,000  yen. 

Bank  of  Canton  (Ltd.) _ 

Chinese  (British 
registered). 

Hongkong - 

Authorized,  £1,200,000;  paid 
up,  £1,078,530. 

Bank  of  East  Asia  (Ltd.) . 

_ do . 

. do.  _ 

Authorized,  $10,000,000  Hong¬ 
kong  currency;  paid  up, 
$5,000,000. 

Banque  Franco-Chinoise.  -  _ 

French . . 

Paris . . 

10,000,000  francs. 

LOCAL  CURRENCY  SITUATION  a 

Foreign  trade  is  conducted  as  a  rule  in  Hongkong  silver  dollars. 
The  silver  20-cent  pieces  are  usually  at  a  discount  as  compared  with 
the  Hongkong  dollar,  the  highest  discount  for  1923  being  1.25  and 
the  lowest  discount  being  1.14.  Hongkong  currency  notes  of  various 
denominations  are  issued  by  the  British  foreign-exchange  banks  at 
Hongkong  and  circulate  freely  in  most  of  the  treaty  ports.  Remit - 


2  See  special  chapter  oil  “  Currency,  exchange,  and  banking.” 


CANTON  CONSULAR  DISTRICT  427 

lance  charges  to  Shanghai  in  dollars  range  approximately  from  4 
per  cent  premium  to  4  per  cent  discount. 

The  only  factor  which  differentiates  the  Canton  situation  from 
that  obtaining  in  some  other  parts  of  China  is  the  relation  between 
Hongkong  currency  and  Canton  silver  currency.  The  tendency  of 
the  latter  to  depreciate  has  an  adverse  effect  upon  foreign  trade. 
When  the  Hongkong  dollar  is  high  with  respect  to  gold,  import 
trade  is  augmented  and  export  trade  retarded.  Conversely,  when 
Hongkong  dollars  are  cheap  the  tendency  is  to  restrict  imports,  while 
exports  are  stimulated. 

ADVERTISING  AND  MERCHANDISING  3 

Advertising  in  the  Chinese  vernacular  newspapers  is  considered  a 
fairly  effective  method  of  augmenting  sales.  Advertising  through 
the  medium  of  moving  pictures  is  coming  into  more  general  use 
throughout  the  district.  Before  the  performance  begins  and  be¬ 
tween  films  or  during  intermissions  this  matter  is  flashed  upon  the 
screens.  This  is  of  great  value  in  familiarizing  the  populace  with 
some  special  brand  or  “  chop.”  The  printed  matter,  of  course,  is  in 
Chinese,  always  with  a  likeness  of  the  particular  commodity. 

Posters  and  billboard  advertising  is  common  in  Canton  and  is 
regulated  by  a  department  of  the  municipality  which  promulgated 
a  definite  system  of  rules  during  1923.  The  municipality  is  divided 
into  12  advertising  districts,  in  which  the  city  has  planned  to  set 
up  1,600  public  billboards,  the  number  to  be  increased  when  condi¬ 
tions  warrant  it.  All  advertising  spaces  are  uniform  in  area  and 
the  charges  are  as  follows  per  100  copies  of  bills  posted:  Class  A, 
per  day,  $0.15  United  States  currency;  class  B,  per  day,  $0.10; 
class  C,  per  day,  $0.08. 

The  posting  of  bills  and  advertising  matter  on  immovable  prop¬ 
erty,  such  as  buildings,  as  well  as  on  movable  property,  such  as  cars 
or  steamers,  is  subject  to  the  approval  of  the  bureau.  The  tax  levied 
on  such  advertising  is  given  below  (tax  per  month  per  10  square 
feet)  :  Class  A  district,  $2.50  United  States  currency;  class  B  district, 
$1.50;  class  C  district,  $0.75. 

Since  the  promulgation  of  the  rules  affecting  the  use  of  posters  and 
billboards  there  has  been  a  decided  dropping  off  in  the  space  utilized 
for  advertising.  The  general  opinion  seems  to  be  that  the  taxes 
and  rates  are  somewhat  higher  than  business  houses  can  afford  to 
pay.  Non-Chinese  concerns  at  present  make  no  extensive  use  of 
the  municipal  advertising  spaces. 

TRAVEL  FACILITIES 

The  majority  of  commercial  travelers  and  tourists  stop  at  the  Vic¬ 
toria  Hotel,  under  British  management,  which  is  the  only  non- 
Chinese  hotel  in  Canton.  The  traveler  has  his  choice  of  American 
or  European  plan,  rates  by  the  American  plan  varying  from  $5  to 
$14  gold  per  day.  Monthly  rates  are  computed  as  24  full  days.  The 
accommodations  of  the  hotel  are  limited,  and  it  is  frequently  difficult 
to  obtain  rooms. 


3  See  special  chapter  on  this  subject. 


428 


COMMERCIAL  HANDBOOK  OF  CHINA 


For  the  past  two  years  there  has  been  a  project  on  foot  to  build 
a  new  and  larger  hotel  on  the  Shameen  foreign  concession,  but, 
although  ground  has  been  broken,  the  construction  is  very  slow. 
Under  present  conditions  it  is  advisable  for  travelers  to  come  to 
Canton  from  Hongkong  by  river  steamer  rather  than  by  rail.  Train 
service  between  the  two  ports  is  not  only  unreliable  but  is  often 
unsafe.  From  Canton  the  interior  districts  may  be  visited  by  water 
or  by  rail ;  all  the  necessary  traveling  arrangements  may  be  effected 
at  Canton.  However,  visitors  to  the  West  River  territory  usually 
find  it  more  practicable  to  take  a  steamer  direct  from  Hongkong. 

Every  commercial  traveler  who  visits  the  district  should  have  in 
his  possession  powers  of  attorney  and  other  credentials.  Legitimate 


Fig.  1(5. — American  consulate  general.  Canton.  The  United  States  has  had  a 

consular  representative  at  Canton  since  1784 


business  is  often  blocked  by  the  failure  to  have  such  documents. 
Specific  letters  of  introduction  are  useful.  The  commercial  language 
of  the  port  is  English  so  far  as  foreign  trade  is  concerned,  and  com¬ 
petent  guides  and  interpreters  may  be  obtained  at  the  hotels  for 
reasonable  rates.  The  traveler  making  an  initial  visit  to  the  district 
should  call  at  the  American  consulate  general. 

TRADE  ORGANIZATIONS 

The  following  are  the  principal  trade  organizations  at  Canton  : 

General  Chamber  of  Commerce,  Chinese;  address,  “General  delivery.” 

British  Chamber  of  Commerce ;  address,  “  Shameen.” 

French  Chamber  of  Commerce ;  address,  “  Shameen.” 

German  Chamber  of  Commerce ;  address,  “  Tungshan.” 


CANTON  CONSULAR  DISTRICT 


429 


The  most  important  function  of  the  Chinese  General  Chamber  of 
Commerce  is  to  bring  the  grievances  of  individual  firms  to  the  at¬ 
tention  of  the  officials  of  the  Government. 

The  trade  organizations  maintained  by  the  British,  French,  and 
Germans  are  of  a  somewhat  informal  nature.  Inquiries  addressed 
to  the  various  organizations  are  circularized  among  the  firms  of  the 
nationals  in  question.  The  only  American  organization  in  the  dis¬ 
trict  is  the  American  Association  of  South  China,  which  has  for  its 
object  the  furtherance  of  general  American  interests,  but  is  not 
equipped  to  carry  on  correspondence  with  business  men  in  the  United 
States. 

PROPERTY  VALUES  AND  RENTS 

The  following  statement  shows  the  general  situation  with  regard 
to  property  values  and  rents  in  Canton : 

1  All  values  are  in  United  States  currency] 


Location 

Purchase  price  per 
unit 

Rent  (per  month) 

Office  space 

Warehouse  space 

Residential  purposes 

Bund _  - 

Varies  from  $350  to 
$1,750  per  100 
square  feet. 

$50  for  625  square 
feet. 

$75  to  $100  for  8-room 
unfurnished  house 
without  water  or 
light. 

$2  to  $5  for  3  rooms, 
used  by  poorer  class 
Chinese;  $15  to  $50 
for  5-room  house, 
used  by  middle-class 
Chinese. 

$150  to  $200  for  suite  of 
rooms,  unfurnished. 

Tungshan...  .. 

Chinese  city... 

Shameen _ _ 

Varies  from  $150  to 
$600  per  100  square 
feet. 

$1,700  per  square 
foot  with  old  3- 
story  brick  build¬ 
ing. 

$20  for  625  square 
feet. 

$300  for  3-story  build¬ 
ing,  first  floor  used 
as  office  and  upper 
floors  as  residence. 

$350  per  month  for 
warehouse  280 
by  80  by  18  feet. 

Land  values  and  rents  are  high  at  Canton  and  are  believed  to  be 
increasing.  The  most  attractive  values  are  in  some  sections  of  the 
Chinese  city,  although  real  estate  prices  along  the  wide  streets  ap¬ 
pear  excessive.  The  residential  district  for  Americans  and  Euro¬ 
peans  is  expanding  and  there  is  a  tendency  to  move  to  suburbs, 
especially  Tungshan,  rather  than  to  settle  on  Shameen,  which  is 
rather  crowded.  Several  firms,  including  practically  all  of  the  Ger¬ 
man  ones,  have  opened  offices  in  the  ctiy.  There  seems  little  doubt 
that  the  business  of  the  future  will  take  place  more  and  more  within 
the  native  city  and  not  on  the  foreign  concession. 

TAXES  AND  OTHER  ASSESSMENTS 

The  generally  unsettled  situation  which  prevails  in  the  Canton 
district  makes  it  difficult  to  state  what  taxes  and  assessments  would 
amount  to  under  peaceful  conditions.  In  the  effort  to  raise  funds 
to  defray  the  expenses  of  each  incoming  government,  extraordinary 
levies  and  taxes  are  imposed.  These  taxes  take  the  form  of  collect¬ 
ing  rents  in  advance  and  placing  a  surcharge  thereon,  of  additional 


430 


COMMERCIAL  HANDBOOK  OP  CHINA 


taxes  on  public  utilities,  of  increased  police  charges,  of  higher  rates 
on  the  registration  of  lands,  of  compelling  the  registration  of  prop- 
erty'  with  an  attendant  tax,  and  of  various  other  measures.  As  a 
rule,  however,  foreigners  enjoying  extraterritorial  rights  are  not 
required  to  pay  these  assessments,  although  most  of  them  do  pay 
certain  taxes  which  are  considered  reasonable  and  nondiscrimina- 
tory. 

As  in  other  parts  of  China,  foreigners  belonging  to  nations  which 
have  extraterritorial  privileges  may  hold  land  for  business  pur¬ 
poses  only  in  the  treaty  ports,  and  that  only  in  the  form  of  perpetual 
leases.  Such  arrangements  for  acquiring  the  right  to  land  should  be 
conducted  through  the  consular  officers  in  the  district.  There  is 
no  particular  obstacle  in  the  way  of  business  men  renting  offices 
and  residences  in  the  treaty  ports.  In  case  any  difficulty  arises  in 
regard  to  rentals,  reference  to  the  nearest  consular  official  will  often 
clear  up  the  matter. 

LIVING  COSTS 

The  statement  below  indicates  the  ordinary  living  expenses  at 
Canton.  Boarding-house  costs  are  not  shown,  because  such  accom¬ 
modations  are  not  available. 


Hotel 

board 

and 

room, 

per 

month 

Board 

Rent 

Esti¬ 

mated 

necessary 

living 

expenses, 

per 

month 

Single  man _  _  _  _  ..  _  .. 

$100 

$50 

$75 

$125-$200 

Single  woman .  .  __  _  _ _ __ 

100 

50 

75 

150-  200 

Married  couple.— .  ..  .  _  .  .  _  .  .  .. 

190-200 

100 

100 

200-  250 

Married  couple  and  two  children  .  _ _ _ _ _ _ 

300-400 

300-  400 

Note.— Children  under  2,  one-fourth  rate;  under  8,  one-half  rate;  over  8,  full  rate. 


Living  expenses  in  the  Canton  districts  are  believed  to  be  high 
in  comparison  with  most  other  sections  of  China.  Residents  of 
Shameen  pay  considerably  more  than  those  foreigners  who  dwell 
in  the  outlying  suburbs.  The  disadvantages  of  suburban  life  are 
serious  because  of  the  relatively  expensive  and  unsatisfactory 
methods  of  transportation  and  principally  because  at  times  it  is 
not  considered  safe  to  pass  through  the  native  city. 

The  majority  of  the  American  and  European  residents  of  the 
Shameen  concession  belong  to  the  Canton  Club,  an  international 
organization  maintaining  a  club  building  on  the  island. 

There  are  a  number  of  excellent  mission  schools  in  the  district, 
but  no  good  facilities  for  the  education  of  American  children,  de¬ 
spite  the  fact  that  separate  foreign  schools  are  maintained  at  Paak- 
hoktung  and  at  the  Canton  Christian  College.  The  engagement  of 
tutors  is  general,  as  is  the  practice  of  sending  children  to  other  parts 
of  China  for  their  secondary  education. 

CHANGES  IN  TRADE  CONDITIONS  IN  RECENT  YEARS 

Certain  characteristics  of  the  Canton  trade  are  worthy  of  special 
attention.  The  Chinese  exhibit  increasing  eagerness  to  buy  all  kinds 


CANTON  CONSULAR  DISTRICT 


431 


of  western  commodities,  and  American  manufacturers  and  dealers 
have  secured  a  fair  share  of  the  trade.  Several  factors,  however,  tend 
to  make  the  importation  of  many  articles  only  temporary.  Among 
such  articles  may  be  mentioned  foreign-style  shoes,  hats  and  caps, 
umbrellas,  wearing  apparel  of  all  kinds,  watches,  safes,  small  gaso¬ 
line  and  oil  engines,  and  the  simpler  types  of  industrial  machinery. 
As  a  rule,  the  cost  of  the  imported  commodity  is  too  high  to  fall 
within  the  purchasing  power  of  the  average  Chinese.  Foreign-made 
articles  thus  belong  to  the  luxury  class.  When  the  indications  of  a 
widespread  demand  become  manifest,  the  Cantonese  use  the  im¬ 
ported  goods  as  models  and  imitate  them,  placing  native-made  articles 
on  the  market  at  prices  below  those  quoted  on  the  imported  goods. 
The  native-made  goods  are  altered  to  conform  to  Chinese  tastes  and 


requirements.  In  many  cases  the  raw  materials  and  the  machinery 
are  purchased  from  abroad.  Hand  labor  and  more  or  less  primitive 
machines  are  employed  at  present,  rather  than  intricate  and  highly 
specialized  equipment.  In  view  of  these  conditions,  American  en¬ 
deavor  should  not  divert  too  much  attention  to  the  sale  of  certain 
classes  of  merchandise.  Initial  sales  in  these  lines  offer  opportunities 
for  the  disposal  of  American  surplus  production,  but  do  not  consti¬ 
tute  fields  in  which  substantial  and  permanent  business  may  be  built 
up.  American  efforts  should  rather  be  concentrated  on  supplying 
raw  materials  and  machinery. 

The  introduction  of  modern  industrial  plants  is  beginning  to  pre¬ 
sent  attractive  openings  for  American  trade.  Electrical  appliances 
and  equipment  of  all  sorts  are  in  demand.  When  conditions  become 
quiet  in  this  section  of  China,  there  will  arise  a  market  for  industrial 
machinery  such  as  is  used  in  weaving  and  knitting  factories,  in 
match-making  concerns,  in  the  production  of  bricks  and  cement,  in 
tanneries,  and  in  rubber  sole,  paper,  and  ice  factories.  At  the  present 
time  such  enterprises  are  in  an  inchoate  state.  The  Cantonese  possess 
the  necessary  capital  and  necessary  resources  to  engage  in  industrial 
activity  along  western  lines;  the  only  element  lacking  is  a  stable 
situation  under  which  legitimate  undertakings  may  be  fostered. 

American  exporters  have  already  obtained  a  good  position  in  the 
Canton  market  in  many  lines,  among  which  may  be  mentioned  oil, 
cigarettes,  sewing  machines,  flour,  and  general  metals  and  minerals. 
Favorable  activity  has  been  apparent  in  American  importation  of 
railway  materials,  of  construction  equipment,  such  as  reinforcing 
steel,  cement,  elevators,  locks,  and  padlocks,  and  of  plumbing  acces¬ 
sories.  Canned  goods,  such  as  condensed  milk  and  milk  substitutes, 
fruits,  meats,  and  preserves,  find  a  growing  sale.  Other  commodi¬ 
ties  in  the  importation  of  which  American  participation  is  marked 
are  chinaware,  dental  instruments,  pumps  and  fittings,  needles,  tele¬ 
phone  materials,  hand  tools,  the  better  grades  of  paper,  toilet  articles 
and  preparations,  phonographs,  automobiles,  and  photographic  sup¬ 
plies. 


Competition  is  severe  and  can  be  met  only  by  high-grade  produc¬ 
tion  at  prices  which  compare  favorably  with  similar  commodities 
from  other  foreign  countries. 


HANKOW  CONSULAR  DISTRICT 

By  Consul  General  P.  S.  Heintzleman 

LOCATION  AND  AREA 


The  Hankow  consular  district  includes  the  Provinces  of  Hupeh, 
Kiangsi,  Honan  south  of  the  Yellow  River,  Shensi,  Kansu,  the 
Kokonor  region,  and  Sinkiang  (Turkestan),  all  in  the  central  and 
northwestern  portion  of  China,  the  aggregate  area  being  roughly 
1,000,000  square  miles.  The  city  of  Hankow  is  situated  on  the 
Yangtze  River  at  its  confluence  with  the  Han  River,  in  latitude 
39%°  N.  (about  the  same  as  New  Orleans)  and  longitude  llU/^0  E. 

The  climate  is  somewhat  similar  to  that  of  the  southern  part  of 
the  United  States,  ranging  in  temperature  from  20°  to  102°  F.  There 
is  a  heavy  rainfall  during  the  summer,  and  there  is  a  short  rainy 
season  in  the  late  winter  and  early  spring.  The  average  annual 
rainfall  is  about  44  inches. 

In  area  the  Hankow  consular  district  is  the  largest  in  China, 
comprising  more  than  25  per  cent  of  the  total  territory  of  the  Re¬ 
public.  From  the  southern  point  of  Kiangsi  Province  to  the  north¬ 
western  point  of  Kansu  the  distance  exceeds  1,600  miles;  because  of 
the  extremely  primitive  methods  of  transportation  (largely  by 
chair,  cart,  and  wheelbarrow)  it  would  require  more  than  one  month 
to  make  such  a  trip. 

POPULATION 

No  accurate  census  of  the  population  has  ever  been  taken,  but  the 
estimate  made  by  the  board  of  the  interior  in  1910  is  generally  ac¬ 
cepted  as  the  most  reliable  and  is  used  in  this  report.  The  estimated 
area  and  population  of  the  Provinces  comprising  the  district  are : 


Provinces 

Area 

Population 

Provinces 

Area 

Population 

Hupeh  . . 

71, 428 
69, 498 

60,000 
75,  290 

24,  900,  000 
14,  500,  000 

24,  000,  000 
8, 800,  000 

Kansu _  _ 

125, 483 
0) 

550,  579 

5, 000, 000 
(') 

2,  491,  000 

Kiangsi . . . 

Kokonor  region _ _ _ 

Honan  south  of  Yellow 
River _ _ _ _ 

Sinkiang  (Turkestan) _ 

Total . . 

952,  278 

79, 691,  000 

Shensi _ 

1  Not  known,  even  approximately. 


About  80  per  cent  of  this  population  is  rural.  Agriculture  is  of 
a  very  primitive  character,  and  industries  are,  with  some  exceptions, 
still  of  the  primitive  household  sorts.  Density  of  population  is 
greatest  in  Honan  along  the  Yellow  River,  where  it  is  376  persons 
per  square  mile,  and  least  in  Sinkiang,  where  it  is  4%  per  square 
mile.  The  average  density  of  population  for  the  district  is  182  per 
square  mile. 

432 


HANKOW  CONSULAR  DISTRICT 


433 


CITIES 


The  treaty  ports  in  the  consular  district,  in  the  order  of  their 
commercial  importance,  are :  Hankow,  population  1,000,000,  opened 
to  trade  in  1862;  Kiukiang,  population  36,000,  opened  in  1862; 
Ichang,  population  55,000,  opened  in  1877 ;  and  Shasi,  population 
95,000,  opened  in  1896. 

There  are  a  number  of  other  cities  of  local  and  trade  importance, 
and  a  few  ports  of  call  for  passengers  and  cargo  on  the  Yangtze 
River,  such  as  Hukow,  Wusueh,  Lukikow,  Hwangshihkang,  and 
Hwangchow.  These  places  were  opened  as  ports  of  call  by  the 
Chef oo  Agreement  of  September  13,  1876,  and  the  Yangtze  Regula¬ 
tions  of  1898. 

American  firms  and  residents  in  the  treaty  ports  are  as  follows : 
Hankow,  18  firms  and  248  residents;  Kiukiang,  1  firm  and  76  resi¬ 
dents;  Ichang,  3  firms  and  32  residents;  Shasi,  1  firm  and  9  residents. 
In  addition  to  the  365  Americans  living  in  the  treaty  ports  there  are 
922  resident  in  various  interior  cities,  making  a  total  of  1,287  Amer¬ 
icans  resident  in  the  district.  At  least  75  per  cent  are  engaged  in 
missionary  work. 

In  Hankow  (which,  except  Kiukiang,  is  the  only  city  in  the  dis¬ 
trict  that  has  foreign  concessions)  there  are  about  4,400  foreign  resi¬ 
dents.  Great  Britain,  France,  and  Japan  have  concessions  here, 
as  had  Germany  and  Russia  formerly,  these  now  being  administered 
by  the  Chinese  Government  as  special  administrative  districts. 
Great  Britain  has  the  only  concession  in  Kiukiang. 

PHYSICAL  FEATURES 

Honan  Province  is  shaped  like  an  irreg'ular  triangle.  It  comprises 
three  river  basins — the  lTellow  River  in  the  north,  the  Hwai  River 
in  the  south,  and  the  Han  River  in  the  southeast.  The  Peh  and  Tan 
Rivers  flow  into  the  Han  River.  Along  the  Yellow  River,  Honan 
is  level,  fertile,  and  populous;  the  southern  portion  is  mountainous. 
Haifeng,  the  capital,  is  situated  about  3  miles  from  the  southern 
bank  of  the  Yellow  River,  the  bed  of  which  is  here  elevated  above 
the  adjacent  country. 

The  Yangtze  River  flows  through  the  southern  part  of  Hupeh 
Province,  while  the  Honan  River  drains  nearly  the  whole  Province 
joining  the  Yangtze  at  Hankow.  The  most  important  centers  in 
Hupeh  are  the  Wuhan  cities  (Hankow,  Hanyang,  and  Wuchang), 
at  the  confluence  of  the  two  rivers.  Hankow  is  the  largest  industrial 
and  shipping  city  in  central  China.  Other  important  ports  are  Shasi 
and  Ichang.  The  former  has  a  canal  which  discharges  into  the 
Han  River  40  miles  away.  Ichang  was  formerly  the  head  of  navi¬ 
gation  for  light-draft  vessels  on  the  Yangtze,  until  the  introduction 
in  1900  of  the  steamers  that  navigate  the  rapids  and  gorges.  Above 
Ichang  are  the  Wushan,  Milan,  and  Lukan  gorges,  famous  for  their 
picturesque  scenery. 

The  Great  Wall  of  China  forms  a  part  of  the  northern  boundary 
of  Kansu  Province.  The  Province  is  virtually  divided  into  two 
sections  by  the  mountains  running  nearly  north  and  south  and 
separating  the  Wei  and  Yellow  River  Basins.  The  Wei  Basin  is 

100020°— 26 - 29 


434 


COMMERCIAL  HANDBOOK  OF  CHINA 


fertile  like  the  plains  of  central  Shansi,  but  the  rivers  are  of  little 
use  for  navigation. 

The  principal  cities  are  Lanchow,  the  capital,  on  the  Yellow  River; 
Pingliang  on  the  King  River;  Kungcliang  on  the  Wei  River;  Min- 
chow,  in  the  southern  part,  on  a  branch  of  the  Yellow  River;  and 
Sining. 

Iviangsi  Province  lies  south  of  Anhwei  and  Hupeh,  between 
Chekiang  and  Fukien  on  the  east  and  Hunan  on  the  west,  reaching 
from  the  Yangtze  to  Kwangtung  Province  on  the  south.  The  im¬ 
portant  centers  are  Iviukiang,  on  the  Yangtze  River;  Nanchang, 
the  provincial  capital,  on  the  Kan  River;  Nankangfu,  near  the  mouth 
of  the  Poyang  Lake;  Jaochow  and  Kingtehchen  in  the  northeastern 
part,  the  latter  famous  for  its  porcelain  industry;  Pingsiang  near 
the  Hunan  border,  where  there  are  extensive  collieries;  Kianfu,  in 
the  south-central  part,  on  the  Ivan;  and  Ivanchow,  in  the  extreme 
southern  part,  likewise  on  the  Kan. 

Shensi  is  bounded  on  the  north  by  the  Ordos  country  (inner  Mon¬ 
golia),  from  which  it  is  dhdded  by  the  Great  Wall,  on  the  east  by 
Shansi  and  Honan,  on  the  southeast  by  Hupeh,  on  the  south  by 
Hupeh  and  Szechwan,  and  on  the  west  by  Kansu.  This  Province 
has  three  separate  geographical  divisions — the  fertile  loess  table¬ 
lands  in  the  north;  the  plain  in  the  center  drained  by  the  Wei  River 
and  its  tributaries;  and  the  mountains  in  the  south.  The  northern 
section  has  a  good  soil,  but,  on  account  of  the  uncertainty  of  the 
rains,  agriculture  is  rendered  precarious.  The  beds  of  the  many 
small  streams  are  cut  deep  into  the  prevailing  loess  formation,  and 
consequently  the  roads  across  them  are  few.  Yulinfu  in  the  extreme 
north  and  Yenanfu  in  the  north -central  part  are  the  principal  cities. 
The  most  populous  section  is  central  Shensi,  in  the  fertile  Wei 
River  valley. 

AGRICULTURE 

The  Chinese  are  primarily  agriculturalists,  and  most  of  the  terri¬ 
tory  in  the  district,  except  the  mountainous  sections,  is  under  cul¬ 
tivation.  The  soil  is  fertile  and  has  great  agricultural  potentiali¬ 
ties,  although  the  wooden  plow,  the  wooden-wheel  cart,  and  the 
primitive  hoe — all  of  which  have  come  down  from  very  ancient 
times — do  not  make  the  most  of  them.  The  following  facts  relate 
to  the  principal  crops  of  the  district,  the  first  seven  being  given  in 
the  order  of  their  monetary  importance  as  articles  of  export. 

Cotton. — Produced  in  Ilupeli  and  Honan  (planted  in  May,  harvested  in  Sep¬ 
tember  and  October)  ;  yield  per  acre,  100  to  275  pounds. 

Sesame. — Produced  in  Hui)eh  and  Honan  (planted  in  June,  harvested  in 
August,  September,  or  October)  ;  yield  per  acre,  12  bushels. 

Tea. — Produced  in  Hupeh  and  Kiangsi  (harvested  in  March  and  April). 

Beans. — Produced  in  Hupeh  (planted  in  May,  harvested  in  September), 
Honan  (planted  in  June,  harvested  in  October),  and  Kansu;  yield  per  acre,  125 
to  200  pounds. 

Tobacco. — Produced  in  Hupeh,  Honan,  Kansu,  Kiangsi,  and  Shensi. 

Wheat. — Produced  in  Hupeh  (planted  in  September,  harvested  in  May), 
Honan  (planted  in  October,  harvested  in  June),  Kansu,  Kiangsi,  and  Shensi; 
yield  per  acre,  8  bushels  and  up. 

Peanuts. — Produced  in  Hupeh  (planted  in  March,  harvested  in  September), 
Honan,  and  Kiangsi ;  yield  per  acre,  500  pounds. 

Barley. — Produced  in  Honan  (planted  in  September,  harvested  in  June), 
Hupeh  (planted  in  October,  harvested  in  May),  Kansu,  and  Shansi;  yield  per 
acre,  5  to  25  bushels. 


HANKOW  CONSULAR  DISTRICT 


435 


Corn. — Produced  in  Hupeh  (planted  in  March,  harvested  in  July),  Kansu 
(planted  in  April,  harvested  in  September),  and  Shansi  (planted  in  June, 
harvested  in  August)  ;  yield  per  acre,  15,  16,  35  bushels. 

Hemp. — Produced  in  Hupeh  and  Honan  (planted  in  February  or  March, 
harvested  in  June). 

Millet. — Produced  in  Hupeh  (planted  in  June,  harvested  in  October),  Honan 
(planted  in  May,  harvested  in  September),  Kansu  (planted  in  April,  harvested 
in  August),  and  Shansi  (planted  in  March,  harvested  in  July  or  August)  ; 
yield  per  acre,  20  to  30  bushels. 

Peas. — Produced  in  Hupeh,  Honan,  Kiangsi,  Kansu,  and  Shensi ;  yield  per 
acre,  125  to  200  pounds. 

Potatoes. — Produced  in  Hupeh  (planted  in  February,  harvested  in  June). 

Rice. — Produced  in  Hupeh  (planted  in  June,  harvested  in  September),  Honan 
(planted  in  April,  harvested  in  August),  Kiangsi,  Shensi,  and  Kansu;  yield 
per  acre,  1.000  pounds  and  up. 

Silk. — Produced  in  Honan. 

Sweet  potatoes. — Produced  in  Honan  and  Hupeh  (planted  in  May  or  June, 
harvested  in  August,  September,  October,  or  November)  ;  yield  per  acre,  40 
bushels  and  up. 

Other  agricultural  products  are  rye  in  Kansu,  buckwheat  in  Hupeh 
and  Shansi,  indigo  in  Honan  and  Shensi,  and  alfalfa  in  Shensi. 
Truck  farming  and  gardening  are  extensively  carried  on  throughout 
the  territory.  The  entire  production  of  rice  is  consumed  by  the 
inhabitants  of  the  district  ;  the  total  does  not  meet  the  full  demand 
of  the  people.  Cotton  has  become  one  of  the  principal  articles  of 
trade,  and  for  the  past  several  years  ranked  first  in  the  exports  of 
Hankow. 

The  silk  industry  in  Honan  Province  is  not  so  important  an  indus¬ 
try  as  it  is  in  Shantung  and  other  Provinces  in  the  north,  but  it  is 
worth  mentioning. 

Tea  is  one  of  the  most  important  articles  of  export  from  Hankow. 
It  is  produced  mainly  in  Kiangsi  and  Hupeh,  which  send  their 
produce  to  Hankow  for  sale,  making  this  port  their  chief  black-tea 
market  in  China. 

Tobacco  is  a  mercantile  crop  in  Hupeh,  Kiangsi,  Kansu,  and  east¬ 
ern  Honan  and  is  grown  intermittently  for  local  consumption  in 
Shensi.  A  few  years  ago  there  was  a  considerable  stimulus  to  to¬ 
bacco  production,  created  by  the  establishment  in  Hankow  of  a 
cigarette  plant  which  undertook  to  use  Chinese  tobacco.  The  most 
important  producing  sections  of  the  district  are  Chunchow  and 
Laohokow  in  Hupeh,  the  Poyang  Lake  region  in  Kiangsi,  Lancliow 
in  Kansu,  and  Siangcheng  and  Chenchow  in  Honan.  There  are  no 
statistics  of  production  available,  but  it  is  estimated  that  Hupeh 
produces  annually  about  20,000,000  pounds,  of  which  15,000,000 
pounds  are  sold  on  the  Hankow  market.  Kiangsi  produces  6,000,000 
to  8,000,000  pounds,  of  which  about  two-tliirds  is  sold  on  the  market 
for  export,  while  Honan  produces  about  7,000,000  pounds,  of  which 
6,000,000  are  forwarded  to  Hankow  for  sale.  There  is  no  reliable 
estimate  of  the  production  in  Shansi  or  Kansu. 

Recent  years  have  witnessed  a  wonderful  development  in  the  qual¬ 
ity  and  exportation  of  sesame  seed,  which  is  grown  very  extensively 
in  Honan  and  Hupeh ;  it  has  become  one  of  the  chief  articles  of  the 
export  trade  of  Hankow. 

The  beasts  of  burden  are  the  horse,  bullock,  mule,  donkey,  ass,  and 
■water  buffalo.  In  the  preparation  of  the  land  for  planting,  mules 
and  water  buffalos  are  used  for  plowing.  The  livestock  found 
throughout  the  district  includes  pigs,  chickens,  and  ducks.  Every 


436 


COMMERCIAL  HANDBOOK  OF  CHINA 


farm  has  a  pig,  and  every  family,  urban  or  rural,  has  chickens. 
Cows  and  goats  in  limited  numbers  are  to  be  found  in  practically 
all  of  the  district. 

Yo  manufactured  fertilizer,  unless  bean  cake  is  so  considered,  is 
used  by  the  farmer ;  sesame  cake  is  also  prominent  in  some  sections ; 
and  an  extremely  limited  amount  of  carbonate  and  hydrate  of  lime 
is  found  in  the  western  part  of  Hupeh.  It  may  be  stated  that  animal 
manure,  bean  cake,  and  ashes  are  the  only  fertilizers  in  general  use. 

MINERALS  AND  MINING 

In  the  consular  district  there  are  known  deposits  of  gold,  silver, 
lead,  zinc,  copper,  antimony,  iron,  coal,  fire  clay,  pottery  clay,  g}7p- 
sum,  salt,  and  limestone  suitable  for  cement  making.  Some  of  these 
metals  and  minerals  have  been  extensively  worked  in  former  times, 
and  some  are  worked  to  a  small  extent  at  present. 

In  Hupeh  the  main  mineral  belt  is  adjacent  to  the  Yangtze  be¬ 
tween  Wuchang  and  the  eastern  boundary  of  the  Province,  and  it 
•  continues  into  Kiangsi.  In  northern,  western,  and  southwestern 
Hupeh  are  some  mineral  occurrences  of  various  sorts.  Coal  is 
found  in  a  great  number  of  places  in  the  west,  obtainable  over  the 
valleys  of  the  Han  and  the  Yangtze  with  their  tributaries,  but  the 
best  bituminous  coal  found  in  China  is  said  to  come  from  near  Tayeh. 

Iron  ore  is  obtainable  in  a  number  of  places,  but  in  Tayeh  it  has 
been  operated  to  a  considerable  extent  and  is  being  mined  for  the 
account  of  the  Tayeh  and  Hanyang  iron  and  steel  works.  Most  of 
the  best  ore  in  that  region  is  being  exported  to  Japan. 

At  present  foreign  capital  can  not  be  invested  under  favorable 
conditions  and  controlled  by  foreigners.  The  main  difficulty  is  the 
want  of  adequate  provision  under  existing  laws  to  protect  foreigners 
against  the  heavy  expenses  during  the  developing  stage.  It  is  not 
thought  that  there  are  any  mines  operated  entirely  under  foreign 
control  or  management. 

Local  methods  of  mining  endeavor  to  get  out  the  available  ore  in 
the  easiest  possible  manner,  with  no  provision  for  future  develop¬ 
ment,  and  when  one  hole  is  exhausted,  for  any  reason,  another  is 
started.  It  is  stated  on  reliable  authority  that  less  than  1  per  cent 
of  the  mines  in  operation  in  this  consular  district  use  modern  meth¬ 
ods  or  foreign  machinery. 

While  no  statistics  are  available  concerning  the  annual  production 
of  the  various  mines  in  the  district,  it  is  estimated  that  the  annual 
output  of  the  coal  mines  is  6,000,000  tons  and  of  the  iron-ore  mines 
600,000  tons.  The  output  of  the  Pingsiang  coal  mine  is  reported  to 
have  been  863,756  tons  in  1923,  and  of  the  Tayeh  iron-ore  mines  for 
the  same  year  580,000  tons. 

The  following  statistics  from  the  returns  of  the  Hankow  Maritime 
Customs  show  the  exports  of  certain  metals  in  1923,  to  all  countries : 
Antimony,  4,682  long  tons,  valued  at  $475,089;  brass  and  copper 
ingots,  19  tons,  valued  at  $3,934;  iron  ore,  341,333  tons,  valued  at 
$613,573;  pig  iron,  275,085  tons,  valued  at  $3,803,894;  scrap  tin, 
72  tons,  valued  at  $43,580.  All  of  the  articles  just  named  are  taken 
by  Japan,  except  small  shipments  of  antimony  to  America  and 
Europe. 


HANKOW  CONSULAR  DISTRICT 


437 


The  following  leading  mines  are  in  active  operation : 

Tayeli  Iron  Mines,  Tayeh,  Hupeh ;  output  about  70,000  tons  per  month; 
property  of  the  Han-Yeh-Ping  Iron  &  Coal  Co.,  Shanghai. 

Pingsiang  Colliery,  Kiagnsi ;  daily  output  of  30,000  tons ;  property  of  the 
Han-Yeh-Ping  Iron  &  Coal  Co.,  Shanghai. 

Ching  Hua  Mining  Co.,  Nanchang,  Hupeh. 

Kweichow  Mines,  Siangki,  Hupeh. 

Liuhokou  Coal  Mining  Co.,  Honan,  branch  office,  Hankow ;  amount  produced 
annually  about  180,000  tons. 

Fu  Chung  Corporation,  Chiaotso,  Honan  (British-Chinese)  ;  coal  mining. 

Hsiang  Pei  Shan  Iron  Mines,  Hwangshihkang,  Hupeh ;  the  property  has 
an  estimated  deposit  of  20,000,000  tons  of  ore. 

Possibilities  for  the  sale  of  mining  machinery  will  depend  en¬ 
tirely  upon  the  development  of  the  mineral  resources.  As  this 
progresses,  there  will  be  demands  for  the  usual  mining  machinery 
and  transportation  equipment.  Until  satisfactory  methods  are  de¬ 
vised  for  the  development  of  these  resources  under  foreign  or  native 
control,  the  demand  for  machinery  will  be  insignificant  and  such  as 
would  be  required  by  primitive  methods  for  surface  and  near-sur¬ 
face  mining. 

MANUFACTURING  AND  INDUSTRIAL  DEVELOPMENT 

The  past  few  years  has  seen  an  advance  in  the  number  of  flour 
and  cotton  mills  established  in  the  district.  Six  new  cotton  mills 
have  recently  been  built  in  Wuchang,  Hankow,  and  Chengchow. 
A  large  flour  mill  has  recently  been  established  at  Kaifeng,  Honan, 
known  as  the  Yung  Feng  Flour  Mill.  The  egg  industry  still  main¬ 
tains  an  important  place  among  the  successful  enterprises  of  the 
district. 

Both  the  Yangtze  Engineering  Works  and  the  Hanyang  Iron  & 
Steel  Works,  formerly  of  great  importance  as  industries,  have  not 
been  successful  recently,  and  the  Yangtze  Engineering  Works  has 
been  compelled  to  close. 

The  Tayeh  Mines  &  Iron  Works,  the  property  of  the  Han-Yeh- 
Ping  Iron  &  Coal  Co.,  is  one  of  the  chief  industries  of  the  district. 
The  concern  is  largely  controlled  by  Japanese,  and  large  quantities 
of  the  ore  are  exported  to  Japan. 

Other  important  plants  are  the  Hankow  Iron  &  Engine  Works, 
the  Government  arsenals  at  Planyang,  Kaifeng,  Honanfu,  Sianfu, 
and  Lanchowfu,  the  Government  powder  factory  at  Hanyang,  the 
Government  mint  at  Wuchang,  2  paper  mills,  9  cotton  mills,  4  oil 
mills,  2  cigarette  factories,  13  plants  manufacturing  egg  products, 
8  brick  and  tile  plants,  3  modern  aerated-water  works,  10  electric 
light  plants,  2  match  factories,  1  nail  and  needle  factory,  10  flour 
mills,  1  tannery,  and  1  meat-packing  establishment.  ’  The  foregoing 
plants  use  more  or  less  modern  machinery,  and  some  of  them  are 
under  foreign  management  and  have  foreign  capital  invested. 

(A  list  of  the  principal  manufacturing  plants  in  the  Hankow 
consular  district  is  on  file  in  the  Bureau  of  Foreign  and  Domestic 
Commerce  and  may  be  obtained  by  interested  persons  upon  applica¬ 
tion.) 

Besides  the  industries  above  named  there  are  a  vast  number  of 
small  works  employing  antiquated  methods  for  the  manufacture  of 


438 


COMMERCIAL  HANDBOOK  OF  CHINA 


cotton  thread  and  cloth,  and  of  cloth  by  hand  looms  from  grass,  bam¬ 
boo,  and  goat  hair.  Also,  timber  is  sawn  by  manual  labor,  matches 
are  turned  out  from  small  plants,  flax  is  spun,  rope  is  made,  and  vari¬ 
ous  other  domestic  articles  are  produced  by  methods  that  are  primi¬ 
tive  but  are  useful  in  the  economic  industries  of  the  country.  To 
these  might  be  added  a  number  of  other  metal-working  plants,  such 
as  those  producing  white  brass,  silversmiths’  work,  and  other  articles 
of  small  importance. 

LABOR  CONDITIONS 


The  following  table  gives  the  average  daily  wage  paid  the  work¬ 
man  in  various  industries  during  1923  (approximately  2,500  “cash  ” 
equal  $1  Mex.  or  $0.50  United  States  currency)  : 

Carpenter,  per  day _ cash _  800  with  food. 

Mason,  per  day _ do _  700  with  food. 

Stonecutter,  per  day _ do _  700  with  food. 

Blacksmith,  per  day _ do _  900  with  food. 

Cotton  spinner,  per  day _ do _  400  without  food. 

Personal  servant  (“amah”),  per  month_do _  5,000  with  food. 

Ordinary  coolie,  per  day _ do _  1,  700  without  food. 

Ricksha  coolie,  per  day _ do _  2,  000  without  food. 

There  has  been  some  increase  in  the  prices  of  all  commodities 
during  the  past  four  years;  the  figures  below  show  present  prices 
of  the  seven  necessaries  of  life  for  the  Chinese : 


Rice,  per  picul  (133%  pounds) 

Salt,  per  picul _ 

Vegetable  oil,  per  picul _ 

Coal  briquets,  per  picul _ 

Firewood,  per  picul _ 

Sauce,  per  catty  (1%  pounds) 
Tea,  per  catty _ 


Price 

Mexican  dollars _ 10.50 

_ do _ 11.20 

_ do _ 19.20 

_ do _  1.20 

_ do _  .50 

_ cash _  400 

_ do _  640 


Labor  conditions  during  1924  show  a  general  improvement  over 
those  of  the  preceding  two  years.  The  winter  of  1922-23  saw  con¬ 
siderable  unrest  among  the  factory  workers  and  the  laborers,  and 
there  were  numerous  strikes.  As  a  result  the  owners  of  the  industries 
affected  finally  conceded  some  of  the  workers’  demands,  which  were 
chiefly  for  higher  wages  and  shorter  hours. 

The  average  wages  during  1923  and  1924  have  generally  kept 
pace  with  the  food  prices — which  may  be  another  reason  for  the 
recent  absence  of  serious  labor  unrest. 


TRANSPORTATION  AND  COMMUNICATION 

WATERWAYS 


The  chief  waterways  forming  an  important  factor  in  the  commerce 
of  the  district  are  the  Yangtze  River  (Yangtze  Kiang)  and  the 
Han  River  (Han  Ho). 

The  Yangtze  enters  Hupeh  from  Szechwan  and  is  navigable  for 
steamers  throughout  the  year  from  Chungking  to  its  mouth.  Dan¬ 
gerous  rapids  exist  above  Ichang,  which  is  the  western  port  in  the 
Hankow  consular  district.  This  river  is  navigable  for  ocean-going 
steamers  to  Hankow  (595  miles)  for  seven  months  each  year,  and 
during  all  seasons  excellent  river  steamship  services  are  maintained 


HANKOW  CONSULAR  DISTRICT 


439 


to  and  from  Shanghai.  Above  Hankow  steamship  services  of  small 
vessels  are  maintained  for  about  nine  months  of  the  year  to  Changsha 
and  the  entire  year  to  Ichang.  The  Yangtze  is  the  most  important 
artery  of  communication  in  Central  China. 

The  Hwang  Ho,  or  Yellow  River,  describes  the  northern  limits 
of  the  Hankow  consular  district,  and  while  it  is  of  considerable  im¬ 
portance  to  commerce,  it  is  of  more  particular  interest  to  the 
Tientsin  district. 

The  chief  trading  centers  situated  on  the  Yangtze  are  Hankow, 
Kiuldang,  Shasi,  Ichang,  Wusueh,  Wuchang,  Hanyang,  and  Hsinti, 
the  first  four  of  these  being  open  to  foreigners.  The  principal  trad¬ 
ing  centers  on  the  Han  (none  of  which  are  “  open  ”  to  foreign  busi¬ 
ness  men,  however)  are  Tsaitien,  Yokiakow,  Shayang,  Anlu,  Ichang, 
Siangyang,  Fancheng,  Laohokow,  Yunyang,  Hingan,  and  Han- 
chung. 

There  are  no  mechanical  appliances  on  the  wharves  for  handling 
cargo.  If  such  equipment  is  required  the  vessel  must  provide  it, 
but  the  useful  coolie  is  capable  of  handling  surprisingly  heavy 
weights.  It  is  not  an  uncommon  thing  to  see  heavy  pieces  of  ma¬ 
chinery,  boilers,  etc.,  being  discharged  by  coolies.  The  port  charges 
upon  vessels,  such  as  harbor  dues,  etc.,  are  included  in  the  tonnage 
dues,  which  are  payable  once  every  four  months,  entitling  a  vessel 
to  call  at  any  port  in  China  without  payment  of  further  dues.  The 
tonnage  dues  on  vessels  up  to  160  tons  are  1  mace  per  ton  and,  if 
over  this,  4  mace  per  ton.  The  Yangtze  River  is  the  only  stream 
upon  which  foreign  vessels  are  used  for  commercial  purposes ; 
13,255  vessels,  with  a  tonnage  of  7,453,701,  entered  and  cleared  from 
Hankow  in  1923,  as  compared  with  12,802  vessels,  with  a  tonnage 
of  7,408,838,  in  1922. 

There  are  six  important  lines  of  river  steamers  running  between 
Shanghai  and  Hankow.  Freight  rates  vary  for  different  com¬ 
modities  from  39  tael  cents  per  picul  of  133^  pounds  for  beans  and 
peas  to  8.47  taels  per  40  cubic  feet  for  tea  leaf,  and  they  change  from 
time  to  time.  During  the  winter  or  low-water  season  freight  rates 
increase  by  10  to  15  per  cent. 

Four  of  the  six  shipping  companies  operating  between  Hankow 
and  Shanghai  maintain  excellent  passenger  service  (70  hours),  and 
every  night  one  or  more  steamers  sail.  The  usual  fare  is  $50  Mex., 
while  the  round  trip  costs  $75  Mex.  Passage  can  be  secured  on 
Japanese  and  Chinese  steamers  for  $40  Mex.  for  one  way  and  $60 
for  the  round  trip. 

RAILWAYS 

PEKING-HANKOW  RAILWAY 

The  Peking-Hankow  Railway,  begun  in  1898,  was  opened  to  traffic 
in  1905.  Exclusive  of  branches  it  has  a  length  of  754  miles.  The 
line  was  built  as  a  Franco-Belgian  concession  but  came  under  Chi¬ 
nese  control  in  1909.  As  a  result  of  civil  dissensions,  in  which  the 
rolling  stock  of  the  railway  has  been  used  by  the  various  factions, 
and  because  of  the  unsubstantial  type  of  bridge  structures  on  the  line, 
the  Peking-Hankow  Railway  is  rapidly  assuming  a  state  of  general 
deterioration.  The  line  was  constructed  with  Belgian  material  and 


440 


COMMERCIAL  HANDBOOK  OF  CHINA 


the  original  rolling  stock  was  Belgian,  but  in  a  number  of  instances 
this  has  been  replaced  by  American  locomotives  and  cars. 

CANTON-HAXKOW  RAILWAY 

The  Hupeli-Hunan  section  of  the  Canton-Hankow  Railway  extends 
from  Wuchang  to  Changsha,  a  distance  of  286  miles.  Under  the 
Hukuang  loan  agreement  the  engineer  in  chief  is  a  British  subject, 
as  are  also  the  subordinates,  except  where  Chinese  are  employed.  The 
material  and  rolling  stock  are  of  American  and  Chinese  origin,  and 
at  the  present  time  are  in  relatively  bad  condition.  About  250  miles 
remain  to  be  constructed  to  complete  the  through  line. 

NAN-HSTJN  RAILWAY 

The  Xan-Hsun  Railway,  a  provincial  line  from  Kiukiang  to  Xan- 
changfu,  8T  miles,  was  completed  in  1915.  The  line  was  constructed 
by  Japanese  engineers  from  the  proceeds  of  two  loans  made  with  the 
Bank  of  Taiwan,  and  it  is  operated  by  the*  Chinese  under  Japanese 
management.  The  material  used,  including  the  rolling  stock,  is 
largely  American.  The  head  office  is  at  Xanchang,  Kiangsi  Province. 

TAYEH  IRON  MINES  RAILWAY 

A  light  railway  for  use  in  conveying  ore  from  the  Tayeli  mines 
to  the  Yangtze  River  runs  between  Tiehshanfu  and  Hwangshihkang, 
a  distance  of  IT  miles.  It  is  owned  by  the  Han-Yeh-Ping  Iron  & 
Coal  Co.,  Shanghai.  The  material  and  rolling  stock  come  mostly 
from  Japan. 

ICWANGYINGTANG-SHENCHOW  SECTION  (LUNG  HAI  RAILWAY) 

This  section  was  opened  to  traffic  on  May  1,  1924.  Passenger  trains 
run  daily  between  Kwangyingtang  and  Shenchow,  making  connec¬ 
tions  with  the  Pienlo  Railway  at  Honanfu,  and  by  the  latter  with  the 
Peking-Hankow  Railway  at  Chengchow,  Honan. 

The  Pienlo  (Kaifeng-Honanfu)  Railway,  with  head  offices  in  Pe¬ 
king  and  Chengchow,  is  115  miles  in  length. 

SZECIIWAN-HANKOW  RAILWAY 

This  projected  line  is  divided  into  two  sections — the  Han-I  section 
extending  from  Hankow  to  Ichang  (with  a  branch  line  from  Yang- 
kishung  to  Laohokow)  and  the  I-Kwei  section  from  Ichang  to  Kwei¬ 
chow,  with  possible  extensions  to  Chungking  and  Chengtu.  The 
surveys  have  been  completed,  but  only  a  few  miles  of  the  line  out  of 
Hankow  and  out  of  Ichang  have  been  laid ;  active  work  has  not  been 
carried  on  during  the  past  nine  years.  A  nominal  force,  consisting 
of  1  American  engineer  in  chief,  4  student  engineers,  and  105  work¬ 
men,  is  maintained  for  the  protection  of  the  property. 

CHOWKISKOW-SIANGYANGFU  RAILWAY 

This  railway  is  only  contracted  for;  surveys,  however,  have  already 
been  made. 


HANKOW  CONSULAR  DISTRICT 


441 


ROADS 

There  are  only  a  few  modern  roads  outside  of  the  foreign  conces¬ 
sions  in  Hankow.  There  are  paths  all  over  the  district;  these  are 
better  in  some  localities  than  in  others,  and  in  parts  of  Honan  they 
are  in  places  broad  enough  to  accommodate  carriages,  but  in  the  main 
the  paths  are  only  sufficient  to  accommodate  wheelbarrows.  Some 
of  the  old  imperial  roads  ran  through  this  district  en  route  to  the 
south  and  west,  but  it  is  understood  that  none  of  them  is  sufficiently 
in  repair  to  permit  of  their  use  by  motor  cars  for  an  extended  dis¬ 
tance.  These  paths  are  in  some  districts  extremely  good  for  single¬ 
wheeled  vehicles,  and  along  the  line  of  the  imperial  roads  in  Shensi 
and  Honan  and  in  the  vicinity  of  the  large  cities  in  each  of  these 
Provinces  and  in  Kiangsi  there  are  a  few  miles  of  reasonably  good 
carriage  roads  without  any  extensive  macadamizing. 

In  Hankow  there  are  not  more  than  25  miles  of  good  roads  (in¬ 
cluding  cross  streets),  15  miles  of  which  are  located  within  the  for¬ 
eign  concessions.  There  is  marked  activity  in  the  development  of 
motor  roads  and  bus  lines  in  that  part  of  Hupeh  Province  of  which 
Siangyang,  on  the  Han  River,  is  the  center.  The  Hupeh  provincial 
authorities  have  recently  completed  the  construction  of  a  highway 
from  Siangyang  to  Shasi,  a  distance  of  approximately  200  miles;  an 
extension  from  Siangyang  to  Tsaoyang  has  been  completed,  and  this 
road  is  being  extended  through  to  Huayuan  on  the  Peking-Hankow 
Raihvay,  a  total  distance  of  170  miles.  Another  road  is  in  operation 
from  Siangyang  to  Laohokow,  a  distance  of  53  miles.  Also  a  branch 
of  the  Siangyang-Shasi  road  to  run  from  Kingmen  to  Ichang,  a 
distance  of  80  miles,  is  projected. 

A  highway  is  being  planned  between  Siangyang  and  Loyang  via 
Laohokow  and  Nanyangfu.  Its  alignment  will  be  through  a  region 
which  heretofore  has  had  very  poor  communications  with  the  out¬ 
side  world. 

It  is  believed  that  the  construction  of  highways  between  Hankow 
and  the  other  large  cities  of  this  district,  connected  with  the  main 
roadways  in  other  Provinces,  would  increase  foreign  trade  more 
than  would  a  similar  expenditure  in  the  construction  of  railways. 
Such  highways  would  bring  great  benefit  to  the  country  in  the  way 
of  increased  trade  in  new  and  old  lines. 


, AVERAGE  COSTS  OF  TRANSPORT 

Below  are  given  the  average  costs  for  transportation  in  Hupeh 
Province  and  supply  points. 


Methods  of  transportation 

> 

Average  load 

Average 
mileage 
per  day 

Average 
cost  per 
ton-mile . 

Maxi¬ 

mum 

haul 

Railways . 

30-ton  car. _ _ _ _ 

300-400 

Mex. 

$0.  053 
.  014 

Miles 

500 

Steamboats.  _ _ _ ...  ... 

25-2,  500  tons. . . . .  . 

50-250 

357 

Junks . 

1 0-50  tons _ 

10-15 

.  015 

381 

Motor  cars  _ 

1  ton 

200 

.  50 

(0 

500 

Carts _ 

1 ,600  pounds 

30 

.  16 

Camels _ 

600  pounds 

15 

25 

.44 

500 

Other  pack  animals _  ..  .  ..  .. 

2-300  pounds. ..  _ _ _ 

. 35-  40 

500 

Wheelbarrows.  . 

300  pounds..  . 

17 

.  50 

2-300 

Coolie  carriers _ 

100  pounds 

20-25 

.80 

2-300 

t 

1  Limited  by  roads  now  in  existence  to  300  or  400  miles  between  specific  points;  no  cross-country  work. 


442 


COMMERCIAL  HANDBOOK  OF  CHINA 


TELEGRAPHS 

The  telegraph  service  is  efficient  and  extends  to  practically  all 
the  larger  towns  in  the  district.  There  are  51  stations  in  Hupeh, 
47  in  Honan,  42  in  Kiangsi,  18  in  Shensi,  21  in  Kansu,  and  20  in 
Sinkiang.  The  rate  for  transmission  is  the  established  rate  for  all 
China — including  cable  rates  to  New  York  and  other  foreign  ports. 
There  are  no  commercial  wireless  stations  in  the  district,  though 
there  is  a  Government  wireless  station  in  Wuchang  exclusively  for 
official  purposes. 

TELEPHONES 

The  telephone  system  in  Hankow  connects  the  “Wuhan  cities” — 
Hankow,  Wuchang,  and  Hanyang.  Equipment  consists  of  5,219 
telephone  instruments  (10,000  ultimate  capacity),  3  centrals,  and 
138  miles  of  wire.  It  was  installed  by  a  Japanese  concern  with 
Japanese  and  a  small  amount  of  American  equipment.  The  plant 
is  modern  in  every  particular.  Rates  per  month  for  an  unlimited 
service  are: 


Business  telephone _ $21.  00 

Private  telephone _  19.  00 

Extension  telephone  under  same  roof _ each 6.  00 

Table  instrument _ do _  2.  50 


The  telephone  administration  of  Hankow  is  one  of  the  best  in 
China  and  compares  favorably  with  those  in  western  countries. 

There  is  a  telephone  system  at  Kiukiang,  with  Ruling  connection, 
but  the  number  of  telephones  is  small. 

POSTAL  SERVICE 

Chinese  post  offices  cover  the  district,  and  the  service  is  both 
prompt  and  dependable.  The  business  at  the  Hankow  post  office 
during  1923  comprised  473,641,716  items,  including  448,009,938  ordi¬ 
nary  articles,  20,427,176  registered  articles,  5,171,677  “express  let¬ 
ters,”  and  32,925  insured  letters.  Money  orders  issued  totaled  $95,- 
993,800,  and  money  orders  cashed  $96,021,200. 

During  1916  parcel  post  was  established  between  China  and  the 
United  States,  and,  Hankow  being  served  by  steam  navigation  or 
by  rail,  parcels  are  delivered  from  Hankow  to  the  United  States, 
or  vice  versa,  without'  extra  charge.  The  time  required  for  first- 
class  mail  matter  to  be  delivered  from  New  York  is  approximately 
30  days. 

SHIPPING  AND  WAREHOUSING  FACILITIES 

HARBOR  FACILITIES 

All  ships  anchor  in  midstream  or  at  pontoons  in  front  of  the  town; 
berths  in  front  of  the  consulates  are  reserved  for  the  use  of  men-of- 
war.  There  are  no  special  regulations  relating  to  anchoring.  For¬ 
eign  shipping  in  the  harbor  is  under  the  control  of  the  Chinese 
Maritime  Customs.  Pilots  are  generally  engaged  at  Shanghai  for 
the  trip  up  river,  the  usual  fee  for  Chinese  pilots  being  $100  Mex. 
Ocean-going  ships  drawing  30  feet  of  water  can  reach  Hankow  dur¬ 
ing  the  high-water  season,  which  lasts  from  May  until  October. 
Ships  in  the  stream  load  and  unload  by  lighters  and  junks.  There 


HANKOW  CONSULAR  DISTRICT 


443 


is  one  floating  dock  at  the  plant  of  the  Yangtze  Engineering  Works 
which  will  admit  vessels  200  %feet  long  and  of  30-foot  beam.  The 
cost  of  transferring  cargo  from  ship’s  tackle  to  port,  whether  the 
vessel  is  in  the  stream  or  at  a  dock,  is  1.50  taels  per  ton. 

WAREHOUSING  AND  STORAGE  FACILITIES 

There  is  only  one  public  warehouse  in  this  district,  located  at 
Hanyang.  The  foreign  firms  all  maintain  private  warehouses  for 
storage  purposes.  Practically  all  transportation  of  goods  from  land¬ 
ing  to  warehouses  is  done  by  coolies,  though  motor  trucks  have  in 
recent  years  come  into  use  for  this  purpose. 

PUBLIC  UTILITIES 

ELECTRIC  LIGHT  PLANTS 

* 

The  electric  light  plants  in  the  district  are : 

HUPEH  PROVINCE 

Hankow. —  (1)  The  Hankow  Light  &  Power  Co.  (British)  is  located  in  the 
Russian  concession.  The  executive  staff  is  British,  and  the  company’s  head 
office  is  in  London.  The  plant  supplies  current  to  the  British,  Russian,  and 
French  concessions,  and  has  British  machinery  throughout.  Current :  Direct, 
440-volt  for  power  and  220-volt  for  light  and  domestic  purposes.  Capacity : 
Installed,  700  kilowatts ;  now  being  installed,  an  additional  1,000-kilowatt, 
direct-current,  440-volt  and  220-volt  engine-driven  generator.  Service  :  Twenty- 
four  hours  each  day.  Special  rate  for  heating  and  cooking  is  0.06  tael  per 
unit,  and  the  rate  for  light  is  0.10  tael  per  unit.  Current  is  sold  through 
meters. 

(2)  Hanhow  Waterworks  &  Electric  Light  Co.  (Chinese)  ;  supplies  light 
and  power  to  the  native  city  of  Hankow.  Present  installation :  Two  1, 500- 
kilowatt  turbo-generators.  A  third  1,500-kilowatt  turbo-generator  has  been 
ordered ;  also  a  2,500-kilowatt  motor  generator  set  to  be  used  as  reserve  in 
connection  with  old  power  plant  which  is  direct-current  440-volt.  Plant  mod¬ 
ern  in  every  way,  new  design,  American  make.  System  distribution :  2,300-volt, 
three-phase,  60-cycle,  alternating  current.  Lighting  system :  220-volt.  Power 
system :  220/440-volt  and  2,300-volt.  Service  continuous.  Meters  used.  Plant 
successfully  managed  and  operated  by  Chinese. 

(3)  Special  Administrative  District  Electrical  Works  (formerly  Melchers 
&  Co.)  own  a  small  plant  supplying  currept  to  the  Special  Administrative 
District,  formerly  the  German  concession.  Capacity  :  262^  kilowatts.  System  : 
Direct-current  3-wire  220/440-volts.  Machinery:  German.  Plant  operated  and 
controlled  by  Chinese.  Service  continuous.  Meters  used. 

(4)  Taisho  Electric  Light  Works  (Japanese)  supplies  light  to  the  Japanese 
concession.  Capacity :  220  kilowatts.  System :  220/440  volts,  direct  current. 
Machinery:  Japanese.  Operated  and  controlled  by  Japanese. 

Wuchang. — Wuchang  Electric  Light  &  Power  Co.  (Chinese).  Installation: 
650-kilowatt  alternating-current  50-cycle  three-phase  generator.  Distribution 
system :  3,000  volts.  Lighting  system :  220-volt.  No  power  system.  Plant 
runs  eight  hours  a  day.  Some  meters  used.  Machinery :  German.  Plant 
managed  by  Japanese  and  Chinese.  Capital:  Japanese. 

Arnhold  Bros.  &  Co.  (British)  have  obtained  a  franchise  for  a  new  electric 
light  and  power  plant  in  Wuchang.  The  capacity  will  be  300  kilowatts. 

Hanyang. — The  Hanyang  Iron  &  Steel  Works  has  a  1,500-kilowatt  plant. 
Most  of  the  power  is  used  for  lighting  the  plant,  but  light  is  also  supplied  to 
Hanyang  city  to  some  extent.  Machinery :  American  and  British.  Plant 
operated  and  managed  by  Chinese.  System :  220/440  volts,  direct  current  and 
alternating  current,  3-phase,  50  cycles.  Number  of  lamps  operated :  About 
5.000. 

Shasi. — Pu  Chao  Electric  Light  Co.  has  a  75-kilowatt  220-volt,  direct-current 
plant.  Machinery :  German,  Installation  was  completed  in  1916.  Plant 
operated  by  Chinese, 


444 


COMMERCIAL  HANDBOOK  OF  CHINA 


I chang. — Kwang  Ming  Electric  Light  Co.  has  a  120-kilowatt  plant.  Distri¬ 
bution  system :  Three-wire  440-volt  220-volt.  Plant  is  cheap  secondhand  Ger¬ 
man  machinery.  Controlled  by  Chinese.  Installation  was  completed  in  1914. 

Wusueh. — Wusueh  Electric  Light  Co.  has  a  steam  plant  of  about  60-kilowatt 
capacity.  Machinery :  American.  Plant  has  been  in  operation  a  short  time. 

Sientaochen. — Sien-Han  Electric  Light  Co.  at  Sientaochen  has  a  small  plant 
at  17 V>  kilowatt  capacity ;  220-volt  crude-oil-engine  drive.  Machinery :  Ameri¬ 
can.  Installation  was  completed  in  1922. 

HONAN  PROVINCE 

Kaifeng. — Kaifengfu  Electric  Light  Co.  has  two  120-kilowatt,  three-phase, 
50-cycle,  alternating-current,  2, 300-volt,  engine-driven  generators.  Engine  and 
generators :  German.  Boiler :  American.  Plant  operated  by  Chinese,  and 
financed  by  Japanese  capital.  Distribution  system :  2,300-volt.  Lighting  sys¬ 
tem  :  220-volt.  Some  meters  used.  Plant  operated  nights  only. 

Chengchow. — Chengchow  Electric  Light  Co.  Present  installation  :  60-kilowatt, 
three-phase,  alternating-current,  50-cycle,  2,300-volt,  engine-driven  generating 
plant.  Machinery :  British.  The  company  has  recently  installed  a  new  plant 
of  American  make,  of  a  capacity  of  144  kilowatts.  System :  60-cycle,  2,300- 
volt  distribution ;  consumers’  supply,  220  volts.  Plant  operated  by  Chinese  and 
financed  by  Japanese  capital.  Service  nights  only.  Some  meters  used. 

Honanfu. — Honanfu  Electric  Light  Co.  The  plant,  modern  in  every  respect, 
was  installed  in  1922 ;  it  is  of  75-kilowatt  capacity.  Alternating  current,  2,300- 
volt,  50  cycles,  engine  driven,  supplying  220  volts  to  consumers.  Machinery : 
American.  Plant  financed  and  controlled  by  Chinese. 

Sinyangchotc. — Sinyangchow  Electric  Light  Co.  has  a  60-kilowatt  plant.  All 
machinery  secondhand. 

KIANGSI  PROVINCE 

Kiukiang. — Iviukiang  Electric  Light  Co.  has  two  45-kilowatt,  alternating- 
current,  60  cycles,  2,300-volt,  oil-engine-driven  generators ;  consumers’  supply, 
100  volts.  Machinery:  American.  Plant  owned  and  operated  by  Chinese; 
commenced  operation  in  1919. 

Nanehang. — Nanchang  Electric  Light  Co.  has  a  300-kilowatt,  direct-current, 
220—440-volt  plant.  Machinery :  American,  supplied  by  a  Japanese  firm. 

Ping-Hang. — Pingsiang  Colliery  has  a  large  power  plant  for  mining  and  light¬ 
ing  purposes.  Most  of  the  power  is  used  for  power  purposes.  Current  is  250- 
volt  direct.  Machinery :  German. 

WATERWORKS 

Waterworks  are  established  in  Hankow  and  Hanyang  in  the 
Province  of  Hupeh,  and  at  Kaifeng  in  the  Province  of  Honan.  \[The 
Hankow  waterworks  are  owned  by  the  Hankow  Waterworks  &  Elec¬ 
tric  Light  Co.  and  supply  the  Chinese  city  and  the  foreign  conces¬ 
sions.  Xo  reliable  information  is  available  concerning  the  water¬ 
works  at  Kaifeng  and  Hanyang,  although  they  are  considered  in¬ 
ferior,  in  equipment,  service,  and  purity  of  water,  to  the  Hankow 
plant,  which  is  probably  the  most  modern  and  best  in  China.  It  was 
planned  by  a  British  engineer  in  1908,  and  the  machinery  is  British. 
The  capacity  is  5,000,000  gallons  of  filtered  water  per  day. 

TRAMWAYS 

There  are  no  street  cars  within  the  district.  Lot  holders  in  the 
foreign  concessions  object  to  the  introduction  of  a  tramway  therein, 
and  it  is  not  thought  that  during  the  existence  of  the  independent 
concessions  any  proposal  could  induce  the  concessions  to  admit  street 
cars.  However,  Chinese  capitalists  believe  that  a  line  built  behind 
the  concessions  could  be  made  to  pay,  and  they  have  recently  applied 
to  the  provincial  authorities  for  permission  to  construct  a  tram- 


HANKOW  CONSULAR  DISTRICT 


445 


way  to  extend  from  Chiaokow,  on  the  Han  River,  to  Seven  Mile 
Creek,  on  the  Yangtze,  a  distance  of  10  miles.  It  is  reported  that 
the  enterprise  is  viewed  with  favor  by  the  Chinese  officials. 

CONSERVANCY  AND  RECLAMATION  WORKS 

There  are  no  conservancy  and  reclamation  works  under  construc¬ 
tion  or  projected  at  this  time  in  the  district.  However,  the  question 
of  improving  the  navigability  of  the  Yangtze  River  from  Hankow 
to  its  mouth  has  recently  been  considered  by  the  Chinese  Government, 
which  established  in  1923  a  Commission  for  the  Discussion  of  the 
Improvement  of  the  Yangtze.  It  is  composed  of  representatives  of 
the  Ministries  of  the  Interior,  Navy,  Communications,  the  National 
Conservancy  Board,  etc.  A  technical  committee  was  subsequently 
appointed,  and  the  latter  in  turn  organized  a  survey  department  to 
collect  data  and  carry  out  a  system  of  levels  between  Hankow  and 
Woosung. 

Under  the  supervision  of  the  committee  comprehensive  surveys 
were  made  on  the  Yangtze,  cross  sections  were  taken  at  selected  con¬ 
trolling  points,  and  considerable  information,  including  customs  sur¬ 
veys,  was  gathered.  In  a  comprehensive  report  on  the  question  of 
Yangtze  conservancy  works,  a  prominent  British  engineer  stated  that 
the  cost  would  be  out  of  proportion  to  the  benefits  obtained  and 
“  utterly  unremunerative  and  financially  impossible.” 

IMPORT  AND  EXPORT  TRADE 


The  following  table  gives  the  gross  and  net  values  of  the  trade  of 
the  port  of  Hankow  alone  for  1923  and  1924 : 


Imports  and  exports 

1923 

1924 

Imports  of  foreign  goods: 

From  foreign  countries  and  Hongkong _ _ _ _ _ 

TJ.  S.  currency 
$31,  731, 908 
30,  021,  042 

U.  S.  currency 
$49,  159,  739 
32,  825,  626 

From  Chinese  ports _  ...  _ 

Total  foreign  imports . . .  . . . 

61,  752,  950 

81,985,  365 

Reexports  of  foreign  goods: 

To  foreign  countries  and  Hongkong . _.  __ . ._  ..  _  . 

106,  878 
13,  862,  890 

19.  736 
15,  322, 948 

To  Chinese  ports  (chiefly  to  Changsha.  Ichang,  and  Shasi) _ 

Total  foreign  reexports, _ _ _ _ _ _  _ _ 

13, 969,  768 

15,  342,  684 

Net  total  foreign  imports . . . . .  . 

47,  783, 182 

66,  642,  681 

Imports  of  Chinese  products  (chiefly  from  Ichang,  Kiukiang,  Shanghai,  and 
Swatow) _ _ _  _  ............ 

64,  030,  665 

69,  381,  652 

Reexports  of  Chinese  products: 

To  foreign  countries  and  Hongkong . . . . .  . ... 

3,  746,  494 
24,  075,  426 

4, 123,  259 
27, 180,  636 

To  Chinese  ports _ _ ...  . . . . .  . 

Total  Chinese  reexports . .  .  . 

27,  821,  920 

31,  303,  895 

Net  total  Chinese  imports . . . . . 

36,  208,  745 

38,  077,  757 

Exports  of  Chinese  products  of  local  origin: 

To  foreign  countries  and  Hongkong _ _ _ _ _ 

9,  652,  089 
103,  690,  465 

11,948,  478 
112,  031,  169 

To  Chinese  ports _  _ 

Total  exports  of  local  origin _  .  _ 

113,  342,  554 

123,  979,  647 

Gross  value  of  the  trade  of  the  port.. . . . . 

239, 126, 169 

275,  346,  664 

Net  value  of  the  trade  of  the  port _ _ _  .  . 

197,  334,  481 

228,  700,  085 

446 


COMMERCIAL  HANDBOOK  OF  CHINA 


Exports  (including  reexports)  from  Hankow  in  1903  were  $45,- 
766,877;  in  1913,  $68,886,689;  and  in  1923,  $141,164,474.  Exclud¬ 
ing  reexports,  the  table  below  indicates  the  import  and  export  trade 
of  the  principal  ports  of  the  Hankow  district  for  the  three  years  just 
mentioned  and  also  for  1924: 


Ports 

1903 

1913 

1923 

1924 

EXPORTS 

Hankow. . . . . 

U.  S.  currency 
$35,  652,  152 

U.  S.  currency 
$61, 174,  000 

U.  S.  currency 
$113,  342,  554 

U.  S.  currency 
$111,  538,  637 

Ichang _  .  ...  .  _  .  . 

876,  682 

2,  246,  955 

2, 283,  400 

1,  952, 822 

Shasi...  .  .  _ _ _ 

438,  646 

662,  352 

8,  187,  312 

10,  368,  397 

Kiukiang . . . . 

7,  483,  969 

11,480,  726 

25,  221,  748 

28,  364, 808 

IMPORTS 

Hankow... . . . . 

35,  229, 130 

39,  109,  309 

47,  783,  182 

66,  667,  372 

Ichang.  .  ..  ..  _ ...  ...  .  ..  _  .  ... 

1,  070,  840 

1,  364,  055 

1,  341,  645 

3, 104,  572 

Shasi _ _ _ 

1,  039,  402 

2,  356,  039 

3,  047,  503 

3,  266,  873 

Kiukiang . .  . . . . 

6,  635, 137 

8, 976,  877 

11,  268,  188 

11,  455,  289 

TOTALS 

Hankow... . . . . 

70,  881,  282 

100,  283,  309 

161, 125,  736 

178,  206,  009 

Ichang _ _ _ _ _ _ 

1,  947,  522 

3,611,010 
3,  018,  391 

3,  625,  045 

5,  057,  394 

Shasi . . . .  . . 

1,  478,  048 

11,  234,815 

13,  635,  270 

Kiukiang..  . .  .  . . 

14,  119, 106 

20,  457,  603 

36,  489,  936 

39,  820,  097 

The  following  table  furnishes  a  comparative  statement  of  the 
principal  exports  (including  reexports)  from  Hankow  to  all  coun¬ 
tries  for  the  years  1903,  1913,  1923,  and  1924 : 


[Quantities  are  stated  in  thousands  of  units  given;  values  in  thousands  of  United  States  dollars] 


Articles 

1903 

1913 

1923 

1924 

Quantity 

Value 

Quantity 

Value 

Quantity 

Value 

Quantity 

Value 

Antimony . . 

.pounds. . 

6, 762 

343 

18, 137 

395 

11, 134 

414 

18,  441 

1,002 

Beans _ 

_ do _ 

258,  202 

2, 472 

235, 181 

2, 846 

144,  846 

2,  743 

234,  354 

6,087 

Bean  cake  ..  _ 

_ do _ 

77,  746 

340 

308, 667 

3, 118 

91,051 

1,  557 

213,  374 

3, 694 

Bones _ 

_ do _ 

3,  821 

11 

14,  543 

101 

30,  146 

261 

24,  502 

213 

Bran.  _ 

_ do _ 

1,244 

6 

28,  684 

208 

23,  811 

247 

38,  682 

395 

Bristles _ 

_ do _ 

2,  627 

470 

1,856 

742 

2,  680 

1,675 

2,  551 

2,  142 

Chestnuts.  _ 

_ do _ 

2,  329 

23 

750 

9 

1,488 

42 

549 

18 

Chickens,  frozen.. 

.number 

816 

79 

625 

48 

407 

46 

Cigarettes.  . . 

.pounds. . 

4,  206 

972 

9,881 

5,  412 

9,  758 

5,  681 

Coke  . . . 

".-.tons.. 

2 

10 

18;  939 

59 

1 

11 

2 

16 

Cotton,  raw _ _ 

.pounds. 

44,  653 

3,  856 

29,  917 

3,  885 

149,  477 

35,  634 

174,  671 

44,  494 

Eggs: 

Fresh .  _ 

.number.. 

28,  467 

55 

26,  888 

111 

74,  923 

485 

60,  717 

412 

Frozen,  dried,  etc.,  pounds. 

5,427 

194 

21,  405 

3,800 

23,  321 

4,982 

30,  570 

6,152 

Flour _  .. 

_ do _ 

42,  478 

912 

11,  443 

339 

23,  342 

694 

Gallnuts. . 

_ do _ 

5,  256 

501 

5,  939 

649 

9,  423 

975 

8,  044 

738 

Groundnuts _ 

_ do _ 

13,  832 

384 

18,  634 

726 

13,  350 

472 

Hair,  human  _ 

_ do _ 

'  300 

76 

879 

159 

573 

152 

Hemp...  . . . 

_ do _ 

21,618 

1,076 

71 

6 

14,  127 

1,  252 

19,  522 

1,703 

Hides,  buffalo  and  cow.do _ 

18,  596 

2,  304 

34,  534 

6,  700 

13,  613 

4,  571 

19,  264 

3,  374 

Intestines 

do 

411 

91 

1,  219 

637 

1,  441 

776 

Iron  and  steel.  .  long  tons 

1 

18 

14 

684 

11 

464 

3 

98 

Iron  ore 

do  .  . 

51 

66 

270 

451 

341 

614 

381 

752 

Iron,  pig  _ 

_ do  . . 

4 

72 

1, 100 

275 

3,  804 

201 

4,  956 

Lily  flowers. _ 

.pounds.. 

328 

13 

1,795 

87 

1,385 

136 

1,887 

'  155 

Oils,  vegetable: 

Bean _ 

_ do _ 

1,151 

35 

990 

51 

441 

32 

1,311 

45 

Sesame  seed _ 

_ do _ 

2,428 

83 

288 

15 

1,513 

119 

1,005 

70 

Wood  and  nut. 

_ do _ 

47,  353 

2, 193 

99,  810 

4,  678 

134,  672 

18,  614 

149,  131 

17,916 

Tea... . . 

_ do  .  . 

2,830 

97 

896 

55 

1,977 

151 

1,  295 

93 

Quicksilver _ 

.  .do _ 

29 

13 

43 

32 

22 

47 

30 

Ramie _ _ 

_ do _ 

25, 103 

2,  041 

20,  625 

2, 182 

18,  253 

1,  788 

Seeds,  sesame _ 

_ do _ 

68,  615 

1, 196 

185;  392 

6,080 

13L  474 

5,243 

23,  876 

482 

Seed  cake 

do 

26,  450 

156 

29,  529 

275 

43,  036 

452 

Silk  cocoons,  refuse,  and 

waste . 

.pounds  . 

335 

416 

657 

119 

3,090 

1,421 

2,738 

912 

HANKOW  CONSULAR  DISTRICT 


447 


Articles 

1903 

1913 

1923 

1924 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Silk: 

Honan  pongee. 

.pounds.. 

138 

186 

544 

1,038 

491 

1,301 

442 

1,244 

Raw  yellow — 

_ do _ 

1, 380 

1, 892 

916 

999 

960 

2,736 

765 

2,  271 

Silk  products  not  otherwise 

rlassified 

.pounds.. 

317 

487 

299 

110 

290 

79 

272 

Skins: 

Kid  and  goat  . 

.pieces.. 

2,300 

711 

2,  058 

1,039 

2,282 

1,  783 

1,548 

1,141 

Sheep  . 

do..  . 

2,  256 

136 

100 

56 

34 

23 

12 

6 

Tallow: 

Animal.  ..  .. 

.pounds. . 

5,  723 

268 

7, 180 

452 

1,660 

137 

1,457 

115 

Vegetable. .  .. 

do 

26,  492 

1,306 

33,  216 

1,915 

23,  181 

1,659 

28,  078 

1,949 

Tea _ 

do. 

134,  969 

7,888 

117,  762 

11,977 

40,  219 

4,  533 

36,  462 

4,717 

Tin...  ..  _ 

..  do 

36 

6 

211 

32 

161 

44 

138 

35 

Tobacco,  leaf _ 

_ do _ 

19,  538 

888 

23,  048 

2,  898 

36,  957 

2,449 

30,  989 

2, 101 

Walnuts. _ 

..  .do.  . 

1,061 

35 

874 

34 

1,855 

148 

2,  069 

150 

Wheat...  _ _ 

..  do  . 

19,  238 

159 

28,  228 

419 

3,  844 

89 

129,  428 

2,  743 

Wool,  sheep’s _ 

_ do _ 

3,  307 

197 

268 

15 

191 

21 

168 

19 

All  other  articles 

15,813 

7,  054 

30,  704 

32,511 

Total 

45,  767 

68,  887 

141, 164 

155,  284 

The  values  of  the  declared  exports  from  Hankow  to  the  United 
States  totaled  $725,691  in  1903,  $5,151,798  in  1913,  and  $20,619,630 
in  1923. 

The  net  total  import  trade  in  1903  was  $23,570,844;  in  1913,  $39,- 
109,308  ;  in  1923,  $47,783,182 ;  and  in  1924,  $66,642,681. 

The  increase  in  imports  is  due  to  internal  development  in  com¬ 
munications  and  industries  rather  than  to  any  considerable  change 
in  the  demands  of  the  people.  Progress  has  been  made  in  the 
methods  of  distribution,  with  the  result  that  there  is  a  very  great 
increase  in  the  market  for  petroleum,  dyes,  cigarettes,  sewing  ma¬ 
chines,  and  many  articles  of  Japanese  make,  Japan  having  pushed  its 
agencies  farther  inland  than  any  other  nation. 

Nearly  all  imports  destined  for  the  interior  are  covered  by  transit 
passes.  Articles  universally  used,  like  kerosene  and  cigarettes,  are 
delivered  by  agents  and  are  covered  by  transit  pass  to  the  consumer. 
The  inland  tax,  known  as  likin,  is  a  very  great  obstacle  to  the  devel¬ 
opment  of  trade;  the  importer  can  not  determine  beforehand  the 
total  cost  of  an  article  delivered  to  a  remote  point,  as  it  must  pass 
numerous  tax  stations. 

The  following  table  shows  the  net  quantity  and  value  of  the  prin¬ 
cipal  imports  into  Hankow  for  1903,  1913,  1923,  and  1924: 


[Quantities  are  stated  in  thousands  of  units  given;  values  in  thousands  of  United  States 

dollars] 


Articles 

1903 

1913 

1923 

1924 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

r 

Value 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Automobiles  and  accessories 

74 

62 

Bags,  all  kinds..  .  . 

.pieces 

5, 940 

278 

2, 971 

278 

3,  798 

272 

799 

67 

Beltine.  machine 

19 

43 

90 

124 

Buildins  materials 

94 

70 

131 

.101 

Buttons..  _ 

.. gross. . 

322 

96 

218 

69 

183 

30 

185 

52 

Clocks  and  watches. 

31 

38 

61 

93 

Coal  ..  ..  ... 

.  tons.. 

83 

418 

144 

513 

6 

28 

65 

336 

Confectionery _ 

98 

147 

300 

25 

448 


COMMERCIAL  HANDBOOK  OF  CHINA 


Articles 

1903 

1913 

1923 

1924 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Cotton  manufactures,  total  .. 

13, 453 

13, 514 

12,  004 

14,  745 

Piece  goods — 

American . 

933 

259 

33 

29 

Dutch 

24 

145 

28 

6 

English  . __  _ 

2,893 

3,  954 

2,  940 

2  337 

J  apanese  _ 

36 

853 

1,738 

3  530 

Yarn _ __  ..  .pounds.  _ 

45, 426 

7,065 

38, 032 

5,329 

4,  016 

5,  329 

4,417 

1,906 

Crucibles  .  _ _ 

151 

114 

Drugs  and  chemicals. 

508 

332 

858 

685 

Dyes,  paints,  and  varnishes, 

total 

217 

1,  768 

2,  936 

4,  848 

Aniline  dyes 

211 

'  503 

883 

1,  286 

Indigo,  artificial  pounds 

7, 336 

1,  166 

6,  709 

1,847 

3,  262 

Electrical  materials 

24 

173 

389 

362 

Flour,  wheat  pounds  . 

1,  218 

25 

.  525 

14 

11,  555 

315 

130 

Fruit,  canned  and  dried.do. .. 

'191 

10 

331 

38 

694 

90 

976 

115 

Ginseng 

89 

93 

114 

197 

Glass  and  glassware 

109 

238 

279 

265 

Lamps  and  lampware  _ 

26 

126 

150 

86 

Leather. ..  .  .  ..pounds. 

16 

58 

288 

125 

Lumber,  all  kinds 

154 

834 

389 

404 

Machinery,  all  kinds.. 

145 

424 

1,840 

1,  210 

Matches _ _ _  gross. . 

98 

16 

1,317 

265 

38 

8 

159 

36 

Metals  and  minerals,  manu- 

factures,  total 

1,  357 

5,  736 

6,  308 

11,  556 

Brass  and  yellow  metals 

.  _ pounds  .. 

409 

51 

198 

31 

427 

69 

670 

118 

Copper  ingots  and  slabs 

_  _ pounds.. 

5,413 

581 

14, 129 

2,396 

21,  977 

3,  362 

51, 198 

7,  300 

Copper  manufactures 

_ pounds.. 

251 

29 

204 

34 

119 

31 

274 

60 

Iron  and  steel,  new,  total 

_ _  .  ..pounds.. 

14,  800 

443 

67,  397 

1,762 

60,  620 

2,289 

102, 121 

3,  724 

Bamboo  steel.. do _ 

369 

7 

1,721 

35 

2,  748 

99 

2,  291 

67 

Bars _ do _ 

1,  566 

28 

5,  213 

87 

12, 186 

330 

26,  803 

523 

Cobbles,  bar  ends, 

etc _  ..pounds.. 

1,316 

13 

6, 872 

93 

2,  064 

183 

9,  375 

603 

Hoops _ do _ 

516 

8 

3,  647 

80 

5,  253 

183 

5,  781 

159 

Nails _ do _ 

4,  738 

96 

8,  403 

190 

5,131 

208 

16,  790 

611 

Pipes  and  tubes 

_  .  pounds.. 

15 

3 

247 

9 

1,874 

94 

1,  127 

56 

Plate  cuttings. do _ 

294 

2 

4,  050 

50 

2,891 

42 

10,  182 

165 

Rails...  .  do  .. 

16,  688 

282 

4,  773 

125 

Sheets  and  plates 

_ _ pounds.. 

1,781 

46 

7,004 

201 

5,  436 

208 

3,  878 

102 

Tinned  plates„do _ 

2, 181 

81 

1,924 

445 

12, 123 

690 

16,  974 

942 

Wire  and  wire  rope 

_ pounds. 

1,360 

40 

5,  051 

99 

6,  382 

182 

3,  148 

140 

Iron  and  steel,  old. .do _ 

2,  867 

23 

2,613 

29 

3,  245 

40 

1,838 

24 

Hardware,  tools,  etc 

31 

280 

272 

113 

Lead,  all  kinds.. pounds.  _ 

2,817 

85 

751 

30 

2,  709 

149 

2,530 

151 

Nickel _ do _ 

87 

30 

83 

30 

246 

80 

125 

33 

Tin  slabs _ _ do _ 

245 

54 

290 

44 

89 

38 

419 

63 

Tin  and  lead  foil. ..do _ 

38 

6 

54 

25 

2,453 

334 

3,  473 

452 

Milk,  canned  _ 

9 

32 

92 

87 

Oil,  mineral,  total _ 

1,839 

2,  505 

4,  424 

6,  601 

Fuel  oil _ _ _ 

8 

'  135 

224 

Kerosene — 

American.. _ 

_ Amer.  galls. 

3,506 

471 

14,  482 

1,200 

15,  022 

2,  641 

25,  482 

5,  569 

Borneo... _ do..  . 

7,822 

868 

163 

28 

520 

160 

Russian _  .do _ 

3,  695 

468 

'  300 

27 

Sumatra _ ..do.. 

7,  807 

883 

2,903 

322 

5,  536 

1,  430 

Lubricating  .  _ _ do. 

15 

570 

177 

Paper  and  stationery _ 

90 

312 

869 

1,372 

Piece  goods,  miscellaneous  _. 

82 

119 

438 

561 

Railroad  cars _  .. 

310 

10 

726 

Sandalwood _ pounds. . 

2,209 

142 

1,443 

78 

1,539 

115 

1,564 

144 

Soap  .  _ 

37 

184 

181 

197 

Spices . . pounds 

1,679 

177 

1,911 

199 

3, 686 

344 

1,977 

215 

Sugar..  .  ...  . . do.  .. 

27,  524 

625 

100,  538 

2,764 

72,  528 

5,  670 

172, 125 

6,  602 

Tobacco,  total _ _ 

'45 

915 

2,  488 

3,  841 

Cigars  and  cigarettes 

....  .  .  .number. . 

45 

845 

188,  016 

558 

161,975 

498 

Leaf _  _ pounds 

405 

70 

5,  034 

1,930 

10,919 

3,  346 

Umbrellas,  cotton.. number.. 

303 

95 

501 

143 

203 

97 

48 

23 

Wearing  apparel _ 

36 

376 

636 

517 

Wines...  ... . . . 

45 

182 

400 

191 

Woolen  goods  ..  ..  _ _ _ 

619 

310 

666 

925 

Woolen  and  cotton  mixtures 

63 

272 

440 

420 

All  other  articles . . 

2, 435 

5,  568 

2,857 

8,370 

Total.  . . . . 

23,  571 

39, 109 

47,  783 

66,  643 

HANKOW  CONSULAR  DISTRICT 


449 


MONEY,  BANKING,  AND  CREDIT 

The  chief  banks  handling  foreign  exchange  and  bills  in  Hankow 
are: 

Banque  de  lTndo-Chine  ( French ) . 

Banque  Beige  pour  TEtranger  (Belgian). 

Banque  Franco-Chinoise  (successors  to  Banque  Industrielle  de  Chine). 

Chartered  Bank  of  India,  Australia,  and  China  (British). 

Chinese-American  Bank  of  Commerce  (American-Chinese) . 

Credit  Foncier  d’Extreme-Orient  (Belgian). 

Deutsch-Asiatische  Bank  (German). 

Hongkong  and  Shanghai  Banking  Corporation  (British). 

International  Banking  Corporation  (American). 

Russo-Asiatic  Bank  ( Russian ) . 

Sumitomo  Bank  (Japanese). 

Bank  of  Taiwan  (Japanese). 

Yokohama  Specie  Bank  (Japanese). 

These  banks  transact  exchange  business  and  finance  exports  and 
imports,  chiefly  the  former.  Some  of  them  afford  special  facilities 
to  reliable  exporters  by  providing  credit,  retaining  a  lien  on  the 
property  when  purchased. 

The  currency  in  circulation  in  Hankow  consists  chiefly  of  Hupeh 
and  Yuan  dollars,  which  have  practically  supplanted  the  Mexican 
dollar.  The  Hankow  tael  is  usually  employed  in  commercial  trans¬ 
actions  of  large  character. 

The  principal  Chinese  banks  are  the  Bank  of  China,  Bank  of  Com¬ 
munications,  Bank  of  Agriculture  and  Commerce,  and  Bank  of 
Canton ;  there  are  17  others,  but  the  four  mentioned  are  the  principal 
ones.  These  banks  do  little  foreign-exchange  business. 

Note. — For  details  of  currency,  credits,  and  credit  methods  obtaining,  see 
the  special  chapters  in  this  handbook  dealing  with  these  subjects. 

ADVERTISING  1 

Only  5  per  cent  of  the  Chinese  in  this  district  are  able  to  read. 
Posters  and  handbills  in  bright  colors  and  simple  designs  attract  the 
curiosity  and  interest  of  people  who  can  not  read  or  afford  news¬ 
papers.  Electric  signs  are  being  used  by  several  local  merchants, 
foreign  and  Chinese,  and  it  is  believed  that  this  is  one  of  the  most 
successful  types  of  advertising  for  Hankow.  All  advertisements 
should  be  in  both  English  and  Chinese,  as  English  is  the  language 
most  commonly  used  by  the  foreign-educated  Chinese  as  well  as 
the  more  than  2,000  foreigners  in  Hankow. 

There  are  no  taxes  on  poster  advertisements  or  handbills  in  the 
native  city,  but  the  French  municipal  authorities  levy  a  small  tax 
on  handbills  distributed  in  the  French  concession. 

TRAVEL  FACILITIES 

Travel  on  the  steamers  of  the  Yangtze  is  comfortable  and  ade¬ 
quate.  The  railways  and  motor  roads — where  they  exist — furnish 
fair  accommodations;  but  generally  throughout  the  district  chairs 
'  must  be  used.  The  following  is  a  list  of  European  hotels  in  the  dis- 


1  For  details  under  this  heading,  see  special  chapter  on  “Advertising  and  merchan 
dising.” 

100020°— 26 - 30 


450 


COMMERCIAL  HANDBOOK  OF  CHINA 


trict,  and,  except  as  noted,  the  only  other  accommodations  are  native 
hotels  and  inns : 


Names  of  hotels 

Location 

European  or 
American  plan 

Nationality 

Num¬ 
ber  of 
rooms 

Rate  per 
day 

Wagon-lits  Terminus  Hotel  . . _ 

Hankow  .  _ 

Both  _ 

French . . 

GO 

Mex. 

$9.00 

Hankow  Hotel 

...  .do  .  .  .. 

_.  .do...  _ 

Russian.  .  . 

14 

5.  00 

International  Hotel  - 

_ do _ ... 

.  .do _ 

_ do _ 

6 

4.  00 

Hotel  de  France.  _ _ _ 

_ do _  _ 

_ _ do.  _ 

Greek...  ...  . 

6 

4.00 

International  Hotel.  ..  _ 

Ichang.  .  .  . 

.  .  .do _ 

Italian  . .  .  _ 

10 

2.50 

Duff  Hotel  _ _  _ ...  . 

Kiukiang 

.  .do  _ 

British  .  ... 

4.00 

Fairy  Glen  .  ..  .  _ _ 

Kuling..  ..  . 

_ do _ _ 

..  .do . 

6.  00 

Kuling  Hotel _ _  ... _  _ 

_ .do _ 

..  ..do . 

.  ..do _ _ 

6.  00 

Four  lines  of  steamers  maintain  a  regular  river  service  between 
Hankow  and  Shanghai.  The  time  is  70  hours,  and  practically  every 
night  one  or  more  steamers  sail.  The  down-river  fare  is  $50  Mex. 
and  the  round  trip  $75.  Throughout  the  year  small  steamers  ply 
weekly  from  Hankow  to  Ichang  (90  hours),  the  fare  being  $45  Mex. 
During  high  water,  approximately  nine  months  of  the  year,  steamer 
service  to  Changsha  (48  hours),  is  maintained;  fare,  $30  Mex. 
There  is  a  daily  railway  service  to  Peking,  first-class  fare,  including 
sleeper,  being  $54  Mex. 

The  best  time  to  visit  Hankow  is  spring  or  autumn,  to  avoid  ex¬ 
tremes  of  temperature.  A  business  trip  may  be  in  order  at  any 
time  except  from  June  to  September. 

TRADE  ORGANIZATIONS 

The  following  trade  organizations  exist  in  the  Wuhan  cities  : 

American  Chamber  of  Commerce.  Hankow. 

British  Chamber  of  Commerce,  Hankow. 

French  Chamber  of  Commerce.  Hankow. 

Japanese  Chamber  of  Commerce,  Hankow. 

Hankow  Committee  of  Foreign  Chambers  of  Commerce. 

Hankow  Chinese  Chamber  of  Commerce. 

Wuchang  Chinese  Chamber  of  Commerce,  Wuchang. 

Chinese  General  Chamber  of  Commerce  for  the  Wuhan  cities  (Hankow, 
Hanyang,  and  Wuchang),'  Hankow. 

In  addition  to  the  above-named  organizations,  practically  every 
recognized  center  of  trade  throughout  the  district  has  a  chamber  of 
commerce,  and  practically  every  native  industry  and  activity  in  the 
district  has  its  trade  guild. 

The  Chinese  and  foreign  chambers  of  commerce  cooperate  in  meas¬ 
ures  for  the  common  good  and  for  the  improvement  of  trade  meth¬ 
ods,  both  native  and  foreign. 

PROPERTY  VALUES  AND  RENTS 

The  most  desirable  office  or  residence  location  for  foreigners  is 
within  the  former  German  and  Russian  concessions  of  Hankow,  now 
special  districts  under  Chinese  administration.  The  purchase  prices 
of  lots  in  these  areas  range  from  3  to  4  taels  per  square  foot. 

Land  may  be  freely  purchased  in  any  of  the  concessions  except 
the  British  and  Japanese.  In  the  former,  one  alien  may  sell  to  an- 


451 


HANKOW  CONSULAR  DISTRICT 

other,  but  no  land  transfer  is  permitted  from  a  British  subject  to 
an  alien.  The  Japanese  concession  is  reserved  exclusively  for  Jap¬ 
anese. 

Residence  rents  range  from  125  to  400  taels  per  month ;  office  rents, 
from  200  to  400  taels;  warehouse  rates  average  7  taels  per  square 
foot.  Because  of  Hankow’s  rapid  expansion  and  the  large  influx  of 
foreigners,  the  housing  problem  at  present  is  a  serious  one. 

TAXES  AND  OTHER  ASSESSMENTS 

Each  concession  has  its  municipal  council,  which  establishes  rates 
and  taxes  within  its  boundary.  Rates  and  taxes  in  the  British  con¬ 
cession  for  1923 — substantially  the  same  as  in  the  others — were  as 
follows :  Land  taxes  at  the  rate  of  1  per  cent  on  assessed  value ;  7  per 
cent  property  tax  on  the  rental  value  of  houses  in  foreign  occupation ; 
full  concession  lots  in  the  original  concession  assessed  for  property  tax 
upon  a  minimum  of  3,000  taels;  divided  lots  pay  pro  rata  on  a  mini¬ 
mum  basis  of  3,000  taels  assessed  value  per  234  fong  (1  fongi= 
10  square  feet)  ;  in  the  concession  extension  the  minimum  basis  is 
2,000  taels  per  234  fong,  and  bund  frontage  at  8  taels  per  foot  per 
year.  As  a  rule  the  landlord  pays  the  taxes  and  the  tenant  pays  the 
water  rates. 

The  methods  of  leasing  land  in  the  treaty  ports  of  this  consular 
district  depend  upon  the  regulations  of  the  various  ports  and,  in  cer¬ 
tain  instances,  of  the  different  concessions  therein.  Lands  belong¬ 
ing  to  American  citizens,  firms,  or  associations  in  the  foreign  con¬ 
cessions  of  Hankow  are  registered  in  the  consulate  of  the  nation 
holding  the  concession  and  sometimes  by  special  request  also  in 
the  American  consulate  general.  The  position  taken  by  the  Ameri¬ 
can  office  is  that  registration  in  the  concession-holding  consulate  is 
sufficient  and  an  additional  recording  in  this  office  is  superfluous,  but 
all  parties  are  told  that  their  deeds  will  be  recorded  if  desired.  When 
the  land  is  located  in  the  concession  extensions  where  the  Chinese 
authorities  continue  to  issue  the  title  deeds  and  in  the  Chinese  special 
administrative  districts  (the  former  German  and  Russian  conces¬ 
sions),  the  deed  is  sent  to  the  commissioner  of  foreign  affairs  for 
verification. 

LIVING  COSTS 

The  following  table  gives,  in  Mexican  currency,  estimates  of  living 
costs  for  one  month : 


Hotel, 
board 
and  room 

Boarding 
house, 
board 
and  room 

Board 

Rent 

Esti¬ 

mated 

necessary 

living 

expenses 

Single  man.. . . . . . 

$200 

$150 

$150 

$50 

$300 

Single  woman  ..  . . .  . 

200 

150 

150 

50 

300 

Married  couple  ---  _ _ _  _ _ 

350 

300 

300 

100 

500 

Married  couple  and  2  children . . . . 

500 

400 

400 

100 

600 

Recreation  for  foreigners  is  confined  principally  to  those  supplied 
by  the  various  local,  foreign,  and  international  clubs,  such  sports  as 
shooting  and  riding,  and  a  few  motion-picture  theaters.  The 


452 


COMMERCIAL  HANDBOOK  OF  CHINA 


British  maintain  a  school  in  Hankow  for  foreign  children,  and  there 
are  also  French  and  German  primary  and  intermediate  schools. 


CHANGES  IN  TRADE  CONDITIONS 


Practically  all  the  trade  of  West  China,  with  its  estimated  popu¬ 
lation  of  100,000,000,  passes  through  Hankow,  including  the 
merchandise  coming  from  and  destined  to  Changsha,  Chungking, 
Ichang,  and  Shasi.  Approximately  11  per  cent  of  China’s  total 
import  and  export  trade  is  handled  through  this  port. 

idle  increase  in  exports  has  been  remarkable.  Notwithstanding 
the  unsettled  conditions  which  have  existed  during  recent  years,  the 
value  of  shipments  in  192-1  reached  $155,283,542,  as  compared  with 
$141,164,474  in  1923,  $110,247,077  in  1922,  and  $68,886,688  in  1913. 
The  value  of  imports  increased  from  the  average  of  $30,000,000 
per  annum  in  pre-war  years  to  $53,065,406  in  1922,  $47,783,182  in 
1923,  and  $66,642,681  in  1924.  A  certain  amount  of  this  advance  has 
been  due  to  the  rise  in  values  and  appreciation  of  exchange,  but  the 
greater  part  is  the  result  of  a  natural  expansion  of  trade. 


HONGKONG  CONSULAR  DISTRICT 


By  Consul  A.  E.  Carleton 

LOCATION,  AREA,  AND  POPULATION 

The  Hongkong  consular  district  comprises  the  island  of  Hong¬ 
kong,  Kowloon,  and  the  New  Territory,  a  total  area  of  390  square 
miles.  Hongkong  lies  just  south  of  the  Tropic  of  Cancer  and  is 
therefore  in  the  latitude  of  Cuba.  Its  average  rainfall  is  84.79 
inches,  average  minimum  temperature  68.2°  F.,  and  average  maxi¬ 
mum  temperature  76.4°  F.  The  rainy  season  is  from  April  to 
September. 

The  population  of  Hongkong,  including  Kowloon,  is  estimated  at 
081,800.  The  Europeans  number  14,963,  Americans  537,  and  Amer¬ 
ican  business  firms  30. 

MANUFACTURING  INTERESTS 

There  is  practically  no  agricultural  industry  or  mining  of  any 
importance  in  the  Hongkong  district.  The  manufacturing  interests, 
in  the  order  of  their  importance,  are  as  follows  (all  values  in  Hong¬ 
kong  dollars)  : 

Shipbuilding. — Hongkong  &  Whampoa  Dock  Co.  (Ltd.),  the  capital  of  which 
is  $3,000,000,  with  a  reserve  fund  of  $4,081,698. 

Taikoo  Dockyard  &  Engineering  Co.  (Ltd.)  ;  private  concern.  No  statistics 
available. 

Sugar  refining. — Taikoo  Sugar  Refinery ;  private  concern.  No  statistics 
available. 

China  Sugar  Refining  Co.  (Ltd.),  the  capital  of  which  is  $2,000,000,  with  a 
reserve  fund  of  $1,800,000. 

Cement  manufacturing. — Green  Island  Cement  Co.  (Ltd.),  the  capital  of 
which  is  $6,000,000,  with  a  reserve  of  $1,050,000.  This  company  has  two 
issues  of  shares,  old  and  new.  of  $7.50  each. 

Rope  manufacturing. — Hongkong  Rope  Manufacturing  Co.  (Ltd.),  the  capi¬ 
tal  of  which  is  $2,000,000,  with  a  reserve  of  $218,700.  This  concern  has  two 
issues  of  shares,  old  and  new,  of  $5  each. 

Cigarette  manufacturing. — Nanyang  Bros.  Tobacco  Co.  (Ltd.),  the  capital 
of  which  is  $15,000,000,  with  a  large  reserve  fund. 

Wine  manufacturing. — There  are  134  distilleries  in  the  colony  manufac¬ 
turing  Chinese  wines  of  all  kinds.  These  are  all  small  concerns,  and  it  is 
impossible  to  obtain  any  statistics  regarding  their  output  or  number  of 
employees. 

Biscuit  and  confect  toner  g  manufacturing. — M.  Y.  San  &  Co.  (Ltd.)  ;  capital, 
$3,000,000. 

Aerated-water  manufacturing. — A.  S.  Watson  &  Co.  (Ltd.).  The  capital 
this  concern  is  $1,200,000,  with  a  reserve  of  $450,000.  This  concern  also  does  a 
large  business  in  drugs  and  druggists’  supplies. 

Paper  manufacturing. — There  are  four  concerns  manufacturing  paper  in  the 
colony — one  large  factory  at  Aberdeen  (on  the  opposite  side  of  the  island 
from  Hongkong)  named  the  Aberdeen  Paper  Mills,  and  three  small  concerns 
in  Yaumati. 

Gold  and  silver  ware  manufacturing. — There  are  131  firms  in  the  colony  man¬ 
ufacturing  gold  and  silver  ware. 

Glass  manufacturing. — There  are  19  glass  factories  in  the  colony.  The  goods 
manufactured  by  most  of  these  concerns  are  of  a  very  inferior  quality,  but  some 
of  the  larger  concerns  are  improving  the  quality  of  their  output. 


453 


454 


COMMERCIAL  HANDBOOK  OF  CHINA 


Rattan-furniture  and  bamboo-ware  'manufacturing. — There  are  236  concerns 
manufacturing  rattan  and  seagrass  furniture.  One  of  these  is  equipped  with 
some  up-to-date  machinery,  but  the  other  concerns  are  small  and  most  of  the 
furniture  manufactured  by  them  is  handmade. 

Knitted-goods  and  hosiery  manufacturing . — There  are  52  small  knitting  fac¬ 
tories,  manufacturing  a  cheap  grade  of  hosiery,  singlets,  etc. 

Soap  manufacturing. — There  are  17  soap  factories  in  the  colony.  Four  of 
these  concerns  are  fairly  large,  but  the  remainder  are  small. 

Soy  manufacturing. — There  are  45  small  Chinese  concerns  manufacturing  soy. 

Ginger  and  fruits,  preserved. — There  are  35  small  concerns  making  a  spe¬ 
cialty  of  preserving  and  canning  ginger,  fruits,  etc. 

Lard  manufacturing. — There  are  15  lard  factories  in  the  colony,  all  under 
government  supervision,  which  manufacture  lard  for  export. 

Jinrickisha  manufacturing. — There  are  26  small  Chinese  concerns  in  the  col¬ 
ony  manufacturing  jinrickishas  for  use  in  the  colony. 

LABOR  CONDITIONS 

The  following  table  indicates  certain  of  the  conditions  with  respect 
to  labor : 


Industries 

Wages  per  day 

Hours  of 

Male 

F  emale 

work 

Shipbuilding  __ .  __  _ __  _ 

Hongkong 
currency 
$1.  50-$2.  00 

Hongkong 

currency 

9 

Cigarette  manufacturing.  _  .  __  . . . ..  _  __  .  .. 

0.  80-  1.  20 

$0.  40-$0.  65 

10 

Rattan-furniture  manufacturing _ _ _ 

1.  50-  2.  00 

0.  40-  0.  60 

10 

Electric  Tramway  Co  .  _ _ 

1.  00-  1.  20 

8 

Contractors,  engineers,  builders,  etc.1.  .  _ 

1.  00-  1.  40 

10 

1  Beard  and  lodging  furnished. 


Although  20  strikes  occurred  during  1923,  difficulties  in  reaching 
settlements  were,  on  the  whole,  much  less  than  in  1922.  The  colony 
is  not  free  from  the  activities  of  the  professional  agitator,  but  a  spirit 
of  reasonableness  seems  to  be  increasingly  in  evidence. 

Hongkong  government  ordinances  prohibit  the  employment  of 
children  under  10  years  in  any  factory,  the  employment  of  children 
under  12  years  in  carrying  coal  or  similar  heavy  tasks,  and  the  em¬ 
ployment  of  children  under  15  years  of  age  in  the  making  of  glass, 
fireworks,  or  in  similar  dangerous  trades.  Every  factory  in  which 
children  are  employed  must  keep  a  record  in  English  or  Chinese 
of  all  the  facts  with  reference  to  each  child  in  its  employ.  The  or¬ 
dinances  require  one  day’s  rest  in  seven  and  relaxation  intervals  of 
not  less  than  five  hours,  and  they  limit  employment  to  daylight 
hours. 

TRANSPORTATION  AND  COMMUNICATION 

RAILWAYS 

The  British  section  of  the  Canton-Kowloon  Railway,  the  only  line 
in  the  district,  runs  from  Kowloon  to  Shumchun,  a  distance  of  22% 
miles,  and  was  opened  for  traffic  in  1910.  The  Chinese  section,  which 
was  opened  for  traffic  a  year  later,  runs  from  Shumchun  to  Canton, 
89%  miles.  The  British  section  is  financed  by  the  Hongkong  gov¬ 
ernment.  Because  of  disturbed  political  conditions  in  and  around 


HONGKONG  CONSULAR  DISTRICT 


455 


Canton  in  recent  years,  operation  of  railways  has  failed  to  show  a 
profit.  In  1923  the  deficit  amounted  to  about  $49,000  gold.  In  1924 
express  service  ceased  from  April  16  to  the  end  of  the  year,  and  at 
the  end  of  October  all  through  traffic  to  Canton  was  suppressed. 

The  total  expenditure  on  the  line  up  to  December  31,  1923,  by 
the  Hongkong  government  amounted  to  nearly  $17,000,000,  and  the 
number  of  local  passengers  carried  in  a  normal  year  (1923)  is  in 
excess  of  1,000,000.  Fares  and  rates  are: 

Freight  rates  per  ton  per  English  mile : 

First  class — 2.67  cents  Hongkong  currency. 

Second  class — 2.23  cents. 

Third  class — 1.78  cents. 

Fourth  class — 1.34  cents. 

Fares  from  Kowloon  to  Canton  (about  112  miles)  : 

First  class — $5  Hongkong  currency,  single ;  $8  return. 

Second  class — $2.50  single ;  $4  return. 

Third  class — $1.10  single ;  $1.80  return. 

ROADS 

There  are  227  miles  of  roads  and  streets  in  the  Hongkong  consular 
district,  of  which  138  miles  are  adaptable  to  motor  transportation. 
Large  sums  are  annually  expended  on  the  maintenance  of  roads  and 
streets.  Expenditure  in  1923  amounted  to  more  than  $1,500,000  gold. 
A  similar  sum  is  to  be  spent  during  the  coming  year  for  improving 
roads  and  bridges. 

Traffic  consists  of  motor  trucks  fitted  with  pneumatic  tires,  motor 
trucks  fitted  with  solid  tires,  automobiles,  motor  busses,  taxicabs, 
rickshas,  sedan  chairs,  electrm  street  cars,  and  a  few  modern  two¬ 
wheeled  carts  drawn  by  mules  or  coolies  and  owned  by  the  military 
and  sanitary  authorities.  Trucks  fitted  with  pneumatic  tires  are 
limited  to  a  load  not  exceeding  12  tons  in  the  city  and  5  tons  in  the 
suburbs,  while  trucks  fitted  with  solid  tires  are  limited  to  a  load  of 
7  tons  in  the  city  and  5  tons  in  the  suburbs. 

No  fees  or  tolls  are  collected  in  Hongkong. 

TELEGRAPHS,  CABLES,  AND  WIRELESS  SERVICE 

The  cable  service  out  of  Hongkong  depends  directly  or  indirectly 
upon  three  companies — the  Great  Northern  Telegraph  Co.,  a  Danish 
corporation,  which  in  normal  times  connects  with  Europe  by  way  of 
Siberia;  the  Eastern  Extension  Telegraph  Co.,  a  British  corpora¬ 
tion,  which  connects  with  Europe  by  way  of  Suez ;  and  the  Pacific 
Commercial  Co.,  an  American  corporation,  which  has  no  direct  con¬ 
nection  at  Hongkong  but  transmits  messages  to  the  United  States  by 
way  of  Manila.  There  is  also  the  Chinese  Government’s  land  serv¬ 
ice,  which  transmits  messages  not  only  over  China  and  to  India  but 
to  other  countries  by  connecting  cables  at  Shanghai  or  elsewhere. 

There  is  a  commercial  wireless  station  at  Cape  D ’Aguilar,  called 
VPS,  owned  by  the  government;  wave  length,  600;  radius,  350-800 
miles.  The  British  Navy  has  a  wireless  station  at  Stonecutters 
Island,  Marconi  system ;  call  letters  are  BXY ;  time  signal  on  2,000 
meters  at  1256  and  0156  Greenwich  mean  time.  Visiting  men-of- 
war  get  radio  schedule.  Weather  reports  are  broadcast  on  600  meters 
at  0500  and  0900  Greenwich  mean  time.  The  time  ball  is  dropped 


456 


COMMERCIAL  HANDBOOK  OF  CHINA 


on  Kowloon  signal  hill  at  10  a.  m.  and  4  p.  m.,  the  time  for  the  ball 
being  obtained  from  Hongkong  Observatory.  VPS  broadcasts 
weather  reports  on  600  meters  at  0500  and  0900  Greenwich  mean 
time.  Storm  warnings  are  broadcast  each  even  hour  until  midnight. 
No  press  news  is  sent  from  Hongkong. 

TELEPHONES 

The  China  &  Japan  Telephone  Electric  Co.  (Ltd.),  a  private 
company  incorporated  in  the  United  Kingdom,  operates  three  ex¬ 
changes  in  Hongkong  with  a  total  of  6,500  subscribers.  The  equip¬ 
ment  is  of  magneto  type,  of  Swedish  manufacture. 

This  company  owns  the  following  cables,  etc.,  in  Hongkong : 


Miles 

Telephone  routes,  aerial _  27.  38 

Underground  armored  cables _  38.  70 

Underground  cables  in  ducts _  11.  45 

Underground  ducts _  15.  86 

Cables  crossing  the  harbor _  1.  99 

Conductors : 

Aerial,  single  line _  1,  553.  69 

Submarine,  Single  line _  104.  55 

Underground,  single  line _ 13,  821.  90 


Telephone  rates  vary  from  £10  per  annum  for  telephones  installed 
within  a  mile  of  the  city  to  £25  for  telephones  in  the  Peak  and 
Kowloon  districts.  There- is  also  a  charge  of  £3  to  £10  for  every 
extension. 

•  POSTAL  FACILITIES 

The  annual  report  of  the  Postmaster  General  of  Hongkong  for 
1923  show  s  a  steady  increase  in  the  postal  business  with  the  United 
States,  particularly  in  remittances  from  Chinese  in  the  United  States 
to  relatives  and  firms  in  the  Hongkong  trade  district.  A  report  of 
the  Chinese  branch  of  the  Hongkong  Post  Office  shows  that  Chinese 
registered  articles  delivered  by  the  branch  during  the  year  1923 
amounted  to  274,076,  of  which  Chinese  registered  letters  from  the 
United  States  and  from  Canada  accounted  for  171,572.  The  regis¬ 
tered  articles  w^ere  almost  exclusively  remittances  of  money  from  the 
LTiited  States  to  this  district.  Previous  to  the  w7ar  these  remittances 
amounted  to  something,  over  $40,000,000  gold.  A  Hongkong  banker 
estimates  that  they  amounted  to  more  than  $50,000,000  gold  in  1923, 
which  is  probably  correct,  since  the  registered  articles  received  dur¬ 
ing  1923  show  an  increase  of  20  per  cent  over  those  received  during 
the  twro  years  previous  to  the  war. 

Owning  to  the  closing  of  the  British  postal  agencies  in  China  there 
were  decreases  in  the  number  of  mail  receptacles  dispatched  from 
Hongkong  and  in  transit  receptacles  handled  as  compared  with  1922. 

A  total  of  5,298  steamers  carrying  mails  arrived  in  1923,  and  8,364 
left — an  increase  of  701  and  2,000,  respectively,  over  the  previous 
year’s  figures.  The  total  revenue  from  the  postal  service  in  1923 
amounted  to  $714,340,  against  $662,862  in  1922 — an  increase  of 
$51,478.  The  balance  of  revenue  over  expenditures  amounted  to 
$622,700. 


HONGKONG  CONSULAR  DISTRICT 


457 


SHIPPING  AND  WAREHOUSING  FACILITIES 

HARBOR  FACILITIES 

Nearly  all  of  the  large  passenger  and  freight  vessels  entering  this 
port  berth  alongside  the  wharves  of  the  Hongkong  &  Kowloon 
Wharf  &  Godown  Co.  (Ltd.),  in  Kowloon.  Smaller-sized  vessels  are 
usually  moored  to  buoys  in  the  eastern  and  western  portions  of  the 
harbor  (all  of  these  buoys  being  owned  and  controlled  by  the  gov¬ 
ernment),  while  vessels  belonging  to  large  steamship  companies, 
such  as  the  Blue  Funnel  Line;  Standard  Oil  Co.;  Jardine,  Matheson 
&  Co.;  Osaka  Shosen  Kaisha;  and  Douglas  Steamship  Co.,  berth 
alongside  their  own  wharves  on  the  Hongkong  and  Kowloon  sides 
of  the  harbor. 

The  average  depth  of  water  at  high  tide  is  34  feet  and  at  low  tide 
about  23  feet.  Tides  rise  at  ordinary  springs  9  feet  and  at  ordinary 
neaps  6  feet.  < 

Cargo  is  transferred  from  ship’s  tackle  to  port  of  steamers  lying 
alongside  the  wharves  by  means  of  trucks  on  light  railways,  steam 
cranes  for  hoisting,  and  coolie  labor. 

But  in  transferring  cargo  from  ship’s  tackle  to  port  of  ships 
moored  to  buoys  in  the  harbor,  lighters,  junks,  and  coolie  labor  are 
employed,  the  lighters  and  junks  being  towed  by  steam  launches. 

The  total  tonnage  entered  and  cleared  during  the  year  1923 
amounted  to  53,402,239,  as  compared  with  46,566,764  tons  in  1922  and 
43,420,970  in  1921. 

DOCK  ACCOMMODATIONS 

In  Hongkong  there  are  two  large  shipyards  with  large  modern  dry 
dock  and  slipway  conveniences;  a  third  of  considerable  facilities 
for  handling  larger  business ;  a  fourth  yard  with  an  old  dock  which 
formerly  served  the  port  as  its  sole  dry  dock;  a  fifth  concern  with 
slipway  facilities;  and  21  boat-building  establishments.  The  latter 
are  Chinese  concerns  in  which  boats  of  foreign  model  are  manufac¬ 
tured  almost  entirely  by  hand.  Their  annual  output  of  small  boats 
of  all  kinds  is  a  considerable  feature  of  the  port’s  industry. 

The  Taikoo  Dockyard  &  Engineering  Co.  (Ltd.)  covers  an  area 
of  55  acres  and  is  situated  on  the  island  of  Hongkong  just  inside  the 
northern  and  deeper  entrance  to  the  harbor.  The  works  are  equipped 
for  modern  ship  and  marine-engine  construction  and  repairs  and  for 
overhauling  all  types  of  vessels,  including  warships,  both  in  dry  dock 
and  on  slipwray.  During  1923  the  firm  constructed  five  ocean-going 
vessels  of  4,711  gross  tons  and  of  3,120  indicated  horsepower,  as 
compared  with  seven  vessels  constructed  in  1922  of  11,087  gross  tons 
and  of  8,550  indicated  horsepower. 

The  largest  dock  possessed  by  this  company  is  787  feet  extreme 
length;  750  feet  on  entrance  at  top;  120  feet  wide  at  coping;  77  feet 
6  inches  at  bottom;  88  feet  width  of  entrance  at  top;  82  feet  width 
of  entrance  at  bottom ;  34  feet  6  inches  depth  over  center  of  sill  at 
high-w^ater  spring  tides;  31  feet  depth  over  side  of  sill  at  low- 
water  spring  tides.  It  can  be  filled  in  45  minutes  and  pumped  out  in 
2  hours  and  40  minutes. 

The  Hongkong  &  Whampoa  Dock  Co.  (Ltd.)  was  established  in 
1863,  and  represents  a  development  from  an  establishment  of  mud 
docks  at  Whampoa,  on  the  Pearl  or  Canton  Kiver,  in  the  earliest  days 


458 


COMMERCIAL  HANDBOOK  OF  CHINA 


of  the  steamship  business  in  the  Far  East.  They  are  at  present  dock- 
proprietors,  shipbuilders,  boilermakers,  marine  and  brass  founders, 
forge  masters,  electricians,  iron  and  brass  founders,  forge  masters, 
electricians,  and  engage  extensively  in  the  manufacture  of  railway 
equipment  for  Chinese  railways  and  local  tramways. 

The  principal  works  of  this  firm  are  at  Hunghom  on  the  Kowloon 
side  of  Hongkong  Harbor,  about  2  miles  distant  from  the  city  of 
Victoria.  The  shipbuilding  yard  has  a  frontage  of  570  feet  and 
will  admit  of  ships  500  feet  in  length  being  laid  down.  The  com¬ 
pany  also  possesses  a  twin-screw  salvage  steamer  fully  equipped 
with  a  complete  plant  of  powerful  salvage  gear  and  tools. 

During  the  year  1923  the  Hongkong  &  Whampoa  Dock  Co.  (Ltd.) 
constructed  five  vessels  of  9,577  gross  tons  and  7,680  indicated  horse¬ 
power,  as  compared  with  six  vessels  of  11,842  gross  tons  and  7,300 
indicated  horsepower  in  1922.  The  No.  1  dock  of  this  company  is 
700  feet  in  length,  86  feet  in  breadth  at  entrance  at  top  and  70  feet 
at  bottom,  and  30  feet  depth  of  water  over  sill  at  ordinary  spring¬ 
tides. 

CARGO-HANDLING  FACILITIES 

The  Hongkong  &  Kowloon  Wharf  &  Godown  Co.,  in  Kowloon, 
operates  five  large  piers,  capable  of  berthing  the  largest  vessels 
entering  the  Hongkong  port.  The  piers  are  equipped  with  10 
locomotive  cranes  of  5-ton  capacity,  1  of  15-ton  lifting  capacity,  and 
1  of  25-ton  capacity.  From  20  to  25  tons  of  general  cargo  can  be 
discharged  per  hour  per  hatch. 

Most  cargo  arriving  in  the  larger  freight  and  passenger  vessels 
is  discharged  alongside  the  wharves  of  the  above-mentioned  com¬ 
pany  and  stored  in  its  warehouses  (godowns).  Cargo  from  smaller 
vessels  and  coasting  vessels,  which  are  moored  to  buoys  in  the 
harbor,  is  discharged  into  junks  or  lighters,  and  usually  transferred 
to  godowns  in  the  Avestern  part  of  Victoria  (the  European  city  of 
Hongkong). 

The  minimum  depth  of  the  water  at  the  wharves  of  the  Hongkong 
&  Kowloon  Wharf  &  Godown  Co.  is  29  feet  at  dead  low  water  at 
lowest  spring  tides,  which  at  ordinary  low  tide  represents  a  depth 
of  31  to  32  feet. 


WAREHOUSING  AND  STORAGE  FACILITIES 

Warehouses  are  on  the  water  front  and  are  connected  with  wharves 
by  light  railways.  They  are  built  of  reinforced  concrete,  of  brick 
and  stone,  with  tiled  roofs,  and  have  a  capacity  of  300,000  tons 
of  40  cubic  feet.  The  charge  for  warehouse  space  on  ordinary  goods 
is  $0.70  Mexican  per  ton  of  40  cubic  feet,  or  $1  Mexican  per  ton 
of  2,240  pounds.  Cargo  transit  through  all  its  phases  from  ships’ 
side  to  storage  may  be  effected  by  the  use  of  cranes  and  light  rail¬ 
ways,  or  wholly  by  coolie  labor. 

Iron,  timber  in  the  log,  and  dangerous  acids  in  jars  are  the  princi¬ 
pal  goods  stored  in  the  open.  Because  of  dampness,  iron  is  stored 
in  the  open  only  when  there  is  no  available  covered  space.  The 
chief  danger  to  cargo  in  storage  is  from  white  ants,  which  attack 
and  breed  in  softwood  packing  cases  and  packing  which  absorbs 
moisture.  To  guard  against  these  pests,  cargo  is  stored,  where  pos¬ 
sible,  on  granite  blocks,  with  air  passages  under  the  packages. 


HONGKONG  CONSULAR  DISTRICT 


459 


Consignees  and  dealers  employ  their  own  labor  when  taking 
delivery  of  cargo. 

PUBLIC  UTILITIES 

ELECTRIC-LIGHT  COMPANIES 

The  Hongkong  Electric  Co.  (Ltd.)  supplies  light  and  power  on 
the  island  of  Hongkong,  and  the  China  Light  &  Power  Co.  (Ltd.) 
supplies  Kowloon.  Both  are  British.  The  lighting  load  of  the  first 
named  is  5,000  kilowatts  of  connected  load,  and  the  power  load  is 
2,800  kilowatts.  The  lighting  and  power  load  of  the  China  Light 
&  Power  Co.  is  4,000  kilowatts. 

Both  companies  have  recently  made  extensive  alterations  and  ad¬ 
ditions  to  their  plants,  estimated  to  satisfy  the  needs  of  the  colony 
for  many  years.  Nearly  all  the  equipment  is  British,  but  certain 
parts  were  purchased  from  the  Westinghouse  people  in  the  United 
States  during  the  war. 

The  capital  of  the  Hongkong  Electric  Co.  is  $3,000,000  Hongkong 
currency,  all  paid  up,  and  that  of  the  China  Light  &  Power  Co.  is 
$3,000,000  Hongkong  currency,  of  which  $2,200,000  has  been  paid  up. 

WATERWORKS 

All  waterworks  in  the  colony  of  Hongkong  are  owned  and  oper¬ 
ated  by  the  government.  There  are  five  reservoirs  on  the  island  of 
Hongkong  and  one  in  Kowloon — the  largest,  Tytam  Tak,  having 
a  capacity  of  1,419,000,000  gallons.  The  total  capacity  of  the  six 
reservoirs  is  2,539,000,000  gallons.  Water  is  supplied  to  residents 
through  meters  at  50  cents  Hongkong  currency  per  1,0000  gallons; 
water  to  ships  in  the  harbor  at  50  cents  Hongkong  currency  per  ton. 
All  equipment  in  the  pumping  plants,  the  workshops,  the  hydraulic 
dam  and  distribution  system,  engine  house,  etc.,  is  British. 

Various  large  schemes  for  the  purpose  of  increasing  the  water 
supply  of  the  colony  are  still  in  hand  and,  when  completed,  will 
provide  Hongkong  and  Kowloon  with  an  abundant  supply  of  water 
all  the  year  round.  These  schemes  involve  an  expenditure  of  about 
$2,000,000.  More  than  half  of  this  amount  is  to  be  expended  on 
the  construction  of  two  tunnels  (or  water  flumes)  in  Kowloon, 
2,160  feet  and  4,680  feet  in  length,  respectively,  and  an  open  conduit 
2,000  feet  in  length,  connecting  the  two  tunnels  and  other  contingent 
works.  The  work  is  expected  to  be  completed  in  about  18  months, 
and  will  add  about  17,000,000  gallons  to  the  colony’s  daily  water 
supply.  The  contract  for  this  latter  scheme  lias  been  let  to  a  British 
company. 

TRAMWAYS 

There  are  two  tramways  in  Hongkong,  the  Peak  Tramway  Co. 
(Ltd.)  and  the  Hongkong  Tramways  Co.  (Ltd.).  Both  are  British 
companies.  The  former  line  is  a  cable  tramway  constructed  in 
1888  and  running  from  Garden  Road,  near  St.  John’s  Cathedral, 
to  the  Peak.  Its  capital  is  $300,000  Hongkong  currency,  and  it  pays 
an  annual  dividend  of  about  15  per  cent.  No  extensions  are  con¬ 
templated  at  present,  but  it  is  understood  that  if  a  new  line  is  to 
be  laid  electric  trams  will  take  the  place  of  the  old  ones. 

The  Hongkong  Electric  Tramway  Co.  runs  through  the  city  of 
Victoria  from  Belchers  Bay  to  East  Point  and  Happy  Valley,  and 


460 


COMMERCIAL  HANDBOOK  OF  CHINA 


thence  on  to  the  village  of  Shaukiwan,  a  total  length  of  about  10 
miles.  This  concern  has  a  paid-up  capital  of  $1,625,000  and  pays 
an  annual  dividend  of  about  30  per  cent.  The  passengers  carried 
per  month  number  approximately  2,000,000,  and  no  extensions  are 
at  present  contemplated. 

RECLAMATION  PROJECTS 

Progress  is  being  made  in  connection  with  the  reclaiming  of  about 
90  acres  of  the  Praya  East  foreshore  with  materials  obtained  from 
cutting  down  and  removing  Morrison  Hill.  The  foreshore  to  be 
thus  improved  is  a  densely  populated  district  within  easy  reach  of 
the  business  section  of  the  city  of  Victoria,  and  the  improvement 
will  make  it  susceptible  of  considerable  commercial  development. 
There  will  be  mooring  rings  for  junks  on  the  shore  front  and  several 
public  piers. 

A  part  of  the  area  made  available  by  the  removal  of  Morrison 
Hill  will  be  set  aside  for  recreation  grounds,  and  about  d1/^  acres 
will  be  made  available  for  building  purposes. 

Other  reclamation  schemes  in  hand  at  Hongkong  include  the  fill¬ 
ing  in  of  a  portion  of  the  foreshore  at  North  Point,  at  which  will 
be  erected  warehouses  with  provisions  for  berthing  accommodations 
in  front  of  certain  lots  by  reinforced  concrete  wharves;  the  filling  in 
of  a  tidal  flat  and  the  reduction  of  a  hill  between  Taikoktsui  and 
Fuktsunhoung  on  the  mainland;  the  reclamation  of  areas  at  Kowloon 
Bay  Vest  and  at  Samsliuipo  (a  popular  Chinese  residential  part 
of  the  mainland),  and  a  further  reclamation  of  about  20  acres  at 
Kowloon  Bay  East  to  provide  more  permanent  accommodations  for 
the  formation  of  junk  building  and  repair  yards.  All  these  reclama¬ 
tion  schemes  are  under  government  direction,  but  are  being  carried 
out  chiefly  by  private  enterprises. 

IMPORT  AND  EXPORT  TRADE 

According  to  the  American  consulate  general  at  Hongkong,  the 
grand  total  of  imports  and  exports  of  merchandise  at  Hongkong 
for  1924  was  £145,727,077,  the  imports  being  £75,055,085  and  the 
exports  £70,671,992.  This  represents  an  increase  over  1923  of  £10,- 
329,499.  Excluding  treasure  in  1924,  the  actual  trade  reached  the 
sum  of  £135,830,272,  or  greater  than  in  1923  by  £12,503,443. 

In  tabulated  form  the  trade  may  be  stated  as  follows : 


m 

Item 

Merchandise 

(excluding 

treasure) 

Treasure 

Total 

1923: 

Imports _ _  _ _ _ _ ... 

£61,  954,  498 

£2,  798,  360 

£64,  752,  858 

Exports  ...  _ _ _  _ _ _ 

61, 372, 331 

9,  272,  389 

70,  644,  720 

Excess  of  imports _  ...  .  .  _  _ _ 

582, 167 

Excess  of  exports.  _ _  _ _ 

6, 474,  029 

5,  891, 862 

1924: 

Imports.  _ _  ..  ..  ..  .  ..  _ 

72, 155,  478 

2, 899,  607 

75,  055,  085 

Exports _ _ _ _ _ _ _ _ 

63,  674,  794 

6, 997, 198 

70,  671,  992 

Excess  of  imports _  _  .  .  .  _ _ 

8,  480,  684 

4,  383,  093 

Excess  of  exports _ _  .  .  .  _ _ 

4,  097,  591 

HONGKONG  CONSULAR  DISTRICT 


461 


The  excess  of  imports  over  exports  in  1924,  amounting  to  more  than 
£8,000,000,  represents  generally  goods  in  warehouses  incurring  cost 
by  storage  and  interest  charges.  In  normal  years  the  import  balance 
averages  about  £1,000,000,  according  to  official  returns — this  disparity 
indicating  the  extent  to  which  trade  has  been  hindered  by  troubles  in 
South  China.  A  noteworthy  feature  is  the  diversion  of  traffic  from 
Canton  as  a  result,  of  the  increasing  political  unrest  there.  Cargo 
to  the  value  of  about  £2,000,000  has  been  shipped  from  Hongkong 
directly  to  districts  that  were  formerly  served  from  Canton.  Ship¬ 
ments  by  the  Canton-Kowloon  Railway  to  Canton  fell  in  1924  to 
£26,143 ;  in  1923  they  had  been  £800,000. 

The  table  below  shows  the  destination  and  origin  of  merchandise 
handled  at  the  port  of  Hongkong  during  the  year  1923 : 


Regions 

Exports 

Imports 

Total 

United  Kingdom  .  _  _ _  _  _  _  „  _____ 

£797,  778 
7, 164,  860 
44,  814,  416 
3,  592,  627 
14,  275,  039 

£6,  974,  513 
6,  357,  912 
9,  780,  816 
6,  674,  896 
34,  964,  721 

£7,  772,  291 
13,  522,  772 
54,  595,  232 
10,  267,  523 
'  49,239,760 

British  dominions  and  possessions .  . . 

China.  _  _ ....  ..  _ _  .  _  _ 

Japan,  Korea,  and  Formosa  ..  .  ..  . . 

Other  foreign  countries _  _ 

As  regards  exports,  the  following  table  shows,  for  the  five  princi¬ 
pal  items,  the  estimated  percentages  in  the  year  1923  for  the  destina¬ 
tions  listed : 


Articles 

To  other 
Chinese 
ports 

To 

Japan 

To 

United 

Kingdom 

To 

United 

States 

Rice  (white) _ _  _  .  .  . . . . 

Per  cent 
88 

Per  cent 
2 

Per  cent 

Per  cent 

3 

Sugar  (refined).  _  .  . . .  .... 

9 

40 

20 

1 

Yarn  (cotton).  _ _  ...  ..  ....  _ _ 

52 

Rice  (broken).  ..  _.  . .  ..  .. 

78 

22 

Kerosene _  .  ...  _  ...  .  _ 

91 

8 

Rice  is  the  principal  item  of  export,  being  followed  closely  by 
sugar.  The  bulk  of  the  rice  shipments  consists  of  imported  stock  from 
Indo-China.  Sugar  supplies  are  secured  principally  from  the  Dutch 
East  Indies.  Kerosene,  which  is  imported  from  the  United  States 
and  the  East  Indies,  ranks  third  in  importance.  Cotton  yarn  is 
another  important  export.  Practically  all  the  yarns  shipped  are 
the  manufactures  of  North  China,  Japan,  and  the  United  States. 

Rice,  sugar,  cotton  yarn,  and  kerosene  are  the  leading  articles  of 
import,  forming  also  (as  just  indicated)  the  principal  items  of  ex¬ 
port  from  the  colony. 

CHANGES  IN  TRADE  OF  HONGKONG  DURING  PAST  DECADE 

Before  the  war  the  value  of  exports  handled  by  Hongkong  aver¬ 
aged  about  £28,000,000  per  annum.  Notwithstanding  unsettled  con¬ 
ditions  from  a  military  and  political  standpoint  throughout  China, 
the  total  value  of  the  export  in  1924  was  £63,674,794. 

The  imports  increased  from  an  average  value  of  £27,000,000  per 
annum  in  pre-war  years  to  £72,155,478  in  1924.  These  increases 


462 


COMMERCIAL  HANDBOOK  OF  CHINA 


have  been  remarkable,  the  larger  proportion  being  due  to  the  natural 
expansion  of  trade. 

The  total  trade  of  Hongkong  in  the  years  1913,  1921,  1922,  1923, 
and  1924,  including  treasure,  was  as  follows : 


Years 

Total  value 

Imports 

Exports 

1913  _ _ _ 

£55,  000,  000 
135,  834,  936 
122, 191,827 
123,  326,  829 
135,  830,  272 

£28,  000,  000 
68, 143,  059 
61, 213,  363 
61,  954, 498 
72, 155,  478 

£27, 000,  000 
67,  691,  877 

60,  978,  464 

61,  372,  331 
63,  674,  794 

1921 _ _ _ 

1922  _ _ _ 

1923-  _ 

1924_  _ 

The  following  table  gives  the  vessels  which  entered  and  cleared 
from  the  port  of  Hongkong  during  the  different  years  mentioned : 


Years 

Number  of 
vessels 
(including 
junks  and 
steam 
launches) 

Net  tonnage 

1913 _ 

489,  734 
672,  681 
708,  244 
778,  222 
764,  492 

37,  742,  982 
43,  420,  970 
46,  566,  764 
53,  402,  239 
56,  731,  077 

1921 _ _ _ 

1922 _ _ _ 

1923  _ 

1924 _ _ _ 

The  American  tonnage  in  the  port  of  Hongkong  in  1913  was 
290,967;  in  1923  this  had  increased  to  1,421,962,  while  in  1924  the 
American  tonnage  was  1,423,490. 

MONEY,  BANKING,  AND  CREDIT 

BANKS 


The  following  is  a  list  of  the  principal  Hongkong  banks: 


Banks 

Nationality 

Head  office 

Capital 

American  branches, 
agencies,  or  corre¬ 
spondents 

P.  &  O.  Banking  Corpo¬ 
ration. 

British  . 

London _ 

£5,000,000  authorized; 
£2,594,160  paid  up. 

National  Bank  of  Com¬ 
merce,  New  York 
(agent). 

Hongkong  &  Shanghai 
Banking  Corporation. 

- do _ 

Hongkong.. 

$.50,000,000  Hongkong 
currency  authorized; 
paid  up  to  $20,000,000. 

New  York  branch. 

Chartered  Bank  of  In¬ 
dia,  Australia,  China. 

.  ..do _ 

London..  .. 

£3,000,000  paid  up _ 

Do. 

Bank  of  Taiwan . 

Japanese... 

Taipeh.  .  . 

60,000,000  yen  sub¬ 
scribed;  paid  up  to 
52,488,425  yen. 

Do. 

Mercantile  Bank  of 
India  (Ltd.). 

British  ..  . 

London.  .. 

£3,000,000  authorized; 
£1,050,000  paid  up. 

Do. 

Banque  de  L’lndo- 
Chine. 

French _ 

Paris . . 

72,000,000  francs  sub¬ 
scribed;  68,400,000 
francs  paid  up. 

J.  P.  Morgan  &  Co., 
French  American 
Banking  Corporation, 
Guaranty  Trust  Co. 
(New  York  agents). 

Bank  of  East  Asia _ 

Hongkong 

Chinese. 

Hongkong.. 

$10,000,000  Hongkong 
currency  authorized; 
$5,000,000  paid  up. 

New  York  agent:  Ameri¬ 
can  Express  Co. 

Yokohama  Specie  Bank. 

Japanese— . 

1 

Yokahama.. 

100,000,000  yen  author¬ 
ized  and  paid  up. 

New  York  branch. 

HONGKONG  CONSULAR  DISTRICT 


463 


Banks 

Nationality 

Head  office 

Capital 

American  branches, 
agencies,  or  c  o  r  r  e  - 
spondents 

Nederlandsche  Handel 
Maatschappij  (Neth¬ 
erlands  Trading  So- 

Dutch  _ 

Amsterdam . 

150,000,000  guilders  au¬ 
thorized;  80,000,000 
guilders  paid  up. 

Irving  Bank,  Columbia 
Trust  Co.,  New  York 
(agents) . 

ciety). 

New  York  bankers:  Ir¬ 
ving  Bank,  Columbia 
Trust  Co.,  Equitable 
Trust  Co. 

Bank  of  China _ _ 

Chinese _ 

Peking _ 

$60,000,000  authorized; 
$18,278,600  paid  up. 

Russo-Asiatic  Bank _ 

Russian _ 

Paris _ _ 

55,000,000  rubles  paid 
up;  capital  subscribed, 
Chinese  Government, 
3,500,000  taels. 

National  City  Bank  of 
New  York,  Union 
Trust  Co.  of  San  Fran¬ 
cisco  (agent). 

Industrial  &  Commer¬ 
cial  Bank  (Ltd.). 

Hongkong 

Chinese. 

Hongkong 

$5,000,000  authorized; 
$795,795  paid  up. 

American  Express  Co., 
Harriman  National 

Bank,  New  York 
agents. 

Nederlandsch  Indische 
Handels  Bank. 

Dutch 

Amsterdam. 

60,000,000  guilders  au¬ 
thorized;  55,000,000 
guilders  paid  up. 

Bankers:  San  Francisco, 
—  Crocher  National 

Bank,  Bank  of  Italy, 
Anglo  and  London, 
Paris  National  Bank; 
New  York,  Farmers 
Loan  &  Trust  Co., 
Goldman  Sachs  &  Co., 
Chase  National  Bank. 

International  Banking 

American  - . 

New  York.. 

$5,000,000  fully  paid _ 

San  Francisco  branch. 

Corporation. 

$6,000,000,  fully  paid _ 

American  Express  Co. 

_ do _ 

_ do _ 

(Inc.). 

New  York  branch;  Can¬ 
ton  Bank,  San  Fran¬ 
cisco,  agent. 

Bank  of  Canton _ _ 

Hongkong 

Chinese. 

Hongkong  .. 

£1,200,000  authorized; 
£1,066,520  paid  up. 

Ho  Hong  Bank  (Ltd.)__ 

_ do _ 

Singapore ... 

$20,000,000  authorized; 
$4,000,000  paid  up. 

Agents:  New  York, 

Farmers  Loan  &  Trust 
Co. 

National  Commercial  & 
Saving  Bank  (Ltd.). 

_ do _ 

Hongkong  .. 

$5,000,000  authorized; 
$2,400,000  paid  up. 

No  New  York  agent. 

Oriental  Commercial 
Bank  (Ltd.).1 

_ do _ 

_ do _ 

$5,000,000  authorized; 
$1,500,000  paid  up. 

New  York  agents,  Na¬ 
tional  City  Bank  of 
New  York;  San  Fran¬ 
cisco,  Union  Trust  Co. 

Banque  Franco-Chin- 
oise. 

French . 

Paris . . 

10,000,000  francs  author¬ 
ized;  2,500,000  francs 
paid  up. 

Irving  Bank,  Columbia 
Trust  Co.,  New  York 
agents. 

Equitable  Eastern 

Banking  Corporation. 

American .  _ 

* 

New  York.. 

$2,000,000,  fully  paid  up. 

Subsidiary  of  Equitable 
Trust  Co. 

i  Went  into  liquidation  June  15,  1926. 


FINANCING  OF  EXPORTS  FROM  UNITED  STATES  TO  HONGKONG 

Exports  from  the  United  States  to  Hongkong  are  financed  by 
letters  of  credit  or  by  bills  of  exchange.  In  the  former  case  the 
Hongkong  buyer  opens  a'  credit  at  his  local  bank  which  contains  a 
complete  statement  of  the  conditions  on  which  it  may  be  drawn 
against.  Drafts  drawn  by  the  American  exporter  against  such  a  let¬ 
ter  of  credit  must  usually  be  accompanied  by  the  bill  of  lading  and 
insurance  policy,  and  may  be  negotiated  through  any  local  bank  in 
America,  which  of  course  must  be  careful  that  all  the  conditions 
specified  in  the  letter  of  credit  have  been  complied  with.  The  usance 
generally  varies  from  eight  to  four  months. 

The  other  principal  form  of  payment  is  by  bill  of  exchange.  In 
such  cases  the  American  exporter  sends  the  draft,  bills  of  lading, 
and  insurance  policy  direct  or  through  the  mediation  of  his  local 
banker  to  a  Hongkong  bank.  If  the  transaction  is  D/A  (documents 
on  acceptance)  the  Hongkong  bank  delivers  the  documents  to  the 
Hongkong  importer  on  his  acceptance  of  the  bill  of  exchange.  If 
the  transaction  is  D/P  (documents  on  payment)  the  Hongkong  bank 
delivers  the  documents  on  payment  of  the  bill  of  exchange. 


464 


COMMERCIAL  HANDBOOK  OF  CHINA 


It  is  the  consensus  of  opinion  among  local  bankers  that  letter 
of  credit  in  the  usual  cases  is  superior  to  the  bill  of  exchange  as  a 
method  of  financing  imports  and  exports.  General  bills  of  exchange 
should  be  used  when  one  is  confident  concerning  the  financial  stand¬ 
ing  and  the  reliability  of  the  local  purchaser.  The  weakness  of  the 
bill  of  exchange  is  that  the  drawee,  if  he  is  not  responsible,  will  refuse 
acceptance  if  the  market  has  gone  against  him.  If  shipment  has 
been  made  against  confirmed  letters  of  credit  this  contingency  does 
not  arise.  On  the  other  hand,  an  importer  will  not  open  a  letter  of 
credit  unless  he  feels  assured  as  to  the  integrity  of  the  seller,  since 
by  doing  so  he  is  subject  to  the  risk  of  paying  for  goods  which  do  not 
meet  specifications.  Generally,  it  is  good  policy  for  the  American 
exporter  or  manufacturer  dealing  with  the  Hongkong  market  to  re¬ 
quire  confirmed  letters  of  credit.  If  the  local  business  is  in  a  good 
financial  position  it  should  experience  no  difficulty  in  opening  the 
required  credits  through  its  local  bankers. 

POWERS  OF  ATTORNEY 

All  functions  must  be  expressed  in  a  power  of  attorney.  None 
are  implied  under  the  laws  of  Hongkong,  except  such  as  are  ob¬ 
viously  ancillary  to  the  powers  expressed.  No  translation  of  a 
power  of  attorney  is  called  for  in  Hongkong.  English  is  the  lan¬ 
guage  of  the  colony.  There  is  no  registration  of  powers  of  attorney 
in  Hongkong.  They  are  private  documents,  as  between  the  grantor, 
the  attorney,  and  the  party  with  whom  the  attorney  deals.  In  case 
of  cancellation,  if  the  grantor  of  a  power  of  attorney  can  not  rely 
on  the  attorney’s  acting  on  his  cancellation  he  should  communicate 
with  his  consul  or  some  one  else  in  Hongkong  requesting  him  to 
notify  the  attorney  and  to  advertise  the  cancellation.  There  is  no 
official  method  by  which  a  power  of  attorney  can  be  canceled.  A 
power  of  attorney  prepared  in  accordance  with  usage  in  the  United 
States  is  valid  without  regard  to  form,  provided  it  was  duly  authen¬ 
ticated,  but  it  would  be  subject  always  to  the  necessity  of  proving 
that  the  form  was  in  accordance  with  such  usage. 

CURRENCY  AND  COINAGE 

The  principal  coins  current  in  the  colony  of  Hongkong  are  the 
Hongkong  silver  dollar,  the  Mexican  dollar,  and  the  “  British  dol¬ 
lar,”  all  of  approximately  equal  value.  The  dollar  contains  100 
cents.  Subsidiary  coins  include  50-cent,  20-cent,  10-cent,  and  5-cent 
pieces,  all  of  silver,  and  a  copper  1-cent  piece.  The  mint  par  value 
of  the  Hongkong  dollar  in  United  States  currency  is  47.77  cents 
(on  the  basis  of  the  average  value  of  silver  in  1913).  The  exchange 
rate  quoted  at  the  end  of  June,  1926,  wase  55.16  cents. 

The  silver  dollar  is  legal  tender  to  any  amount,  subsidiary  silver 
coin  up  to  $2,  and  copper  cents  up  to  $1. 

No  estimate  can  be  given  as  to  the  number  of  silver  dollars  in 
circulation.  Of  subsidiary  coin  there  is  more  than  $17,814,000. 
The  colonial  government  has  no  paper  money  in  circulation,  but  that 
put  out  by  private  banks  may  be  estimated  at  nearly  $59,000,000. 


HONGKONG  CONSULAR  DISTRICT 


465 


ADVERTISING  AND  MERCHANDISING1 * 

The  newspaper,  the  illustrated  poster,  and  the  cinema  are  all  val¬ 
uable  mediums  for  introducing  foreign-made  goods  to  the  Chinese 
public,  and  all  three  are  now  being  employed  with  success  by  firms 
in  Hongkong  and  South  China.  If  the  object  is  to  reach  the  Chi¬ 
nese  masses  directly,  advertising  by  illustrated  posters  is  preferable 
on  account  of  the  prevailing  illiteracy. 

Another  form  of  advertising  adopted  by  some  firms  is  the  dis¬ 
tribution  gratis  of  novelties,  such  as  fans,  pictures,  small  mirrors, 
paper  flags,  aeroplanes,  etc.,  containing  advertising  matter.  These 
are  eagerly  sought  after  and  prized  by  the  Chinese  population. 
Chinese  calendars  are  also  distributed  by  the  larger  firms  in  Hong¬ 
kong  about  Chinese  New  Year.  They  are  very  artistic,  generally 
being  in  10  colors,  size  20  inches  by  30  inches,  and  are  lithographed 
on  chrome  paper,  with  brassed  top  and  bottom.  The  calendars  cost 
about  18  cents  Hongkong  currency  per  copy  for  an  order  of  not  less 
than  10,000  copies,  and  are  eagerly  sought  by  the  Chinese. 

Local  firms  are  of  the  opinion  that  advertising  pays  if  conducted 
in  proper  lines,  but  that  it  will  not  pay  unless  there  is  a  close  follow 
up.  The  mere  publication  of  advertisements  is  a  waste  of  time  and 
money.  Circulars  and  pamphlets  sent  by  mail  are  of  little  use  ex¬ 
cept  for  articles  that  find  a  market  among  Europeans,  and  even  then 
the  “  personal  touch,5’  through  a  local  representative,  would  be  more 
likely  to  bring  results. 

The  following  is  a  list  of  the  local  newspapers  of  importance,  to¬ 
gether  with  their  advertising  rates,  in  United  States  currency : 

The  Hongkong  Telegraph. — Established  in  1871 ;  formerly  American-owned, 
but  now  controlled  by  local  British  interests.  It  is  printed  in  English  and  is 
published  daily  except  Sunday.  It  has  a  circulation  of  about  3,000.  The 
average  number  of  pages  is  12 ;  each  page  is  15  by  22  inches,  with  columns 
2%  inches  wide  and  20  inches  in  length. 

The  monthly  quotations  per  column  inch,  in  United  States  currency,  are : 
Daily  insertion,  $3.50 ;  alternate  days,  $2.20 ;  twice  weekly,  $1.75 ;  once  weekly, 
$0.90  ;  once  monthly,  $0.60.  The  usual  discount  of  20  per  cent  is  allowed  ad¬ 
vertising  agencies. 

The  South  China  Morning  Post. — One  of  the  leading  newspapers  in  South 
China.  Established  in  1903  and  controlled  by  the  proprietors  of  the  Hongkong 
Telegraph ;  printed  in  English,  published  daily  except  Sunday.  Circulation 
estimated  to  be  about  4,000.  Subscription,  $36  Hongkong  currency  per  year. 
Average  number  of  pages  14,  with  seven  columns,  2^4  inches  in  width  and 
20  inches  in  depth,  per  page.  Contract  advertising  rates  per  single  column 
inch  per  month  are :  Daily,  $3.12  United  States  currency ;  alternate  days, 
$1.87 ;  twice  weekly,  $1.56 ;  once  weekly,  $0.94. 

The  following  discounts  are  allowed  for  prepayment  of  whole  amount :  For 
three  or  six  months,  5  per  cent ;  for  12  months,  10  per  cent. 

The  rate  for  a  full  page  is  $72.80  per  insertion ;  half  page,  $36.40  per 
insertion ;  quarter  page,  $18.20  per  insertion. 

The  Hongkong  Daily  Press. — Established  in  1847 ;  one  of  the  oldest  news¬ 
papers  in  the  colony.  Printed  in  English  and  published  daily  except  Sunday. 
Circulation  estimated  at  about  3,000.  Subscription,  $36  Hongkong  currency 
per  annum.  The  average  number  of  pages  is  10;  size  of  page  17 'A  by  22y2 
inches ;  number  of  columns,  6 ;  width  of  column,  2  5/6  inches ;  length  of  column, 
20  inches.  Special  inducements  are  offered  foreign  advertisers  by  special 
flat  rates,  which  are  a  matter  of  arrangement. 


1  See  special  chapter  on  this  subject. 

100020°— 26 - 31 


466 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  China  Mail. — Published  in  English.  Established  in  1845  and  the  oldest 
newspaper  in  the  colony.  Annual  subscription,  $36  Hongkong  currency  per 
annum.  Estimated  circulation,  2,500.  Advertising  rates,  about  $3.12  United 
States  currency  per  inch  per  month. 

The  circulation  of  English  newspapers  in  Hongkong  is  based 
on  a  foreign  population  of  about  30,000  people,  about  23,000  in 
Hongkong  and  its  garrisons  and  the  rest  among  the  foreign  resi¬ 
dents  of  Canton,  Swatow,  Amoy,  Foochow,  Wuchow,  and  other 
treaty  ports.  The  native  newspaper  circulations  are  based  upon  a 
population  of  about  600,000. 

TRADE  ORGANIZATIONS 

Trade  organizations  include  the  Hongkong  General  Chamber  of 
Commerce,  the  Chinese  Chamber  of  Commerce,  and  the  Association 
of  Exporters  and  Dealers  of  Hongkong. 

The  nature  of  the  services  rendered  by  the  Hongkong  General 
Chamber  of  Commerce  may  be  summarized  as  follows:  (1)  Arbitra¬ 
tion;  (2)  metal  and  sundries;  (3)  insurance;  (4)  trade-marks;  (5) 
piece  goods;  (6)  inland  trade;  (7)  language  school. 

PROPERTY  VALUES  AND  RENTS 

Property  values  have  fluctuated  recently  and  are  more  or  less 
inflated  because  of  the  influx  of  rich  Chinese  from  Canton. 

The  value  of  land  in  the  business  center  of  the  colony  at  present 
is  from  $65  to  $80  per  square  foot;  in  the  European  reservation  on 
the  Peak,  $1  per  square  foot ;  in  Kowloon,  from  $4  to  $8  per  square 
foot;  and  in  the  outlying  districts,  from  $2  to  $4  per  square  foot. 

The  rent  for  office  space  varies  considerably,  depending  on  the  age 
and  construction  of  the  building,  the  facilities  for  entering  it,  and 
the  conveniences  attached  thereto.  For  instance,  office  space  covering 
2,800  square  feet  in  a  new  up-to-date  reinforced  concrete  building, 
wTith  all  modern  conveniences,  was  recently  offered  at  an  annual 
rental  of  $8,160  Hongkong  currency.  A  similar  amount  of  office 
space  in  an  older  building  could  probably  be  obtained  for  $5,000 
Hongkong  currency  per  annum. 

TAXES  AND  ASSESSMENTS 

Taxes  are  charged  by  the  government  at  the  rate  of  13  per  cent 
on  the  rental  of  all  houses  and  offices,  etc.,  and  are  payable  to  the 
government  quarterly,  in  advance. 

Crown  rent  is  also  payable  to  the  government  in  respect  of  all 
land  owned  by  individuals  and  corporations,  and  amounts  to  ap¬ 
proximately  $300  per  acre.  In  some  locations  it  may  be  a  little  more. 

During  the  period  1914  to  1923  the  assessments  of  the  whole 
colony  rose  from  $14,410,103  to  $21,059,700,  an  increase  in  ratable 
value  of  $6,649,597. 


HONGKONG  CONSULAR  DISTRICT 


467 


LIVING  COSTS 

The  following  table  indicates  ordinary  living  costs  in  Hongkong 
hotels  and  boarding  houses: 


• 

Board  and  room,  per 
month 

Hotel 

Boarding 

house 

Single  man . . . . . . . __  . 

Hongkong 

currency 

$450 

450 

800 

1,  000 

Hongkong 

currency 

$275 

275 

450 

550 

Single  woman.. _  _ _ _  _  ..  _ _  _ 

Married  couple . .  . . .  ...  .  _ _ _  ..  _ 

Married  couple  and  2  children  ....  ....... _ ... _  .... _ 

The  managers  of  the  large  commercial  firms,  heads  of  the  various 
branches  of  the  local  government,  and  other  principal  residents 
nearly  all  reside  on  the  Peak.  At  present,  however,  suitable  houses 
are  difficult  to  obtain,  and,  when  they  are  obtainable,  it  is  usually 
only  for  a  few  months  while  the  owner  is  away  on  leave.  The 
annual  rent  of  a  suitable  furnished  house  on  the  Peak  is  about  $3,600 
Hongkong  currency.  The  annual  cost  of  light  is  about  $250  Hong¬ 
kong  currency,  and  coal  for  fireplaces  costs  $240  Hongkong  currency. 
The  cost  of  transportation  to  and  from  the  Peak  per  annum  by  the 
Peak  Tramway  would  be  $144  Hongkong  currency  for  a  man,  $108 
for  a  woman,  and  half  rates  for  children. 

Transportation  in  the  colony  is  by  ricksha,  chair,  or  automobile. 
The  roads. are  excellent  for  motoring,  and  there  are  about  1,230 
automobiles  in  the  colony,  nearly  all  American.  There  are  no  car¬ 
riages  or  other  horse-drawn  vehicles  in  Hongkong.  Motor-car  hire 
in  Hongkong  costs  $4  Hongkong  currency  per  hour  for  a  small  car 
and  $6  for  a  large  car.  Half  rates  are  charged  for  waiting. 

European  and  American  children  are  usually  sent  home  to  be 
educated. 

The  principal  clubs  are  the  Hongkong  Club,  the  Royal  Hongkong 
Golf  Club,  and  the  Peak  Club.  The  chief  forms  of  sport  in  the 
winter  are  golf  and  tennis.  In  summer  the  principal  recreation  is 
swimming. 


MUKDEN  CONSULAR  DISTRICT 

By  Vice  Consul  W.  F.  Nason 

LOCATION  AND  AREA 


The  Mukden  consular  district  comprises  most  of  Shengking,  or 
Fengtien  (the  southernmost  of  the  three  eastern,  or  Manchurian, 
Provinces),  and  the  southern  portion  of  Kirin  Province.  Lying 
between  40°  and  44°  N.,  it  corresponds  in  latitude  to  Pennsylvania, 
New  York,  and  the  New  England  States.  The  total  area  of  the 
consular  district  is  about  108,000  square  miles,  or,  roughly,  twice  the 
size  of  the  State  of  Illinois. 

The  average  annual  rainfall  is  23.41  inches,  the  average  minimum 
temperature  (January)  8°  F.,  and  the  average  maximum  tempera¬ 
ture  (August)  73°  F.  The  rainy  season  is  July  and  August,  the 
dry  season  from  October  to  May,  inclusive.  On  the  whole  the 
weather  in  South  Manchuria  is  clear,  dry,  and  bracing — the  winter 
being  without  heavy  snowfall,  but  occasionally  subject  to  extreme 
cold. 

POPULATION 

The  population,  according  to  Chinese  post-office  statistics,  is  es¬ 
timated  at  14,000,000,  with  an  average  density  for  the  whole  dis¬ 
trict  of  130  per  square  mile.  Not  more  than  a  tenth  of  the  popula¬ 
tion  is  descended  from  the  original  Manchu  stock,  the  great  bulk 
being  immigrants  from  Shantung  and  Chihli  and  their  descendants. 

CITIES 

Mukden,  the  capital  and  seat  of  Government  of  Shengking  Prov¬ 
ince,  is  in  about  the  same  latitude  as  Boston.  The  other  important 
cities  of  the  district  are : 


Cities 

Location 

Population 
of  district 
(estimated) 

Number 

of 

Euro¬ 

peans 

Number 

of 

Ameri¬ 

cans 

Number 

of 

American 

business 

firms 

Mukden  l..  . . . . 

Shengking . 

773, 846 
194,  520 

220 

72 

9 

Newchwang  1  ..  . .  ..  . 

..  .  do.  ..  _  . 

70 

7 

1 

Liaoyang  L. .  . . ...  . 

..  ..do _  _ 

149,  662 
578,  574 
430,  097 
468,  313 
370,  329 
357,  160 
622,  783 
526,  333 

20 

None. 

None. 

Haicheng.  ...  _  ..  ...  .  .. 

...do _ _ 

None. 

None. 

None. 

Changtu . . .  ..  _ _ 

..do _ 

None. 

None. 

None. 

Hsinmin  1 _ _  ...  ....  _ _ 

..  ..do.  _  ...  .  .. 

None. 

None. 

None. 

Tiehling  1 _  _ _ _  .  .  .  _ _ 

_ do _  ...  .  .. 

None. 

None. 

None. 

Chinchow.  .....  . . . 

...  .do _ 

None. 

None. 

None. 

Kirin  1 _  ..... _ 

Kirin _ _ _ 

20 

3 

None. 

Changchun1.  .  _ _ _ 

..  .  do _ _  .. 

8 

3 

None. 

1  Treaty  port  where  foreigners  may  reside  for  trade  purposes. 

The  population  of  the  cities  as  given  above  does  not  mean  the  urban 
population  alone,  but  includes  the  population  of  the  surrounding 
rural  districts  which  are  tributary  to  them.  Mukden  is  an  important 

468 


MUKDEN  CONSULAR  DISTRICT 


469 


interior  distributing  center,  being  connected  by  the  South  Manchuria 
Railway  with  Dairen,  Antung,  Newchwang,  Changchun,  and  Kirin; 
by  the  Chinese  Eastern  Railway  (which  meets  the  South  Manchuria 
at  Changchun)  with  Harbin  and  points  in  North  Manchuria  and 
Siberia;  by  the  Peking-Mukden  Railway  with  Taonanfu,  Tientsin, 
and  Peking.  Newchwang  is  the  only  seaport  of  importance  in  the 
district.  The  bulk  of  the  import  and  export  trade  of  South  Man¬ 
churia,  passing  through  Dairen,  is  included  in  the  figures  of  the 
Dairen  consular  district. 

In  addition  to  the  trade  centers  listed,  where  foreigners  may  reside 
for  trade  purposes,  the  following  places  in  the  district  are  also  open 
to  foreign  trade:  Tatungkow,  Fenghwangcheng,  Tungkiangtze,  Fa- 
kumen,  Taonan,  Hulutao,  and  Liaoyuan,  all  in  Sliengking  (Fengtien) 
Province,  and  Chutzechieh,  Towtaokow,  Potsaokou,  Hunchun,  and 
Lungchingtsun  in  Kirin  Province. 

At  Mukden  and  Newchwang  certain  areas,  municipally  adminis¬ 
tered  by  the  Chinese  authorities,  hold  most  of  the  residences  and 
business  houses  of  Europeans  and  Americans,  as  well  as  the  foreign 
consulates.  In  these  cities  Americans  may  hold  perpetual  leases  on 
land,  and  may  rent  or  purchase  houses  or  other  buildings.  At  Muk¬ 
den  there  is  also  a  settlement  leased  and  administered  by  the  South 
Manchuria  Railway  (Japanese)  in  which  America ps  and  Europeans 
are  permitted  to  reside  and  conduct  business.  The  same  is  also  true 
of  the  leased  zone  of  the  South  Manchuria  Railway  which  runs  from 
Dairen  to  Changchun. 

AGRICULTURAL  AND  ANIMAL  PRODUCTS 

The  cultivation  of  soy  beans  and  the  manufacture  of  bean  prod¬ 
ucts  constitute  the  greatest  industry  in  the  district.  Bean  cake  is  the 
leading  export.  Wheat,  the  local  consumption  of  which  is  rapidly 
increasing,  is  also  important.  Kaoliang,  maize,  and  millet  are  staple 
foods  of  the  natives,  and  considerable  quantities  are  exported  to 
other  parts  of  China.  Tobacco  is  grown  and  utilized  by  native  and 
foreign  firms  which  manufacture  locally,  blending  imported  leaf 
with  the  native  product.  Vegetable  seeds  are  cultivated,  and  the  cul¬ 
tivation  of  sugar  beets,  cotton,  and  paddy  rice  is  being  undertaken 
on  a  considerable  scale  within  recent  years.  Methods  of  tillage  are 
very  crude,  although  American  tractors  are  being  introduced  among 
some  of  the  larger  farmers.  One  American  firm  keeps  an  American 
representative  in  the  field  for  the  purpose  of  extending  distribution 
through  education  of  the  farmers  in  modern  agricultural  methods. 

The  livestock  of  South  Manchuria  and  eastern  Mongolia  is  esti¬ 
mated  as  follows:  Horses,  3,120,000;  mules,  630,000;  donkeys,  600,- 
000;  pigs,  6,700,000;  cattle,  2,000,000;  sheep,  2,500,000.  It  is  esti¬ 
mated  that  over  5,000,000  pounds  of  wool  are  produced  annually  in 
the  district,  the  greater  part  being  used  locally.  Large  quantities  of 
bristles  and  horsehair  are  produced  and  exported  to  the  LTnited 
States,  Japan,  and  Europe.  Furs  and  skins  are  also  an  important 
addition  to  the  trade  of  the  district.  A  considerable  part  of  the  fur 
products  from  Siberia  pass  through  Mukden,  and  there  are  numerous 
American  and  European  fur  buyers  in  the  city  during  the  winter  fur 
season.  Mukden  has  always  been  a  center  for  the  tanning  of  furs 
and  skins,  a  great  variety  of  such  products  being  offered.  Exports 


470 


COMMERCIAL  HANDBOOK  OF  CHINA 


of  furs  and  skins  to  the  United  States  reach  a  large  volume  annually. 

The  agricultural  office  of  the  South  Manchuria  Railway  Co.  esti¬ 
mates  the  total  annual  ATalue  of  agricultural  products  in  Manchuria 
and  eastern  Mongolia  to  be  approximately  $500,000,000  United  States 
currency. 

The  principal  agricultural  products  of  the  district,  the  planting 
and  harvesting  seasons,  the  average  production  per  acre,  the  esti¬ 
mated  annual  production,  and  the  final  disposition  thereof,  are  shown 
in  the  following  table : 


Product 

Planting  season 

Harvesting 

season 

Average 
produc¬ 
tion  per 
acre 

Estimated 

annual 

production 

Use  or  disposition 

Bushels 

Bushels 

Sov  beans _ 

Apr.  20-30 _ 

Sept.  25-30  . 

27 

66,  000,  000 

Chiefly  expoit. 

Kaoliang  ( Sorghum  vulgare). 

Apr.  20-May  10... 

Sept.  20-25.. 

30.  6 

73,  000,  000 

Local  and  export. 

Millet  ( Panicum  italicum )  _ 

..  _.do _  .  ..  . 

Sept.  20. 

29.9 

74,  000,  000 

Do. 

Millet  ( Panicum  cuscorci) _ 

May  1-20  _ 

Sebt.  10. .. 

30.6 

4,  225,  000 

Local. 

Millet  ( Panicum  miliaceum 

_ do . . 

_ do _ 

27.  1 

4,  500,  000 

Local  and  export. 

glutinous) . 

Maize _ _ 

Apr.  10-15 . . . 

Sept.  20 _ 

32.4 

29,  000.  000 

Do. 

Wheat... _ 

Apr.  5-10.... . 

July  15-20... 

23 

10.  000,  000 

Local. 

Barley.  _ 

Apr.  l-5_. . 

July  10-15... 

25 

31.  500.  000 

Local  and  export. 

Upland  rice  .  _ 

Apr.  15 _ 

Sept.  20 _ 

33.  8 

7,  000,  000 

Do. 

Paddy  rice  _ 

May  1 _ 

Sept.  20-30.. 

33.2 

5,  700,  000 

Do. 

Red  bean..  _ 

May  15-20.  . . 

Sept.  24-30.. 

23 

7,  500,  000 

Do. 

Pounds 

Tons 

Tobacco  _ 

May  7  _ _ 

Sept.  10 _ 

816 

25,  000 

Local. 

Hemp  and  jute _ 

Apr.  15 _ 

Aug  20-30.. 

100 

20,  000 

Local  and  export. 

Sugar  beets . . 

May _ _ 

September. . 

12,000 

45,  000 

Local. 

Castor  seeds,  sesamum  seeds,  and  cotton  are  also  cultivated  on  a 
large  scale.  The  first  two  are  planted  during  the  first  15  days  in 
April  and  harvested  in  the  middle  of  October.  The  production  per 
acre  is  11  and  10  bushels,  respectively.  These  seeds  are  largely  ex¬ 
ported,  a  considerable  quantity  going  to  the  United  States.  The 
cultivation  of  cotton  is  considered  to  be  of  great  importance  in  the 
district.  The  acreage  is  constant^  increasing,  and  owing  to  the 
development  of  the  cotton-weaving  industry  in  Manchuria  during 
recent  years,  every  effort  is  being  made  by  both  Chinese  and  Jap¬ 
anese  to  develop  a  local  supply  of  raw  material.  It  is  estimated  that 
Manchuria  produces  annually  approximately  20,000,000  pounds  of 
cotton  with  a  ginned  cotton  yield  of  6,700,000  pounds  or  13,400  bales 
of  500  pounds.  However,  as  the  annual  demand  is  believed  to  be 
about  350,000  bales  of  cotton  yarn  and  cloth,  Manchuria  will  remain 
a  cotton-importing  section  for  the  immediate  future. 

MINERALS  AND  MINING 

The  most  important  minerals  in  South  Manchuria  are  coal,  iron, 
copper,  gold,  silver,  lead,  asbestos,  magnesite,  talc,  fluorite,  and  feld¬ 
spar.  Manganese  is  also  mined.  Gold  is  largely  found  in  placer  de¬ 
posits  and  is  mined  only  on  a  small  scale.  There  are  wide  deposits  of 
iron  ore  at  Anshan  and  in  the  vicinity  of  Penhsihu  which  are  worked 
on  a  large  scale  with  modern  mining  machinery.  The  principal  coal 
mines  are  at  Fushun,  Penhsihu,  Yentai,  Patachao,  Peipiao,  and 
Tayaokow.  Coal  strata  of  narrow  aqueous  rock  formation  appear  on 
the  surface  near  Liaoyang,  Penhsihu,  the  upper  stream  of  the  Taitze 
River,  and  south  of  Wafangtien.  Along  the  Taitze  River  a  stratum 
runs  east  and  west,  being  exposed  at  four  places.  This  stratum  con- 


MUKDEN  CONSULAR  DISTRICT 


471 


sists  of  light  green  peat,  black  shale,  a  variety  of  gray  coal,  etc.  In 
addition  to  the  stratum  which  appears  near  the  surface  at  the  Yentai 
Colliery  near  Liaoyang,  there  are  apparently  smaller  strata  at  vari¬ 
ous  points  between  Mukden  and  Kaiyuan. 

The  Penhsihu  coal  field  is  under  the  jurisdiction  of  the  Penhsihu 
district,  Shengking  (Fengtien)  Province.  The  field  extends  to  the 
southwest  from  the  northeast  border  of  the  city  of  Penhsihu  and 
crosses  the  South  Manchuria  Railway  line.  It  covers  an  area  of 
10,900  acres.  The  rock  formation  belongs  to  the  Paleozoic  period 
and  is  composed  of  a  single  seam  running  east  and  west,  the  western 
fault  line  being  formed  by  the  Hsintungkao  Valley. 

The  Fushun  coal  field  is  located  20  miles  east  of  the  city  of  Muk¬ 
den  on  the  bank  of  the  Hun  River.  The  total  area  is  approximately 
15,000  acres,  running  west  for  about  10  miles  parallel  with  the 
river.  The  thickness  of  the  seam  shows  a  minimum  of  78  feet  and 
a  maximum  of  420  feet,  with  an  average  of  130  feet. 

The  Yentai  coal  mine  is  situated  about  10  miles  northeast  of 
Yentai  Station  on  the  Mukden-Dairen  line  of  the  South  Manchuria 
Railway.  The  coal  field  runs  for  about  3y2  miles  north  and  south 
with  a  breadth  of  1  mile. 

These  three  mines  are  operated  on  a  large  scale,  with  modern  ma¬ 
chinery. 

There  are  12  iron  deposits  connected  wdth  the  Penhsihu  Iron  Min¬ 
ing  Co.  ( Sino- Japanese ) ,  which  maintains  a  pig-iron  smelting  plant 
at  Penhsihu. 

The  iron-mining  rights  at  Anshan  are  held  by  the  Chenhsing 
Ivungsu,  a  Sino- Japanese  corporation.  The  South  Manchuria  Rail¬ 
way,  under  an  agreement  with  this  firm,  whereby  the  total  output  of 
the  mines  is  supplied  to  the  railway,  has  established  a  large  modern 
steel  works  at  the  Anshan  Station  of  the  South  Manchuria  Railway. 
The  ore  deposits  consist  of  red  hematite  and,  rarely,  of  brown  hema¬ 
tite.  The  thickness  of  the  ore  strata  ranges  from  300  feet  to  500 
feet,  with  interlying  seams  of  siliceous  rocks. 

The  following  list  shows  the  more  important  coal  mines  in  the  dis¬ 
trict  : 


Name 

Location 

Output 

Nationality 

Peipiao  Coal  Mining  Co _ 

Peipiao,  Chaoyang,  and  district. 

Tons 
500,  000 

Chinese. 

Ta  Yao  Kow  Coal  Mining  Co. 

30  miles  northwest  of  Chinchow. 

100,  000 

Do. 

Pataoho  coal  mine _ 

Pataoho,  Heishanhsien  _ 

70,  000 
18,  000 
10,  000 
4,  900,  000 

Do. 

Lientun  coal  mine . . 

Kangpinghsien _  _ 

Do. 

Hsincheng  coal  mine.. _ 

Hsincheng. .  _  _ 

Do. 

Fushun  coal  mine. .  _ 

Fushun,  15  miles  east  of  Mukden 

Japanese. 

Penhsihu  coal  mines _ 

Penhsihu,  Shengking  Province.. 

450,  000 

Sino- Japanese. 

Yentai  coal  mine _ _ 

Yentai,  Shengking  Province _ 

110,  000 
(9 
(') 

(9 

60,  000 

Japanese. 

Sino- Japanese. 

Not  operated. 

Chinese. 

Niu  Hsin  Tai  mines 

10  miles  east  of  Penhsihu  ... 

Hsiao  Shih  mine...  ... 

40  miles  up  Taitze  River _ _ 

Tien  Shih  Fukow  mine _ 

53  miles  east  of  Penhsihu _ 

Ta  Ko  Ta  mine..  _ 

\li  miles  north  of  Hsianhsien _ 

Chinese  (6  companies). 

T’ao  Lu  mines.  . . 

8  to  15  miles  north  of  Hsifeng- 

10,  000 

Chinese  (4  companies). 

T’ien  Ho  Tun  mine.  _ 

Huo  Shih  Ling  mine... . . 

hsien. 

8  miles  southwest  of  Kuanya.... 
3  miles  north  of  Yingchengtze 

0) 

10,  000 

Chinese. 

K’uan  Ch’en  Tze  mines . 

station  on  Kirin- Changchun 
Railroad. 

Shihpeiling,  1 H  miles  east  of 

0) 

Japanese;  South  Manchuria 

Lao  T’u  Kow  mine _ 

Changchun;  Taochiatun,  2 
miles  southeast  of  Changchun. 

2  miles  west  of  Chientao,  Chu- 

0) 

Mining  Co. 

Sino-Japanese. 

tzechieh. 

i  Fairly  large  deposits. 


472 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  Pei  Piao  Coal  Co.,  producing  bituminous  coal,  is  operated  with 
a  capital  of  $5,000,000  silver,  the  head  office  being  at  Tientsin.  The 
Pataoho,  Lientun,  and  Hsintun  mines  are  Avorked  under  the  super¬ 
vision  of  the  Fengtien  (Shengking)  Mining  Bureau  at  Mukden. 
The  Fushun  and  Yentai  mines  are  subsidiary  companies  of  the  South 
Manchuria  Railway. 

The  principal  iron  mines  are: 


Name 

0 

Location 

Ore 

Output  of 
pig  iron, 
1923 

Capital 

Nationality 

Anshan  iron  mine... 

Anshan. . . 

Hematite,  limonite _ 

Magnatite,  hematite.. 

Tons 

90,  COO 

24,  000 

Operated  by  South 
Manchuria  Ry.  Co. 
(Japanese). 
Sino-Japanese. 

Penhsihu  iron  mine. 

Penhsihu.. 

$7,  000.  000 

In  addition  there  are  the  Kungchangling  Iron  mine,  between  Liao- 
yang  and  Penhsihu,  which  has  both  magnetite  and  hematite  de¬ 
posits  and  is  operated  by  a  Sino- Japanese  company;  the  Miao  Erh 
Kow  iron  mine,  2  miles  east  of  Nan  fen  on  the  Mukden- An  tung  line, 
also  composed  of  magnetite  and  hematite,  and  operated  by  the 
Penhsihu  Iron  Mining  Co. ;  the  Ta  Li  Tze  Ivoav  iron  mine,  16  miles 
southwest  of  Maotzeshan,  Avhich  supplies  hematite  ore  to  nati\Te 
smelters;  the  Chi  Tao  Kow  iron  mine,  8  miles  southeast  of  Tung- 
hwahsien,  and  the  Pao  Chu  iron  mine,  situated  33  miles  southeast 
of  Hailung,  Shengking  (Fengtien)  Province. 

Other  principal  mines,  of  various  metals  and  minerals,  are  shown 
in  the  table  beloAv : 


Name 

Location 

Ore 

Nationality 

COPPER 

Pan  Ling  copper  mine _ 

22  miles  northeast  of  Tsao- 
hokou  on  the  Mukden- 
Antung  line. 

Copper  pyrites... . 

Sino-Jnpanese  mining  com¬ 
pany  has  applied  for  con¬ 
cession  (Chuniclii  Min¬ 
ing  Co.). 

Ma  Lu  Kow  copper  mine... 

25  miles  east  of  Penhsihu 
station. 

Malachite . . 

Okura  &  Co.,  Japanese. 

Su  Tze  Huo  Ho  copper 
mine. 

38  miles  from  Tiehling  up 
Chai  River. 

Copper  pyrites _ 

Sino-Japanese. 

T’ien  Pao  Shan  copper  and 
silver  mine. 

10  miles  southwest  of  Lao 
Tu  Kow  coal  mines  at 
Chientao. 

Argentite. . 

Sino-Japanese,  Souih  Man¬ 
churia  Ry.  and  Taiko 
Co. 

Panshih  Mining  Co _ 

Shihtsuitze,  near  Pan¬ 
shih,  Kirin. 

Pyrites  and  mala¬ 
chite. 

Chinese. 

GOLD 

Maoerhshan  gold  mine _ 

2M  miles  north  of  Maoerh¬ 
shan. 

Placer  mining  .  . . 

British  company  interested 
in  district. 

Ta  Miao  Kow  gold  mine _ 

6  miles  south  of  Tunghwa. 

Ore...  ...  _ 

Do. 

Pao  Ma  Chuan  gold  mine.. 

37  miles  south  of  Tunghwa. 

Placer  and  ore _ 

Hoachan  Co.,  Chinese. 

Hsiang  Lu  AVan  Tze  gold 
mine. 

14  miles  southeast  of  Pei- 
shan-chentze. 

_ do  . . . 

Shukao  Co.,  Chinese. 

Chai  Ho  Pu  gold  mine _ 

24  miles  east  of  Tiehling... 

Placer  mining _ 

Chinese  and  Japanese  arc 
interested. 

LEAD 

Ch’ing  Ch’en  Tze  lead  mine 

32  miles  west  of  Tung- 
yuan-pu  station. 

Galena . 

Sino-Japanese,  Chunichi 
Co. 

MUKDEN  CONSULAR  DISTRICT 


473 


Name 

Location 

Ore 

Nationality 

MAGNESITE 

Cliuan  Shan  Tze  mine - 

2  miles  north  of  Shakang 

Annual  production 

Considerable 

Shinko  Co.,  Chinese,  con- 

on  South  Manchuria 

quantity. 

nected  with  South  Man- 

Pingehrfang  magnesite  mine 
Pai  Hu  Shan  mine  - 

Ry.  line. 

Tashihkiao _  ------ 

3  miles  south  ofTashihkiao 

1,000  tons _ 

Considerable 

churia  Ry.  Co. 

Chinese. 

Shinko  Co.,  Chinese,  con- 

station  on  South  Man- 

quantity. 

nected  with  South  Man- 

Tv  imn  TVTfl.  Shan  mine 

churia  Ry. 

3  miles  east  of  Tashihkiao 

_ do__ _ _ 

churia  Ry.  Co. 

Chinese  company,  con¬ 
nected  with  South  Man- 

station  on  South  Man- 

Ta  T/ing  mine  _ 

churia  Ry. 

5  miles  northeast  of  Ta- 

_ do . .  . 

churia  Ry.  Co. 

Tenko  Co. 

TTnn  Shih  Tying  mine 

shihkiao  station  on 
South  Manchuria  Ry. 
9-15  miles  southeast  of 

..  .  do _ _ 

Chinese  company,  con¬ 
nected  with  South  Man¬ 
churia  Ry.Co. 

Do. 

Ph’in  Mr  Yn  mine 

Haicheng. 

12-15  miles  southeast  of 

_ do.. . . 

Haicheng. 

ASBESTOS 

T,i  Vnng  Co  (Lt.d  ) 

Chinchow,  Fengtien; 
mines  at  Sungchiachang- 
tse,  10  miles  south  of 
Chaoyang. 

Chinese. 

TALC 

Sungchiaputze  mine _  - 

10  miles  south  of  Haicheng. 

Considerable 

Chinese  company,  con¬ 
nected  with  South  Man¬ 
churia  Ry.  Co. 

Chinese. 

Talin  talc  mine  _ _ 

Tashihkiao  _ 

quantity. 

6,000  tons.  _ _ 

FLUORITE 

Luchiatun  mine  _ 

5  miles  southeast  of  Lu- 

Small  quantity _ 

Chinese. 

Tsui  Cilia  Tun  _  __ _ __ 

chiatun  station,  Kai- 
pinghsien. 

2  miles  south  of  Tungchia- 
tun  station,  Kaiping- 
hsien. 

.  .  do  _  _ _ 

Chinese. 

FELDSPAR 

Shih  Ta  Shan  mine.. _ 

7  miles  south  of  Haicheng- 

Considerable 

Chinese  company,  con- 

hsien. 

quantity. 

nected  with  South  Man- 

churia  Ry.  Co. 

SODA 

Fishery  and  soda  company. 

Chengchiatun _  .  .  .. 

(Liao  River  soda 

Chinese. 

Tien  Hui  Soda  Co . . 

12  miles  from  Tapusu, 

fields.) 

(Lake  Tapusu 

Chinese; 

Yu  Chien  Co  . . . 

Kirin. 

Wentu,  Chengkiatun, 

soda  fields.) 
Crystal  soda, 
2,300,000  pounds. 

2,000  tons  _ _ 

Chinese. 

MANGANESE 

Hsincheng  manganese  mine  _ 

Shengking. 

Hsincheng  .  _  . 

Chinese. 

MANUFACTURING  AND  INDUSTRIAL  DEVELOPMENT 

It  is  estimated  that  there  are  121  bean  mills  in  the  district,  along 
the  South  Manchuria  Railway,  producing  annually  10,500,000  pieces 
of  bean  cake  and  437,000  piculs  of  bean  oil.  There  are  also  700 
or  800  smaller  mills  scattered  throughout  the  interior  which  bring 
the  total  production  to  about  15,000,000  pieces  of  bean  cake  and 
600,000  piculs  of  bean  oil  a  year.  Bean  products  are  chiefly  ex¬ 
ported,  being  shipped  to  ports  via  the  Liao  River  and  the  South 
Manchuria  Railway.  Investments  in  oil  mills  are  estimated  to  be 
$9,000,000  United  States  currency. 

The  manufacture  of  cotton  cloth  and  yarn  is  second  in  impor¬ 
tance  to  the  bean  industry.  The  Manchuria  Spinning  Mill  at  Liao- 


474 


COMMERCIAL  HANDBOOK  OF  CHINA 


yang  (Japanese)  and  the  Mukden  Spinning  &  Weaving  Works  at 
Mukden  (Chinese)  both  produce  cotton  yarn,  the  first  having  30,000 
and  the  second  20,000  spindles.  The  total  production  of  cotton  yarn 
of  the  two  mills  is  estimated  at  28,000  bales  (of  400  pounds  each)  per 
year.  About  $3,250,000  United  States  currency  is  invested.  The 
Mukden  Spinning  &  Weaving  Works  also  operates  200  looms  with 
an  estimated  daily  production  of  30  bales  or  600  rolls  of  cotton  cloth, 
the  annual  production  being  210,000  rolls.  The  only  other  large 
cotton-weaving  mill  under  operation  is  at  Tiehling — the  Manchuria 
Cotton  Weaving  Co.,  which  has  an  estimated  production  of  243,000 
rolls  a  year.  In  addition,  there  are  approximately  3,000  looms  in 
smaller  factories  in  Mukden,  Liaoyang,  and  Newell  wang,  producing 
cotton  cloth,  ankle  tape,  bandages,  sheetings,  etc.,  with  an  estimated 
output  of  one  roll  per  loom  a  day.  In  the  aggregate,  about  2,500,000 
rolls  or  100,000,000  yards  of  cotton  manufactures  are  produced,  with 
a  probable  investment  of  $6,600,000  United  States  currency.  Amer¬ 
ican  textile  machinery  is  used  in  the  Mukden  Spinning  &  Weaving 
Works. 

Beet  sugar  is  manufactured  at  Mukden  and  Tiehling  by  the  South 
Manchuria  Sugar  Refining  Co.  Local  beets  and  crude  Java  sugar 
are  utilized,  with  an  annual  output  of  8,300  tons  of  refined  sugar, 
chiefly  for  local  consumption.  Capital  to  the  amount  of  $5,000,000 
United  States  currency  is  employed. 

The  center  of  the  flour  industry  is  at  Changchun  in  Kirin  Prov¬ 
ince.  The  estimated  daily  production  during  the  milling  season  is 
26,000  bags  per  day,  produced  with  a  capital  of  $2,900,000  United 
States  currency.  This  flour  is  consumed  locally. 

There  are  22  iron  works  in  the  district,  all  being  small  with  the 
exception  of  the  Penhsihu  and  the  Anshan  Iron  Works.  Pig  iron 
to  the  amount  of  102,000  tons  a  year  is  manufactured,  chiefly  for 
export  to  Japan.  Other  iron  products  are  cast  iron,  500  tons;  iron 
pipes,  1,428  tons;  machinery,  wrought  iron,  construction  materials, 
etc.,  72,000  tons  per  year,  for  local  use.  Investments  in  iron  works 
are  estimated  at  $26,000,000  United  States  currency. 

Other  manufacturing  industries,  and  their  estimated  annual  out¬ 
puts,  are:  Matches,  276,000  cases;  gunny  sacks,  537,000  pieces;  gas, 
28,000,000  cubic  feet;  bricks,  20,000,000  pieces;  earthern  pipe,  24,- 
000  pieces;  tiles,  34,000  pieces;  medicine  bottles,  429,000  pieces; 
lamps,  chimneys,  etc.,  212,000  dozen;  candles,  10,000  cases;  cement, 

4.700  barrels;  quick  lime,  2,000  tons;  potassium  chlorate,  28,450 
pounds;  sulphate  of  ammonia,  6,600  tons;  magnesia,  830  tons;  ice, 

1.700  tons;  coal  tar,  1,000  tons;  talc,  1,000  tons;  lead,  300  tons.  Cig¬ 
arettes,  alcohol,  woolen  products,  paper,  manufactured  skins,  dog 
mats,  etc.,  are  manufactured  in  some  quantity.  There  is  as  yet 
not  a  sufficient  production  of  most  products  to  meet  local  demands, 
with  the  exception  of  pig  iron,  skins,  and  sulphate  of  ammonia, 
of  which  the  greater  part  is  exported, 


MUKDEN  CONSULAR  DISTRICT 


475 


LABOR  CONDITIONS 

The  following  table  gives  an  indication  of  the  wages  prevailing 
at  Mukden : 


[Figures  given  in  local  currency;  $1  equals  approximately  $0.35  United  States  currency] 


Classes 

High 

Low 

Average 

Laborer _  -  -  _ _ _  -  - _  -  -  -  -- 

$1.  70 

$1.  30 

$1.50 

Fireman  _ _  _  ..  .  --  _ _ _ _ .  .  .  . 

1.60 

1.20 

1.40 

Mason  _ _ _  --  .  --  -  _  .  _  _  - _ 

1.85 

1.30 

1.50 

Cement  worker _  _  .  .  .  -  --  _  __ _ 

2. 00 

1.50 

1.70 

Blacksmith  ...  _  ..  _______  _ _ _ 

2. 00 

1.40 

1.70 

Plasterer..  ... _ ... _ _  ..  .  .  .  .  ..  _ _ 

1.50 

.90 

1.30 

Painter  _ _  ..  ...  .  .  _  ..  .  _ _  ... 

2.40 

1.90 

2. 10 

Carpenter  _ _ _ _  .  .  .  .  _ 

1.70 

1.20 

1.40 

Cabinetmaker  .  .  _  _ _ _ _  _ _  _  _ 

1.80 

1.20 

1.40 

Tinsmith  _  _  .  .  _ _ _  _ _  .  _ _ _ 

1.90 

1.40 

1.60 

Teamster: 

One  horse  .  .  _ _  .  .  ... _  ... 

1.80 

1.10 

1.50 

Two  horses.  _ _ _  _  .  ._  _  _ _ 

2.00 

1.30 

1.70 

The  above  figures  are  indicative  of  wages  paid  by  Chinese  to 
native  laborers.  Labor  charges  incurred  by  foreigners  in  the  em¬ 
ployment  of  Chinese  are  usually  considerably  higher. 

Foreigners  employed  in  the  district  by  foreign  companies — engi¬ 
neers,  accountants,  factory  superintendents,  stenographers,  etc. — 
receive  about  25  per  cent  more  than  is  paid  for  similar  work  in  the 
United  States. 

Native  labor  has  not  reached  a  high  grade  of  efficiency  in  modern 
industrial  methods,  although  favorable  results  are  obtained  from 
factory  hands  when  well  trained.  Up  to  the  present  time  there  have 
been  no  serious  labor  disturbances. 

TRANSPORTATION  AND  COMMUNICATION 

WATERWAYS 

The  highest  tide  ever  registered  on  the  bar  at  the  mouth  of  the 
Liao  River  was  22.7  feet,  which  makes  it  impossible  for  vessels  draw¬ 
ing  25  feet  to  enter.  The  average  spring  tide  across  the  bar  is  19  feet, 
hence  boats  drawing  20  feet  can  only  very  rarely  cross  the  bar.  In 
summer  20  and  21  feet  are  occasionally  registered,  but  vessels  rarely 
load  over  19  feet  when  entering  the  port  of  Newchwang,  and  gener¬ 
ally  only  18  feet.  Boats  drawing  15  feet  can  cross  the  bar  at  high 
water  and  can  navigate  up  river  to  Swan  Island,  or  lO1/^  miles  above 
Newchwang.  At  low  tide  steamers  of  15-foot  draft  can  proceed  only 
to  a  point  3y2  miles  above  Newchwang,  crossing  the  bar  at  high  tide. 
Steamers  drawing  6  feet  can  cross  the  bar  at  any  time  and  can  navi¬ 
gate  upstream  to  a  point  62  miles  north  of  Newchwang,  as  far  as 
Sanchiaho,  which  is  the  junction  of  the  Taitze,  Hun,  and  Liao 
Rivers.  The  river  above  this  point  is  shallow,  and  only  launches 
and  junks  can  navigate  in  ordinary  times.  Launches  (draft,  2 y2 
feet)  can  navigate  on  occasions  as  far  as  the  Mukden-Shanhaikwan 
Railway  crossing,  150  miles  above  Newchwang,  and  small  native 
junks  proceed  as  far  as  Tungkiangtze. 


476 


COMMERCIAL  HANDBOOK  OF  CHINA 


During  1923,  16,627  vessels  crossed  the  bar  at  Newchwang  and 
entered  the  Liao  River,  with  a  total  tonnage  of  14,669,917.  In  the 
same  period  160,485  tons  of  beans  and  bean  products  were  shipped 
down  the  river  from  interior  points.  While  the  upriver  cargo  is 
also  considerable,  there  are  no  statistics  available  in  regard  to  the 
volume  of  this  transportation. 

Transportation  charges,  taking  coal  as  a  basis  of  calculation,  are 
estimated  to  be  $1.20  United  States  currency  per  ton  for  100  miles. 
These  figures  are  for  upstream  transportation  charges,  which  are 
somewhat  higher  than  rates  for  downstream  shipments.  Carload 
cargo  over  the  South  Manchuria  Railway  line  ranges  from  $2.60 
United  States  currency  for  first  class  to  $1.05  for  fourth-class  cargo 
per  100  miles  (figuring  1  yen  as  equal  to  $0.42).  Despite  favorable 
freight  rates,  the  Liao  River  is  chiefly  valuable  to  foreign  trade  as  a 
means  of  transportation  of  raw  products  from  the  interior,  since, 
owing  to  lack  of  modern  facilities  such  as  warehouses,  terminals, 
etc.,  convenient  means  of  distributing  foreign  imported  products  are 
not  afforded. 

RAILWAYS 


The  following  table  shows  mileage  on  the  South  Manchuria  Rail¬ 


way  : 

Miles 

Dairen  to  Changchun -  437.  6 

Dairen  to  Port  Arthur _  31.  6 

Antung  to  Mukden _ 161.  7 

Tashikiao  to  Newchwang _  13.  9 

Fushun  branch  line _  32.9 

Ilushutai  to  Hunho _  2.  5 


Total _  680.2 


The  following  table  shows  the  freight  rates  per  ton  per  mile 
(carload)  : 


First 

class 

Second 

class 

Third 

class 

Fourth 

class 

Up  to  100  miles  .  ..  _  _ _ 

Yen 

0. 0625 

Yen 

0. 05 

Yen 

0. 0375 

Yen 

0. 025 

101  to  200  miles..-  _ 

.06 

.048 

.036 

.024 

201  to  400  miles.. _ _ 

.  0575 

.046 

.0345 

.023 

Over  400  miles. .  _  .  _ 

.055 

.044 

.033 

.022 

Charges  based  on  a  rate  per  kin  (1  kin  equals  approximately  1  y3 
pounds)  are  10  per  cent  of  the  carload  rate  per  100  kins.  Also, 
terminal  charges  of  0.05  yen  per  100  kins  are  levied  on  kin-rate 
goods  and  0.50  per  ton  on  carload  goods.  Terminal  charges  and 
freight  rates  are  collected  together.  There  is  no  rebate  system  in 
force,  but  when  consignees  are  found  unable  to  bear  the  freight 
charges,  and  it  is  necessary  to  assist  them,  special  freight  rates  are 
provided. 

There  are  certain  specific  freight  rates  on  goods  carried  to  and 
from  Dairen  and  Antung.  The  first  class  is  applicable  to  kerosene 
and  kindred  oils,  matches,  quicklime,  and  carbide  only  and  is  both 
on  a  kin  and  carload  basis.  The  second  class  is  in  effect  on 


MUKDEN  CONSULAR  DISTRICT 


477 


kerosene  shipped  from  Dairen  only.  The  third  class  applies  to 
victuals  and  building  materials.  On  rice,  soy,  salt  (table  and 
refined  only),  vegetables,  fresh  fish,  salted  and  dried  fish,  as  well 
as  on  firewood  and  charcoal,  a  30  per  cent  reduction  from  the 
ordinary  rates,  or  the  specific  rates  to  and  from  Dairen  and  Antung, 
may  be  applied. 

On  building  materials,  timber  (fourth  class  only),  stone  (fourth 
class  only),  cement,  pozzuolana,  lime,  brick  (glazed  brick  excluded), 
tiles,  mats  and  mattresses,  and  household  furnishings,  a  25  per  cent 
reduction  from  the  ordinary  rates,  or  the  specific  rates  to  and  from 
Dairen  and  Antung,  may  be  obtained.  Minimum  carload  weights 
range  from  15  to  30  tons. 

A  reduction  of  30  per  cent  on  11  kinds  of  through  freight,  includ¬ 
ing  cotton  piece  goods  and  yarn,  carried  from  the  terminal  points 
Dairen,  Newchwang,  and  Antung  has  been  allowed  by  the  company. 

Passenger  fares  per  mile  on  the  South  Manchuria  Railway  are  as 
follows  (1  }Ten  equals,  under  normal  exchange,  $0.4984  United 
States)  :  First  class,  0.07  yen;  second  class,  0.045  yen;  third  class, 
0.025  yen. 

The  mileage  of  the  Changchun-Kirin  Railway  is  79.4.  Its  freight 
rates  per  ton  per  mile  (carload)  are  as  follows:  First  class,  $0.0981 
Yuan;  second  class,  $0.0818;  third  class,  $0.0654;  fourth  class, 
$0.0491 ;  fifth  class,  $0.0327 ;  sixth  class,  $0.0245  Yuan.  Its  freight 
rates  per  kori  (1  kori  equals  0.35791  mile)  are:  First  class,  $0,046 
Yuan;  second  class,  $0,032;  third  class,  $0,018.  ($1  Yuan  equals 

approximately  $0.50  United  States.) 

The  mileage  of  the  Ssupingkai-Taonan  Railway  is  264.1.  Its 
freight  rates  per  ton  per  mile  (carload)  are:  First  class,  $0.1063 
Yuan;  second  class,  $0.09;  third  class,  $0.0736;  fourth  class, 
$0.0573;  fifth  class,  $0.0491;  sixth  class,  $0.0409.  Passenger  fares 
per  kori  are:  First  class,  $0.05  Yuan;  second  class,  $0.03;  third 
class,  $0.02. 

That  section  of  the  Peking-Mukden  Railway  which  lies  within  the 
Mukden  consular  district  extends  from  Mukden  to  Shanhaikwan, 
a  distance  of  420.78  kilometers.  The  freight  rates  per  50  kilos  per 
kilometer  are  shown  in  the  table  below  (1  kilo=2.2046  pounds;  1 
kilometer =0.62  mile)  : 


Kilometers 

Classes 

1 

2 

3 

4 

5 

6 

1  to  20 _ _ _ 

Yuan 
$0. 092 
.  184 

Yuan 
$2.  078 
.  156 

Yuan 
$0.  064 
.  128 

Yuan 
$0. 050 
.  100 

Yuan 
$0.  036 
.072 

Yuan 
$0. 034 
.068 

40 _  _ 

GO _ 

.  276 

.234 

.  192 

.  150 

.  108 

.  102 

80 _ 

.  368 

.  312 

.  256 

.  200 

.  144 

.  136 

100 _ 

.460 

.  390 

.320 

.  250 

.  180 

.  168 

200 _  _ 

.  8?8 

.  744 

.  610 

.  477 

.343 

.324 

300 _  _ 

1.  280 

1.  085 

.890 

.  695 

.  500 

.478 

400 _ 

1.  659 

1.  407 

1.  154 

.901 

.  649 

.618 

500 _  _ 

2.  032 

1.  723 

1.  413 

1.  104 

.795 

.754 

708 _ 

2.  699 

2.  289 

1.877 

1.468 

1.  056 

1.002 

While  the  above  figures  give  the  general  rates  according  to  dis¬ 
tances,  there  is  an  increasing  scale  for  each  kilometer  over  which 


478 


COMMERCIAL  HANDBOOK  OF  CHINA 


goods  are  transported.  The  last  distance  given,  708  kilometers,  is 
the  distance  between  Mukden  and  Tientsin  and  shows  charges  on 
goods  imported  into  the  district  through  that  port. 

The  following  tables  give  metric-ton  rates : 

FREIGHT  RATES  PER  METRIC  TON  (MINIMUM  CHARGE  1  TON) 


Kilometers 

Classes 

1 

2 

3 

4 

5 

6 

1  to  20 _ _ _ 

Yuan 
$1.  380 
2.  760 

Yuan 
$1. 170 
2.  340 

Yuan 
$0.  960 

Yuan 
$0.  750 

Yuan 
$0.  540 

1.  080 

Yuan 
$0.  440 
.  880 

40 _ 

1.920 

1.  500 

60 _ _ 

4. 140 

3.  510 

2.880 

2.  250 

1.  620 

1.  320 

80 _ _ _ 

5.  520 

4.  680 

3.  840 

3.  000 

2.  160 

1.  760 

100 _ 

6.  900 

5.  850 

4.  800 

3.  750 

2.  700 

2.  200 

200  _ 

13.  455 

11.  408 

9.  360 

7.  313 

5.  265 

4.  290 

300  _ 

19.  665 

16.  673 

13.  680 

10.  688 

7.  695 

6.  270 

400  _ _ _ 

25.  177 

21.  350 

17.  484 

13.  667 

9.  850 

8.  033 

500  _ _ _ _ 

30.  629 

25.  S72 

21.  270 

16.  621 

11.  972 

9.  758 

708  _ 

40.  448 

34.  298 

28. 149 

22.  000 

15.  851 

12.  922 

CARLOAD  RATE  PER  METRIC  TON 


1  to  20 _ _ 

Yuan 
$0.  920 

Yuan 
$0.  780 

Yuan 
$0.  640 

Yuan 
$0.  500 

Yuan 
$0.  360 

Yuan 
$0.  220 

40  _ _ _ _ - 

1.840 

1.  560 

1.  280 

1.000 

.720 

.440 

60  - _ _ _ 

2.  760 

2.  340 

1.920 

1.  500 

1.080 

.  660 

80  _ _ _ 

3.  680 

3.  120 

2.  560 

2.  000 

1.  440 

.880 

£66  _ 

4.  600 

3.  900 

3.  200 

2.  500 

1.  800 

1.  100 

200  _ 

8.782 

7.  445 

6.  108 

4.  771 

3.  435 

2.  098 

300 _ 

12.  800 

10.  855 

8.  906 

6.  957 

5.  009 

3.  060 

400  _ _ _ _ 

16.  598 

14.  077 

11.  547 

9.  018 

6.  499 

3.  980 

500  _ 

20.  322 

17.  230 

14.  136 

11.047 

7.  955 

4.  863 

708  . . . 

26.  997 

22.  898 

18.  779 

14.  680 

10.  561 

6.  461 

Freight  rates  per  metric  ton  and  carload  rates  per  metric  ton  are 
also  on  an  increasing  scale  for  each  kilometer  covered.  The  above 
charges  are  given  in  silver  Yuan  dollars,  which  under  normal  ex¬ 
change  equal  approximately  $0.50  United  States  currency. 

Storage  charges  for  ordinary  goods  (owner’s  risk)  are  as  follows: 
“  50-kilo  ”  rate  goods,  for  every  24  hours  or  part  thereof,  5  cents  per 
50  kilos;  “  ton  ”  rate  goods,  for  every  24  hours  or  part  thereof,  25 
cents  per  ton.  (Charges  figured  in  silver  dollars.)  Open  storage 
may  be  arranged  for,  the  charge  being  $10  per  “  space  ”  of  15  square 
feet  per  month  for  “goods”  and  $5  for  “minerals.”  (Charges  in 
silver.)  Valuable  goods,  goods  likely  to  cause  danger  to  other 
goods,  and  goods  of  a  perishable  nature  are  not  accepted  for  storage. 

ROADS 


With  the  exception  of  various  parts  of  the  city  of  Mukden,  there 
are  no  roads  in  the  district  constructed  for  motor  transportation. 
The  roads  in  general  are  cart  paths,  nearly  impassable  during  the 
rainy  months  of  the  year.  The  lack  of  stone  deposits  hinders  the 
improvement  of  roads.  During  the  winter  months  when  the  country 
is  icebound,  the  use  of  motor  vehicles  is  practicable,  it  being  con¬ 
sidered  that  a  small  type  of  tractor,  whereby  produce  could  be  trans¬ 
ported  to  the  markets  in  trailers,  would  be  especially  suitable.  A 


MUKDEN  CONSULAR  DISTRICT  479 

small  number  of  tractors  have  been  introduced  for  general  farming 
purposes. 

Roads  around  large  trade  centers  such  as  Mukden,  Changchun, 
Tiehling,  Kirin,  and  Newchwang  are  adaptable  to  motor  transporta¬ 
tion  for  short  hauls  during  the  winter  months,  and  there  is  a  ten¬ 
dency  to  appreciate  the  value  of  such  transportation.  Motor  ve¬ 
hicles  in  the  district  are  distributed  as  follows:  Electric  automo¬ 
biles — Mukden,  1.  Gasoline  automobiles — Mukden,  97;  Anshan,  4; 
Changchun,  30;  Fushun,  5;  Newchwang,  2;  Kirin,  7;  Tiehling,  1. 
Motor  trucks — Mukden,  15;  Changchun,  11;  Fushun,  3;  Liaoyang, 
1;  Ssupingkai,  3;  Tiehling,  1.  There  are  21  trailers  in  use  in  the 
vicinity  of  Changchun. 

There  are  no  road  fees  or  tolls  which  affect  the  transportation  of 
foreign  products.  Foreign  merchandise  usually  moves  under  a 
transit  pass  which  exempts  it  from  further  taxation. 

TELEGRAPHS,  CABLES,  AND  WIRELESS  SERVICE 

Telegraphic  communication  is  under  the  jurisdiction  of  the  Tele¬ 
graph  Administration  of  the  three  eastern  Provinces.  The  total 
length  of  lines  in  Manchuria  is  7,600  miles,  with  140  telegraph  offices. 
Commercial  telegrams  are  divided  into  the  following  classes:  Fourth 
class,  ordinary  messages,  $0.06  Yuan  per  word  ($1  Yuan  equals 
approximately  $0.50  United  States)  or  $0.09  Yuan  per  word  for 
cipher  and  foreign-language  messages;  third  class,  urgent  messages, 
$0.18  Yuan  per  word  or  $0.27  Yuan  for  cipher  and  foreign-language 
messages.  For  telegrams  sent  to  other  Provinces  in  China  the  rate 
is  double. 

Japanese  telegraph  stations  are  maintained  in  connection  with 
the  post  offices  at  stations  along  the  South  Manchuria  Railway. 

Cable  connections  with  the  United  States  are  via  Shanghai  by 
the  Chinese  lines  and  via  Japan  and  the  Bonin  Islands  by  the 
Japanese  lines.  The  cable  rate  for  a  private  or  commercial  telegram 
from  Mukden  to  New  York  by  Chinese  connections  is  $1.90  Yuan 
per  word,  and  urgent  messages  carry  a  triple  rate.  By  Japanese 
connections  the  charge  is  2.70  yen  per  word  (1  yen  equals  approxi¬ 
mately  $0.42  United  States)  via  the  Bonin  Islands,  and  1.74  yen  per 
word  by  wireless  from  Japan.  Wireless  stations  in  Manchuria  have 
been  operated  for  military  purposes  only,  but  it  is  planned  to  throw 
open  some  of  them  to  commercial  'use  in  the  near  future,  probably 
at  Mukden,  Harbin,  Changchun,  and  Taonanfu.  There  are  no  pri¬ 
vate  or  commercial  broadcasting  or  receiving  stations  in  the  district. 

TELEPHONES 

Two  telephone  services  operate  in  Mukden,  one  Chinese  and  the 
other  Japanese.  The  Chinese  system  operates  1,375  telephones  on 
about  1,538  miles  of  wire.  The  Japanese  service  operates  1,693 
instruments.  As  most  of  the  cities  are  in  the  South  Manchuria 
Railway  zone,  Japanese  systems  are  maintained  in  them  as  separate 
services.  The  Chinese  telephone  administration  at  Mukden  has  pur¬ 
chased  considerable  American  equipment,  although  the  greater  part 
of  the  installation  supplies  for  both  the  Chinese  and  Japanese  serv¬ 
ices  was  obtained  from  the  Nippon  Electric  Co.,  Tokyo,  Japan. 


480 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  number  of  subscribers  at  the  various  places  is  shown  below : 


Cities 


Mukden _ 

Tiehling _ 

Kaiyuan _ 

Changtu _ 

Ssupingkai . . 
Kungchuling 
Fenckiatun.. 


Chinese 

service 

Japanese 

service 

Cities 

Chinese 

service 

Japanese 

service 

1,  375 
220 

1,693 

305 

Changchun. . _  _  _ 

Newchwang  .  .... 

200 

2  1, 200 
140 

1,308 

138 

434 

Fushun  _ _  ...  . 

276 

50 

0) 

Fenghwangcheng . .  . 

43 

0) 

201 

255 

Kirin _  _ 

480 

0) 

60 

226 

Wafangtien  _ _  .... 

58 

80 

30 

121 

Kaiping.  _  . 

85 

0) 

1  No  service.  2  Sino-Japanese  service. 


POSTAL  FACILITIES 

Chinese  postal  affairs  in  the  Province  of  Fengtien  are  in  the  hands 
of  a  postal  commissioner  residing  in  Mukden.  Post  offices,  of  which 
there  are  148,  with  315  agencies,  are  established  in  all  important 
cities  and  towns.  Japanese  post  offices  are  maintained  at  all  towns 
in  the  South  Manchuria  Railway  zone,  and  these  offices  furnish 
parcel-post  and  money-order  facilities  with  the  United  States.  The 
rates  and  regulations  are  the  same  as  those  in  Japan  with  respect  to 
mails  to  the  United  States,  all  being  operated  under  the  provisions 
of  the  International  Postal  Union.  The  time  for  transmission  of 
letters  to  or  from  New  York  via  the  Pacific  is  28  days.  Letters  to 
Peking  and  Tientsin  reach  their  destination  in  one  day. 

SHIPPING  AND  WAREHOUSING  FACILITIES 

HARBOR  FACILITIES 


Newchwang,  which  is  located  on  the  Gulf  of  Liaotung  at  the 
mouth  of  the  Liao  River,  is  the  only  port  of  importance  in  the  Muk¬ 
den  consular  district.  There  are  no  docks  or  special  anchorages,  but 
if  advance  notice  of  arrival  is  given,  the  pilot  will  have  instructions 
for  berthing.  The  wharfage  at  Newchwang  is  limited  to  the  Chi¬ 
nese  Government  Railway  wharf  on  the  north  side  of  the  river  and 
several  wharves  on  the  south  shore  above  the  customhouse.  Ships 
at  Newchwang  generally  do  not  have  difficulty  in  finding  a  wharf 
where  cargo  may  be  discharged.  If  no  such  facilities  are  available, 
cargo  may  be  discharged  by  lighters. 

There  are  about  190  lighters  in  the  port,  about  100  being  available 
for  hire.  The  cost  is  approximately  $45  to  $50  Mex.  per  day,  in¬ 
cluding  the  wages  of  men  handling  cargo. 

The  following  statistics  give  the  number  of  vessels  entered  and 
cleared  at  the  Maritime  Customs  at  Newchwang  during  1923 : 


Nationality 

Number 

Tonnage 

Nationality 

Number 

Tonnage 

American  ..  _  .  _ 

4 

20,  200 
394,  092 

6,  850 

9,  096 
18,  572 
259,  488 

Norwegian.  .  . . 

30 

26, 500 
16,  516 
526, 146 

British 

312 

Russian _  .  _ 

12 

Danish  .  .  . . . 

2 

Chinese  . . . 

794 

Dutch 

4 

French  _ _  _ 

6 

Total . . 

1,488 

1,  277,  460 

Japanese. . . 

324 

MUKDEN  CONSULAR  DISTRICT 


481 


A  branch  line  connects  the  port  with  the  South  Manchuria  Rail¬ 
way,  whereby  goods  may  be  distributed  to  all  large  trade  centers  in 
South  Manchuria.  The  Liao  River  also  forms  an  excellent  means  of 
distribution  in  eastern  Shengking  (Fengtien)  Province.  In  1923, 
160,485  tons  of  beans  and  bean  products  were  brought  from  the  upper 
Liao  River  district  to  Newchwang  by  native  junks,  the  amount  of 
such  transportation  over  the  route  having  increased  considerably 
during  recent  years. 

WAREHOUSE  AND  STORAGE  FACILITIES 

Warehouses  are  established  along  the  South  Manchuria  Railway 
at  Mukden,  Liaoyang,  Changchun,  Ssupingkai,  Kungchuling,  New¬ 
chwang,  Fushun,  Tiehling,  Ivaiyuan,  Changtu,  Yentai,  Suchiatun, 
Hsintaitzu,  Fenchiatun,  Shwangmiaotze,  and  Kuochiatien.  The 
warehouses  in  the  Kwangtung  leased  territory,  at  Dairen,  serve  as 
a  central  depot  for  goods  transported  to  and  from  Manchuria  via 
that  port.  Storage  charges  at  warehouses  maintained  by  the  South 
Manchuria  Railway  are  2  sen  per  100  kin  (133  pounds)  or  20  sen 
per  ton  on  carload  goods  for  every  24  hours  or  less  (1  sen  equals, 
under  normal  exchange,  $0.0048  United  States). 

A  mixed  storage  system  for  beans  packed  in  gunny  bags  is  oper¬ 
ated  at  these  places.  Warehouse  receipts  are  issued  for  goods  in 
storage  which  may  be  used  as  commercial  paper  in  financing  ex¬ 
ports  and  imports.  Goods  in  storage  are  subject  to  a  compulsory 
fire-insurance  regulation,  such  insurance  being  effected  by  the  rail¬ 
way  company.  The  Chinese  agents  of  foreign  firms  usually  dis¬ 
tribute  goods  for  sale  at  interior  points,  the  foreign  traders  supply¬ 
ing  the  necessary  quantities  from  the  central  warehouses. 

PUBLIC  UTILITIES 

ELECTRIC  LIGHT  PLANTS 

The  establishment  of  electric  light  and  power  plants  throughout 
Manchuria  has  been  an  important  line  of  endeavor  of  American, 
European,  and  Japanese  firms  in  China.  Manchuria  has  tried  and 
recognizes  the  value  of  such  public  utilities,  the  oil  lamp  and  candle 
having  to  a  considerable  extent  been  supplanted  by  the  electric 
light  in  many  urban  centers.  The  establishment  of  American  ma¬ 
chinery,  which  in  many  cases  has  included  entire  plants,  has  in  par¬ 
ticular  opened  up  the  market  to  further  sales  of  American  equip¬ 
ment  for  extensions  and  repair  supplies,  familiarity  having  en¬ 
gendered  confidence  in  American  electrical  manufactures.  It  is 
expected  that  electrical  development  will  continue,  and  the  further 
installation  of  plants  will  depend,  as  usual,  on  the  supporting  ca¬ 
pacity  of  a  given  locality,  which  in  its  turn  is  based  on  commercial 
or  agricultural  development.  It  is  important  to  keep  this  point  in 
mind  while  selling  equipment,  as  in  many  cases  notes  must  be  taken 
for  future  payment,  the  only  guaranty  thereof  being  the  future 
revenue  of  the  utility.  An  estimate  as  to  the  countries  of  origin  of 
electrical  goods  imported  directly  into  Manchuria  at  the  present  time 
may  be  obtained  from  the  section  in  this  handbook  on  “  Imports.*’ 

100020°— 26 - 32 


482 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  electric  light  and  power  plants  now  operated  in  this  consular 
district  are  as  follows: 

Changchun  Electric  Light  Plant,  Changchun,  Kirin,  China. 

Chinchow  Electric  Light  Co.  (Ltd.),  Chinchow,  Shengking  (Fengtien), 
China. 

Fukiatun  Electric  Light  Co.,  Fukiatun,  Shengking,  China. 

Fushun  Collieries  Electric  Plant,  Fushun,  Shengking,  China. 

Hua  Hsin  Electric  Light  Co.,  Liaoyuan,  Shengking,  China. 

Kiaotow  Electric  Light  Plant,  Kiaotow,  Shengking,  China. 

Kungchuling  Electric  Light  Plant,  Kungchuling,  Shengking,  China. 

Liaoyang  Electric  Light  Plant,  Si  Kwan,  Liaoyang,  China. 

Manchurian  Electric  Light  Co.,  Kaiyuan,  Shengking,  China. 

Ming  Sing  Electric  Light  Co.,  Kaiping,  Shengking,  China. 

Mukden  Electric  Plant,  Mukden,  Shengking,  China. 

Mukden  Government  Electric  Light  Works,  Mukden,  China. 

Penki  Electric  Light  Plant,  Penki,  Shengking,  China. 

Pukwang  Electric  Light  Co.,  Changtu,  Shengking,  China. 

Sian  Electric  Light  Co.,  Sian,  Shengking,  China. 

Sifeng  Electric  Light  Co.,  Sifeng,  Shengking,  China. 

Ssupingkai  Electric  Light  Co.,  Ssupingkai,  Shengking,  China. 

Sukiatun  Electric  Light  Plant,  Sukiatunkai,  Shengking,  China. 

Tashikiiao  Electric  Light  Co.,  Tashikiao,  Shengking,  China. 

Three  Eastern  Provinces  Cotton  Mill  Electrical  Plant,  Mukden,  China. 

Tiehling  Electric  Light  &  Power  Co.,  Tiehling,  Shengking,  China. 

Tsienkinchai  Electrical  Plant,  Tsienkinchai,  China. 

Tungliaochen  Electric  Light  Co.,  Tungliaochen,  Shengking,  China. 

Wafangtien  Electric  Light  Co.,  Wafangtien,  Shengking,  China. 

WATERWORKS 

• 

With  the  exception  of  a  small  waterworks  and  sewerage  system 
maintained  by  the  South  Manchuria  Railway  Co.  in  its  settlement 
in  the  city,  there  is  no  water  supply  or  sewerage  system  in  Mukden. 
Artesian  wells  are  used  extensively.  The  Yinkow  Waterworks  & 
Electricity  Co.,  a  Sino- Japanese  concern,  operate  a  water-supply 
system  at  Newchwang.  There  is  also  a  small  waterworks  at  the 
Fushun  Colliery  operated  by  the  South  Manchuria  Railway  Co. 

TRAMWAYS 

There  are  no  electric  tramways  in  the  district.  One  short  horse- 
car  line  is  in  the  city  of  Mukden,  and  it  is  expected  that  this  will 
be  replaced  in  the  near  future  by  an  electric  line  using  modern 
German  equipment  which  has  already  been  received  by  the  municipal 
authorities.  At  the  Fushun  coal  mines,  a  subsidiary  enterprise  of 
the  South  Manchuria  Railway  Co.,  84  miles  of  electric  railway  is 
operated  for  carrying  coal,  sand,  and  passengers;  29  electric  locomo¬ 
tives,  5  passenger  cars,  11  trailers,  329  sand  cars,  and  29  other  cars 
are  used. 

CONSERVANCY  AND  RECLAMATION  WORKS 

The  conservancy  of  the  Liao  River,  in  southeastern  Shengking 
Province,  is  under  the  supervision  of  a  board  composed  of  a  Chinese 
official,  the  foreign  consuls  at  Newchwang,  the  commissioner  of  cus¬ 
toms,  and  representatives  of  Chinese  and  Japanese  chambers  of  com¬ 
merce  at  Newchwang.  Two  engineers  have  charge  of  operations, 
which  are  financed  by  a  customs  surtax  levied  on  goods  exported  and 
imported,  and  by  a  tonnage  tax  on  vessels  calling  at  Newchwang, 


MUKDEN  CONSULAR  DISTRICT 


483 


which  is  at  the  mouth  of  the  river.  The  board  plans  to  increase  these 
taxes  in  the  future  for  the  purpose  of  dredging  the  bar  at  the  mouth 
of  the  river.  If  these  plans  are  successful  it  is  expected  that  ships 
of  deeper  draft  will  be  able  to  call  at  Newchwang,  and  that  the  future 
expansion  of  the  port  will  be  stimulated.  An  American  engineering 
company  recently  secured  a  large  contract  for  dredging  work  planned 
by  the  conservancy  board. 

IMPORT  AND  EXPORT  TRADE 

According  to  the  annual  report  of  the  consulate  general  at  Muk¬ 
den  for  1924,  the  table  below  gives  the  value  of  the  total  foreign 
trade  of  Manchuria,  by  ports,  for  the  years  1913,  1922,  1923,  and 
1924: 


Ports 

1913 

1922 

1923 

1924 

Aigun _ _ _ _ _ 

U.  S.  currency 
$1, 100,  291 
30, 099,  069 

616,  968 

617,  225 

7,  281, 143 

42,  889,  608 
13,  819,  825 

U.  S.  currency 
$1, 089, 186 
41,  343,  502 

1,  209,  789 

2,  754, 140 
44,  508, 983 

132, 064,711 
11,350, 027 

U.  S.  currency 
$168, 155 
35,  473,  086 
1,  261,  355 
4, 136,  427 
56,  566,  603 
150, 070, 164 
13,  044,  662 

TJ.  S.  currency 
$37,  580 
44,  323,  840 
1,  275,  089 
3,  764, 190 
45,540,  211 
164,  255,  831 
12, 030,  562 

Harbin  district _ 

Hunchun  -  .  ....  _ _ 

Lungchingtsun  _ _ _  _ _  .  .  .. 

Antung  _ _  _ _  .  -- 

Dairen  .  _  .  .  _ _ _  .  . 

Newchwang  .  _  ..  .  .  .  . 

Total. _ _  _ _  _ _ _ 

96,  424, 129 

234,  320,  338 

260,  720,  452 

271,  227,  303 

The  following  table  indicates  the  advance  in  value  of  Manchu¬ 
ria’s  foreign  trade,  showing  imports  and  exports  separately  (more 
detailed  figures  for  the  trade  of  1924  are  not  yet  available)  : 


Years 

Imports 

Exports 

1913 _ 

U.  S.  currency 
$47,  069,  915 
99,  363,  743 

TJ.  S.  currency 
$49,  354,  214 
134,  956,  595 

1922  _ 

Years 

Imports 

Exports 

1923 _ 

TJ.  S.  currency 
$99,  383,  487 
102,423,  386 

TJ.  S.  currency 
$161,  336,  965 
168,  803,  917 

1924 _ 

While  Dairen  and  Antung  are  not  in  the  Mukden  consular  dis¬ 
trict,  the  greater  part  of  the  merchandise  imported  and  exported 
through  those  ports  finds  a  market  or  originates  in  Shengking 
(Fengtien)  and  Kirin  Provinces.  It  is  therefore  necessary  to  ana¬ 
lyze  figures  for  those  ports  in  making  a  commercial  survey  of  the 
district.  The  total  trade  of  South  Manchuria  has  increased  sharply 
during  recent  years.  Exports  from  the  three  ports  in  1923  amounted 
to  $184,591,630,  United  States  currency,  and  imports  amounted  to 
$135,861,999.  The  trade  of  Newchwang  did  not  show  a  normal  ex¬ 
pansion  in  comparison  with  the  newer  ports  of  Dairen  and  Antung, 
which  have  direct  communication  with  the  South  Manchuria  Rail¬ 
way.  The  trade  of  Newchwang  has  gradually  increased,  however, 
because  of  its  favorable  situation  at  the  month  of  the  Liao  River, 
the  great  natural  means  of  transportation  in  South  Manchuria,  and 
further  development  of  the  port  is  expected. 

The  table  below  shows  exports  during  1913  and  1923  through  the 
three  ports  of  Newchwang,  Dairen,  and  Antung.  The  figures  for 


484 


COMMERCIAL  HANDBOOK  OF  CHINA 


1904  are  for  Newchwang  only,  because,  at  that  time,  Dairen  and 
Antung  were  not  developed  as  commercial  ports  : 


[Value  in  haikwan  taels;  exchange  value  of  tael:  1904,  $0,698  United  States  currency;  1913,  $0.7295;  1923, 

$0.8231] 


Products 


Bean  cake . 

Beans _ _ _ 

Bristles _ 

Coal _ 

Horsehair _ _ 

Iron,  pig - - - - 

Oil,  bean . . . . . . 

Oils,  vegetable _ 

Seeds,  hemp,  sesame,  etc.... 
Silk,  raw,  and  silk  products. 
Skins,  furs,  and  hides . 


lvalue  . 
f  piculs 
\value  - 


lvalue  - 
f  piculs . 
lvalue. 


I  I  '  *  — 

X value  - 


/piculs. 


1904 

1913 

1923 

1, 986, 172 

13,  243,  222 

25,  770,  523 

3,  726,  485 

28,  702,  280 

61,  378,  656 

1,  827,  369 

3,  944,  833 

14,  563,  338 

4,  461,  044 

10,  844,  960 

44,  949,  243 

208 

3,  296 

5,516 

11,  885 

273,  075 

1,  451, 178 
6,  530,  590 
2,242 

418,  674 
2,  638,  316 
17,  498,  371 
3, 886 

128 

64,  899 

140, 823 
1,  475,  743 
2, 945, 193 
1,  952, 844 

74, 104 

695, 108 

582,  459 

5, 186,  768 
15,  295 
127,  240 
437,  526 

15,  795, 932 
31,  725 
269,  206 
997,  571 

20, 160 

155,  839 

1,  427,  427 

4,  839,  684 

12,  806 

199,  514 

118,  755 

2, 008,  310 

5, 994, 150 

19,  673, 042 

-- 

36,  714 

350,  201 

619,  230 

Exports  of  soy  beans,  bean  cake,  and  bean  oil  have  shown  the 
greatest  increases.  Iron  and  coal  have  been  mined  with  modern 
machinery  during  recent  years — this  fact  accounting  for  their 
sudden  appearance  on  the  export  list.  The  great  increase  in  value 
of  silk  is  a  noteworthy  feature.  The  exports  of  Manchurian  raw 
products  have  in  general  shown  a  remarkable  increase,  due,  in  part, 
to  the  foreign  traders  who  are  gradually  extending  their  activities 
in  the  district. 

The  following  table  shows,  for  1923,  the  estimated  percentages 
of  the  three  principal  exports  going  to  the  destinations  indicated : 


Articles 

Japan 

Great 

Britain 

Hong¬ 

kong 

Germany 

Dutch 

East 

Indies 

United 

States 

Bean  cake _ _ 

Per  cent 
81.00 
.31 
58.  00 

Per  cent 
0. 05 
30.  30 

2.  80 

Per  cent 

Per  cent 

Per  cent 

Per  cent 
0.5 
18.3 
.07 

Bean  oil _  _ 

0.7 

2.0 

4.  40 
.66 

Beans _ 

9.2 

Except  for  bean  products,  there  are  no  customs  statistics  showing 
the  ultimate  foreign  disposition  of  exports  from  the  district.  It  is 
estimated  that  98  per  cent  of  the  pig  iron  goes  to  iron  works  in 
Japan.  Coal  is  exported  to  Japan,  Korea,  French  Indo-China,  the 
Straits  Settlements,  the  Philippine  Islands,  and  ports  in  North  and 
South  China.  A  large  percentage  of  the  bristles  and  horsehair 
finds  a  market  in  the  United  States  through  direct  shipment  via 
England.  Shipments  of  vegetable  oils  to  the  United  States  are 
also  large.  The  following  “  declared  export  ”  figures  show  the 


MUKDEN  CONSULAR  DISTRICT 


485 


products  appearing  on  invoices  certified  in  the  Mukden  district  for 
shipment  to  the  United  States  during  1922  and  1923 : 


Articles 

1922 

1923 

Quantity 

Value 

Quantity 

Value 

Furs,  undressed: 

Fox _ _ _ _ - . pieces. . 

Kid  . ... .  . . . do.  .. 

7,538 
16,  378 

U.  S. 
currency 
$28,  749 
7, 070 

4,  626 

U.  S. 
currency 
$55, 465 

Lynx  ..  _ _ .  ..  .  _  _ do _ 

105 
8,  748 
3,  982 
238 
669 

1,  200 
20,  400 
82, 023 
335 

85,  731 
129,  782 
19 

5,897 
197,  720 
366,  813 

1,919 
7, 054 
1,334 
1,490 
53,  918 
997 
23,  638 
204,  299 
2, 099 

211,294 
257,  402 
360 

4,  733 
158,  419 
525,  423 
657 

Marmot . .  .  .  _  _ _  .  _ do  ... 

Rabbit.  _  .  .  _ _  _  _  ..do _ 

Raccoon.. _  _  .  _ ... _ ....  do _ 

Sable...  _  .  ..  _ _  _  .....  do _ 

Sheep  (dry)  ...  ...  _ do  . 

1,  668 
115 
1,284 
403 

416 
27 
6,  809 
29, 928 

Squirrel..'. _  _  .  ....  _  _  ...  do _ 

Weasel  (kolinsky)  .  ......  _  _  do _ 

Wolf _ _ _ _ _ do.... 

Furs,  dressed: 

Dog  mats _ do _ 

Moufflon  (goat) . . . . . do _ 

Sable ..  .  . .  ..  .  _ _ do 

181,  418 
146, 047 
315 

112, 185 
65,  352 

198,  439 
299,  300 
2,  212 

173, 375 
105,  474 

Wool  and  hair: 

Goat  hair _ _ _  ..pounds. 

Horsehair _  .  .  ...  . . ..!.  do _ 

Bristles _ _  ...  ...  .  .  do _ 

Miscellaneous  _ _ _ _ _  _  .  _ _ _ _ 

169,  671 
525, 120 

119,  772 
754,  376 
445 

Total _ _ _  _  _ _  _ 

1,  726,  392 

1,  510,  501 

Exports  from  the  district  to  the  United  States  may  be  better  under¬ 
stood  by  taking  into  consideration  the  following  figures.  The  total 
declared  exports  to  the  United  States  from  the  whole  of  Manchuria 
amounted  to  $12,004,477  United  States  currency  during  1923.  Of 
this  amount,  exports  from  the  three  southern  ports  of  Mukden, 
Dairen,  and  Antung  amounted  to  $5,792,843.  Considering  only  im¬ 
portant  products,  the  figures  for  Dairen  show  the  following  declared 
exports  to  the  United  States  for  the  same  period:  Soy-bean  oil, 
44,713,226  pounds,  valued  at  $2,967,986;  soy-bean  cake,  26,008,790 
pounds,  or  $457,977;  raw  silk,  78,040  pounds,  or  $265,716;  perilla 
oil,  2,052,195  pounds,  or  $249,386;  peanut  oil,  1,632,015  pounds, 
or  $139,635;  millet,  2,843,152  pounds,  or  $58,244;  hempseed  1,758,- 
338  pounds,  or  $41,008.  The  figures  for  Dairen  taken  in  conjunc¬ 
tion  with  the  above  declared  exports  from  Mukden  give  an  ap¬ 
proximate  estimate  of  shipments  to  the  United  States,  as  the  bulk 
of  these  goods  originated  in  the  Mukden  district,  although  these 
figures  should  be  modified  somewhat  because  of  shipments  from 
the  Harbin  district  through  Dairen.  Large  volumes  of  furs  and 
•skins  from  the  Harbin  district  make  up  a  part  of  the  Manchurian 
•exports  to  the  United  States.  There  is,  however,  a  considerable 
indirect  export  trade  to  the  United  States  which  passes  through 
ports  of  transshipment  such  as  Kobe  and  Shanghai,  which  does  not 
appear  on  the  declared-exports  returns  of  consulates  in  Manchuria, 
and  which  is  not  included  in  the  above  estimates. 

The  table  following  shows  the  principal  imports  from  foreign 
countries — the  figures  for  1904  applying  to  Newchwang  only,  while 
those  for  1913  and  1923  include  Dairen,  Antung,  and  Newchwang. 


486 


COMMERCIAL  HANDBOOK  OF  CHINA 


[Values  in  haikwan  taels] 


Products 


Bags,  all  kinds . . . 

Cotton  piece  goods: 

Shirtings,  gray,  plain . 

Sheetings,  gray,  plain.. . . 

Shirtings,  white,  plain - - 

Shirtings,  white,  figured - - 

Drills. . . 

Jeans . . . . . . . — 

T  cloths . 

Cambrics,  lawns,  and  muslins,  white,  dyed,  and 
printed . . . . . . 

Lenos  and  balzarines,  white,  dyed,  and  printed.. 

Plain  cotton  prints  and  chintzes _ _ 

Fancy  muslins . . . . . . 

Art  muslins  and  cretonnes,  unenumerated . 

Printed  drills,  furnitures,  and  twills . . . 

Printed  crPpe . . 

Printed  sateens,  reps,  etc . 

Turkey  red  cottons  and  dyed  T  cloths . 

Dyed  cottons,  plain,  fast  black,  colored,  and  fig¬ 
ured— Italians,  Venetians,  poplins,  lastings, 
and  crfipe . . . 


1904 


1913 


1923 


pieces. . 
.value .. 


2, 997,  700 
288,  871 


12,  215,  465 
1,  484,  582 


23,  629, 142 
4,  259,  567 


(pieces -- 
lvalue-- 
pieces.. 
value.. 
pieces.. 
value ._ 
pieces .. 
value. . 
pieces.  . 
value. . 
pieces. . 
value.  _ 
pieces., 
value.. 
(pieces. . 
/value ._ 


150,  742 
453, 246 
1, 148,  884 
3, 969,  326 
77,  790 
306, 031 
60 
330 
454,711 
1, 743,  334 
139,  480 
391,  773 
4, 125 
6,110 
2, 182 
1, 930 


363,  958 
1, 132,  855 
2,  262,  763 
5,  655,  275 
345,  555 
1,  469,  738 
3,  488 
16,  987 
458,  702 
1,  749,  522 
496,  800 
1,  496,  667 
38,  244 
69,  559 
29,  517 
33,563 
751 
1,313 
6, 172 
19, 078 


848,  278 
5,  588,  230 
221, 139 
1,  245,  625 
293,  461 
2, 036,  924 
11,  613 
96,  764 
180, 895 
1, 020, 974 
1, 094,  320 
5,  215, 410 
49,  556 
197,  663 
74,  765 
169, 129 
1, 166 
7,  930 
83,  269 
769, 192 
3, 163 
1,017 
250, 840 
50, 427 

1,  671 
11, 954 

640 
3,  621 

2,  697 
24,  249 

170, 157 
633,  763 


/pieces . 
/ value . 
(pieces, 
lvalue . 
(pieces. 
l value . 
(pieces . 
lvalue., 
(pieces, 
/value - 
(pieces- 
/value. 

!  pieces, 
value  . 
pieces, 
value. . 


7, 881 
28, 030 


.  555 
1,082 


6,  649 
15,  774 


1,441 
2,  782 


528 
1,728 
30,  422 
66,  832 


pieces. . 
value.  . 


106, 805  194,  579 

547, 651  1, 044,  631 


973,  338 
6, 261,  445 


Shirtings,  dyed,  plain . . . . . 

Shirtings,  Hongkong-dyed,  plain,  and  shirtings, 
dyed,  figured,  brocaded,  and  spotted . 

Flannelettes . . . 

Fancy  woven  cottons . . . . . 

Japanese  cotton  cloth . . . . 

Velvets  and  velveteens . . 

Crimps  and  crfpons . . 

Japanese  cotton  crfipe. . . 

Cotton  blankets . . . . 

Cotton  handkerchiefs . 

Cotton  towels . 

Cotton  goods,  unenumerated. . . 

Do . 


(pieces. . 
lvalue. . 
(pieces. . 
lvalue.  . 
/pieces.. 
Ivalue.. 
(yards.. 
'/value., 
(yards., 
'/value., 
/yards.. 
Ivalue.. 
/yards.. 
'  lvalue  .. 
(yards.. 
' /value .. 
(pieces., 
lvalue. _ 
/dozens . 
/value., 
(dozens. 
'\value.. 
(yards.. 
'lvalue., 
(piculs., 
/value. . 


3, 752 
14, 445 
2, 042 
8, 018 
45,  848 
168,  830 
11, 184 
1,  358 


209, 171 
58,  868 


202,  435 
117,  622 
33, 184 
14,  825 
172,  750 
73,  809 


10,  649 


6,  808 
27,  643 
480 
1,373 
54, 102 
181,  726 
321,  709 
26,  664 
9, 158,  554 
525, 197 
571,813 
164, 157 


460,  637 
207, 133 
96,  621 
25, 850 
394,  546 
168,  991 
58,  428,  716 
3, 025,  399 


Cotton  yarn . . 

Cotton  yarn,  gassed,  dyed,  or  mercerized 


/piculs. . 
lvalue .. 
piculs. . 
value.  . 


156, 320 
3, 946, 074 


133,  302 
3,  465,  544 


Cotton  thread,  balls  and  spools . . 

Dyes,  paints,  and  colors _ . . 

Electrical  material  and  fittings ...  _ 

(piculs., 
/value  __ 

. . value.. 

_ do _ 

25,  444 
66,  000 
144,  597 

Flour,  wheat.  . . .  . . .  .. 

Iron  and  steel  manufactures . . 

Kerosene  and  lubricating  oil . . . 

Locomotives  and  tenders _  .  _ 

(piculs.. 
/  value  __ 
(tons... 
lvalue., 
/gallons., 
/value _ 

77,  969 
292,  380 
2,845 
430, 465 
4,  762,  640 
937,  542 

Machinery  and  tools...  .  _  .  . 

Medicines  and  chemical  products _ _ 

_ do.  _ 

5, 952 

Paper  and  cardboard _ *. . . . . 

103,  741 
266,  830 
1,  388,  775 
333,  342 
768,  055 
3,  018,  616 
34,  290 
1,  821, 976 
18, 190,  220 
2, 388,  419 
64,  984 
647,  301 
467,  376 
675,  575 


44,817 
168,  570 


87,  807 
565,  435 


40,  790,  714 
3,  410,  781 
720,  731 
416,  884 
97,  525 
31, 422 
313,  775 
38, 112 
113, 167 
112,240 
119,  934 
69,  757 
46,  679 
51,  781 
1, 848,  612 
343, 801 
1,088 
61, 173 
115,  635 
5,  581,  380 
10,  499 
703, 752 
243,  385 
376,  727 
2,  732,  226 
1, 923, 975 
1,  212,  662 

5,  763, 113 

87, 498; 

6,  725,  542 
16, 033,  281 

5,  490,  472 
658,  818 
4, 028, 966 

1,  216,  307 

2,  330,  658 


MUKDEN  CONSULAR  DISTRICT 


487 


[Value  in  hailtwan  taels] 


Products 

1904 

1913 

1923 

Railway  materials  not  otherwise  classified _ 

_ value.. 

1,  250,  597 
432,  677 
511,  298 
4, 019,  962 
7, 035,  354 

133,  478 
6, 276 
126,  299 
10, 098 
102, 996 

1,  856, 171 

Railway  cars _  _ 

_ do _ 

116,  698 
365,  739 
1, 852,  731 

1, 198,  210 

9,  851 

Sugar . . . 

Tobacco,  cigars,  and  cigarettes . .  ...  .  .. 

Vehicles: 

Automobiles _  __ 

[piculs.. 

. [value  __ 

_ value.. 

_ _ do _ 

233,  469 

1, 093,  232 
497,  225 

Motor  cycles . . . .. . 

.  ..  .do..  . 

Bicycles,  velocipedes,  etc  _  _ _ 

_  do.. 

46, 152 

Traction  and  road  engines .  . 

__do 

Other  vehieles 

do 

106,511 

386,  797 

Woolen  goods,  blankets  and  rugs,  broadcloth,  suitings,  flan¬ 
nel,  etc . . . . . . .  . value.. 

205,  379 

The  above  figures  are  for  important  products  imported  from 
foreign  countries.  The  total  foreign  imports  through  the  three 
ports  during  1923  amounted  to  119,381,893  haikwan  taels,  or  $98,263,- 
236,  United  States  currency.  Imports  from  Chinese  ports  were 
valued  at  45,679,460  taels,  making  a  grand  total  of  165,065,353  taels. 

During  1923  Chinese  cotton  products,  chiefly  sheeting  and  yarn, 
imported  through  Dairen  from  Chinese  ports  and  forwarded  to 
the  interior  by  railway  amounted  to  3,343,421  haikwan  taels. 
Similar  imports  through  Newell wang  and  Antung  had  a  value  of 
12,734,365  and  184,403  taels,  respectively,  giving  a  total  of  16,262,- 
209  haikwan  taels,  or  approximately  31  per  cent  of  cotton  imports 
into  the  district  through  the  southern  ports  of  Manchuria.  Points 
of  origin  of  cotton  products  imported  are  estimated  to  be  as  follows : 
Chinese  manufactures  from  other  parts  of  China,  31  per  cent; 
English  and  Indian  manufactures,  4  per  cent;  Japanese  manufac¬ 
tures,  64  per  cent;  from  the  United  States,  1  per  cent. 

The  most  noteworthy  feature  in  connection  with  cotton  imports 
is  the  steadily  increasing  volume  of  Chinese  manufactures,  which  are 
in  part  supplanting  cotton  goods  from  adjacent  countries. 

Other  important  Chinese  manufactures  imported  during  1923  were 
soap,  beer,  paper,  matches,  biscuits,  cement,  and  candles. 

As  regards  foreign  products,  5,201,897  gallons  of  American 
kerosene  were  imported  through  Newchwang  during  1923,  and 
8,393,363  gallons  were  imported  into  the  interior  through  Dairen. 
Adding  722,330  gallons  from  Antung,  one  finds  that  imports  of 
kerosene  from  the  United  States  formed  approximately  89  per  cent 
of  the  total  imports  of  that  commodity  through  the  three  ports.  It  is 
estimated  that  more  than  90  per  cent  of  the  flour  originated  in  the 
United  States  and  Canada,  and  the  bulk  of  the  tobacco  came  from 
the  United  States.  A  large  percentage  of  the  imported  railway 
materials,  electrical  equipment,  iron  and  steel  products,  and 
machinery  came  from  the  United  States,  Great  Britain,  Germany, 
and  Japan.  Imports  of  woolen  goods  from  the  United  States  were 
small.  Practically  all  bags  (chiefly  gunny  sacks  for  beans)  were 
imported  from  British  India  and  Japan. 

Through  careful  cultivation,  American  dealers  in  kerosene,  electri¬ 
cal  machinery,  plumbing  supplies,  railway  materials,  agricultural 
machinery,  roofing,  construction  materials,  etc.,  have  built*  up  a 
substantial  trade  in  this  market.  Persistence  and  the  ability  to 
appreciate  the  increasing  demand  in  China  for  foreign  products 


488 


COMMERCIAL  HANDBOOK  OF  CHINA 


were  the  reasons  behind  this  success.  Competition  is  keen  in  nearly 
all  lines.  European  manufacturers  are  making  a  strong  attempt 
to  extend  sales  in  the  district  through  exceptionally  long  credits — 
often  from  three  to  four  months — and  through  intensive  sales  pro¬ 
grams. 

In  cotton  and  woolen  textiles,  the  low  scale  of  living  of  the  natives 
demands  products  of  rather  cheap  grade.  As  large  quantities  of 
such  articles  are  produced  in  adjacent  countries,  American  manu¬ 
facturers  should  cultivate  the  market  with  this  point  in  mind. 

It  is  believed  that  manufacturers  should  send  representatives  to 
go  over  the  field,  establish  personal  connections,  determine  the 
suitability  of  their  products,  and  convince  themselves  that  American 
products  may  be  sold  in  Manchuria. 

INTERNAL  TAXES  * 

Foreign  goods  which  have  paid  import  duty  at  the  port  of  entry 
and  are  intended  for  transshipment  to  ports  open  to  foreign  trade 
in  Manchuria  are  entitled  to  an  exemption  certificate  which  pro¬ 
tects  them  from  further  taxation  en  route  or  at  the  point  of  desti¬ 
nation.  If  the  goods  are  intended  for  transshipment  to  the  inte¬ 
rior — that  is,  to  places  not  a  treaty  mart — the  owner  has  the  option 
of  paying  the  inland  taxes  or  u  likin  ”  en  route,  or  of  paying  half 
the  import  duty  additional,  not  exceeding  a  nominal  2 y2  per  cent 
ad  valorem,  and  obtaining  a  “  transit  pass.”  This  certificate  exempts 
the  goods  from  all  further  inland  charges  and  is  widely  used  by 
foreign  companies.  Goods  imported  into  Manchuria  from  or 
through  Chosen  (Korea),  by  rail  via  Antung,  and  exported  from 
Manchuria  to  or  through  Chosen  by  rail  via  Antung,  are  entitled  to 
one-third  duty  reduction.  The  transit  dues  on  goods  coming  under 
the  one-third  duty  reduction  privilege  and  conveyed  to  the  interior  of 
Manchuria  are  one-third  the  customs  duty — that  is,  one-half  of  the 
import  duty  paid. 

MONEY,  BANKING,  AND  CREDIT 

BANKS 

Following  is  a  list  of  the  leading  banks  in  the  Mukden  consular 
district  that  handle  foreign  exchange  and  bills : 


Name  of  bank 

Na¬ 

tionality 

Capital 

4 

Head 

office 

Branches 

Yokohama  Specie  Bank. 

Japanese.. 

100,000,000  yen _ 

Yokohama. 

Mukden,  Newchwang,  Chang¬ 
chun,  Kaiyuan. 

Bank  of  China . 

Chinese... 

$60,000,000  silver... 

Peking  ... 

Mukden,  Changchun,  Kirin, 
Newchwang,  Taonan,  Tung- 
huag,  Liaoyuan,  Kungchu- 
ling,  Kaiyuan. 

Bank  of  Chosen  .. _ 

Japanese.. 

80,000,000  yen... 

Seoul _ 

Mukden,  Newchwang,  Chang¬ 
chun,  Liaoyang,  Lungching- 
tsun,  Kirin,  Tiehling,  Cheng- 
chiatun  Ssupingkai,  Fuchia- 
tun. 

Russo- Asiatic  Bank.  ... 

35,000,000  rubles... 

Paris _ 

Newchwang,  Changchun. 

MUKDEN  CONSULAR  DISTRICT 


489 


LOCAL  CURRENCY 

The  local  currency  consists  of  Yuan  silver  dollars,  Bank  of 
Chosen  gold  notes,  Yokohama  Specie  Bank  silver  notes,  Fengtien 
paper  currency  (Kung  Tsi  Bank  notes),  Bank  of  Communications 
notes,  Bank  oi  China  notes,  and  notes  of  the  Bank  of  Manchuria. 
The  Yuan  dollar  normally  exchanges  for  about  $0.50  United  States 
currency.  Bank  of  Chosen  gold  notes  are  redeemable  in  Japanese 
gold  yen  or  notes  of  the  Bank  of  Japan  and  usually  follow  the 
exchange  value  of  Japanese  gold  yen.  The  Yokohama  Specie  Bank 
silver  notes  are  payable  in  Japanese  silver  yen.  In  addition,  there 
are  subsidiary  copper  and  silver  coins. 

Fengtien  paper  notes  form  the  medium  of  exchange  for  nearly 
all  native  business  transactions  and  are  issued  at  Mukden  by  the 
Kung  Tsi  Bank  (a  subsidiary  of  the  Bank  of  Manchuria),  being 
guaranteed  by  the  local  authorities.  They  have  a  normal  exchange 
value  of  approximately  $0.35  United  States  currency.  The  notes 
are  issued  in  denominations  of  100,  50,  20,  and  10  coppers, 
being  on  a  copper  basis.  They  are  known  as*  “feng  p’iao,”  having 
replaced  to  a  great  extent  the  former  feng  p’iao  silver  notes. 

Notes  issued  by  the  other  Chinese  banks  mentioned  are  referred 
to  as  “  big  money  currency  ”  and  have  a  fixed  value  with  the  Kung 
Tsi  Bank  notes,  $1  being  converted  at  1.20  feng  p’iao.  These  notes 
are  also  in  general  criculation. 

Bank  of  Chosen  gold  yen  notes  are  legal  tender  in  the  South 
Manchuria  Railway  zone.  The  amount  of  these  notes  in  circula¬ 
tion  throughout  Manchuria  is  very  large,  a  total  of  110,000,000  yen 
being  issued  by  the  bank  for  circulation  in  Korea  and  Manchuria. 

CREDITS 

Local  credit  conditions,  as  related  to  direct  trade  with  the  United 
States,  do  not  differ  greatly  from  American  business  procedure. 
Imports  are  usually  handled  through  one  of  the  local  exchange 
banks,  goods  being  shipped  for  delivery  against  payment,  or  accept¬ 
ance  of  drafts  drawn  for  payment  at  sight,  or  in  30,  60,  or  90 
days,  quoting  prices  c.  i.  f.  Dairen,  Newchwang,  or  Mukden.  The 
customary  period  of  credit  is  from  60  to  90  days  after  acceptance 
of  draft,  making  the  terms  comparatively  long.  Very  long  terms 
are  generally  demanded  by  native  buyers  from  the  local  traders, 
necessitating  in  many  cases  a  slight  extension  of  terms  by  the 
manufacturer  or  jobber  in  the  United  States.  It  is  suggested  that 
payment  within  a  period  of  30  days  should  not  be  insisted  upon 
when  the  standing  of  the  firm  is  believed  to  be  beyond  question. 

Exports  are  usually  made  against  a  letter  of  credit  handled 
through  one  of  the  local  foreign-exchange  banks,  a  draft  being 
drawn  when  documents  are  handed  to  the  bank.  It  is  believed  that 
American  firms  should  not  demand  confirmed  bankers’  credits.  There 
is  a  sentiment  in  Manchuria  against  this  form  of  financing,  and,  in 
addition,  the  Japanese  banks,  with  which  many  firms  deal,  do  not 
open  such  credits.  Until  such  time  as  there  are  American  or  Eu¬ 
ropean  banks  in  Mukden  and  Newchwang,  whereby  financial  transac¬ 
tions  with  the  United  States  may  be  facilitated,  great  care  should  be 
taken  to  arrange  terms  which  local  importers  and  exporters  find  it 
convenient  to  meet, 


490 


COMMERCIAL,  HANDBOOK  OF  CHINA 


TRADE  ORGANIZATIONS 

Trade  organizations  and  addresses  in  the  district  are  as  follows  (in 
correspondence  streets  and  numbers  are  not  necessary)  : 

American  Association  of  Mukden,  China  (although  not  strictly  commer¬ 
cial,  trade  matters  are  facilitated). 

Newchwang  Chamber  of  Commerce,  Newcliwang,  China  (international). 

British  Chambers  of  Commerce,  Mukden  and  Newchwang. 

Japanese  Chambers  of  Commerce,  Mukden,  Newchwang,  Tiehling,  and 
Newchwang. 

Chinese  chambers  of  commerce,  Mukden  (as  there  are  several  Chinese 
chambers  at  Mukden  it  is  advisable  to  address  correspondence  to  the 
Mukden  General  Chamber  of  Commerce,  South  of  Bell  Tower,  Mukden), 
Tiehling,  Liaoyang,  Fakumen,  Hsinmin,  Liaoyuan,  and  Taonan,  China. 

In  addition  to  the  organiaztions  given  above,  which  are  at  points 
where  foreigners  may  reside  for  purposes  of  trade,  there  are  65 
Chinese  chambers  of  commerce  at  cities  and  towns  in  Shengking 
(Fengtien)  Province  and  several  others  in  Kirin  Province  within 
the  Mukden  consular  (Jistrict,  a  list  of  which  may  be  obtained  from 
the  Mukden  consulate  general.  The  Chinese  chambers  exert  con¬ 
siderable  influence  over  the  commercial  and  political  affairs  of  their 
districts. 

PROPERTY  VALUES  AND  RENTS 

Within  the  section  set  aside  for  the  use  of  foreigners  in  Mukden 
and  Newchwang  there  are  no  office  buildings  built  especially  for  the 
purpose.  Foreign  firms  in  these  sections  either  rent  dwelling  houses 
which  are  adaptable  as  offices  or  construct  suitable  buildings  on  per¬ 
petual-lease  property.  Rents  for  medium-size,  eight-room,  foreign- 
style  houses  in  Mukden  range  from  $75  to  $100  gold  per  month. 
Small  compounds  containing  three  or  four  small  Chinese-style  houses 
usually  rent  for  about  $75  gold  per  month.  Warehouse  space  in 
Chinese  buildings  costs  approximately  $4  gold  per  chien  (1  chien 
equals  about  150  square  feet)  for  one  month.  If  a  firm  desiring  to 
establish  a  branch  in  Mukden  finds  such  facilities  impracticable,  or 
if  a  larger  building  is  desired  on  a  rental  basis,  it  should  be  able  to 
arrange  for  the  construction  of  quarters  which  would  be  suitable  for 
offices.  If  a  long  lease  is  taken,  the  office  might  be  planned  according 
to  the  special  requirements  of  the  firm.  A  building  built  on  this 
plan  with  about  2,500  square  feet  floor  space,  about  an  acre  of  ground, 
and  suitable  warehouse  space,  would  rent  for  approximately  $200 
gold  per  month.  Large  Chinese-style  houses  are  also  occasionally 
available  at  the  same  figure. 

Perpetual-lease  property  in  Mukden  varies  in  price  from  $1,200 
to  $1,500  gold  per  mow  (one-sixth  of  an  acre).  The  taxes  on  such 
property  are  nominal,  amounting  to  $1  gold  per  mow  a  year.  There 
are  no  other  Chinese  property  taxes  to  which  foreign  firms  are 
subject. 

Firms  may  secure  from  the  consulate  general  at  Mukden  the  names 
of  real  estate  and  property  owners,  with  whom  preliminary  dealings 
may  be  had.  It  is  desirable,  however,  to  have  a  representative  of  the 
firm  make  local  investigations  before  property  is  rented  or  purchased. 


MUKDEN  CONSULAR  DISTRICT 


491 


LIVING  COSTS 

The  following  statement  indicates  ordinary  living  costs  in  this 
consular  district : 

[Figures  in  United  States  currency] 


Hotel 
board 
and  room 
per 

month 

Boarding 

houses 

(“pen¬ 

sions”) 

House 

rent 

Estimated 

necessary 

living 

expenses 

Single  man _  __ _ _ 

$138 

$88 

$75 

$100  to  $250 

Single  woman . . . .  .  ... 

138 

88 

75 

100  to  250 

Married  couple _  _ 

226 

160 

85 

250  to  350 

The  above  hotel  rates  are  based  on  the  charges  of  the  South 
Manchuria  Railway  hotel  at  Mukden,  figuring  the  yen  at  $0.42 
United  States.  Under  normal  exchange  ($0.49  United  States)  rates 
would  be  somewhat  higher.  Transportation  is  usually  by  rickshaw 
or  carriage.  Rickshaw  hire  is  about  $0.20  United  States  currency  per 
hour  and  carriage  hire  about  three  times  this  amount.  Motor  hire 
is  approximately  $3  per  hour. 

Most  established  commercial  units  have  “  messes  ”  for  single  men 
whereby  rent,  food,  servant  costs,  coal,  light,  etc.,  are  minimized 
and  living  is  made  more  economical  than  in  hotels  or  boarding 
houses.  It  is  estimated  that  a  “  mess  ”  composed  of  a  group  of  five 
persons  should  not  cost  each  individual  more  than  $80  United 
States  currency  per  month.  There  are  foreign-style  houses,  avail¬ 
able  for  married  couples  with  children,  which  should  cost  not  more 
than  $250  United  States  currency  per  month  for  rent  and  subsis¬ 
tence,  and  many  houses  may  be  maintained  on  a  less  expensive  basis. 
The  above -figures  are  exclusive  of  entertainment  expenses. 

Lack  of  educational  facilities  in  the  district  necessitates  home  in¬ 
struction  or  the  services  of  a  governess,  although  it  is  possible  that 
an  international  school  for  foreign  children  may  be  established. 
The  plan  is  now  under  consideration  by  the  members  of  the  foreign 
community. 

There  is  an  international  club  in  Mukden  which  provides  recre¬ 
ational  facilities.  The  initiation  fee  is  $25  United  States  currency, 
with  monthly  dues  of  $6.  There  are  no  serious  difficulties  in  con¬ 
nection  with  living  conditions  in  Mukden  which  would  prohibit  the 
carrying  on  of  business  under  favorable  circumstances. 


SHANGHAI  CONSULAR  DISTRICT 


By  Consul  General  Edwin  S.  Cunningham 

LOCATION  AND  AREA 

The  Shanghai  consular  district  comprises  all  of  Chekiang 
Province  and  that  part  of  Kiangsu  Province  south  of  the  Yangtze 
River,  except  two  prefectures  and  the  island  of  Tsungming.  It  lies 
between  118°  and  122°  east  longitude  and  between  27°  and  31° 
north  latitude — corresponding  roughly  to  the  position  of  southern 
Louisiana.  The  total  area  of  the  district  is  approximately  49,537 
square  miles,  a  little  more  than  that  of  New  York. 

The  average  temperature  throughout  the  district  is  around  62°  F., 
with  a  variation  of  from  10°  to  15°  in  winter  and  with  the  ther¬ 
mometer  ascending  as  high  as  105°  F.  in  summer.  Seasonal  changes 
are  very  abrupt,  there  being  but  little  spring  and  autumn.  The 
rainfall  averages  51  inches  per  annum  and  is  fairly  evenly  dis¬ 
tributed.  In  general,  the  climate  is  humid  but  healthful. 

POPULATION 

The  Chinese  Maritime  Customs  estimates  the  population  of  the 
Shanghai  consular  district  at  about  25,000,000,  in  which  are  included 
about  30,000  Japanese  and  15,000  foreigners  of  other  nationalities. 
The  estimated  number  of  Americans  is  3,718,  of  whom  522  are  at 
outports  or  in  the  interior.  There  are  164  American  firms  registered 
with  the  consulate  general  at  Shanghai  and  probably  20  more 
not  registered.  In  the  outports  the  only  American  firms  are  the 
large  tobacco  and  oil  companies,  whose  branches  and  agencies  are 
to  be  found  throughout  China,  and  the  agents  of  certain  large  export 
houses. 

CITIES 

The  population  of  Shanghai  is  1,500,000.  Four  other  treaty  ports 
in  the  district,  in  which  foreigners  reside  and  carry  on  trade,  are 
Hangchow,  population  600,000;  Soochow,  500,000;  Ningpo,  465,000; 
and  Wenchow,  100,000.  There  are  several  cities  of  considerable 
importance  not  yet  opened  to  foreign  trade,  among  these  being 
Wusih  and  Nansiang,  both  in  the  same  district. 

Hangchow  and  Soochow  are  important  silk  centers  and  of  con¬ 
siderable  value  in  the  tea  trade.  Ningpo  exports  a  great  deal  of  tea 
and  is  an  important  market  for  fish.  Hangchow  and  Ningpo  divide 
between  them  practically  all  the  foreign  imports  which  reach 
Chekiang  Province,  except  a  small  amount  which  passes  through 
Wenchow,  a  port  once  well  known  in  the  green-tea  trade,  but  which 
in  recent  years  has  lost  its  importance. 

492 


SHANGHAI  CONSULAR  DISTRICT 


493 


AGRICULTURE  AND  FISHING 

With  the  exception  of  the  city  of  Shanghai  itself,  agriculture  is  the 
principal  interest  of  the  people  of  the  district.  The  dense  popula¬ 
tion — about  450  persons  to  the  square  mile — compels  intense  cultiva¬ 
tion  of  every  foot  of  the  ground.  In  order  of  their  importance  the 
principal  crops  are  rice,  beans,  cotton,  seeds,  wheat,  tea,  silk,  and 
vegetables  (of  which  cabbage  is  the  one  principally  cultivated). 
There  are  no  figures  by  which  to  estimate  the  annual  agricultural 
production  of  the  district,  but  it  is  very  nearly  sufficient  to  support 
the  immense  population.  There  is  also  a  large  animal  industry, 
which  produces  pork,  poultry,  and  a  certain  amount  of  water-buffalo 
beef.  Foreign  cattle  have  been  introduced  but  not  extensively  raised. 

Fishing  is  a  universal  industry.  The  coast  line  is  intensively 
worked,  deep-sea  fishing  employs  thousands,  and  the  rivers  and 
canals  which  cover  the  district  like  a  network  produce  immense 
quantities  of  food  fish. 

MINERALS  AND  MINING 

There  are  minerals  in  the  district,  but  the  deposits  discovered 
so  far  have  been  in  the  nature  of  placer  “  pockets,”  of  no  commercial 
importance. 

MANUFACTURING 1 

Shanghai,  because  of  its  central  location  and  position  as  China’s 
premier  shipping  port,  has  drawn  to  itself  a  great  deal  of  capital 
invested  in  manufacturing  industries,  and  it  is  believed  that  this 
represents  the  largest  concentration  of  capital  anywhere  in  China. 
Undoubtedly  Shanghai  and  the  district  immediately  surrounding 
it  form  the  principal  industrial  center  of  the  country.  Manufactur¬ 
ing  and  production  statistics,  however,  are  almost  completely  lacking. 
While  the  Shanghai  consular  district  is  in  a  more  advantageous 
position  with  respect  to  data  regarding  certain  groups  of  manufac¬ 
tures,  such  as  cotton  and  flour,  it  really  forms  no  exception  to  this 
general  rule.  The  vast  amount  of  manufactured  products  for  purely 
native  purposes,  from  industries  carried  on  throughout  practically 
the  whole  district,  as  in  other  parts  of  China,  falls  almost  entirely 
outside  the  range  of  accurate  statistics  or  even  of  reliable  estimates. 

In  view  of  this  situation  it  would  be  unwise  and  misleading  to 
attempt  to  guess  the  actual  amount  of  capital  invested  in  manu¬ 
factures,  great  and  small,  in  this  district.  The  following  remarks 
undertake,  therefore,  to  enumerate  only  such  facts  as  are  known, 
with  such  deductions  as  may  be  reasonably  drawn  from  them. 

COTTON  MANUFACTURE 

The  most  important  manufacturing  industry  in  the  Shanghai  con¬ 
sular  district  is  that  of  cotton  manufacture.  Approximately  67.5 
per  cent  of  all  the  cotton  spindles  in  China  are  concentrated  in  this 
district.  On  June  30,  1924,  the  total  number  of  spindles  in  China, 
either  completed  or  under  construction,  was  3,691,000;  Shanghai’s 


1  The  data  under  the  heading  “  Manufacturing  ”  are  the  contribution  of  Trade  Commis¬ 
sioner  George  C.  Howard,  Shanghai. 


494 


COMMERCIAL  HANDBOOK  OF  CHINA 


Fig.  17. — Grocery  department  of  a  Shanghai  department  store 


SHANGHAI  CONSULAR  DISTRICT 


495 


share  at  that  date  was  1,715,000  spindles  in  operation  and  316,000 
under  construction.  The  average  output  of  yarn  in  China’s  mills 
is  1  pound  per  day  per  spindle.  On  this  basis  the  producing  capacity 
of  the  mills  in  this  district  may  be  estimated  at  1,715,000  pounds 
per  day. 

Weaving  has  also  made  rapid  strides  in  Shanghai,  and  on  June  30, 
1924,  there  were  11,200  power  looms  in  operation  and  4,160  under 
construction.  Theoretically  these  looms  are  capable  of  weaving 
annually  233,328,000  yards  of  cloth  of  50  picks  per  inch,  but  the 
actual  output  can  not  be  definitely  ascertained.  In  addition  to 
spinning  and  weaving,  there  are  14  cotton-ginning  mills  with  831 
machines;  6  thread  factories;  34  weaving  and  dyeing  plants  not 
included  in  the  above;  and  16  knitting  mills  and  hosiery  and  under¬ 
wear  factories. 

Numerous  other  small  factories  exist,  but  exact  statistics  con¬ 
cerning  them  are  not  obtainable. 

SILK  MANUFACTURE 

Next  to  the  cotton  industry  is  that  of  silk  manufacture.  Shanghai 
has  73  silk  filatures  and  Wusih  23  additional.  There  are  also  some 
25  silk-weaving  mills  of  considerable  importance  and  an  indefinite 
number  of  smaller  shops  where  silk  is  woven  into  various  fabrics. 
In  1923  Shanghai  exported  25,823  piculs  of  raw  silk,  17,690  piculs 
of  silk  piece  goods,  78,120  piculs  of  waste  silk  and  cocoons,  and 
sundry  silk  manufactures  to  the  value  of  17,064  haikwan  taels. 

FLOUR  MILLING 

Of  the  flour-milling  capacity  of  China  (65,525  barrels  per  day), 
45  per  cent  is  concentrated  in  the  Shanghai  consular  district. 
Shanghai  mills  have  a  daily  capacity  of  25,100  barrels  and  Wusih 
mills  a  capacity  of  4,600. 

SHIPBUILDING  AND  ENGINEERING  WORKS 

Shanghai  possesses  29  concerns  within  this  category  of  sufficient 
size  to  be  considered  important.  Engineering  works  produce  a  wide 
range  of  machinery,  including  everything  from  textile  machinery 
and  tools  to  steam  and  oil  engines,  modern  boilers,  and  similar 
heavy  equipment:.  Shipyards  are  capable  of  turning  out  vessels 
of  every  size,  from  small  tugs  to  10,000-ton  ocean-going  ships.  In¬ 
numerable  small  builders,  unrecorded,  build  Chinese  water  craft  of 
many  kinds. 

CIGARETTES 

Cigarette  manufacture  has  assumed  important  proportions  in 
this  district  during  the  past  decade,  but  statistics  of  actual  output 
are  indeterminate.  China’s  total  cigarette  manufacture  is  estimated 
at  40,000,000,000  per  year,  of  which  probably  75  per  cent  is  turned 
out  by  the  seven  large  and  several  small  factories  operating  in 
Shanghai. 

OIL  MILLS 

About  30  oil  mills  in  the  Shanghai  district  extract  oil  from  cotton¬ 
seed,  rapeseed,  groundnuts,  etc.  No  statistics  are  available  as  to 


496 


COMMERCIAL  HANDBOOK  OF  CHINA 


their  capacity  or  output.  Vegetable-oil  exports  through  the  port 
of  Shanghai  during  the  year  1923  were  as  follows: 


riculs 

Bean  oil _  1,  237 

Camphor  oil _  1, 135 

Castor  oil _  372 

Cottonseed  oil _  14,  820 

Groundnut  oil _  232,  934 


l’iculs 

Linseed  oil _  2,  G59 

Rapeseed  oil _  0 

Sesamum-seed  oil _  211 


Total _  253,374 


ELECTRIC  LIGHT  AND  POWER  PLANTS 


The  number  of  electric  light  and  power  plants  in  the  Shanghai 
district  has  grown  rapidly  in  common  with  the  rapid  spread  of 
electric-power  use  all  over  China.  There  are  about  95  electric  light 
and/or  power  plants  in  the  district,  with  a  rated  total  capacity  close 
to  150,000  kilowatts,  this  constituting  about  25  per  cent  of  the 
number  of  plants  in  China  and  approximately  40  per  cent  of  their 
total  generating  capacity.  The  largest  plant  is  operated  by  the 
Shanghai  Municipal  Council,  which  had  an  installed  plant  capacity 
in  1923  of  121,000  kilowatts. 

MATCH  FACTORIES 

The  match  industry  has  also  grown  rapidly  in  recent  years.  The 
estimated  output  of  the  20  good-sized  factories  operating  in  the 
district  is  350  cases  of  7,200  packages  each  per  day. 

CEMENT  AND  BRICK  WORKS 


The  growing  use  of  concrete  and  steel  construction  is  building  up 
an  important  manufacture  of  cement.  Three  principal  factories 
have  a  daily  output  of  3,200  barrels  of  Portland  cement,  and  smaller 
concerns  probably  increase  the  total  to  3,500  barrels.  Bricks,  said 
to  be  equal  to  the  average  brick  made  in  western  countries,  are 
manufactured  for  both  Chinese  and  foreign  construction  in  the 
native  kilns  located  throughout  the  district. 

EGG  PRODUCTS 


There  are  about  20  important  factories  in  the  district  turning  out 
dried,  liquid,  and  frozen  egg  products  to  the  amount  of  15,000  tons 
per  annum.  The  following  figures  show  the  gross  exports  of  egg 
products  through  the  port  of  Shanghai  for  1924:  Egg  albumen, 
dried  and  moist,  84,944  piculs,  and  egg  yolk,  dried  and  moist,  247,- 
540  piculs,  the  value  of  these  two  items  being  12,521,308  haikwan 
taels;  eggs,  fresh  and  preserved,  254,527,000,  2,702,735  haikwan  taels; 
eggs,  frozen,  112,768  piculs,  2,480,896  haikwan  taels. 

TANNERIES 

There  are  about  20  tanneries  in  the  district,  the  majority  operated 
by  Chinese,  using  antiquated  methods  for  producing  leathers  em¬ 
ployed  in  the  manufacture  of  native  shoes,  suitcases,  trunks,  and 
harness.  One  of  the  largest  tanneries,  however,  is  under  foreign 
operation,  with  modern  methods,  and  has  a  production  capacity  of 
100,000  pounds  of  good-grade  sole  leather  per  month. 


SHANGHAI  CONSULAR  DISTRICT 


497 


IRON  AND  STEEL 

Shanghai  has  one  modern  plant,  operated  jointly  by  Chinese  and 
foreign  capital,  with  a  capacity  of  50  tons  per  day.  Its  entire  output 
is  sold  to  the  local  market.  In  addition,  one  of  the  large  dockyards 
operates  a  iy2-ton  two-carbon  electric  furnace,  products  of  which 
are  used  for  their  own  manufacturing  purposes. 

AERATED  WATER 

There  are  three  large  aerated- water  factories  in  Shanghai,  with  a 
combined  yearly  output  of  3,500,000  bottles,  besides  distilled  water 
widely  used  for  drinking  purposes. 

ELECTRICAL  EQUIPMENT 

The  largest  single  item  of  electrical  equipment  in  this  district  is 
electric  lamps.  These  are  made  in  both  tip  and  tipless  types,  vacuum 
and  gas  filled.  The  next  largest  item  is  probably  batteries — dry, 
wet,  and  storage — the  total  capacity  of  Shanghai  plants  being  in  the 
neighborhood  of  10,000  per  month. 

A  limited  number  of  electric  motors  are  manufactured  by  one  or 
two  plants,  and  it  is  possible  to  buy  a  5  to  50  horsepower  squirrel- 
cage  type  of  motor  at  approximately  50  per  cent  of  the  price  of  a 
similar  size  in  America. 

Some  manufacturing  of  transformers,  precision  instruments, 
switchboards,  electric  wires,  motors,  etc.,  electric-light  fixtures,  glass 
shades,  and  bowls  for  lighting  is  also  done. 

A  full  line  of  wiring  devices  is  made  locally,  as  is  also  a  consider¬ 
able  quantity  of  porcelain  insulators. 

This  industry  has  not  reached  a  point  where  it  can  supply  more 
than  a  very  small  portion  of  the  demand,  and  the  majority  of  elec¬ 
tric  equipment  is  imported. 


YEAST 

A  plant  for  the  manufacture  of  yeast  was  completed  in  Shanghai 
in  1923.  This  plant  is  completely  self-contained  and  has  a  capacity 
of  1,500  kilos  of  compressed  yeast  per  day.  This  plant  supplies  yeast 
for  local  requirements  and  likewise  exports  to  near-by  points. 

BREWERIES 

The  annual  consumption  of  beer  in  the  international  settlement  of 
Shanghai  has  been  estimated  as  amounting  to  nearly  4,000,000  bottles. 
A  large  part  of  this  is  imported,  but  there  is  one  brewery  with  a 
yearly  output  of  some  4,500,000  bottles,  supplying  the  local  market 
and  also  shipping  to  various  parts  of  China. 

[A  list  of  the  principal  factories  in  and  around  Shanghai  accompanies  this 
report,  and  may  be  obtained  from  the  Bureau  of  Foreign  and  Domestic  Com¬ 
merce  on  application.] 

LABOR  CONDITIONS 

Chinese  labor  is  in  a  transitional  stage,  groping  for  something 
better  and  not  sure  of  its  goal.  In  some  of  the  larger  industries 

100020°— 26 - 33 


498 


COMMERCIAL  HANDBOOK  OF  CHINA 


workers  have  been  organized  into  labor  unions,  as  yet  in  the  experi¬ 
mental  stage.  Wages  are  low  in  comparison  with  the  United  States, 
but  extremely  high  compared  with  rates  prevailing  in  other  cities 
in  China.  The  higher  cost  of  living  in  Shanghai  for  the  Chinese 
population  is  largely  responsible  for  this  condition. 

Child  labor  is  common,  although  the  Shanghai  municipal  council 
prohibits  the  employment  of  children  under  14  years  of  age.  Foreign- 
owned  factories  have  attempted  improvements  in  the  conditions  of 
their  employees,  and  in  many  cases  the  Chinese  employers  are  follow¬ 
ing  their  example.  Outside  the  international  settlements,  where  the 
old  apprentice  system  is  in  full  operation,  the  labor  conditions  are  as 
might  be  expected. 

Estimates  as  to  the  relative  efficiency  of  Chinese  labor  vary  greatly. 
In  general,  it  seems  to  be  agreed  that  the  Chinese  laborer  has  an 
efficiency  rating  of  about  25  per  cent  compared  with  that  of  an 
American  laborer  in  the  same  class.  In  certain  industries  Chinese 
labor  is  considered  equal  to  that  in  the  United  States,  but  such  in¬ 
stances  are  exceptional. 

TRANSPORTATION  AND  COMMUNICATION 

WATERWAYS 

A  marvelous  system  of  waterways,  which  provides  both  local  and 
through  transportation  to  the  interior  of  central  and  western  China, 
is  the  chief  reason  for  Shanghai’s  preeminence  as  a  port.  Local 
territories  are  reached  by  an  intricate  system  of  canals,  of  an  average 
depth  of  4  feet,  over  which  lighters  and  steam  launches  transport  the 
cargo  produced  by  and  necessary  for  a  population  of  25,000,000 
people.  In  the  neighborhood  of  Shanghai  are  the  following  water¬ 
ways  : 

Whangpoo  River. — 30-foot  draft  from  Yangtze  month  to  Shanghai.  Provides 
steam-launch  service  to  Soochow  through  its  upper  reaches  and  connected 
canals. 

Yangtze  River. — 25-foot  draft  to  Hankow  in  high-water  season ;  10-foot  draft 
all  year.  Steamer  traffic  1,800  miles  into  heart  of  west  China.  Connects 
through  rivers  and  canals  with  central  China  districts  both  north  and  south 
of  the  river. 

Soochoiv  Creek. — 4-foot  channel  to  Soochow  and  Hangchow  via  Grand  Canal. 
Grand  Canal  connections  to  Chinkiang.  Grand  Canal  connection  Chinkiang 
to  Tientsin  under  favorable  conditions. 

Local  canals. — Estimated  3,500  miles  of  navigable  waterways,  average  draft 
4  feet.  Different  levels  not  locked  but  connected  by  chutes  or  “  haulovers.” 

Coastwise  routes  link  Shanghai  with  the  entire  coastal  area.  Reg¬ 
ular  services  are  conducted  by  both  foreign  and  Chinese  companies, 
which  provide  steamship  and  sailing-vessel  communication  with 
treaty  and  nontreaty  ports.  Shanghai  is  the  transshipping  point 
for  coast  ports  as  far  north  as  Weihaiwei  and  to  southern  Fukien 
in  the  other  direction.  Schedules  of  passenger  and  freight  tariffs  in 
force  over  these  routes  and  on  the  Yangtze  appear  below. 


SHANGHAI  CONSULAR  DISTRICT 


499 


Local  Steamship  Passenger  Fares 


Shanghai  to — 

One 

way 

Round 

trip 

Shanghai  to — 

One 

way 

Round 

trip 

Amny  _. 

Mex. 

$65 

Mex. 

$95 

Kiukiang _  _ 

Mex. 

$45 

Mex. 

$65 

Antiinp 

50 

75 

Nanking. _ _  _ 

18 

28 

Canton  _ .  _  . 

85 

130 

Newchwang _  _ 

65 

100 

Chnnkkin?  _  .  . 

230 

345 

Ningpo _  _ 

7 

10 

Chefnn  _ _ - 

55 

85 

Swatow ...  _ _  ... 

65 

95 

Changsha,  _  _  _ 

80 

120 

Shasi _ _  _ _  .  ...  .  . 

90 

140 

Chinwangtao _  _ _ -  -  - 

60 

90 

Tientsin _  _  _ 

90 

140 

Chinkiang _ - _ _  -- 

16 

24 

Tsingtao . .  ... 

35 

56 

Dairen  _  _  --  - 

50 

80 

Wuhu._ . . . . 

25 

35 

Foochow  _ _  -  _ 

30 

48 

Wanhsien.. . .  . 

240 

365 

Hankow  _ _ _ _ 

50 

75 

Wenchow _ _ _ _ 

40 

70 

Ichang- . . . 

135 

200 

Local  Steamship  Freight  Rates — General  Cargo 
[Per  ton  of  40  cubic  feet,  or  2,000  pounds] 


Shanghai  to— 

Shanghai 

taels 

Shanghai  to — 

Shanghai 

taels 

Shanghai  to — 

Shanghai 

taels 

Chinkiang _ _  _ 

2. 20 

Tsingtao.  .  . 

3.  85 

Ningpo 

3  30 

Nanking . . 

3.  00 

Chefoo _  _ _  .. 

3.  85 

Swatow 

5  00 

Kiukiang . 

3.85 

Weihaiwei..  _ _ _ 

3.  50 

Amoy 

5.  00 

Wuhu _  .  _ _ 

3. 00 

or  .  •  /summer  . 

4.  40 

Hongkong 

5.  50 

Changsha.. 

7.  65 

Tientsin ...  Winter. 

6.  60 

Canton _ 

6.  60 

Hankow _ ...  _ 

3.  85 

New  f  summer 

4.  00 

Singapore  .. 

7.  00 

Ichang _  ... 

12. 10 

chwang  . /winter.  .. 

6.00 

Manila. .. 

5.  00 

Shasi." _ 

12. 10 

-nciror.  ~  /summer.. 

4.00 

Wanhsien.  _ 

»  42.  10 

Dairen . Winter.. 

6.00 

Chungking _ 

i  52. 10 

Antung _  ..  . 

5.50 

i  Normal. 

RAILWAYS 


Shanghai  is  deficient  in  railway  transportation  facilities,  there 
being  a  total  of  only  421  miles  of  railway  in  the  consular  district,  as 
follows : 

Miles 


Slianghai-Xanking  Railway _  193 

Shanghai-Hangcliow-Ningpo  Railway : 

Shangliai-Zahkou _  159 

Xingpo-Paikuan _  48 

Shanghai- Woosung _  11 

Shanghai-Belt  Line _  10 


An  excellent  passenger  service  between  Shanghai  and  Peking  is 
maintained  over  the  Shanghai-Xanking  Railway,  which  connects 
at  Nanking  with  the  Tientsin-Pukow  Railway,  the  southern  ter¬ 
minus  of  which  is  reached  by  ferry  across  the  Yangtze  River.  Both 
freight  and  passengers  are  at  present  transferred,  because  of  the 
lack  of  car  ferries,  but  this  condition  is  expected  to  be  remedied 
in  the  near  future. 

h  reight  rates  on  the  Shanghai-Xanking  Railway  and  Shanghai- 
Hangchow-Xingpo  Railway  are:  Per  metric  ton  of  1,000  kilos  at 
“owner’s  risk,”  average  per  kilometer,  $0.04  Mex. ;  carload  rates 
(15  to  40  metric  tons),  average  per  kilometer  per  carload,  $0.45 
Mex.  These  rates  are  averaged  as  to  classification  and  size  of 
carloads.  There  are  six  classifications,  with  special  tariffs  for  “  high 
values,”  “  dangerous,”  “  vehicles,”  and  “  livestock.” 


500 


COMMERCIAL  HANDBOOK  OF  CHINA 


Passenger  tariffs  of  these  railways  are  shown  below. 


Shanghai  to — 

First 

class 

Second 

class 

Third 

class 

Soochow  . . .  --  .  -  . . - . . 

Mex. 

$3, 00 

9.  00 
4.  90 

2. 05 

Mex. 
$1.50 
4.  50 
2.  95 
1.25 

Mex. 

$0.  75 
2.  25 
1.  75 
.75 

Nanking  _  _ _ _ _  -  ..  -  . . . 

Hangchow  ..  _  - _ _ 

Ningpo-Paikuan  _  _ -  .  __  _  _  . _ _ 

ROADS 

Within  the  boundaries  of  what  might  well  be  called  Greater  Shang¬ 
hai,  including  both  the  French  and  international  settlements  and 
certain  sections  of  the  adjoining  Chinese  territory,  there  are  in  all 
about  260  miles  of  modern  highways.  In  addition,  there  are  four 
roads  connecting  Shanghai  with  near-by  towns;  these  are  the  fore¬ 
runners  of  an  extensive  road  system  which  the  increasing  use  of 
motor  transport  is  demanding  and  which  will  be  built  before  many 
years  have  passed. 

The  Yangtzepoo-Point-Woosung  Road  parallels  the  Whangpoo 
River  from  Shanghai  to  Woosung  at  its  mouth,  a  distance  of  14 
miles.  Liuho,  about  27  miles  to  the  northwest  of  Shanghai,  is  reached 
by  a  very  good  cinder  road,  constructed  by  a  Chinese  firm  which 
operates  a  bus  line  over  it.  A  dirt  road,  15  miles  in  length,  leads  out 
to  Minghong,  a  city  located  nearly  due  south  from  Shanghai  on  the 
Whangpoo.  The  road  is  destined  to  become  the  first  section  of  a 
projected  line  between  Shanghai  and  Hangchow,  the  capital  of  Che¬ 
kiang  Province. 

From  the  Pootung  side  of  the  Yangtze  River,  reached  from  Shang¬ 
hai  by  the  Tunkadoo  Ferry,  a  road  runs  southeast  to  Chowpu,  a 
market  town  some  20  miles  from  Shanghai. 

METHODS  OF  TRANSPORTATION  IN  SHANGHAI 

Despite  the  advent  of  the  motor  car  the  rickshaw  continues  to  be 
the  most  popular  of  all  methods  of  personal  transport.  It  has  been 
predicted  time  and  again  that  its  days  are  numbered  in  this  com¬ 
munity,  but  this  does  not  appear  to  be  confirmed  by  actual  condi¬ 
tions.  Rickshaw  transportation,  however,  is  not  cheap,  and  the 
crowded  conditions  of  the  streets  do  not  make  it  especially  safe. 

Cargo  is  transported  about  Shanghai  by  hand  carts,  wheelbarrows., 
and  bv  carriers.  It  is  estimated  that  an  army  of  40,000  carriers  is 
constantly  employed  in  the  “  godowns  ”  (warehouses)  and  along  the 
water  front  of  the  port.  Mechanical  handling  is  in  its  infancy,  prac¬ 
tically  all  cargo  being  handled  by  manual  labor  once  it  leaves  the 
ship’s  tackles.  The  increasing  cost  of  labor,  however,  due  to  the 
higher  prices  of  food  and  other  necessities,  is  bringing  closer  the  time 
when  machinery  must  be  installed  to  relieve  present  conditions. 

AVERAGE  COSTS  OF  TRANSPORT 

The  following  table  indicates  the  costs  of  transport  in  the  Shang¬ 
hai  district  per  ton-mile : 


SHANGHAI  CONSULAR  DISTRICT 


501 


Methods  of  transport 

Long 

haul 

Short 

haul 

Methods  of  transport 

Long 

haul 

Short 

haul 

fronts 

U.  S.  cur¬ 
rency 
$0. 0073 
.44 
.  1687 
.0773 

U.  S.  cur¬ 
rency 
$0.  0293 

1.  21 
.  1687 
.0773 

Trucks  alone . . . 

U.  S.  cur¬ 
rency 

U.  S.  cur¬ 
rency 
$0.20 
.1010 
.0564 
.0197 

Carry  coolies -  .. 

Wheelbarrows  .  _ - 

Hand  carts  .  _  - 

Trucks  and  trailers _ 

Steam  wagons _  _  . 

Rail  transport 1 _ 

$0.  0788 
.0422 
.0057 

1  In  arriving  at  the  average  cost  per  ton-mile  for  long  and  short  hauls  the  freight  tariffs  of  the  Shanghai- 
Nanking  and  Shanghai-Hangchow-Ningpo  Railways  have  been  treated  as  follows:  First,  the  six  classi¬ 
fications  have  been  averaged  for  a  30-metric-ton  carload  for  a  distance  of  350  kilometers  for  a  long  haul  and 
20  kilometers  for  a  short  haul.  These  average  costs  per  30-ton  carload  have  been  reduced  to  the  cost  per 
metric-ton  kilometer.  Then,  considering  a  metric  ton  to  be  2,204.6  English  pounds  and  a  kilometer  to  be 
0.621  mile,  these  average  costs  have  been  converted  to  costs  per  English  ton-miles  in  “  Mexican”  currency, 
which  have  in  turn  been  converted  to  United  States  currency  at  the  rate  of  $0.5365. 


TELEGRAPHS,  CABLES,  AND  WIRELESS  SERVICE 


The  telegraphs  are  controlled  by  the  Chinese  Board  of  Commu¬ 
nications  in  Peking  through  the  Department  of  Telegraphs,  in 
which  there  are  several  experienced  foreign  officers.  In  the  Shang¬ 
hai  consular  district  there  are  stated  to  be  69  telegraph  offices  with 
approximately  2,136  miles  of  overland  wires.  Rates  are  as  follows: 


Intraprovincial  messages,  per  word : 

Chinese _ 

English _ 

Interprovincial  messages,  per  word : 

Chinese _ 

English _ 


Mex. 
$0.  06 
.09 

.12 

.18 


Adequate  cable  service  to  all  parts  of  the  world  is  provided  by 
the  following  companies:  Great  Northern  Telegraph  Co.;  Com¬ 
mercial  Pacific  Cable  Co.;  Imperial  Japanese  Telegraph  Office; 
Eastern  Extension,  Australasia  &  China  Telegraph  Co.  (Ltd.) 

Rates  to  New  York,  San  Francisco,  and  London  are:  To  New 
York,  per  word,  $0.95  LTnited  States  currency;  to  San  Francisco, 
$0.85 ;  to  London,  $0,725. 

Radio  communication  has  been  delayed  in  this  country  because 
of  certain  semipolitical  considerations  which  have  yet  to  be  over¬ 
come.  At  present  there  are  the  following  stations  in  Shanghai : 
French  station  at  Siccawei,  accepting  commercial  messages  up  to 
1,000  miles;  Chinese  station  at  Woosung;  Chinese  station  in  Shang¬ 
hai,  for  Government  purposes  only. 


TELEPHONES 

In  the  Shanghai  consular  district  there  are  telephone  systems  in 
the  following  places:  Shanghai,  Hangchow,  Soochow,  Ningpo,  Wen¬ 
chow,  Kunshan,  Kashing,  Shaohing,  Wusih,  and  Changchow. 
Shanghai  is  served  in  the  foreign  settlements  by  the  Shanghai 
Mutual  Telephone  Co.  (Ltd.),  a  British  concern,  whose  rates  are 
65  taels  per  annum. 

The  Chinese  Government  Department  of  Communications  main¬ 
tains  a  telephone  service  in  the  areas  adjoining  the  foreign  settle¬ 
ments  and  is  connected  up  with  the  village  of  Liuho,  about  26  miles 
to  the  northwest  of  the  city,  and  with  a  military  post  a  few  miles 
to  the  southwest.  The  rates  for  this  service  are  $36  Mex.  per  annum. 
Unfortunately  there  is  no  connection  between  the  two  services. 


502 


COMMERCIAL  HANDBOOK  OP  CHINA 


POSTAL  FACILITIES 

Foreign  post  offices,  in  accordance  with  the  agreement  reached  at 
the  Washington  Conference,  were  technically  withdrawn  on  Janu¬ 
ary  1,  1923.  The  American  post  office  ceased  to  function  as  soon 
thereafter  as  the  accounts  and  returns  could  be  completed.  Since 
that  date  American  mail  has  been  handled  by  the  Chinese  post 
office  with  considerable  efficiency. 

Between  Shanghai  and  the  United  States  a  steamship  service  is 
maintained  by  an  American  line  of  steamers.  Other  lines  maintain 
regular  service  requiring  several  days’  greater  length  of  time  in 
transit  between  Shanghai  and  the  Pacific  coast.  International  postal 
rates  for  American  mail  are  maintained. 

An  efficient  Chinese  coastal  service  is  maintained  with  great  fre¬ 
quency.  To  the  interior  the  service  is  through  the  Shanghai-Nan- 
king  Railway,  and  to  the  south,  as  far  as  Hangchow,  through  the 
Shanghai-Ningpo-Hangchow  Railway. 

SHIPPING  AND  WAREHOUSING  FACILITIES 

OCEAN  STEAMSHIP  SERVICES 

Regular  steamship  services  connect  Shanghai  with  all  the  impor¬ 
tant  ports  of  the  world  by  direct  sailings.  The  following  lists  show 
freight  and  passenger  tariffs  to  the  more  important  points.  Freights 
are  handled  by  passenger  liners  and  also  by  tramp-steamer  services, 
the  volume  of  traffic  of  the  latter  depending  upon  cargo  offering 
and  being,  in  consequence,  seasonal. 

Ocean  Steamship  Passenger  Fares 


Shanghai  to — 

First 

class 

Second 

class 

Aden . . 

U.  S.  cur¬ 
rency 
$243.  00 
324.  00 
207.  00 
257.  00 
450.  00 
189.  00 
396.  00 
405.  00 
36.  00 
243.  00 
49.  00 
477.  00 
99.  00 
73.  00 
441.00 
279.  00 
27.  00 

U.  S.  cur¬ 
rency 
$180.  00 

Brindisi _ _ _ 

Bombay . . . . 

117.  00 
166.  00 

Brisbane  .  _ 

Cape  Town.. . . 

Colombo..  _ _ 

Durban . . . . 

Gibraltar _ _ 

Hongkong  . . 

Honolulu . . . . . 

Kobe . . . 

London . . . . . 

Malacca.  _ 

Manila _ 

Marseille. _ _ 

Melbourne _ _ 

Noji _ _ 

Shanghai  to — 

First 

class 

Second 

class 

Nagasaki _ 

U.  S.  cur¬ 
rency 
$22.  50 
621.  00 

U.  S.  cur¬ 
rency 
$13.  50 

New  York _ 

Port  Darwin _ _ 

253.  00 

Portland _ _ 

346.  00 

Port  Said . .  .  .. 

465.  00 

Penang _ _ 

99.  00 

Saigon _ _ 

77.  00 

San  Francisco . 

346.  00 

176.  00 

Seattle . . . . 

346.  00 

176.00 

Singapore _ _ 

130.  00 

Sydney _ _ _ _ 

274.  00 

Tacoma _ 

346.  00 

176.  00 

Tangier _ _ _ 

427.  00 

Vancouver . .  . 

346.  00 

176.  00 

Victoria . . . 

346.  00 

176.00 

Vladivostok _  ..  ...  .. 

54.  00 

Yokohama . .  .  .  . . 

45.  00 

22.  50 

Ocean  Steamship  Freight  Rates  :  General  Cargo 
[Per  ton  of  40  cubic  feet,  or  2,000  pounds] 


Shanghai  to — 

U.  S.  cur¬ 
rency 

Shanghai  to— 

U.  S.  cur¬ 
rency 

New  York  via  Panama _ 

$16 

Vancouver . . . . 

$15 

New  York  via  Suez  . 

15 

Portland _  _ _ _ _ _ 

15 

San  Francisco . . . . 

15 

London.  .  _ _ _ _ _ 

16 

Seattle _ _ _ 

15 

Marseille . .  ...  .  _  .. 

15 

Los  Angees . .  . . . . . 

15 

Rotterdam..  . . . 

15 

SHANGHAI  CONSULAR  DISTRICT 


503 


HARBOR  CONTROL 

The  Shanghai  Harbor  consists  of  the  channel  of  the  Whangpoo 
from  the  arsenal  downstream  to  Tungkow  Creek.  It  has  a  length  of 
54,000  feet,  with  a  24-foot  channel  of  an  average  width  of  700  feet 
and  an  area  between  normal  lines  of  about  1,000  acres. 

The  administration  of  the  port  of  Shanghai  is  under  the  jurisdic¬ 
tion  of  the  Chinese  Maritime  Customs,  which  maintains  a  river 
police  force.  A  health  service  is  maintained,  with  stations  at  Woo- 
sung  and  Shanghai,  which  enforces  the  sanitary  regulations  enacted 
by  the  port  consular  authorities.  The  harbor  master,  an  officer  of 
the  Chinese  Maritime  Customs,  is  responsible  for  all  mooring  berths 
and  berthings.  Mooring  berths  are  privately  owned,  but  action  has 
been  initiated  to  make  them  public  property.  While  it  is  not  com¬ 
pulsory,  pilotage  is  advisable  where  the  master  of  an  incoming  ship 
is  unacquainted  with  the  harbor. 

PORT  ACCOMMODATIONS 

HEAD-AND-STERN  MOORINGS  2 

There  are  19  head-and-stern  mooring  berths.  Four  of  these  are 
owned  by  the  China  Merchants’  Steam  Navigation  Co.  and  one 
by  the  China  Navigation  Co.,  and  these  five  berths  are  used  exclu¬ 
sively  by  the  coasting  and  river  steamers  belonging  to  these  com¬ 
panies. 

The  remaining  14  berths  are  privately  owned,  but  are  available  to 
outside  shipowners  by  special  arrangements  with  the  owners.  Nine 
of  these  berths  have  a  length  of  600  feet  and  the  remainder  (five) 
a  length  of  700  feet,  with  depths  from  24  to  32  feet  at  low- water 
springs. 

Provision  has  been  made  for  the  eventual  public  ownership  of 
moorings. 

SWINGING  BERTHS 

There  are  some  30  swinging  berths  for  vessels  from  150  to  450 
feet  in  length,  with  depths  for  the  larger  vessels  from  22  to  25  feet. 

During  freshets  and  extraordinary  spring  tides,  when  the  current 
is  considerably  above  average  strength,  vessels  moored  in  the  stream 
sometimes  drag  their  anchors,  especially  if  these  are  of  the  patent 
type  which  do  not  hold  well  in  the  somewhat  loose  mud  bottom. 

DOCKAGE 

The  river  frontage,  both  on  the  Shanghai  and  the  Pootung  sides, 
is  shown  in  the  table  below.  It  shows  the  opportunity  still  left  for 
development  of  the  foreshores  within  the  existing  harbor  limits  and 
the  amount  of  bunding  unserved  by  either  pontoons  or  wharves. 
There  is  no  unoccupied  land  available  on  either  side  of  the  river 
within  harbor  limits.  Pontoons  and  pile  wharves  are  about  equal 
in  number,  the  latter  being  more  common  on  the  Pootung  side  of 
the  river  because  of  the  direction  of  the  current. 


2  Information  supplied  by  the  harbor  master,  Chinese  Maritime  Customs,  Shanghai. 


504 


COMMERCIAL  HANDBOOK  OF  CHINA 


Fig.  18. — Robert  Dollar  Building,  Shanghai,  in  which  are  located  offices  of  Amer¬ 
ican  commercial  attach^ 


SHANGHAI  CONSULAR  DISTRICT 


505 


Classes 

Shanghai 

Pootung 

Total 

Frontage  served  by  pontoons _ _ _ _  _ _ _ _ 

Feet 
9,270 
4,810 
24,  510 
13,  720 
800 

Feet 
6,500 
11, 805 
22,633 
13,  305 
940 

Feet 

15, 770 
16, 615 
47, 143 
27,  025 
1,  740 

Pile  wharves  _.  . .  ..  ...  .  . .  .  . . . . 

Bunding  without  pontoons  or  wharves  . . . . 

Natural  bank . . . . . . . 

Creeks.  . . . . 

Total . . . . . . . 

53, 110 

55,183 

108,  293 

PUBLIC  FRONTAGE 

On  the  frontage  of  the  international  settlement  above  the  Soochow 
Creek  there  is  a  public  bund  3,500  feet  long,  of  which  500  feet  is 
used  for  a  public  garden  and  3,000  feet  for  a  quay  and  promenade 
and  for  discharging  lighters.  Along  this  quay  are  16  pontoons,  2 
of  which  belong  to  the  Customs,  2  are  used  exclusively  for  landing 
passengers  from  steamers  lying  at  Woosung,  and  the  remainder  are 
for  general  cargo.  This  bund  and  the  pontoons  are  supported  by 
wharfage  dues. 

Along  the  French  river  front  there  are  2,000  feet  of  public  quay, 
with  but  five  public  pontoons  and  two  jetties. 

There  is  but  one  public  pontoon  and  only  a  few  boat  jetties  on  the 
Pootung  side  of  the  river.  Only  one  jetty  has  proper  steps. 

HARBOR  COMMUNICATIONS 

Both  sides  of  the  river  are  served  by  the  Shanghai  Municipal 
Telephone  Co.,  though  beyond  the  limits  of  the  Settlements  this 
service  is  expensive  and  subject  to  special  arrangements.  The  com¬ 
pany  is  prepared  to  connect  instruments  to  ships  lying  in  dock. 
Because  of  the  lack  of  good  roads  along  the  water  front  the  various 
companies  owning  property  on  both  sides  of  the  river  maintain 
steam  tenders  which  make  hourly  trips  from  the  Customs  Jetty  to 
the  various  installations.  There  is  no  charge  for  this  service.  There 
has  recently  been  established  a  motor-boat  service  designed  to  oust 
eventually  the  greater  part  of  a  numerous  fleet  of  sampans  which 
at  present  handle  much  of  the  passenger  traffic  to  and  from  ships. 
There  are  several  public  ferries  on  the  river.  Because  of  the  num¬ 
bers  of  sampans  available  for  a  small  fee  it  is  never  necessary  to 
put  ships’  boats  over  the  side  for  the  purpose  of  painting  or  other 
ship’s  work. 

BONDED  WAREHOUSES 

There  are  no  publicly  owned  bonded  warehouses  in  Shanghai. 
Most  of  the  privately  owned  bonded  warehouses  are  available  to 
shippers.  Owners  of  “  godowns  ”  which  they  desire  registered  as 
bonded  warehouses  are  required  to  execute  a  bond  with  the  Commis¬ 
sioner  of  Customs  guaranteeing  the  observance  of  certain  simple 
regulations  which  may  be  amended  by  him  from  time  to  time.  The 
bond  provides  for  an  indemnity  of  500  haikwan  taels  for  infraction 
of  regulations,  as  a  temporary  fine  pending  adjudication  by  consular 
or  other  authorities.  Repacking  of  import  cargo  in  bonded  ware¬ 
houses  is  prohibited  under  penalty  of  again  paying  duty,  except 


506 


COMMERCIAL  HANDBOOK  OF  CHINA 


in  case  of  damaged  cargo.  Export  cargo  may  be  repacked  under 
customs  supervision.  All  goods  in  such  godowns  are  under  the 
supervision  of  customs  officers  appointed  to  that  duty. 

[Lists  of  the  bonded  warehouses  in  Shanghai  are  on  file  in  the  Bureau  of 
Foreign  and  Domestic  Commerce,  and  may  be  obtained  upon  application.] 

WHARFAGE  AND  STORAGE  CHARGES 

The  various  companies  owning  and  operating  wharves  and  “  go- 
downs  ”  in  Shanghai  publish  tariffs  which  are  on  about  the  same 
scale  of  prices,  as  follows : 

Vessels  carrying  Chinese  and/or  Japanese  cargo,  0.42  tael  per  foot  ($0.35, 
United  States  currency). 

Vessels  under  300  feet,  carrying  coal  only,  90  taels  ($74,  United  States  cur¬ 
rency). 

Vessels  over  300  feet,  carrying  coal  only,  0.42  tael  per  foot  ($0.35). 

Oversea  steamers  other  than  the  above,  0.90  tael  per  foot  ($0.74). 

Lorchas  (semiforeign  native  vessels),  60  taels  ($49). 

Vessels  from  foreign  ports  remaining  at  the  wharf  for  more  than 
five  days  will  incur  a  demurrage  charge  of  60  taels  ($49,  United 
States)  for  the  first  day  and  90  taels  ($74,  United  States)  for  the 
second  and  every  succeeding  day  or  part  thereof. 

Coasting  vessels  remaining  at  the  wharf  for  more  than  three  days 
will  incur  an  extra  charge  of  36  taels  ($29.63,  United  States)  for 
the  first  day  and  60  taels  ($49)  for  the  second  and  every  succeeding 
day  or  part  thereof. 

Cargo  landed  from  ships  on  pontoons  or  wharves  is  stored  there 
at  tariff  rates  and  delivered  to  consignees  free  of  rent  charge  if 
removed  within  10  days  of  berthing,  the  berthing  day  being  counted 
as  one.  The  cost  is  about  0.60  tael  ($0.66,  United  States)  per  ton 
for  the  entire  service.  Cargo  is  delivered  during  customs  working 
hours  free  of  extra  charge  when  delivery  is  effected  from  the  section 
where  landed.  These  rates,  while  generally  adhered  to,  are  cut  in 
certain  instances  in  favor  of  valued  customers,  but  not  in  favor  of 
any  certain  nationality  nor  to  an  extent  which  has  caused  unfavor¬ 
able  comment. 

The  wharf  and  godown  companies  store  cargo  at  a  rate  of  1.40 
taels  ($1.15,  United  States)  per  ton  for  the  first  month  and  for  each 
succeeding  month  they  charge  1.20  taels  ($0.99,  United  States)  per 
ton.  There  are  certain  godowns  adjacent  to  the  harbor  where  stor¬ 
age  may  be  had  at  about  two-thirds  of  the  above  charges,  because 
they  have  not  the  taxes  and  other  charges  which  have  to  be  met  by 
the  big  wharf  companies.  The  charges  published  in  the  tariff  are 
reduced  15  per  cent  in  all  cases  on  the  Pootung  side, 

RAILWAY  CONNECTIONS 

There  are  but  two  railway  connections,  both  outside  the  harbor 
limits,  one  at  Woosung  with  the  Shanghai-Nanking  Railway,  where 
a  dock  capable  of  accommodating  two  ships  is  maintained,  and  an¬ 
other  wharf  at  Lunghua,  above  the  upper  limits  of  the  harbor, 
where  the  Shanghai-Hangchow-Ningpo  Railway  has  accommoda¬ 
tions  for  one  ship.  In  addition  the  Shanghai-Nanking  Railway  has 
a  freight  station  at  Jessfield,  on  the  Soochow  Creek,  where  it  is 


SHANGHAI  CONSULAR  DISTRICT 


507 


prepared  to  handle  a  great  volume  of  lighter-borne  cargo.  Because 
of  the  poor  location  of  both  railway  docks  and  the  lack  of  a  belt- 
line  railway  about  the  harbor,  of  car  ferries,  and  of  the  other  appur¬ 
tenances  of  an  efficiently  operated  port,  practically  all  cargo  des¬ 
tined  to  or  from  the  rail  is  lightered  through  the  Jessfield  terminal 
and  the  Soochow  Creek. 

PUBLIC  WORKS  AND  UTILITIES 

ELECTRIC-LIGHT  PLANTS 

Electricity  is  supplied  for  lighting  purposes  oy  the  Shanghai  Mu¬ 
nicipal  Council’s  electricity  department  at  0.13  tael  per  kilowatt- 
hour,  with  discounts  up  to  30  per  cent  on  large  consumption,  and  in 
the  Chinese  city  by  the  Chapei  plant  at  $0.24  Mex.  per  kilowatt  hour. 

[A  complete  list  of  the  electric-light  plants  in  the  Shanghai  consular  dis¬ 
trict,  with  details  of  their  equipment,  is  on  file  in  the  Bureau  of  Foreign  and 
Domestic  Commerce  and  may  be  obtained  upon  application.] 

WATERWORKS 

The  Shanghai  city  group,  or,  as  it  might  better  be  called,  “  Greater 
Shanghai,”  is  served  by  four  waterworks — the  international  settle¬ 
ment  by  the  Shanghai  Waterworks  Co.  (Ltd.),  the  French  concession 
by  the  Compagnie  F rancaise  de  Tramways  et  d’  Eclairage  Electriques 
de  Shanghai,  and  the  native  city  and  Chapei  district  by  Chinese  com¬ 
panies.  Outside  of  Shanghai,  Ningpo  is  the  only  city  in  the  district 
with  a  water  system. 

CONSERVANCY  AND  RECLAMATION  WORKS 

The  Whangpoo  Conservancy  Board,  which  is  charged  with  the 
upkeep  and  improvement  of  the  Whangpoo  Fiver,  a  part  of  which 
forms  Shanghai  Harbor,  is  the  only  conservancy  organization  of  any 
importance  in  this  consular  district.  It  is  an  organ  of  the  Chinese 
Government,  formed  according  to  an  agreement  with  the  powers, 
and  its  personnel  is  international.  In  addition  to  keeping  clear  the 
channel  and  the  anchorages  in  the  river,  it  is  doing  a  considerable 
amount  of  reclamation  work  in  the  way  of  pumping  mud  into  tidal 
basins,  thereby  creating  excellent  industrial  and  agricultural  land. 

Another  Chinese  Government  body,  the  Yangtze  River  Commis¬ 
sion,  is  charged  with  the  improvement  of  that  waterway.  The  inland 
waterways  are  under  the  nominal  control  of  a  body  called  the 
Xiangnan  Conservancy  Board,  which  has  headquarters  at  Nanking. 

TRAMWAYS 

The  Shanghai  Electric  Construction  Co.,  a  British  concern  cap¬ 
italized  at  about  1,500,000  gold  dollars,  operates  the  Shanghai 
Tramways  which  serves  the  various  parts  of  the  international  settle¬ 
ment.  Perhaps  the  outstanding  performance  of  this  company  has 
been  the  development  of  a  railless  tram  car  which,  drawing  its  cur¬ 
rent  from  overhead  trolley  wires,  is  being  used  quite  extensively, 
especially  where  narrow  streets  preclude  laying  rails.  Fares  over 


508 


COMMERCIAL  HANDBOOK  OF  CHINA 


the  lines  of  the  Shanghai  Tramways  are  3  cents  per  section  of  about 
1  mile,  third-class  fares  being  one-half  of  this  charge.  First-class 
monthly  tickets  may  be  had  for  $6  and  entitle  the  holder  to  trans¬ 
portation  over  all  lines  and  as  often  as  desired  during  the  period 
for  which  they  are  issued. 

Tramways  in  the  French  concession  and  extending  some  distance 
out  into  Chinese  territory  in  the  neighborhood  of  the  Kiangnan 
Arsenal  are  operated  by  the  Compagnie  Francaise  cle  Tramways  et 
d’Eclairage  Electriques  de  Shanghai,  the  head  office  of  which  is  in 
Paris.  The  capital  of  this  firm  is  estimated  at  about  the  same  figure 
as  that  of  the  company  operating  in  the  international  settlement, 
and  its  fares  are  about  the  same. 

BUS  LINES 

Within  the  limits  of  the  French  and  international  settlements 
the  China  General  Omnibus  Co.,  a  British  company,  opened  a  bus 
service  in  September,  1924.  Its  services  are  intended  to  include 
eventually  all  sections  of  Shanghai,  and  it  is  anticipated  that  this 
means  of  rapid  transit  will  afford  relief  to  the  overcrowded  tram¬ 
ways. 

MOTOR  CARS  AND  TRUCKS 

It  is  anticipated  that  the  motor-car  census  made  at  the  end  of 
1924  will  show  a  total  of  about  4,800  motor  vehicles  in  and  about 
Shanghai.  The  majority  of  the  cars  in  service  are  privately  owned, 
although  Shanghai  is  well  provided  with  hire  cars  which  may  be 
obtained  at  an  average  rate  of  $4,  United  States  currency,  per  hour. 
Several  firms  do  a  general  trucking  business  about  the  various 
sections  of  Shanghai,  but  truck  transport  is  slow  in  establishing 
itself  as  a  general  practice  because  of  the  cheapness  of  coolie  labor. 

IMPORT  AND  EXPORT  TRADE 

The  trade  of  Shanghai  was  handicapped  by  many  difficulties  dur¬ 
ing  1924,  the  most  serious  of  which  was  the  civil  war  and  the 
requisition  by  the  military  authorities  of  transportation  lines  for 
military  purposes.  Export  cargo  was  laid  up  through  lack  of 
adequate  transportation  facilities,  and  import  cargo  could  not  be 
shipped  to  the  interior  points  for  the  same  reason. 

According  to  the  annual  report  for  1924  of  the  American  con¬ 
sulate  general  at  Shanghai,  total  foreign  imports  into  Shanghai 
for  1924  were  valued  at  $395,227,257  United  States  currency,  as 
compared  with  $348,152,505  in  1923,  an  increase  of  $47,074,752. 
According  to  the  same  authority,  total  exports  of  local  origin  for 
1924  were  valued  at  $311,263,660,  as  compared  with  $299,675,443  in 
1923,  an  increase  of  $11,588,217.  Thus,  the  total  trade  in  1924 
increased  over  1923  by  $58,662,969  United  States  currency. 

The  following  table  gives  the  quantity  and  value  of  the  principal 
articles  imported  and  exported  at  Shanghai  during  1924; 


SHANGHAI  CONSULAR  DISTRICT 


509 


Articles 


IMPORTS 


Quantity- 


Value 


United 

States 


Coal . . . .tons.. 

Cotton  textiles _ 

Cotton,  raw _ pounds. . 

Cotton  yarn _ do - 

Cigarettes.. . . . . 

Dyes,  aniline _ 


Electrical  materials  and 

fittings - - 

Flour,  wheat _ pounds. . 

Gasoline  (benzine) _ 

. American  gallons.  . 

Haberdashery _ 

Indigo,  various  forms 

_ pounds. . 

Kerosene,  all  kinds - 

. American  gallons.  . 

Leather  articles,  all  kinds. 

Machinery,  all  kinds - 

Medicine,  all  kinds - 

Metals  and  minerals _ 

Motor  cars _ number.. 

Paper,  all  kinds  .pounds. . 
Miscellaneous  piece  goods. 

Postal  parcels,  n.  o.  c - 

Rice  and  paddy.pounds.. 

Sugar,  all  kinds - do - 

Tobacco  leaf _ do - 

Wheat _ do - 

Wool  and  cotton  unions.. 
Wool  and  woolen  goods... 
Lumber . . 


777,  595 


135,  662, 842 
10,  006, 165 


203,  600, 820 
4,  016, 994 

53, 110,  586 
44,  727,  241 


1,067 
178,  587,  342 


4, 137,  499 
488,  553,  831 
80,  031,  587 
625,  035, 969 


currency 
$6,  670, 041 
77,  039,  772 
33,  346,  318 

4,  671,  569 

17,  759,  993 

5,  553,  338 

3,  258, 021 
5,  271,  064 

1, 881,  625 

1,  398,  731 

16,  251,  975 

8,  268,  291 

2,  844,  714 

8,  052,  630 
2,  577,  390 

23, 144,  367 

1,  625,  505 

9,  898,  573 
5,  431,  327 

2,  512, 107 
113,  701 

22,  763,  704 

18,  053,  582 
12,  966,  622 

5,  731,  780 
10,  283,  550 
8,  442,  537 


Articles 


EXPORTS 

Antimony,  all  kinds 

_ pounds.. 

Carpets,  large. .number.. 

Cigarettes _ 

Cotton,  raw _ pounds.. 

Cotton  yarn _ do - 

Egg  albumen,  dried _ 

_ pounds.. 

Eggs,  fresh _ thousands.. 

Flour  (wheat). ..pounds.. 

Hides,  cow . ...do - 

Nankeens _ do - 

Oil,  wood _ do _ 

Peanuts  (kernels).. do _ 

Rice . . .do — 

Sheetings _ pieces.. 

Skins,  goat,  untanned 

_ .pieces.. 

Seed,  sesame _ pounds.. 

Silk  piece  goods _ do - 

Silk  pongees _ do _ 

Silk,  raw: 

Waste. . .do _ 

White... . do _ 

Wild _ do.— 

Yellow . do _ 

Tea: 

Black. . do _ 

Green . do _ 

Tobacco . do _ 


Quantity 


17, 943,  513 
92, 083 


124, 189,  478 
271,  770,  707 

6,  736,  582 
247,  534 
781,228,  111 
15,  666,  482 
13,  508,  755 
100,  183,  748 
148,  866,  374 
584,  898,  £38 
4, 148,  755 

3,  895,  853 
85,  973,  701 
2, 143,  464 
1,  298,  342 

10,  681,  329 
5, 179,  372 

1,  319,  403 

2,  497,  375 

28,  508,  071 
34,  439, 121 
31,  021,  976 


Value 


United 
States 
currency 
$1, 000, 767 
2,  438, 047 
72,  649, 188 
29,  748,  520 
85,  126, 456 

4,  898,  271 
2,112,  208 

19,  336,  686 
2, 952, 637 

5,  521,  369 
12,  595,  507 

5,  766,  837 
12,  328, 887 

20,  328,  502 

2,  610,  410 
3,611,745 

14,  275,  544 

3,  673,  765 

3,  502, 110 
29,949,111 

3,  744, 680 
9,  298,  269 

4,  910,  518 

6,  651, 076 
3, 144,  055 


MONEY,  BANKING,  AND  CREDIT  3 

,  BANKS 

Shanghai  is  well  equipped  with  banks  to  handle  the  import  and 
export  trade  which  is  the  life  of  the  port.  The  majority  of  the 
financial  institutions  specializing  in  foreign  exchange  and  trade  are 
foreign  banks,  but  of  late  years  the  Chinese  bankers  have  come  to 
realize  the  importance  of  this  department  of  finance  and  are  slowly 
coming  into  line  with  their  foreign  colleagues.  F rom  an  investment 
point  of  view  the  community  is  singularly  lacking  in  banking 
facilities.  Commercial  banking,  as  it  is  understood  in  the  United 
States,  is  almost  unknown  to  the  foreign  banking  circles  in  China. 
They  apparently  deem  it  more  profitable  to  utilize  their  available 
resources  in  exchange  operations  rather  than  in  fostering  commercial 
undertakings,  as  is  the  practice  in  America.  In  Chinese  commercial 
circles  the  native  banks,  of  which  there  are  hundreds  in  this  con¬ 
sular  district,  fulfill  the  functions  of  a  commercial  bank,  but  at 
exorbitant  interest  rates,  which  are  caused  by  the  extreme  element  of 
chance  which  they  allow  to  enter  into  their  operations.  Security  is 
accepted  by  them  which  would  not  be  considered  by  American  banks, 
and  the  speculative  character  of  these  institutions  may  be  realized 
from  the  fact  that  their  interest  rates  vary  anywhere  from  10  to  30 
per  cent  per  month. 

Foreign  banks  undertake  the  financing  of  foreign  business  houses 
by  the  means  of  overdrafts,  on  which  the  interest  rates  are  from  7  to 
10  per  cent  per  annum.  Loans  as  they  are  knowrn  in  the  United 


3  See  special  chapter  on  “  Currency,  exchange,  and  banking.” 


510 


COMMERCIAL  HANDBOOK  OF  CHINA 


States  are  unusual.  It  has  been  suggested  many  times  that  there  is 
a  legitimate  field  in  China  for  a  strong  commercial  banking  house, 
but  so  far  American  investors  have  not  taken  up  the  idea. 

The  following  list  of  banks  includes  the  chief  institutions  in 
Shanghai  which  handle  foreign  exchange : 

American  Express  Co.  Inc. 

American-Oriental  Banking  Corporation. 

International  Banking  Corporation. 

Equitable  Eastern  Banking  Corporation. 

International  Banking  Corporation. 

Bank  of  Taiwan.  . 

Banque  Beige  pour  l’Etranger. 

Banque  de  lTndo-Chine. 

Chartered  Bank  of  India,  Australia  &  China. 

Hongkong  &  Shanghai  Banking  Corporation. 

Mercantile  Bank  of  India. 

Nederlandsche  Handel-Maatschappiji. 

Russo-Asiatic  Bank. 

Sumitomo  Bank. 

Yokohama  Specie  Bank. 

Bank  of  China. 

Commercial  Bank  of  China. 

Nederlandsch  Indische  Handelsbank. 

Banque  Franco-Chinoise. 

Bank  of  Chosen. 

Russo-Asiatic  Bank. 

Deutsch-Asiatisclie  Bank. 

Mitsubishi  Bank. 

Mitsui  Bank. 

P.  &  O.  Banking  Corporation. 

Shanghai  Commercial  and  Savings  Bank. 

CURRENCY 

TAEL 

Commercial  transactions  are  conducted  *  in  Shanghai  taels  and 
Mexican  dollars.  In  practice  Mexican  dollars  are  on  a  parity  with 
Yuan  and  provincial  dollars.  The  Chinese  Maritime  Customs 
makes  all  of  its  collections  in  haikwan  taels,  which  have  a  fixed  rela¬ 
tion  to  the  currency  of  each  port  where  there  is  a  customhouse.  The 
following  list  gives  the  silver  content  of  the  various  taels  in  this 
consular  district : 

Shanghai  tael,  545.25  grains. 

Ningpo  tael,  523.6  grains. 

Wenchow  tael,  561.7  grains. 

Soochow  tael,  in  value  2  per  cent  less  than  Shanghai  tael. 

Hangchow  treasury  tael,  in  value  1.86  per  cent  under  Shanghai  tael. 

Hangchow  market  tael,  in  value  0.28  per  cent  less  than  Shanghae  tael. 

DOLLAR 

According  to  the  National  Currency  Regulations  the  dollar  is 
called  the  Yuan  and  contains  23.97795048  grams  of  pure  silver. 
In  this  consular  district  there  are  in  circulation  the  official  Yuan 
dollar,  the  Mexican  dollar,*  a  great  many  of  the  old  Spanish,  or 
Carolus,  dollars,  and  dollar  coins  minted  in  various  places  under 
provincial  governments,  the  majority  of  which  are  accepted  only  at 
a  discount.  In  Shanghai  the  Mexican  dollar  is  preferred  over  all 
other  coins,  although  the  Yuan  dollar  is  accepted  without  objection. 


SHANGHAI  CONSULAR  DISTRICT 


511 


In  southern  Chekiang  Province  there  are  many  old  Spanish  dollars 
still  in  circulation  which  are  about  equally  in  demand  with  the 
Mexican  dollars,  although  not  nearly  so  numerous. 

In  Ningpo  there  is  an  interesting  unit  of  value,  a  fictitious  cur¬ 
rency  known  as  the  “  transfer  dollar.”  It  is  like  the  tael  in  that  it 
has  no  coinage.  It  simply  exists  as  a  credit  entry  on  the  books  of 
a  native  bank  in  favor  of  a  customer,  and  its  value  depends  upon 
the  amount  of  silver  coin  in  actual  circulation.  When  silver  is  very 
plentiful  the  “  transfer  dollar  ”  is  cheap  and  when  silver  is  scarce  its 
value  rises,  the  banks  being  willing  to  pay  very  considerable  premi¬ 
ums  for  coin  at  such  times.  In  Ningpo  a  great  deal  of  the  commercial 
business  of  the  port  is  transacted  in  this  fictitious  currency.  A  money 
exchange  is  conducted  in  one  of  the  tea  shops  daily,  and  a  great 
deal  of  speculation  is  carried  on  because  of  the  existence  of  this 
system,  which  no  doubt  owes  its  continuance  to  that  element. 

BANK  NOTES 

The  foreign  banks  operating  in  China  issue  their  own  notes,  which 
have  a  wide  circulation  and  greatly  facilitate  the  transaction  of 
ordinary  business  which  requires  the  use  of  currency.  The  larger 
Chinese  banks  also  issue  notes.  The  Chinese  Ministry  of  Finance 
issues  no  treasury  notes  as  we  know  the  term  in  the  United  States. 

BAB  SILVER  AND  GOLD 

Bank  reserves  are  kept  and  large  native  transactions  are  done  in 
silver  ingots,  which  are  known  as  “  sycee  shoes,”  and  range  in  weight 
from  y2  to  100  taels,  the  weights  being  only  approximations  of 
round  sums.  Shanghai  “  shoes  ”  weigh  about  50  taels,  the  average 
fineness  being  916.66.  These  shoes  or  ingots  may  be  seen  daily  upon 
the  streets  of  Shanghai  after  banking  hours  when  the  various  banks, 
foreign  as  well  as  Chinese,  are  settling  their  balances,  there  being 
no  central  clearing  house  in  the  community.  The  bulk  of  the  metal 
makes  reasonably  safe  this  open  carrying  of  great  amounts  of 
treasure. 

EXCHANGE  BROKERS 

One  of  the  most  interesting  sights,  amusing  both  to  tourists  and 
to  old  residents  in  Shanghai,  is  the  fleet  of  tiny,  pony-drawn  brokers’ 
carts  which  dash  madly  about  the  business  section  during  banking 
hours.  They  are  the  conveyances  used  by  the  numerous  exchange 
brokers,  foreign  and  Chinese,  who,  while  they  serve  the  purpose  of 
glorified  errand  boys  in  the  place  of  a  modern  ticker  system,  make 
enviable  incomes  by  acting  as  middlemen  between  the  banks  and  the 
mercantile  houses  in  foreign  and  domestic  exchange  transactions. 
Their  convenience  is  their  sole  reason  for  existence,  and  it  is  re¬ 
ported  that  the  banks  have  under  consideration  a  less  spectacular 
but  more  efficient  means  of  disseminating  information  regarding 
their  rates. 

CREDITS 

The  foreign-exchange  banks  provide  the  machinery  for  the  con¬ 
duct  of  the  financial  side  of  the  import  and  export  trade.  The 
majority  of  exporters  of  Chinese  produce  ship  their  goods  against 


512 


COMMERCIAL  HANDBOOK  OF  CHINA 


credits  which  have  been  opened  in  Shanghai  banks  by  their  foreign 
connection.  Some  companies  draw  at  90  days  on  the  foreign  pur¬ 
chaser,  but  this  method,  other  things  being  equal,  causes  a  loss  of 
several  per  cent,  which  in  many  cases  represents  the  profit  on  a 
transaction,  and  the  safe  method  is  the  first.  Importers  in  China 
are  in  the  position  of  opening  cash  credits  in  foreign  centers  or 
arranging  with  the  banks  to  honor  drafts  against  them  for  goods 
shipped  from  abroad. 

It  has  never  been  the  practice  of  foreign  exporters  to  consign 
cargo  to  China  except  in  instances  where  manufacturers  maintain 
their  own  offices  in  the  country. 

In  China’s  domestic  trade — that  is,  the  trade  in  both  native  and 
foreign  goods  within  the  boundaries  of  the  country,  after  all  customs 
formalities  have  been  completed — credits  play  a  very  important 
part,  more  so  perhaps  than  in  the  domestic  trade  of  the  United 
States. 

POWERS  OF  ATTORNEY 

It  is  hardly’  possible  to  lay  too  much  emphasis  on  the  importance 
of  investing  representatives  of  American  firms  who  wish  to  do  busi¬ 
ness  in  China  with  legally  complete  powers  of  attorney,  suitable  to 
meet  every  occasion.  It  should  be  remembered  that  the  American 
representative  in  China  may  have  occasion  to  do  business  with  banks, 
commercial  houses,  and  officials  not  only  of  China,  but  possibly  of 
every  trade  nation  represented  there,  and  that  his  authority  should 
be  sufficiently  broad  and  specific  to  enable  him  to  meet  the  general 
requirements  of  each  of  them.  Powers  of  attorney  which  do  not 
answer  the  requirements  of  local  banks,  of  the  different  nationalities, 
frequently  cause  embarrassment  and  the  loss  of  valuable  time  to 
representatives  of  American  firms.  Where  general  power  is  intended, 
it  is  not  sufficient  that  it  be  expressed  in  merely  general  terms.  In 
addition  to  the  conventional  blanket  expression  of  general  power,  at 
least  the  following  specific  powers  should  be  expressed : 

(1)  Authority  for  the  principal,  with  power  of  substitution,  to 
sign  consular  invoices. 

(2)  To  open  and/or  operate  accounts  in  the  name  of  the  principal. 

(3)  To  overdraw  such  account. 

(4)  To  borrow  money  in  the  name  of  the  principal. 

(5)  To  pledge  goods  and/or  securities. 

(6)  To  draw,  accept,  and/or  indorse  bills  of  exchange  and  related 
documents. 

(7)  To  make  forward  exchange  settlements. 

(8)  To  substitute  authority. 

Without  going  into  the  question,  it  may  be  said  generally  that 
powers  of  attorney  issued  by  an  American  firm  to  an  American 
representative  or  to  a  representative  of  foreign,  non-Chinese  nation¬ 
ality  should  differ  somewhat  in  character  from  powers  granted  to 
Chinese  representatives.  While  carefully  drawn  powers  of  attorney 
in  accordance  with  the  laws  of  the  United  States  should  be  issued 
in  the  United  States,  many  competent  authorities  in  China,  ac¬ 
quainted  with  local  conditions,  believe  it  advisable,  where  possible, 
to  have  such  authority  reinforced  by  powers  of  attorney  prepared 
in  China  by  some  competent  American  or  other  lawyer. 


SHANGHAI  CONSULAR  DISTRICT 


513 


ADVERTISING  METHODS  AND  FACILITIES4 

In  the  Shanghai  consular  district  advertising  is  fast  assuming  the 
importance  which  it  has  in  merchandising  in  the  United  States. 
Newspaper  advertising  is  proving  itself  to  be  increasingly  valuable, 
and  there  are  billboards  both  in  and  out  of  the  cities.  Advertising 
agencies,  both  Chinese  and  foreign,  have  been  organized  to  work 
along  American  lines.  Certain  of  the  larger  corporations  maintain 
their  own  advertising  departments,  which  have  been  eminently  suc¬ 
cessful.  In  short,  advertising  has  been  found  to  be  as  efficacious  in 
China  as  it  has  elsewhere. 

The  more  important  advertising  mediums  in  the  district  are : 

Newspapers:  Sin  Wan  Pao  (Chinese),  circulation  125,000;  China  Press 
(American),  circulation  4,500;  Shanghai  Times  (British),  circulation  3,000; 
Evening  News  (nationality  uncertain),  circulation  4,000;  North  China  Daily 
News  (British),  circulation  4,000. 

Weekly:  Weekly  Review  of  the  Far  East  (American)  ;  North  China  Herald 
(British) . 

Monthly :  Far  Eastern  Review  ;  Asiatic  Motor. 

Of  the  foregoing  publications,  the  Sin  Wan  Pao  has  the  greatest 
advertising  value  with  respect  to  the  Chinese  markets.  There  are 
numerous  other  Chinese  dailies,  but  they  are  of  minor  importance 
when  compared  with  the  paper  mentioned.  The  foreign  papers 
reach  only  the  foreign  population  and  the  small  section  of  the 
Chinese  who  are  able  to  read  English.  However,  it  would  be  unfair 
to  disparage  their  advertising  value,  as  instances  continually  come 
to  light  where  foreign-language  advertising  has  secured  Chinese 
business. 

Advertising  in  the  Chinese  language  is  a  matter  which  should  be 
approached  with  the  greatest  caution.  The  difficulties  of  trans¬ 
lation  make  it  imperative  that  such  work  be  done  only  by  highly 
trained  specialists.  Occasions  have  arisen  where  poorly  written  ad¬ 
vertisements  have  caused  embarrassment  and  actual  loss  to  foreign 
firms  which  might  have  been  avoided  by  the  employment  of  compe¬ 
tent  copy  writers. 

TRAVEL  FACILITIES 

Shanghai,  as  the  great  entrepot  of  China,  has  perhaps  better  means 
of  reaching  all  parts  of  the  country  than  any  other  port.  It  is  con¬ 
nected  by  several  lines  of  comfortable  steamers  (one  or  more  of 
which  sails  almost  nightly)  with  the  interior  cities  that  lie  along  the 
Yangtze  River.  It  is  connected  with  Peking  and  the  north  by  the 
Shanghai-Nanking  Railway,  which  connects  at  the  latter  city  with 
the  Tientsin-Pukow  Railway;  it  also  is  connected  with  Peking  by 
steamer  to  Hankow  and  the  Peking-Hankow  Railway  at  that  point. 
Steamship  lines  with  regular  and  frequent  sailings  also  connect 
Shanghai  with  Dairen,  Tientsin,  Chefoo,  and  Tsingtao,  on  the  north, 
and  with  Hongkong  and  all  parts  of  Europe  and  the  Far  East. 

Within  the  district  Shanghai’s  hotels  are  among  the  best  in  the 
east  and  afford  ample  accommodations.  In  Soochow  and  Hangchow 
are  hotels  conducted  by  Chinese  along  foreign  lines;  but  in  Ningpo 


4  See  special  chapter  on  this  subject. 
100020°— 26 - 34 


514 


COMMERCIAL  HANDBOOK  OF  CHINA 


and  Wenchow  travelers  depend  upon  purely  Chinese  hostelries  or 
the  hospitality  of  foreign  residents.  Experienced  travelers  usually 
take  with  them  a  capable  Chinese  “  cook  boy  ”  on  journeys  into  the 
interior. 

TRADE  ORGANIZATIONS 

The  nationals  of  all  the  more  important  countries  interested  in 
Shanghai  trade  are  organized  into  chambers  of  commerce,  a  list 
of  which  appears  below. 

American  Chamber  of  Commerce  of  China. 

British  Chamber  of  Commerce. 

Chinese  Chamber  of  Commerce. 

General  Chamber  of  Commerce. 

Japanese  Chamber  of  Commerce. 

French  Chamber  of  Commerce. 

Russian  Chamber  of  Commerce. 

Norwegian  Chamber  of  Commerce. 

Belgian  Chamber  of  Commerce. 

German  Chamber  of  Commerce. 

Italian  Chamber  of  Commerce. 

Netherlands  Chamber  of  Commerce. 

American  firms  and  also  individuals  should  take  advantage  of  the 
facilities  offered  by  the  American  Chamber  of  Commerce,  the  en¬ 
trance  fee  to  which  is  50  taels,  with  annual  dues  of  150  taels  for  firms, 
while  for  individual  membership  the  annual  fee  is  $10  United  States 
currency. 

The  Shanghai  General  Chamber  of  Commerce  is  international  in 
character,  all  foreigners  resident  in  Shanghai  for  business  purposes 
being  eligible  for  membership.  It  is  important  in  that  it  expresses 
the  collective  will  of  the  commercial  community  as  no  other  organ¬ 
ization  is  able  to  do,  and  has  become  a  power  in  this  part  of  the 
world. 

American  firms  should  be  registered  with  the  American  consulate 
general  in  order  to  secure  the  advantages  of  consular  protection  and 
intervention — a  matter  which  is  of  great  importance  in  transacting 
business  in  China.  No  fee  is  charged  for  registration,  which  is  avail¬ 
able  to  all  bona  fide  American  houses  and  individuals. 

LIVING  COSTS 

Observation  and  experience  have  led  to  the  belief  that  for  foreign 
residents  the  average  cost  of  living  in  Shanghai  is  about  the  same 
as  for  similar  living  conditions  in  the  cities  in  the  United  States, 
while  in  the  country  it  is  possible  to  live  well  for  considerably  less. 
Living  conditions  are  changing  in  China  just  as  business  methods 
are  undergoing  a  gradual  revision.  The  old  days  of  a  free  and 
easy  Orient  are  gone.  Business  is  conducted  upon  lines  closely  ap¬ 
proaching  American  methods.  Competition  is  keen  and  is  reflected 
in  the  attitude  of  the  foreign  community  toward  life. 

The  cost  of  food  is  now  (1924)  at  the  highest  mark  on  record. 
The  shortage  of  foreign  accommodations  has  forced  rents  to  a  high 
point.  Board  and  room  may  be  obtained  for  from  $120  to  $250 
per  month.  Detached  houses  rent  at  prices  ranging  from  110  taels 
to  200  taels  per  month  ($77.90  to  $141.64  United  States  currency). 
Apartment  houses  are  coming  into  favor,  in  which  two  to  six  room 


SHANGHAI  CONSULAR  DISTRICT 


515 


apartments  may  be  rented  for  from  85  to  150  taels  per  month,  in¬ 
cluding  heat  and  light.  Separate  board  at  hotels  and  restaurants 
costs  from  $45  to  $75  per  month. 

The  price  of  clothing,  despite  the  many  tales  of  the  cheapness  of 
Chinese  tailors,  is  believed  to  be  about  equal  to  that  prevailing  in 
America.  Servants,  popularly  supposed  to  be  very  inexpensive,  are 
cheaper  than  domestic  help  in  America,  but  wages  are  steadily  in¬ 
creasing,  and  this,  together  with  the  necessity  of  maintaining  sev¬ 
eral  to  do  the  work  of  one  American  servant,  makes  this  item  one  of 
importance  to  the  householder. 

RECREATION 

Sport  has  always  played  an  important  part  in  far  eastern  life, 
and  excellent  facilities  for  the  enjoyment  of  all  kinds  of  outdoor 
exercise  are  found  in  Shanghai.  The  premier  sport  is  racing,  after 
which  come  tennis,  golf,  polo,  paper  hunting,  rowing,  baseball, 
cricket,  lawn  bowls,  rifle  and  trap  shooting,  and  pistol  shooting. 
Yachting  is  slowly  growing  in  importance  as  the  advantages  of 
power  boats  become  appreciated.  House-boating  is  popular  and 
fairly  cheap.  Hunting  is  still  to  be  found  within  100  miles  of 
Shanghai  and  is  not  unduly  expensive.  Motoring  is  a  minor  pas¬ 
time,  because  of  the  lack  of  roads,  and  can  not  be  expected  to  assume 
its  rightful  proportions  as  a  major  sport  until  China  has  remodeled 
its  transportation  system. 

Club  life  plays  an  important  role  in  the  social  intercourse  of  the 
foreign  community.  In  general  it  may  be  stated  that  clubs  are 
plentiful  and  quite  cheap,  considering  the  excellence  of  the  service 
provided.  The  more  important  clubs  in  Shanghai  are  the  Shanghai 
Club,  the  Shanghai  Race  Club,  the  American  Club,  the  Columbia 
Country  Club  (American),  the  Country  Club  (British),  the  French 
Club,  and  the  Union  Club  (international). 

The  Navy  Y.  M.  C.  A.  provides  clubhouse  accommodations  for 
service  men  of  all  nationalities  and  also  for  a  limited  number  of 
civilians.  It  is  supported  partly  by  its  receipts,  the  annual  deficit 
being  made  up  by  the  American  business  community. 

Cinema  houses  abound.  A  modern  theater  which  is  visited  by 
several  stock  companies  each  year  provides  excellent  amusement  for 
playgoers.  Cabarets  and  restaurants  abound  for  the  entertainment 
of  people  fond  of  good  food  and  dancing. 

AMERICAN  COMMUNITY  ORGANIZATIONS  IN  SHANGHAI 5 

It  is  of  interest  to  note  some  of  the  typically  American  institutions 
which  have  been  inaugurated  by  the  American  community  in  Shang¬ 
hai  as  contributions  to  its  substantial  and  permanent  development. 
Foremost,  perhaps,  among  these  is  the  school  for  the  education  of 
the  children  of  American  parentage.  This  modern  school,  erected 
at  a  cost  of  over  $500,000,  has  a  present  enrollment  of  more  than 
400  students  in  all  grades,  from  kindergarten  through  the  high- 
school  courses.  It  has  also  boarding  facilities  for  a  number  of 
students  from  outports.  There  is  an  American  country  club  occupy- 


5  Contributed,  by  Commercial  Attach^  Julean  Arnold. 


516 


COMMERCIAL  HANDBOOK  OF  CHINA 


ing  6  acres  of  land  devoted  to  sports;  an  American  town  club,  in  a 
modern  seven-story  building  with  living  accommodations  of  51  rooms 
with  private  baths,  the  whole  property  representing  an  outlay  of 
$500,000;  and  an  American  community  church,  built  at  a  cost  of 
more  than  $200,000.  In  course  of  erection,  opposite  the  race  course 
and  recreation  grounds,  is  a  Y.  M.  C.  A.,  under  American-British 
auspices.  This  building  will  provide  200  rooms  for  young  men,  with 
all  the  modern  facilities  characteristic  of  Y.  M.  C.  A.  organizations. 

The  Navy  Y.  M.  C.  A.  at  Shanghai,  a  splendid,  modern  six-story 
building,  is  primarily  intended  for  use  of  the  men  from  American 
ships,  but  is  open  to  other  nationalities  as  well. 

The  Women’s  Club  of  Shanghai  has  plans  in  preparation  for  re¬ 
building  to  house  the  activities  of  its  organization,  and  plans  have 
been  drawn  up  for  a  $2,000,000  United  States  Federal  building  at 
Shanghai  to  house  the  ^various  American  Government  departments 
functioning  there.  At  present  the  United  States  Government  owns 
its  consular  buildings  at  Shanghai  and  the  property  occupied  by  the 
United  States  Court  for  China. 

In  connection  with  these  evidences  of  the  substantial  nature  of 
American  communities  in  China,  it  may  not  be  amiss  to  observe  that 
in  Peking  the  American  community  maintains  a  modern  school, 
which  cost  $75,000,  for  the  education  of  children  of  American  parent¬ 
age,  and  that  in  Tientsin  the  Americans  have  purchased  land  and 
are  raising  money  for  the  erection  of  an  educational  institution  for 
their  children  there. 

CHANGES  IN  TRADE  CONDITIONS  IN  PAST  DECADE 

As  has  been  previously  shown  by  the  statistical  tables,  there  have 
been  noticeable  changes  in  the  class  of  cargo  brought  into  China 
during  the  past  decade,  the  increase  in  machinery  and  the  decrease 
in  manufacturfed  lines  being  especially  notable;  but  the  most  strik¬ 
ing  change  during  that  period  is  in  organization  of  business. 

Foreign  business  men  have  come  to  the  realization  of  the  extreme 
value  of  contact  with  the  Chinese  trade.  The  decade  under  review 
has  seen  this  realization  crystallized  into  direct  representation  by 
many  manufacturers  formerly  engaged  in  the  China  trade  through 
the  medium  of  import  houses.  Manufacturers  of  cotton-milling  ma¬ 
chinery  have  opened  their  own  China  branches.  Producers  of  food 
products  and  soaps  have  their  Shanghai  offices.  Several  of  the 
largest  automobile  manufacturers  are  seriously  considering  establish¬ 
ing  their  own  assembly  plants  in  Shanghai  to  take  care  of  the  China 
market.  The  general  import  houses  are  falling  into  line  by  reducing 
their  agency  representations  to  a  few  lines  in  which  they  may  be 
said  to  be  experts  and  are  benefiting  thereby.  The  entire  trend  of 
the  trade  is  toward  specialization,  and  it  is  believed  that  its  result 
will  be  of  immense  benefit  to  both  the  foreign  manufacturer  and  the 
Chinese  buyer.  It  reduces  prices  through  eliminating  commissions, 
and  it  places  the  trade  in  the  hands  of  qualified  experts,  to  the  general 
improvement  of  its  tone.  The  fact  that  this  is  the  age  of  specialists 
and  experts  is  being  emphasized  in  this  market. 


SHANGHAI  CONSULAR  DISTRICT 


517 


LAND  PROCEDURE  IN  SHANGHAI 6 

RIGHT  OF  LAND  TENURE 

The  right  of  Americans  and  all  other  foreigners  to  acquire  land 
in  China  is  governed  by  treaty  stipulations  between  China  and  for¬ 
eign  powers.  Land  so  acquired  is  to  be  rented  or  leased  in  perpetuity 
and  not  to  be  held  in  fee  simple.  Missionary  societies,  as  public 
bodies,  are  permitted  to  rent  or  lease,  in  perpetuity,  land  in  any  part 
of  China,  but  the  right  of  individual  foreigners  or  foreign  firms  to 
so  acquire  land  is  limited  to  the  treaty  ports. 

METHOD  OF  ACQUIRING  LAND 

/ 

The  registration  of  land  in  the  American  consular  land  office  may 
only  be  effected  in  the  name  or  names  of  one  or  more  duly  registered 
citizens  of  the  Lhiited  States  or  of  its  possessions,  or  of  a  corporation 
chartered  under  the  laws  of  any  State,  Territory,  or  insular  posses¬ 
sion  of  the  United  States  or  of  the  District  of  Columbia.  Registra¬ 
tion  can  not  be  effected  in  the  name  of  a  partnership  as  such,  but 
should  be  in  the  name  of  its  individual  members.  Land  acquired  by 
any  missionary  society  should  be  registered  in  the  name  of  the  mis¬ 
sion  and  not  in  the  name  of  some  member  of  the  mission. 

The  most  common  form  of  title  pRper  in  China  is  the  “  hung  chi,” 
or  “  red  deed,”  so  called  because  of  the  red  official  seal  stamped  upon 
the  face  of  the  document,  to  which  is  attached  the  “  white  deed,”  or 
“  bill  of  sale,”  when  the  land  is  transferred  to  another  party. 

In  and  about  Shanghai  the  most  common  form  of  title  paper  is 
the  “  fangtan,”  or  “  square  certificate,”  to  which  the  bill  of  sale  must 
be  attached  when  the  land  is  sold.  These  papers  bear  the  seal  of  the 
district  magistrate,  contain  the  name  of  the  owner,  and  state  the 
location  of  the  property  and  its  area.  All  fangtans  issued  before  the 
Taiping  rebellion  are  held  to  be  null  and  void.  In  view  of  the  Chi¬ 
nese  custom  of  dividing  such  fangtans  when  they  desire  to  divide  a 
plot  of  ground,  and  also  because  of  the*  very  thin  paper  upon  which 
the  fangtans  are  printed,  these  documents  are  often  so  damaged  and 
mutilated  that  disputes  regarding  ownership  and  area  easily  arise. 
As  it  is  almost  impossible  for  a  foreigner  to  distinguish  between  a 
false  and  a  genuine  fangtan,  the  matter  is  left  entirely  in  the  hands 
of  the  Chinese  authorities.  A  small  fee  is  charged  by  them  for  the 
verification  of  such  documents,  and  such  verification  is  felt  to  be 
practically  the  only  safe  way  to  distinguish  between  the  genuine 
documents  and  the  false. 

Whenever  those  permitted  to  register  land  at  the  American  con¬ 
sular  land  office  have  purchased  land,  completed  the  sale,  and  re¬ 
ceived  the  native  documents  covering  the  property,  they  should  apply 
to  the  land  office  for  the  registration  of  the  land  so  purchased.  The 
necessary  forms  for  such  application  will  be  furnished  upon  request. 
The  fullest  possible  information  as  to  the  location,  area,  and  bound¬ 
aries  should  be  stated  in  this  application,  and  a  plan,  no  matter  how 
rough,  should  be  sent  in  at  the  same  time.  A  full  and  detailed  de¬ 
scription  of  all  title  papers  should  be  given  in  the  application  and  the 
status  of  the  applicant  should  be  clearly  stated. 


6  By  Consul  Howard  Bucknell,  jr. 


518 


COMMERCIAL  HANDBOOK  OF  CHINA 


'Cpon  receiving  the  application  for  registration  with  the  necessary 
documents  the  land  officer,  if  everything  is  in  order  as  far  as  he  can 
determine,  will  assign  a  number  by  which  the  foreign  title  deed,  if 


Fig.  19. — Entrance  to  Robert  Dollar  Building.  Many  American  concerns  occupy 

offices  in  this  building 


issued,  will  be  designated,  and  will  give  an  official  receipt  for  the 
native  documents  received  by  him.  Three  copies  of  the  foreign  title 


SHANGHAI  CONSULAR  DISTRICT 


519 


deed  are  then  prepared,  and  with  all  documents  of  title  are  for¬ 
warded  to  the  Chinese  land  office  at  Shanghai,  with  the  request  that 
the  deeds  be  stamped  and  returned  as  soon  as  possible.  Upon  receipt 
of  these  documents  by  the  Chinese  land  office  that  office  will  examine 
them  to  see  if  they  are  in  order,  and  if  they  are  found  to  be  correct 
a  date  will  be  set  for  the  measurement  of  the  property  concerned. 
The  measurement  of  the  property  then  takes  place  in  the  presence 
of  representatives  of  the  renter,  the  municipality,  the  Chinese  land 
office,  and  the  consulate  general. 

A  plan  of  the  property  is  then  prepared,  and  is  forwarded  in 
two  copies  to  the  renter  through  the  consular  land  office.  If  this 
plan  is  found  to  be  correct  the  renter  affixes  his  signature  thereto 
and  retains  one,  the  other  copy  being  forwarded  to  the  consular 
land  office.  This  copy  is  placed  in  the  files  of  the  consulate  general, 
and  the  Chinese  land  office  is  notified  that  the  renter  has  approved 
the  plan  and  that  the  deed  may  now  be  stamped  without  further 
delay.  If  the  plan  be  found  to  be  incorrect,  the  consular  land 
office  returns  it  to  the  Chinese  land  office  for  correction,  in  some 
instances  a  remeasurement  being  held. 

The  deeds  are  then  forwarded  to  the  Commissioner  of  Foreign 
Affairs  for  stamping,  and,  when  this  has  been  done,  the  Chinese 
land  office  retains  one  copy  of  the  deed  for  its  files  and  forwards 
two  copies  to  the  consular  land  office,  one  for  the  renter  of  the 
property  and  one  for  the  files  of  the  consulate  general. 

TRANSFERS 

The  transfer  of  land  after  the  title  deed  has  been  issued  is  a 
simple  one.  The  transferer  and  the  transferee  call  at  the  consular 
land  office  and  sign  a  statement  stamped  upon  the  face  of  the  docu¬ 
ment  to  the  effect  that  the  property  covered  by  the  deed  is  thereby 
transferred  to  the  purchaser,  and  he  in  turn  signs  as  accepting  the 
transfer.  If  the  nationality  of  the  transferree  is  American,  the 
deed  is  retained  in  the  American  registry.  If  of  other  nationality, 
the  deed  is  canceled  and  turned  over  to  the  consulate  concerned 
for  registration  in  that  consular  land  office. 

LAND  VALUES  AND  DEVELOPMENT  IN  SHANGHAI 

There  is  quoted  below  an  article  appearing  in  the  Chinese  Eco¬ 
nomic  Monthly  magazine,  which  shows  in  detail  the  relative  land 
values  as  well  as  the  growth  of  contraction  and  land  improvements 
in  Shanghai. 

Development  of  land  in  Shanghai  and  the  consequent  advance  in  values 
have  gone  ahead  rapidly  since  the  first  international  concession  was  granted 
in  1843 ;  and  Shanghai  to-day  presents  more  the  appearance  of  a  western 
than  an  oriental  city.  While  construction  of  a  foreign  city  on  the  banks 
of  the  Whangpoo  has  been  in  progress  for  SO  years,  this  development  has 
been  especially  rapid  in  the  last  decade,  and  values  of  property  both  in  the 
concessions  and  in  the  Chinese  sections  belonging  to  or  near  the  city  have 
risen  abnormally. 

Acquisitions  by  the  public  works  department  of  the  Shanghai  Municipal 
Council  scarcely  represent  a  true  index  of  the  rising  land  values.  However, 
the  figures  given  below  show  the  area  and  cost  of  land  required  for 
road  widening  and  extension  from  1918  to  1923. 


520 


COMMERCIAL  HANDBOOK  OF  CHINA 


1918 

1919 

1920 

1921 

1922 

1923 

Area  in  mow.  _ _ _ _ 

17, 187 
168, 945 

75,  578 
188,  830 

28,  941 
142,  478 

87,  653 
157, 189 

179,  590 
804,  616 

130,  857 
905,  393 

Cost  in  taels . . . . 

The  most  valuable  property  in  Shanghai  and  in  all  China,  so  far  as  real 
estate  goes,  is  on  the  Bund,  a  thoroughfare  of  imposing  office  and  bank 
buildings  facing  the  Whangpoo  River.  Nanking  Road,  running  westward 
from  the  Bund  and  containing  the  most  prominent  shops  in  the  city,  is 
another  street  where  property  values  are  high.  Land  in  the  western  districts 
of  the  international  settlement  and  French  concession  is  considerably  lower 
in  price,  and  in  the  eastern  district,  where  there  are  a  number  of  factories 
and  “  godowns,”  prices  are  lower  still. 

The  average  assessed  value  of  land  on  the  Bund  per  mow  (one-sixth  of 
an  acre)  is  138.000  taels;  other  properties  in  the  central  district  of  the 
international  settlement  range  from  23,000  to  114,000  taels  per  mow.  These 
are  assessed  values,  not  actual  market  values,  which  are  perhaps  from  33 
to  75  per  cent  higher.  In  the  northern  district  of  the  international  settlement 
assessed  values  range  from  10,000  to  34.000  taels  per  mow,  and  in  the  remain¬ 
ing  districts  land  is,  on  the  whole,  somewhat  cheaper.  In  the  French  con¬ 
cession,  along  the  Bund  and  river  front,  the  average  assessed  value  is  60,000 
taels  per  mow ;  but  in  the  remaining  area  of  the  French  concession  assessed 
land  values  range  from  3,000  to  7,000  taels. 

Agricultural  land  without  creek  or  road  frontage  and  more  than  a  mile 
from  any  municipal  road  of  the  foreign  settlements  or  Chinese  city  is  obtain¬ 
able  at  about  180  taels  per  mow. 

Land  within  the  foreign  settlements,  if  below  the  level  of  the  municipal 
road,  must  be  raised  before  being  built  upon.  The  average  cost  of  filling 
1  foot  high  with  country  mud  is  about  150  taels  per  mow,  but  the  price  varies 
considerably  according  to  the  distance  that  the  mud  filling  has  to  be  carried. 

Five  or  six  years  ago  a  mow  of  land  (one-sixth  of  an  acre)  in  a  certain 
section  of  the  Chapei  district,  a  Chinese  section,  sold  for  500  Shanghai  taels. 
Now  this  piece  is  valued  at  5,000  taels  per  mow.  Some  of  the  most  undesirable 
pieces  of  property  in  Chapei  are  valued  at  2.000  taels. 

The  following  figures  represent  building  activity  in  the  international  settle¬ 
ment  during  the  last  5  years. 


Class 

1919 

1920 

1921 

1922 

1923 

Chinese  .  _ _ _ _ 

2, 336 
50 

2, 470 
27 

4,  064 
66 

4,  267 
48 

5,  634 
208 

Foreign  business  buildings  . . . 

Foreign  residences _ _ _ ... 

51 

83 

235 

128 

162 

Godowns.. _ _ _ _ _ 

52 

84 

55 

28 

38 

Stables  and  garages _ _ _ _ 

52 

44 

61 

73 

59 

Work  sheds.  .  . . . . . . . . 

94 

101 

113 

108 

76 

Mills  and  factories . . . . 

28 

51 

41 

25 

14 

Miscellaneous . . . . . . . . 

468 

683 

709 

773 

1,081 

Total . . . . .  . 

3, 131 

3,  543 

5, 344 

5,450 

7,  272 

The  value  of  the  houses  in  the  settlement  in  1923  was  estimated  at 
13,030,400  taels.  The  estimate  for  1922  was  15,926,600  taels ;  for  1921.  21,- 
058,700  taels;  for  1920,  10,872,300  taels;  and  for  1919,  5,852,600  taels. 

Construction  costs  in  Shanghai,  as  in  other  parts  of  the  world,  have  increased 
markedly  in  the  last  few  years.  For  instance,  in  1912  an  ordinary  type  of 
Chinese  two-story  house,  called  a  hong,  having  one  big  room,  a  small  court¬ 
yard,  and  a  kitchen,  could  be  erected  for  500  taels.  By  1920  the  cost  of  con¬ 
struction,  using  the  same  quality  of  materials  as  in  1912,  was  800  taels ;  in 
1921,  900  taels ;  in  1922,  1,000  taels ;  and  in  1923,  1,200  taels,  which  figures  will 
also  cover  expenses  of  building  for  1924.  These  figures  indicate  the  upward 
trend  of  construction  costs.  The  usual  reasons  adduced  to  account  for  this 
are  increased  cost  of  materials  and  labor  and  a  larger  net  profit  on  the  part 
of  builders. 


SHANGHAI  CONSULAR  DISTRICT 


521 


The  cost  of  constructing  foreign  houses,  estimated  at  so  much  per  100  square 
feet,  has  increased  in  the  proportion  indicated  below.  To  build  an  ordinary- 
foreign  residence  of  two  stories  and  an  attic,  with  oak  fittings  and  fairly  good 
appointments,  the  present  building  cost  is  around  750  teals  per  100  square  feet. 

The  following  shows  the  approximate  cost  from  1912  to  1924 :  1912,  350 
taels ;  1920,  500  taels ;  1921,  550  taels ;  1922,  650  taels ;  1923,  700  taels ;  1924, 
750  taels. 

Labor  costs  have  increased  in  Shanghai  as  elsewhere,  as  the  following  table 
Of  daily  wages  paid  by  contractors  in  the  city  indicates  (workmen  getting 
these  wages  also  receive  food  from  their  employers)  : 


1912 

1920 

1921 

1922 

1923 

1924 

Carpenters. _ _ 

Cash 

200 

160 

Cash 

400 

360 

Cents 1 
30 
26 

Cents 1 
40 
26 

Cents i 
40 
26 

Cents 1 
40 
26 

Masons  .  _ _ _ 

i  Cents  are  in  big  money,  100  cents  equaling  a  dollar. 


TIENTSIN  CONSULAR  DISTRICT 


By  Consul  General  C.  E.  Gauss 

LOCATION  AND  AREA 

Tientsin  consular  district  lies  between  latitudes  34°  and  40°  N., 
corresponding  to  the  region  between  Philadelphia,  Pa.,  and  Raleigh, 
N.  C.  Its  area  of  140,000  square  miles  comprises  those  portions  of 
Chihli  and  Shansi  Provinces  south  of  the  Great  Wall  and  the  section 
of  Honan  Province  north  of  the  Yellow  River.  The  climate  is  dis¬ 
tinguished  by  excessive  dryness.  Severe  dust  storms  occur  in  early 
spring  and  late  autumn.  The  average  rainfall  is  20  inches,  mostly  in 
July  and  August,  the  rainy  season.  Average  maximum  temperature, 
100°  F. ;  average  minimum  temperature,  0  F. 

POPULATION 

The  Chinese  postal  service’s  estimate  of  the  population  of  the  dis¬ 
trict  in  1922  was  45,000,000.  The  density  for  the  whole  consular 
district  is  estimated  at  320  per  square  mile;  for  Chihli,  295;  for 
Shansi,  134;  for  Honan,  454  per  square  mile. 

CITIES 

Tientsin,  in  Chihli  Province,  is  on  the  Hai  Ho,  42  miles  from 
the  sea.  It  was  opened  to  foreign  trade  by  the  treaty  of  1860. 
The  estimated  population  is  838,629.  The  number  of  European  resi¬ 
dents,  exclusive  of  military  garrisons,  is  5,400;  the  number  of  Ameri¬ 
can  residents,  excluding  military,  729,  and  the  number  of  American 
business  firms,  75. 

Tientsin  is  the  principal  trade  port  and  distributing  center  of 
North  China,  the  territory  commercially  tributary  to  it  including  the 
consular  district,  portions  of  Shantung,  Honan,  Inner  Mongolia,  cer¬ 
tain  portions  of  southern  Manchuria,  Kansu,  and  Chinese  Turkestan. 

Originally  icebound  during  the  winter  months,  recent  improve¬ 
ments  of  the  Hai  River  make  Tientsin  now  practically  an  ice-free 
port,  and  large  coasting  steamers  are  able  to  proceed  up  the  river 
to  the  city  dock.  Ocean  steamers  anchor  outside  the  bar  at  Taku 
and  are  served  by  lighters. 

There  are  five  foreign  concession  areas  at  Tientsin,  administered  by 
Belgium,  France,  Great  Britain,  Italy,  and  Japan.  The  Austrian 
and  German  concessions  were  taken  over  by  China  in  1917,  and  the 
relinquishment  of  their  title  was  confirmed  by  subsequent  treaties. 
The  Russian  concession,  temporarily  taken  over  by  China  for  ad¬ 
ministration  in  1920,  was,  by  agreement  between  China  and  the  Rus¬ 
sian  Soviet  regime  in  1924,  definitely  restored  to  China.  The  for¬ 
mer  Austrian,  German,  and  Russian  concessions,  now  restored  to 
China,  have  been  organized  as  special  Chinese  administrative  areas 

522 


TIENTSIN  CONSULAR  DISTRICT 


523 


and  are  administered  under  the  Chinese  commissioner  of  police  sepa¬ 
rately  from  the  administration  of  the  Chinese  city.  In  the  British, 
French,  Italian,  and  Japanese  concessions,  administration  is  in  the 
hands  principally  of  municipal  councils  elected  by  the  taxpayers. 

There  are  no  restrictions  on  the  right  of  foreigners  to  reside  in  any 
of  the  concessions,  except  the  requirement  to  abide  by  the  municipal 
regulations  and  by-laws. 

Peking  is  the  capital  of  China,  87  miles  by  rail  from  Tientsin.  Its 
estimated  population  is  1,181,400.  The  number  of  American  resi¬ 
dents,  exclusive  of  legation  guards,  is  822.  Peking  has  never  been 
opened  to  foreign  trade,  but  a  number  of  foreign  firms  maintain 
resident  representatives  there. 

Peking  is  of  importance  and  interest  as  the  seat  of  the  National 
Government,  and  holds  special  interest  for  foreign  travelers.  Its 
four  sections  are  known  as  the  Tartar  City,  the  Imperial  City,  the 


Fig.  20. — Portion  of  campus  of  Tsing  Hua  College,  Peking.  This  institution 
prepares  about  100  students  for  entrance  into  American  colleges  each  year  from 
Boxer  indemnity  funds 


Forbidden  City,  and  the  Chinese  City.  A  section  known  as  the 
Legation  Quarter  was  established  under  the  Boxer  protocol  of  1901, 
and  is  administered  by  a  commission  appointed  by  the  diplomatic 
corps. 

Foreign  residents  generally,  including  government  representatives, 
missionaries,  and  the  representatives  of  the  business  firms,  reside 
in  the  Legation  Quarter,  so  far  as  its  restricted  area  will  permit. 

Chinwangtao,  in  Chihli  Province,  165  miles  from  Tientsin  by  rail, 
is  the  winter  port  for  Tientsin  and  Peking.  Opened  to  foreign  trade 
by  imperial  decree  of  1898,  its  estimated  population  is  5,000.  Since 
the  improvements  made  by  the  Hai  Ho  Conservancy  are  rapidly 
making  Tientsin  an  all-year  port,  the  importance  of  Chinwangtao 
is  diminishing.  It  is,  however,  the  premier  port  east  of  Suez  for  the 
shipment  of  coal,  and  its  harbor  and  wharfage  facilities  have  been 
largely  developed. 


524 


COMMERCIAL  HANDBOOK  OF  CHINA 


Taiyuanfu,  the  capital  of  Shansi  Province,  has  an  estimated  popu¬ 
lation  of  220,000. 

AGRICULTURE 

Fully  80  per  cent  of  the  population  engage  in  agricultural  pur¬ 
suits.  Farming  methods  and  implements  are  primitive,  and  65  per 
cent  of  the  land  holdings  are  in  tracts  of  from  one-half  to  4  acres. 
The  principal  crops  are  millet,  maize,  kaoliang,  wheat,  cotton,  beans, 
linseed,  rapeseed,  groundnuts,  and  walnuts. 

North  China  is  essentially  a  wheat-consuming  section,  while  rice 
is  the  principal  item  of  food  of  South  China.  The  land  in  the  dis¬ 
trict  yields  23  bushels  of  wheat  per  acre,  but  conservative  estimates 
place  the  average  yield  at  11  bushels.  The  flour-milling  industry 
of  North  China  draws  a  large  part  of  its  supply  of  wheat  from  this 
district,  but  in  short-crop  years  large  quantities  of  foreign  flour  are 
imported. 

Kaoliang,  maize,  and  millet  are  sown  in  the  late  spring,  usually 
following  the  wheat  harvest,  and  are  harvested  in  the  autumn.  No 
estimates  are  available  on  yield  or  production,  though  all  three  are 
important  food  products  and  grown  extensively. 

Cotton  cultivation  has  received  considerable  impetus  in  recent 
years  owing  to  the  development  of  the  spinning  industry  in  North 
China  and  the  demand  for  raw  cotton  in  Japan.  As  the  profit  from 
cotton  growing  is  nearly  double  that  realized  from  kaoliang  or 
wheat,  cotton  cultivation  has  substantially  increased  and  experi¬ 
mental  stations  have  been  established.  Estimates  place  the  area 
under  cotton  at  4,000,000  mow  (666,666  acres)  and  production  at 
2,500,000  piculs  (833,333  American  bales). 

Walnuts,  groundnuts,  beans,  linseed,  and  rapeseed  enter  into  the 
export  trade. 

MINERALS  AND  MINING 

Coal  is  the  only  mineral  worked  on  an  extensive  scale.  Iron  de¬ 
posits  exist ;  one  company  has  been  organized  to  work  them,  but  has 
not  begun  operations.  Concessions  have  been  obtained  for  gold,  sil¬ 
ver,  copper,  lead,  asbestos,  and  other  mineral-bearing  properties,  but 
have  not  been  developed.  The  estimates  below,  by  the  Geological 
Survey  of  China,  1921,  represent  the  most  reliable  statistics  available 
on  the  coal  reserve. 

Chihli  Province,  including  the  metropolitan  distinct :  Anthracite,  762, « 
000,000  tons  ;  bituminous,  1,608,000,000  tons. 

Shansi :  Anthracite,  2,370,000,000  tons ;  bituminous,  3,460,000,000  tons. 

Honan  :  Anthracite,  1,385,000,000  tons ;  bituminous,  360,000,000  tons. 

The  following  table  of  production  in  1922  gives  the  most  reliable 
data  available  on  output :  * 


Provinces  and  mines 

Quality  of  coal 

Production, 

1922 

Chihli: 

TTailan  Mining  A dminisfratinn  i 

Bituminous. . . . . 

Tons 

3, 710, 274 
187, 996 
482,  701 
2  35, 000 
159,  320 
18, 689 

T,if*.hp.ng  Mining  A d ministration 

_ do _ _ _  ..  _ 

Chinphsin  Mining  A  dminist.ration 

_ do _ _ 

Chp.npfpnEr  Co  _  _ 

. do _ _  . 

T.inlrianP'  Co 

Anthracite _  _ _ _ 

Chimingshan  Mine- . . - - -  - 

Semibituminous . . . . 

i  Controlled  entirely  or  partially  by  foreign  capital.  2  Estimated. 


TIENTSIN  CONSULAR  DISTRICT 


525 


Provinces  and  mines 

Quality  of  coal 

Production, 

1922 

Chihli— Continued. 

TVfATitnwlrnw  small  minps  3  _  _ .  .  _ 

Anthracite . 

Tons 

2  150, 000 
576, 174 
37,  235 
51, 909 

2  650, 000 
2  400, 000 
2  260, 000 

223,  386 
2  150, 000 

Toll"  Chnwknwt.ip.n  small  minp.  3 

..  .do  . 

Vpnli  Co  _ 

Bituminous _ _ _ 

Chnnphn  Co  _  _ 

. do . . . . 

Honan: 

Pplrinp'  ffvndinatfi  l  _ 

Anthracite _ 

Chnnpvna.n  Co  .  _ 

_ do . . . 

T.inhnkon  Co  _  .. 

Bituminous _ 

Shansi: 

Paochin  Co  _  -- 

Anthracite . . 

Tatung  Minps  3  _ 

Bituminous . . 

Total  anthracite _ 

2, 158,  880 
4, 933, 804 

Total  bituminous _ 

Combined  total _ 

7, 092,  684 

1  Controlled  entirely  or  partially  by  foreign  capital.  2  Estimated.  3  Railway  transport. 


The  statistics  given  below,  from  a  special  report  of  the  Geological 
Survey  of  China,  June,  1921,  represent  the  resources  of  such  known 
deposits  of  iron  ore  in  Chihli  Province  as  have  already  been  studied, 
and  can  not  be  taken  to  be  the  total  existing  reserve. 


District 

Ore 

Iron  con¬ 
tained 

District 

Ore 

Iron  con¬ 
tained 

Langkuan _ _ 

Hauanhua . . . . 

Husilai-  _ _ 

Chinghsing _ 

Lanhsien  . 

Tons 

49,  200,  000 
20,  000,  000 

4,  000,  000 

5,  000,  000 
11, 129,  000 

Tons 

26,  600, 000 

9,  600,  000 

2,  400,  000 

2,  500,  000 

3,  339,  000 

Linyu . . 

Chaoyang _  _ 

Y ihsien  and  other  districts. 

Total . . 

Tons 

350, 000 
300,  000 

1,  500,  000 

91,  479,  000 

Tons 

170,  000 
150, 000 
675, 000 

45,  434,  000 

The  Lungyen  Mining  Administration,  mentioned  later  in  this  re¬ 
port,  is  the  only  company  organized  with  modern  equipment  to  ex¬ 
ploit  the  iron  resources  of  the  district. 

The  following  notes,  extracted  principally  from  Rea’s  Far  Eastern 
Manual,  pertain  to  the  principal  mining  companies  operating  in  the 
consular  district. 

COAL  MINES 

CHIHLI  PROVINCE 

Kailan  Mining  Administration  (British-Chinese). 

^  Head  office. — Meadows  Road,  Tientsin. 

Organization . — The  mines  of  the  Chinese  Engineering  &  Mining  Co.,  a  British 
company  registered  in  London,  and  the  Lanchow  Mining  Co.,  a  Chinese  com¬ 
pany,  have  under  an  agreement  made  in  1912  been  placed  under  the  operation 
and  control  of  the  Kailan  Mining  Administration.  The  aggregate  capital  paid 
up  of  the  two  companies  amounts  to  some  £2,000,000,  with  an  additional 
£1,200,000  raised  on  first-mortgage  debentures. 

Location. — The  mines  are  located  in  the  Kaiping  district  of  Chihli  Province 
and  are  served  by  the  Peking-Mukden  Railway  to  Tientsin  (81  miles)  to 
Tangku  (the  river  port  near  Tientsin)  and  to  the  deep-water  port  of  Chin- 
wangtao. 

Output. — The  coal  is  bituminous  and  coking.  The  output  in  1928  reached 
4,495,962  tons.  In  1913  the  output  was  approximately  1,700,000  tons. 

Equipment. — The  equipment  throughout  the  mines  generally  is  of  the  most 
modern  type  and  will  compare  favorably  with  the  largest  and  best-equipped 
collieries  of  the  United  States  and  Europe. 


526 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  management  of  this  administration  is  in  British  and  Chinese  hands  • 
the  engineering  control  is  largely  in  the  hands  of  engineers  of  Belgian  na¬ 
tionality. 

Lincheng  Colliery  (Chinese). 

Head  office. — 12  Hsiao-Tsao-chang,  Peking. 

Organization. — Established  in  1897  and  registered  in  February  1905  The 
capital  is  stated  as  $2,000,000  Yuan. 

Location,. — The  mines  are  at  Lincheng,  11  miles  from  Yakoing  Station  on 
the  Peking-Hankow  Railway,  in  Chihli  Province. 

Output. — Bituminous ;  output  in  1922,  187,996  tons  ;  in  1921,  279,851  tons. 

Ching  Hsing  Coal  Mines. 

Head  office. — 1  Hankow  Road,  Tientsin. 

Organization. — Mines  opened  in  1899  by  a  German ;  company  registered  in 
1908  as  a  Sino-German  enterprise.  Reorganized  in  1922  under  Sino-German 
cooperation.  Capital  stated  as  $1,000,000  Yuan. 

Location. — Chinghsinghsien  (Tsingsing),  Chihli  Province.  A  light  railway 
connects  the  mines  with  the  Cheng-Tai  Railway,  which  runs  from  Chentow 
(on  the  Peking-Hankow  line)  to  Taiyuanfu,  capital  of  Shansi. 

Output. — Bituminous ;  output  in  1922,  482,701  tons ;  in  1921,  577,991  tons. 

Liuchang  Coal  Mining  Co.  (Chinese). 

Head  office. — 154  Sinza  Rond,  Shanghai. 

Organization. — Registered  1918.  Capital,  $1,000,000  Yuan. 

Locution. — Liu  Kang  coal  field,  Linyuhsien,  Chihli  Province,  13  miles  north 
of  the  seaport  of  Chinwangtao.  A  light  railway  connects  the  mines  with 
Chinwangtao. 

Output. — Anthracite ;  1922  output,  159,320  tons. 

Mentowkow  Coal  Mines  (Sino-British). 

Head  office. — Peking,  West  City. 

Organization. — Organized  in  1913  as  a  Sino-Belgian  company,  with  capital  of 
100,000  taels  and  in  1915  converted  into  a  Sino-British  company. 

Location, — Mentowkow,  in  the  Western  Hills  (Hsishan)  coal  field,  16  miles 
west  of  Peking,  reached  by  the  Peking-Mentowkow  branch  railway. 

Output. — Anthracite ;  1922,  about  150,000  tons. 

Chimingshan  Colliery  (Chinese  Government). 

Head  office. — Peking-Suiyuan  Railway  Administration,  Peking. 

Organization. — Capital.  $775,934  Yuan,  of  which  $351,102  was  paid  by  the 
Ministry  of  Communications  and  the  balance  by  the  Peking  Suiyuan  Railway. 
TTnder  the  administration  of  the  Peking-Suiyuan  Railway. 

Location, — Near  Siahwayuan  Station,  on  the  Peking-Suiyuan  Railway,  137 
miles  from  Peking. 

Output, — Noncoking  bituminous :  1922,  18,689  tons. 

Antzu  Mines  (Chinese). 

Tung  Yih  and  Tafeng  companies. 

Location. — Near  Fangshan,  in  the  southern  part  of  the  Western  Hills 
(Hsishan  district),  near  Peking. 

Output. — About  250,000  tons  of  anthracite.  Track  for  light  railway  has 
been  built  by  the  Tafeng  Co.  from  Chowkoutien  Station  (the  terminus  of  a 
branch  of  the  Peking-Hankow  line  from  Liuliho)  and  is  extended  to  the  mining 
area  held  by  the  company  at  Antzu.  An  aerial  tramway  from  Toli  is  monopo¬ 
lized  by  the  two  companies  named. 

HONAN  PROVINCE 

Fu  Chung  Corporation  (British-Chinese  Syndicate). 

Head  office. — England,  110  Cannon  Street,  London ;  China,  Chiaotso,  Honan 
Province. 

Organization, — Capital,  $1,000,000  Yuan,  subscribed  in  equal  shares  by  the 
Peking  Syndicate  (British)  and  Chung  Yuan  Co.  (Chinese),  the  latter  being 
a  group  of  native  companies  in  amalgamation.  This  corporation  was  organ¬ 
ized  on  June  1,  1915,  to  handle  the  products  of  the  Peking  Syndicate  and  the 
Chung  Yuan  Co.  (Ltd.),  whose  anthracite  coal  mines  are  situated  in  Honan, 
north  of  the  Yellow  River. 


SHANGHAI  CONSULAR  DISTRICT 


527 


Location. — The  principal  mine  is  the  Jamieson  colliery  in  Huaiching  pre¬ 
fecture.  Honan  Province,  on  the  Tso-Ching  Railway.  The  Chung  Yuan  Mines 
are  in  the  same  neighborhood. 

Output. — Anthracite :  1922,  about  1,050,000  tons. 

Liu-Ho  Kou  Mining  Co.  (Ltd.)  (Chinese). 

Head  office. — Regine's  Building.  Peking. 

Organization. — Capital,  $1,000,000  Yuan.  Established  1903  and  reorganized 
and  registered  in  1907. 

Location. — Anyang  district,  Honan  Province,  near  Fenglochen  on  the  Peking- 
Hankow  Railway. 

Output. — Bituminous  :  1922,  260,000  tons. 

SHANSI  PROVINCE 

Pao  Chin  Coal  Mining  Co.  (Ltd.)  (Chinese). 

Head  office. — Yangchuan  Station,  Pingting.  Shansi  Province. 

Organization. — Established,  1906 ;  registered,  1919.  Capital,  2,000,000  taels. 
This  company  was  formed  by  the  Shansi  gentry  to  take  over  the  concession 
which  was  repurchased  from  the  Peking  Syndicate  in  1908. 

Location. — The  company  operates  mines  at  Yangchuan,  which  is  midway 
between  Chentow  (Shihkiachwang)  and  Taiyuanfu  on  the  Chengtien-Taiyuan 
Railway. 

Output. — Anthracite :  1922,  223,386  tons. 

Tung  Pai  Mining  Co.  (Ltd.)  (Chinese). 

Head  office. — Tatung,  Shansi. 

Organization, — Established  1921.  Capital,  $3,000,000  Yuan,  subscribed  by 
Shansi  merchants  in  cooperation  with  Cantonese  merchants. 

Location. — Paichiawan,  Kowchuanchen,  Shansi  Province. 

Output. — Bituminous. 

The  output  of  mines  in  the  Tatung  section  in  1922  was  estimated  at 
150.000  tons. 

IRON 

Lungyen  Mining  Administration  (Chinese). 

Head  office. — Huang  Shou  Yi  Hutung,  Peking. 

Capital. — $5,000,000  Yuan. 

Location. — Mining  rights  of  the  Lung-Kuan  iron  mines  over  the  area 
between  Hsuanhua  and  Lungmen.  Iron-ore  deposits  were  also  discovered 
in  the  vicinity  of  Hsuanhua,  and  subsequently  the  two  mines  were  amalgamated 
into  the  Lungyen  Administration.  The  principal  mines  are  located  at 
Sanchiatien,  some  10  miles  west  of  Peking.  An  extensive  blast-furnace  plant 
of  American  material  was  erected  and  the  plant  was  ready  to  begin  active 
operations  on  a  large  scale,  hut  financial  difficulties  have  shut  down  the 
entire  works. 

MANUFACTURING  AND  INDUSTRIAL  DEVELOPMENT 

COTTON  SPINNING 

In  the  consular  district  there  are  approximately  327,552  spindles, 
representing  a  capital  investment  of  some  $22,600,000  Chinese  cur¬ 
rency.  In  1922  the  estimated  number  of  employees  in  mills  operat¬ 
ing  was  9,457,  and  the  estimated  output  was  71,211  bales  of  yarn, 
which  enters  almost  entirely  into  domestic  consumption. 

FLOUR  MILLS 

The  capacity  of  the  modern  flour  mills  of  the  district  is  estimated 
at  47,000  bags.  The  estimated  capital  investment  is  over  $5,000,000 
Chinese  currency.  No  statistics  on  output  or  number  of  employees 
are  available.  The  output  enters  into  domestic  consumption. 


528 


COMMERCIAL  HANDBOOK  OF  CHINA 


•CEMENT  WORKS 

The  one  large  cement  works  in  the  district  represents  a  capital 
investment  of  some  $7,000,000  Chinese  currency;  the  capacity  and 
output  are  stated  at  1,500,000  casks  of  375  pounds  net.  The  output 
enters  into  domestic  consumption. 

CARPET  INDUSTRY 

The  carpet  industry  is  carried  on  in  some  700  to  800  small 
Chinese  factories  around  Tientsin  and  Peking,  a  factory  operating 
from  3  to  20  looms.  It  is  estimated  that  16,000  to  18,000  men  are 
employed  in  the  industry.  The  output  can  be  estimated  only  on  the 
basis  of  the  export,  about  90  per  cent  of  the  output  being  exported. 
The  export  in  1923  reached  4,439,000  square  feet. 

^  MATCH  FACTORIES 

The  estimated  output  of  the  four  largest  match  factories  in  the 
district  is  placed  at  6,000,000  gross  per  year.  The  invested  capital 
in  the  industry  in  this  district  is  placed  at  something  over  $3,500,000 
Chinese  currency. 

GLASS  FACTORIES 

The  principal  glass  factory,  at  Chinwangtao,  has  a  capacity  of 
150,000  boxes  of  100  square  feet  of  window  glass  per  annum.  In 
addition,  there  are  several  smaller  factories.  The  capital  investment 
in  the  industry  is  estimated  at  over  $2,500,000  Chinese  currency. 

OTHER  INDUSTRIES 

The  cotton-cloth  industry  of  the  district  is  extensive,  being  repre¬ 
sented  by  numerous  small  establishments  operating  from  1  or  2  up 
to  50  or  60  small  looms,  weaving  plain  gray  varieties  of  cotton  cloth, 
nankeens,  shirtings,  drills,  cotton  canvas,  etc.  Many  of  these 
factories  also  dye  their  own  cloths.  This  industry  has  thrived 
particularly  in  the  section  of  Kaoyang  and  Joayang,  near  Paotingfu, 
in  Chihli  Province.  In  these  two  places  and  numerous  villages 
within  20  miles  radius,  there  are  stated  to  be  15,000  weaving  looms 
in  operation,  each  household  possessing  from  one  to  five  looms. 
The  yarn  used  for  weaving  is  usually  of  the  finer  qualities,  principally 
foreign,  and  the  annual  consumption  is  estimated  at  60,000  bales. 
The  product  of  the  looms  in  this  section  is  estimated  at  2,000,000 
pieces.  These  fabrics  are  of  excellent  quality,  compare  favorably 
’with  foreign  machine-made  products,  and  have  an  extensive  sale 
in  the  northern  Provinces. 

Other  industries  include  egg-products  factories,  some  with  modern 
machinery  and  equipment,  small  soap  factories,  brick  and  tile  works, 
several  tanneries,  iron  foundries,  and  small  machine  shops,  etc., 
on  which  no  extensive  or  accurate  data  are  available. 

LABOR  CONDITIONS 

The  wage  of  male  operatives  in  the  cotton-mill  industry  is  ap¬ 
proximately  40  cents1  a  day;  of  female  operatives,  35  cents  a  day. 


1  All  wages  are  stated  in  Chinese  dollars  or  fractions  thereof,  1  Yuan  dollar  being  about 
equivalent  to  $0.50  United  States  currency. 


TIENTSIN  CONSULAR  DISTRICT 


529 


Foremen  receive  up  to  $20  a  month.  Board  and  lodging  are  not 
included  in  these  wages.*  The  working  day  is  approximately  12 
hours  throughout  the  industry.  It  is  estimated  that  the  average 
efficiency  of  the  Chinese  worker  is  20  per  cent  of  the  American 
textile  worker. 

Wages  in  the  flour-mill  industry  are:  Head  miller,  $125  per 
month;  engineer,  $50  per  month;  second  miller,  $50'  per  month; 
machine  operators,  $25  per  month;  coolie  hands,  $12  per  month. 
The  working-day  is  12  hours.  There  are  no  female  workers.  The 
wage  level  for  flour-mill  operatives  is  stated  to  be  slightly  higher 
in  Tientsin  and  vicinity  than  in  other  industries,  the  principal 
operatives  coming  from  flour-mill  areas  in  the  south.  In  addition 
to  the  above  wages,  a  system  of  bonuses  applies  in  some  of  the  mills. 

The  wages  of  regular  workers  in  the  carpet  industry  average 
$9  to  $10  a  month,  board  and  lodging  included.  Numerous  ap¬ 
prentices  are  employed  in  this  industry;  a  three-year  apprentice¬ 
ship  is  usually  served,  during  the  last  two  years  of  which  a  small 
yearly  allowance  of  a  few  dollars  is  made.  Board  and  lodging  are 
provided.  Twelve  hours  form  the  workday. 

Male  workers  in  tanneries,  for  the  first  year,  receive  $2  a  month, 
increasing  after  each  year  up  to  $8  or  $10  a  month  after  the  third 
year.  Board,  clothing,  and  lodging  are  supplied;  an  annual  bonus 
of  about  $10  is  sometimes  paid.  Principal  workers  receive  from 
$10  to  $20  a  month.  A  10-hour  workday  is  usually  followed. 

Wages  in  match  factories  are  on  a  piecework  basis,  the  pay  for 
male  and  female  workers  being  substantially  the  same,  Sy2  cents 
for  180  boxes. 

Glass-factory  wages  run  from  $11  to  $80  a  month;  the  average  is 
$12  a  month.  Board  and  lodging  are  not  provided.  The  workday 
is  9y2  hours. 

Wages  in  brickworks  run  from  $8  to  $35  a  month;  hours  of  work 
per  day,  11.  Board  and  lodging  are  not  furnished. 

Aboveground  workers  at  mines  are  paid  from  $9  to  $61  a  month; 
this  wage  scale,  of  course,  includes  skilled  workers;  the  average  is 
$35  a  month.  Food  and  lodging  are  not  furnished.  The  hours  of 
work  per  day  are  10. 

Underground  workers  have  an  8-hour  day.  Their  wages  run 
from  $8  to  $38  a  month.  The  average  is  $23  a  month.  Food  and 
lodging  are  not  furnished. 

With  reference  to  labor  at  the  mines,  it  should  be  stated  that  a 
considerable  amount  of  work  is  done  by  contract  on  a  lower  wage 
scale  (paid  by  the  Chinese  contractor)  than  that  indicated  above. 

TRANSPORTATION  AND  COMMUNICATION 

WATERWAYS 

The  Hai  Ho  is  navigable  by  steamers  with  a  draft  of  16  feet  from 
the  sea  to  the  bund  at  Tientsin.  This  river  is  'also  knowm  as  the  Pei 
Ho  (North  River)  above  Tientsin.  Rivers  and  waterways  other  than 
the  Hai  Ho  are  navigable  only  for  junks,  small  native  boats,  and 
motor  launches.  The  maximum  draft  for  boats  on  the  inland  water¬ 
ways  of  the  district  is  about  4  or  5  feet.  With  the  exception  of  the 

100020°— 26 - 35 


530 


COMMERCIAL  HANDBOOK  OF  CHINA 


Hai  Ho,  which  is  kept  open  by  ice  breakers,  none  of  the  interior 
water  routes  are  open  from  December  to  the  end  of  March. 

W  ater-borne  traffic,  however,  in  the  district  generally  has  grad¬ 
ually  decreased  with  the  growth  of  rail  traffic.  The  various  inland 
waterways  converging  at  Tientsin  are  small  and  narrow,  and  the 
carriage  of  goods  to  and  from  Tientsin  and  the  hinterland  by  water 
has  entailed  slow  and  uncertain  transit,  and  frequently  numerous 
transshipments.  In  1912  the  percentage  of  value  of  goods  carried 
between  Tientsin  and  the  hinterland  by  rail  was  given  as  53,  and 
by  rivers,  44  per  cent;  in  1921  (the  latest  statistics  available)  the 
percentage  of  rail-borne  traffic  had  increased  to  70^2  per  cent  and 
the  river-borne  traffic  had  decreased  to  25 y2  per  cent.  In  the  suc¬ 
ceeding  years  since  1921  it  is  understood  that  the  percentage  of  rail- 
borne  traffic  has  shown  further  increase. 

RAILWAYS 

Following  are  the  railway  lines  in  operation  in  the  district: 


Pekin-Hankow  Railway  (head  office,  Peking)  :  Miles 

Main  line _  755 

Branches,  total _  61 

Tientsin-Pukow  Railway  (head  office,  Tientsin)  : 

Main  line _  627 

Branches _  60 

Peking-Mukden  Railway  (head  office,  Tientsin)  : 

Main  line _  526 

Branches _ _  173 

Peking-Suiyuan  Railway  (head  office,  Peking)  : 

Main  line _  468 

Branches _  16t4 

Cheng-Tai  (Shansi)  Railway  (head  office,  Shihchiachuang, 

Chihli)  : 

Main  line _  151 

Tao-Ching  Railway  (Taokow-Chinghau)  (head  office, 
Chiaotso,  Honan)  : 

Main  line _  93 

Branches _  18 


The  following  passenger  rates  per  English  mile,  based  on  the 
published  fare  tables  foy  the  total  distance  on  each  line,  show  first- 
class  fares  only.  Second-class  fares  are  two-thirds  of  the  first-class 
fare,  and  third-class  fares  are  one-third  of  the  first-class  fare.  Ad¬ 
ditional  charges  are  made  for  express  trains  and,  on  occasion,  as 
famine  relief  surcharges.  Fares  are  stated  in  Chinese  currency. 

Per  English  mile 


Peking-Hankow  Railway _  $0.  0619 

Tientsin-Pukow  Railway _ .  0652 

Peking-Mukden  Railway _  .  0601 

Peking-Suiyuan  Railway _ 1 _  •  0747 

Cheng-Tai  Railway _ ^ -  .  0770 


With  the  exception  of  rates  on  the  Cheng-Tai  line,  the  freight 
rates  on  all  lines  in  this  district  are  on  a  tapering  scale,  according 
to  distance,  and  different  rates  apply  for  each  of  six  different  goods 
classifications. 

The  table  below  is  intended  to  be  illustrative  of  rates  on  the  sev¬ 
eral  lines  in  the  district,  and  it  will  be  observed  that  the  rates  on  the 
different  lines  vary  greatly. 


TIENTSIN  CONSULAR  DISTRICT 


531 


Three  rates  are  established  for  all  lines,  one  on  a  basis  of  50  kilos 
(110.2  pounds  avoirdupois),  one  on  the  basis  of  a  metric  ton 
(2,204.62  pounds),  and  one  on  metric  ton  for  carload  lots.  This  table 
is  based  on  the  rate  per  metric  ton  in  carload  lots;  the  rate  for 
metric  tons  not  in  carload  lots  can  be  ascertained  by  the  percentage 
scale  which  is  appended  to  the  table. 

[Rates  in  Chinese  currency] 


Line  and  distances 

Class  1 

Class  2 

Class  3 

Class  4 

Peking-Hankow  line: 

100  miles.. . . . . . . 

$15.  42 

$9.  64 

$8.  02 

$5.  93 

200  miles _ _ _ _ _  _ _ _  .. 

26.  82 

16.  76 

13.  96 

10.  32 

500  miles..  .  _ _ _  .  . . .  _  _ 

52.  18 

32.  60 

27.  17 

20. 10 

Tientsin-Pukow  line: 

100  miles  .  _ _ _ _ _  ..  .. 

6.  13 

5.  Ill 

3.919 

2.  556 

100  miles. _ _  _  .  . . . . .  ... 

11.  301 

9.418 

7.22 

4.  71 

500  miles _ _  _ _  _ _ 

20.  631 

17. 193 

13. 181 

8.  60 

Peking-Mukden  line: 

100  miles  _ _ _ _ _ _ _ 

7.  22 

6. 12 

5.02 

3.  92 

200  miles . . . . . . . .  .. 

13.  70 

11.62 

9.  53 

7.  45 

500  miles _ _ _  _  _ 

29.  62 

25. 12 

20.  61 

16. 10 

Peking-Suiyuan  line: 

100  miles. _ _ _ _ _ _ _ _ _ 

11.  0257 

9.  451 

8. 191 

6.614 

200  miles _ _ _ _ _  _ _  _ _ 

21.  562 

18.  482 

16.  018 

12.  936 

500  miles _ _  ...  _  _ _  _ ... 

41.  358 

35.  452 

30.  726 

24.  813 

Cheng-Tai  line: 

100  miles _ _ _ _ _ _ _  _  _ 

17.  71 

12.  397 

9.  713 

9.  975 

Note.— The  “ton  rate’'  (metric  ton)  for  shipments  not  in  carload  lots  varies,  but  may  be  stated  as  ap¬ 
proximately  as  follows:  Peking-Hankow  line,  ton  rate  33M  per  cent  higher  than  rate  for  carload  lots;  Tien- 
tsin-Pukow  line,  ton  rate  50  percent  higher  than  rate  for  carload  lots;  Peking-Mukden  line,  ton  rate  50  per 
cent  higher  than  rate  for  carload  lots;  Peking-Suiyuan  line,  ton  rate  60  per  cent  higher  than  rate  for  carload 
lots;  Cheng-Tai  line,  ton  rate  varies  from  18  to  22  per  cent  higher  than  the  ton  rate  per  carload  lot,  accord¬ 
ing  to  the  class  of  goods. 


Through  shipments  may  be  made  from  points  on  one  line  to  points 
on  other  lines  at  through  rates,  which,  however,  apparently  do  not 
vary  greatly  from  the  distance  rates  on  each  line.  From  time  to 
time  surcharges  on  freight  traffic  are  imposed  for  famine  relief  pur¬ 
poses,  remaining  in  force  for  stated  periods  of  time. 

Freight  traffic  on  the  Chinese  Government  railways  is  divided 
into  six  classifications,  of  which  classes  5  and  6  pertain  to  such 
freight  as  coal,  cement,  bricks,  and  tiles.  Class  1  covers  high-value 
goods,  such  as  silks,  satins,  velvets,  furs,  precious  stones,  jewelry, 
ornaments,  perfumes,  plated  ware,  etc.  The  following  table  is  in¬ 
tended  to  show  the  goods  classification  on  important  items  of  imports 
and  exports : 


Important  imports 

Class 

Important  exports 

Class 

Cigarettes _ 

2 

Bristles 

3 

Cotton  piece  goods .  .  . 

3 

Carpets  ..  . . . 

3 

Dyes _ _ _ 

2 

Cotton,  raw 

4 

Electrical  materials.  ...  _ 

2 

Egg  albumen 

4 

Flour  ...  _  _ 

4 

Feathers 

3 

Iron  and  steel  products .  . . 

3-4 

Furs..  . . . . . 

1 

Leather. _ ..  _  .  . 

4 

Hair: 

Machinery. _ _  ...  ..  ... 

2 

Animal 

4 

Medicines... _ _  _  _ 

2 

Human 

2 

Oils: 

Hides,  dry . .  . . . 

4 

Kerosene.. . . 

2 

Skins,  goat 

3 

Lubricating _  _ _ 

3 

Straw  braid 

4 

Paper  _  _ _ _ _ 

2 

Walnuts  and  groundnuts 

4 

Timber  . .  .. 

4 

Wool: 

W oolen  piece  goods . . .  ... 

2 

Pressed 

2 

Unpressed _ 

3 

532 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  Peking-Mukden  line  runs  from  the  Chinese  capital  to  Mukden, 
the  capital  of  the  Manchurian  Provinces,  making  connection  at 
Tientsin  with  the  Tientsin-Pukow  line,  running  south  through 
Shantung  to  the  Yangtze  River,  and  at  Fengtai  (outside  Peking) 
with  the  Peking-Hankow  line,  running  south  through  Honan 
Province  to  Hankow  on  the  Yangtze  River,  and  with  the  Peldng- 
Suiyuan  line  extending  to  the  gateways  of  Mongolia.  The  Cheng- 
Tai  Railway  connects  with  the  Peking-Hankow  line  at  Chentow 
(Shihkiachwang),  and  extends  to  the  capital  of  Shansi  Province. 

These  railways  have  all  been  operating  in  this  district  for  the 
past  10  years  or  more  and  provide  this  section  of  China  with  more 
extensive  rail  facilities  than  are  enjoyed  elsewhere  in  the  country. 
The  railways  have  extensively  supplanted  all  other  means  of  trans¬ 
portation,  carrying  more  than  70  per  cent  of  the  traffic  to  and  from 
Tientsin  and  the  hinterland. 

The  extension  of  the  Peking- Suiyuan  line,  which  places  the  rail¬ 
head  at  Paotow,  beyond  Suiyuan,  was  completed  in  1923.  The 
Peking-Mukden  line  was  double-tracked  between  Tangshan  and 
Shanhaikwan  during  1924. 

There  are  at  present  no  lines  under  construction. 

The  Tsangchow-Chentow  (Shihkiachwang)  line  is  projected  by 
the  Chinese  Government,  to  connect  at  its  western  terminus  with  the 
Chang-Tai  Railway  extending  to  Taiyuanfu,  the  capital  of  Shansi, 
and,  in  the  east,  with  the  Tientsin-Pukow  Railway  at  Tsangchow. 
The  roadbed  for  this  line,  about  224  kilometers  (129  miles),  was  laid 
in  1921  as  a  famine  relief  measure.  It  is  now  proposed  to  resume 
construction  by  laying  tracks,  the  engineering  staff  to  be  provided 
from  other  Government  lines  and  (when  the  line  is  completed)  the 
rolling  stock  and  locomotives  likewise  to  be  supplied  from  other 
railways. 

ROADS 

The  following  are  the  principal  highways  for  cart  and  caravan 
transportation  and  date  back  to  early  times;  Peking-Shahaikwan 
(used  by  carts  and  caravans  only)  ;  Peking-Dolonnor  (used  by  carts 
and  caravans  only)  ;  Peking-Kalgan-Urga  (used  also  by  motor 
vehicles  from  Kalgan)  ;  Peking-Taiyuanfu  (thence  Sianfu,  Shensi)  ; 
Peking-Tsinanfu. 

Streets  and  roads  available  in  Tientsin  and  the  surrounding 
country  total  about  90  miles,  while  in  Peking  and  environs  there 
are  approximately  195  miles  of  streets  or  roadways.  Some  of  these 
are  merely  narrow  passages  over  which  automobiles  rarely  pass. 

A  good-roads  movement  for  China  was  inaugurated  in  Shanghai 
on  May  5,  1921,  to  stimulate  and  educate  the  people  to  the  necessity 
of  suitable  roads  for  their  economic  betterment.  In  the  famine 
period  of  1920-21  the  American  Red  Cross  decided  to  spend  its 
funds  for  relief  by  the  construction  of  roads,  thus  furnishing  employ¬ 
ment  and  subsistence  to  famine  sufferers  and  affording  improved 
means  of  communication.  The  result  was  the  construction  of  more 
than  400  miles  of  graded  dirt  highways  in  Chihli,  Shansi,  and  Shan¬ 
tung.  However,  many  of  these  roads  have  not  been  kept  up  and  are 
thus  falling  into  disuse.  Among  other  roads  completed  in  the  last 
year  or  so  are  the  Taiyuan-Yuncheng  Highway  in  Shansi,  a  distance 


TIENTSIN  CONSULAR  DISTRICT  533 

of  233  miles  under  the  road-building  program  of  Gen.  Yen  Shi-Shan, 
governor  of  the  Province. 

Practical  hope  for  modern  road  construction  and  upkeep  undoubt¬ 
edly  lies  in  the  motor  transportation  services  that  have  been  devel¬ 
oping  in  this  district,  as  well  as  elsewhere  in  China,  in  the  last  few 
years. 

COST  OF  TRANSPORT 

It  is  practically  impossible  to  make  definite  compilations  of  the 
transportation  cost  per  ton-mile  by  the  several  methods  of  transpor¬ 
tation  in  the  district,  as  so  many  elements  enter  into  consideration 
of  the  rates  prevailing.  The  following  table,  however,  is  an  attempt 
to  strike  a  fair  average  ton  rate  per  mile  under  each  method : 


Medium 

Average  load 

Average 
mileage 
per  day 

Average  cost 
per  ton-mile 

"R.ailwavs  _  _ 

. . . .. 

0) 

2&-35 

Chinese  currency 
G) 

$0.  0275-$0. 0425 

.Tnnks  _ 

40  to  100  tons _ _ 

Carts  _  _ 

1  ton . . . . 

25-30 

.  12 

Park  mnlfts 

250  to  300  pounds _ _ _ 

25 

.298 

Wheel  harrows 

700  pounds _  .  _  .  ... . . 

20 

.  151 

Cool i ft  carriers  _ 

180  pounds _ _ 

20 

.3125 

i  See  freight  table  under  “Railways.” 


TELEGRAPHS,  CABLES,  AND  WIRELESS  SERVICE 

The  telegraph  lines  in  the  district  are  operated  by  the  Chinese 
Telegraph  Administration,  and  the  rates  are  the  same  as  those  pre¬ 
vailing  in  other  districts  of  China.  Telegrams  in  Chinese  charac¬ 
ters  are  transmitted  in  the  form  of  numerals  which  are  decoded  by 
reference  to  a  standard  code  book. 

Cable  connection  is  from  Taku  (at  the  mouth  of  the  Hai  River) 
with  Chef oo  and  Shanghai,  by  agreement  with  the  Eastern  Exten¬ 
sion  and  Great  Northern  Telegraph  companies,  through  the  Tele¬ 
graph  Administration  office. 

A  Chinese  wireless  station  of  limited  range  and  power  is  estab¬ 
lished  at  Peking.  A  500-kilowatt  station  erected  by  the  Japanese 
at  Hsuangchiao,  near  Peking,  has  been  completed,  but  has  not  been 
opened  for  commercial  purposes.  Certain  other  foreign  military 
and  naval  wireless  stations  are  operated  in  the  district,  but  they  are 
not  available  for  commercial  purposes.  There  is  as  yet  no  satisfac¬ 
tory  wireless  communication  for  commercial  purposes  with  Tientsin 
or  Peking. 

TELEPHONES 

Telephones  at  Tientsin,  Peking,  and  larger  centers  are  operated  on 
the  common  battery  system.  The  following  table  gives  data  con¬ 
cerning  the  telephone  service: 


Location 

Operated  by— 

Number 
of  sub¬ 
scribers 

Tientsin . . . . . 

Chinese  Government 

7,410 

8,221 

64 

Peking _ _ _ _ 

_ do _ 

Tangku... . . . . . 

_ do  . 

Paotingfu _  _ _ _ _ 

_ do  _ _  _ _ 

350 

Tangshan.  .  .  ...  ...  ...  ..  _ _ _ _ 

Kailan  Mining  Administration 

220 

Tamingfu,  Tsingfeng,  Nanlo,  and  Kaichow _ _ 

Private  Chinese  company _ _ 

50 

Note. — There  are  no  automatic  telephones;  all  are  manual. 


534 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  rates  of  the  Chinese  Government  Telephone  Administration 
are  about  $9,  United  States  currency,  a  quarter  and  $3  for  each 
extension. 

Long-distance  telephone  service  is  available  between  Tientsin  and 
Peking  and  Tientsin  and  Tangku.  The  rate  between  Tientsin  and 
Peking  is  about  40  cents,  United  States  currency,  for  every  five  min¬ 
utes'  conversation. 

The  telephone  has  proved  an  important  means  of  communication 
in  the  district,  and  application  for  new  installations  exceed  the  sup¬ 
ply  of  available  instruments.  The  equipment  is  generally  American 
or  German,  but  some  Japanese  equipment  has  been  introduced  in 
recent  years.  The  adoption  of  the  automatic  system  is  being  urged, 
though  it  has  not  been  definitely  decided  upon. 

POSTAL  FACILITIES 

The  Chinese  postal  service  covers  the  district  and,  with  constant 
improvements  and  extensions,  has  greatly  aided  the  development  of 
trade.  Through  its  international  parcel  post  the  Chinese  postal  serv¬ 
ice  has  become  in  recent  years  an  important  adjunct,  especially  of  the 
fur  trade.  In  1920,  13,578  parcels  for  foreign  destinations  passed 
through  Chinese  and  foreign  posts  in  Tientsin;  in  1923  the  total 
reached  76,930  parcels,  of  which  80  per  cent,  it  is  estimated,  repre¬ 
sented  fur  shipments. 

Foreign  post  offices  in  China  were  closed  on  January  1,  1923.  Mail 
service  throughout  China  is  now  wholly  in  the  hands  of  the  Chinese 
postal  service,  under  the  Ministry  of  Communications,  and  is  efficient. 

SHIPPING  AND  WAREHOUSING  FACILITIES 

Vessels  drawing  16  feet  of  water  come  directly  into  the  bund  at 
Tientsin,  and,  on  spring  tides,  vessels  drawing  18  feet  can  reach  the 
bund.  Vessels  of  greater  draft  anchor  outside  the  bar  at  Taku. 

There  are  no  docks  at  Tientsin,  but  ships  tie  up  alongside  the 
bunds  of  the  foreign  concessions.  Docking  space  is  under  the  con¬ 
trol  of  the  several  municipal  governing  bodies. 

At  Taku  cargo  is  transferred  from  the  ship's  tackle  to  lighters; 
at  Tientsin  cargo  is  transferred  directly  from  the  ship’s  tackle  to 
the  bund.  At  Taku  Bar  400  measurement  tons  per  24-hour  day  are 
discharged;  at  Tientsin  Bund,  300  tons.  A  30-ton  shears  operates 
on  the  bund  of  the  British  concession.  On  general  cargo  from  Taku 
Bar  to  Tientsin  a  rate  of  1.10  Tientsin  taels  per  ton  is  quoted,  rates 
varying  ordinarily  with  the  nature  and  handling  of  cargoes.  Rates 
for  coolie  hire  in  handling  cargo  at  Tientsin  Bund  are :  On  heavy 
cargo,  50  tael  cents  per  ton;  on  ordinary  case  cargo,  1  y2  tael  cents 
per  package. 

The  following  table  shows  the  number,  nationality,  and  tonnage 
of  vessels  entered  and  cleared  at  Tientsin  (including  Taku  Bar) 
during  1923 : 


Flag 

Number 

Tons 

Flag 

Number 

Tons 

American. _ 

93 

759 

10 

17 

48 

390,  396 

1, 220, 741 
37,  034 
59,  257 
207,  844 

Japanese . . . 

1,118 

10 

845 

1, 202, 565 
21,  568 
714,  427 

British _ _ _ 

Norwegian _ 

Dutch . 

Chinese _ 

French _ _ _ 

Total  ..  .  _ 

2, 900 

3,  853, 832 

German _ _ _ 

TIENTSIN  CONSULAR  DISTRICT 


535 


Warehouses  or  godowns  are  maintained  by  private  shipping  and 
import  and  export  firms.  Delivery  of  cargo  arriving  at  Tientsin 
may  be  effected  from  the  bund,  or  transferred  to  the  'shipping 
company’s  godown  or  to  that  of  the  company’s  agent.  Cargo  is  also 
sometimes  loaded  directly  from  steamers  to  cars  by  means  of  spur- 
track  facilities.  Space  on  the  bund  is  usually  allowed  to  cargo 
for  seven  days  without  charges.  After  that  a  charge  is  made  at  a 
daily  rate  equal  to  the  established  monthly  godown  (warehouse) 
rate  for  the  same  class  of  cargo.  Godowns  of  modern  construction 
are  located  immediately  on  or  near  the  bund,  so  that  facilities  for 
storage  are  convenient  and  adequate.  Cold-storage  facilities  are 
also  available. 

Two  tael  cents  per  cubic  foot  per  month  is  the  usual  warehouse 
charge  on  ordinary  cargo,  5  tael  cents  on  machinery. 

PUBLIC  WORKS 

ELECTRIC-LIGHT  PLANTS 

The  following  list  includes  the  principal  electric-light  plants: 


Location 

National¬ 

ity 

Kilowatt 

lighting 

load 

Rates 

Character  and  nationality  of  equip¬ 
ment 

CHIHLI  PROVINCE 

Tientsin . . 

British _ 

2,000 

20  cents  per  kilo- 

2  100-kilowatt  generators;  1  2,000- 

Belgian _ 

9,000 

watt-hour. 

25  cents . 

kilovolt-ampere  turbine,  alternat¬ 
ing  current,  5,000  volts,  50  cycles, 
3  phase;  220/440  volt  direct  current 
and  220/380  alternating  current; 
British  equipment. 

Belgian  and  Swiss  equipment;  also 

French _ 

4,000 

15  to  28  cents . 

supplies  tramways;  alternating 
current,  5,000  volts,  50  cycles,  3 
phase;  220  volts  for  lights. 

French  equipment;  220  volts,  50 

Peking. . . 

British _ 

200 

50  cents  per  month 

cycles,  3  phase,  alternating  current. 
Supplies  Legation  Quarter;  British 

Chinese. .. 

2,900 

per  light. 

24  cents  per  unit.. 

and  German  equipment;  220  volts, 
direct  current. 

3  phase,  50  cycles,  3,000  volts,  alter- 

Paotingfu _ _ 

_ _ do _ 

475 

nating  current,  220  volts  for  lights. 
Alternating  current,  2,300  volts,  50 
cycles,  3  phase. 

American;  2,300  volts;  60  cycles; 
3  phase,  alternating  current;  light 
voltage  220. 

Chentow _  ...  ..... 

.  ..  do _ 

2,000 

SHANSI  PROVINCE 

Taiyuanfu _ 

_ do . 

300 

$1  per  month,  16 
candlepower. 

300-kilowatt  turbo-generator;  3  phase, 
60  cycles;  2,300  volts;  American. 

The  above  list  covers  the  principal  plants  only.  Some  towns  in 
the  district  are  supplied  with  electricity  from  small  portable  plants, 
and  some  are  supplied  in  part  with  light  from  railway  shops,  cot¬ 
ton  and  flour  mills,  etc. 

The  British  municipal  plant  at  Tientsin  supplies  electric  current 
to  the  British  concession  areas  and  to  the  former  German  concession 
area.  The  French  plant  supplies  the  French  and  Japanese  conces¬ 
sions.  The  Belgian  company,  besides  operating  the  tramways, 
lights  the  Italian  and  Belgian  concessions,  the  former  Russian  and 
Japanese  concessions,  and  the  native  city. 


536 


COMMERCIAL  HANDBOOK  OF  CHINA 


At  Chinwangtao,  the  Kailan  Mining  Administration’s  plant  sup¬ 
plies  a  current  of  200  volts,  50  cycles,  alternating.  At  Shanhaikwan 
light  is  supplied  from  the  workshops  of  the  Peking-Mukden  Rail¬ 
way,  the  current  being  200  volts  direct.  Tangshan  is  lighted  in  part 
by  the  Peking-Mukden  Railway  shops,  and  part  by  the  plant  of 
the  Kailan  Mining  Administration,  which  has  erected  a  large  electric 
plant  at  Linhsi,  said  to  be  one  of  the  best  in  China. 

WATERWORKS 

The  Tientsin  waterworks  of  the  British  Municipal  Council  sup¬ 
plies  the  British  and  ex-German  concessions,  and  the  Native  City 
Waterworks  Co.,  a  British  limited  company,  supplies  the  Chinese 
city  as  well  as  the  French,  Italian,  Japanese,  and  the  ex-Russian 
and  ex- Austrian  concessions  with  water.  The  British  system  has  a 
maximum  capacity  of  1,000,000  gallons  daily,  with  a  reserve  storage 
tank  of  500,000  gallons  capacity.  The  Native  City  system  has  a 
maximum  daily  capacity  of  4,500,000  gallons  and  a  normal  output 
of  3,000,000  gallons.  The  charges  under  the  British  municipal 
system  are  $1  Yuan  per  1,000  gallons,  and  under  the  Native  City 
Co.  70  cents,  local  currency,  per  1,000  gallons. 

The  Peking  Waterworks  Co.  (Ltd.)  is  organized  under  Chinese 
management,  but  employs  foreign  engineers.  It  has  a  number  of 
stations  throughout  Peking  and  a  daily  pumping  capacity  of  about 
3,000,000  gallons. 

TRAMWAYS 

The  tramway  at  Tientsin  is  operated  by  the  Compagnie  de  Tram¬ 
ways  at  d’Eclairage  de  Tientsin,  a  Belgian  concern.  The  length  is 
8.2  English  miles,  double-tracked.  The  power-plant  capacity  is 
9,000  kilowatts,  3-phase,  50  cycles,  5,000  volts,  alternating  current, 
high  tension;  550  volts  direct  current  for  tramway  motors.  This 
plant  also  supplies  electric  light  for  the  native  city  and  certain  of 
the  concessions. 

This  tramway  was  established  in  1906.  It  hauls  approximately 
4,000,000  passengers  per  month,  in  114  cars.  The  track  is  of  meter 
gauge,  the  rails  are  92.8  pounds  per  yard,  and  the  rolling  stock  of 
Belgian  manufacture.  Like  all  tramways  in  the  Far  East,  it  is 
patronized  almost  exclusively  by  the  natives,  in  this  instance 
•  Chinese. 

In  the  capital  the  Peking  Tramcar  Co.  (Sino-French)  has  four 
lines,  planned  to  attain  a  total  length  of  12.8  miles.  This  system 
began  operating  in  December,  1924. 

CONSERVANCY  WORKS 

Conservancy  work  on  the  Hai  River,  connecting  Tientsin  with 
the  sea,  was  necessitated  by  the  rapid  deterioration  of  the  river  to  the 
point  where  for  periods  even  lighters  could  not  come  up  to  Tientsin. 
The  commission  established  in  1898  ended  with  the  Boxer  troubles 
of  1900,  but  a  new  international  commission  was  established  in  1901 
and  has  since  functioned  with  marked  success.  The  Hai  Ho  is  the 
common  mouth  of  nearly  all  the  rivers  running  through  Chihli 


TIENTSIN  CONSULAR  DISTRICT 


537 


Province,  and  is  too  small  to  discharge  them  in  time  of  simultaneous 
spate.  The  problems  were  to  straighten  the  river,  thus  promoting 
tidal  influence  and  shortening  the  distance  to  the  sea;  to  keep  out 
silt,  discharge  storm  water,  and  deepen  the  water  over  the  bar  at 
the  mouth  of  the  river. 

Three  of  the  largest  canals  drawing  water  from  the  Hai  Ho  have 
been  controlled  by  locks,  and  bends  in  the  river  have  been  cut  off, 
saving  12  miles  or  more  of  distance,  and  increasing  the  tidal  range. 
Whereas  in  1898  the  river  was  not  navigable,  in  1919  a  steamer 
drawing  15  feet  could  proceed  to  Tientsin  on  an  ordinary  tide.  The 
bar  at  the  entrance  has  been  dredged  and  deepened  from  10  feet  in 
1908  to  16  feet  ordinary  high  water  in  1922. 

The  conservancy  work  is  maintained  from  funds  derived  from 
river  dues  equal  to  4  per  cent  of  customs  duties  on  all  cargo,  and 
shipping  taxes  on  registered  tonnage. 

IMPORT  AND  EXPORT  TRADE 

In  spite  of  floods,  famine,  and  civil  war,  which  occurred  during 
1924  throughout  the  Tientsin  consular  district,  Tientsin’s  total  trade 
for  the  year  exceeded  that  of  the  previous  year  by  581,009  haikwan 
taels,  or  about  $465,000.  Tientsin  exports  for  1924,  according  to  the 
Chinese  Maritime  Customs,  were  valued  at  88,607,319  haikwan  taels, 
as  compared  with  86,420,212  taels  for  1923,  an  increase  of  2,187,107 
taels.  Imports,  on  the  other  hand,  showed  a  slight  falling  off,  from 
104,866,551  haikwan  taels  for  1923  to  103,260,453  taels  for  1924,  a 
decrease  of  1,606,098  taels. 

Following  is  a  summary  (with  figures  converted  to  United  States 
currency)  of  the  trade  of  the  ports  of  Tientsin  and  Chinwangtao 
during  the  years  1903,  1913,  1923,  and  1924: 


Ports,  and  character  of  trade 

1903 

1913 

1923 

1924 

Tientsin: 

Exports... .  . . 

U.  S.  cur¬ 
rency 
$8,  489,  253 

U.  S.  cur¬ 
rency 

$28,  226,411 

U.  S.  cur¬ 
rency 

$71,  603,  564 

XJ.  S.  cur¬ 
rency 

$71,  771,  928 

% 

Imports — 

Foreign  goods _ _ _ _ _ 

23,  976,  846 
12,  765,  408 

51,  756,  269 
18,  052,  376 

84,  237, 156 
40,  863,  941 

83,  640,  967 
49,  303,  410 

Chinese  goods. . 

Total  imports . .  .. 

36,  742,  254 

69,  808,  645 

125, 101,  097 

132,  944,  377 

Total  exports  and  imports  . 

45,  231,  507 

98,  035,  056 

196,  704,  661 

204,  716,  305 

Chinwangtao: 

Exports... . . 

1,  521,  070 

3, 121,  264 

12,  497,  078 

8,  586,  868 

Imports— 

Foreign  goods  . . 

3,  241,  388 
429,  047 

3,  529,  464 
1,  249,  032 

2,  614,  469 

1,  735,  639 

3,  042,  907 
2,  677,  783 

Chinese  goods . 

Total  imports . . . 

3,  670,  435 

4,  778,  496 

4,  350, 108 

5,  720,  690 

Total  exports  and  imports . . . 

5, 191,  505 

7,  899,  760 

16,  847, 186 

14,  307,  558 

IMPORTS 

The  table  following  gives  details  of  the  imports  at  the  port  of 
Tientsin : 


538 


COMMERCIAL  HANDBOOK  OF  CHINA 


[Quantities  are  in  thousands  of  units  given;  values  in  thousands  of  United  States  dollars] 


Articles 

1903 

1913 

1923 

1924 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Textiles: 

Cotton  manufactures  _ 

12,  230 

26, 021 

20,200 

17, 820 

Woolen  and  woolen  goods  _ 

182 

214 

1,  706 

1, 471 

Miscellaneous  piece  goods,  can- 

vas,  cotton  duck,  and  Hessian 

cloth _ ...  _  ..yards 

185 

12 

1,  261 

166 

210 

300 

Metals  and  minerals: 

Iron  and  steel,  all  kinds.pounds.. 

20,  276 

446 

69,  921 

1,  373 

92, 390 

3,029 

144,  943 

4,  788 

Copper  products,  slabs,  sheets, 

tubes,  wire,  etc.. .  .pounds.. 

1,  028 

142 

1, 802 

301 

2,812 

498 

6,795 

1,010 

Bags,  cotton,  gunny,  hemp,  straw, 

and  grass,  new  and  old _ _ 

14 

159 

301 

273 

Belting,  machine 

11 

94 

84 

Bicho  do  mar,  black _ pounds.. 

345 

115 

366 

78 

489 

243 

593 

293 

Building  materials _ 

53 

33 

145 

269 

Butter.  _  pounds.. 

24 

256 

63 

243 

106 

315 

109 

Buttons,  brass  and  fancy.  . . .  gross. . 

241 

121 

167 

55 

201 

46 

424 

38 

Candles  .  _ _  _ _ 

28 

54 

65 

1 

Candle-making  materials.  . 

4 

112 

18 

Cereals: 

Rice  . . .  .pounds.. 

275 

6 

41, 184 

970 

141,  339 

5,  221 

59, 186 

2,  076 

Wheat  do 

3 

47,  290 

1,099 

13,  000 

316 

Chemical  products 

17 

32 

142 

124 

China  ware 

24 

35 

138 

176 

C  igarettes _ thousands 

327 

1,  072 

1,  539 

1,  239 

3,065 

932 

2,  666 

Cigars _ _ do.  . 

27 

6 

50 

4 

108 

3 

92 

Clocks  and  watches 

80 

83 

140 

222 

Clothing 

69 

41 

113 

64 

Confectionery..  .... 

6 

19 

28 

32 

Cotton,  raw  pounds 

1 

6,  111 

1,  448 

299 

76 

Dyes,  colors,  and  paints: 

Aniline 

200 

869 

1,308 

1,348 

All  other 

180 

926 

2,274 

3, 193 

Electrical  materials 

80 

211 

695 

'  713 

Enameled  ware 

11 

114 

134 

261 

Flour,  wheat  ..  . . pounds. . 

1,925 

39 

18,  565 

385 

192,  715 

5,  559 

179,  843 

4,911 

Glass  and  glassware 

155 

186 

453 

5,  667 

Haberdashery  and  millinery 

36 

347 

684 

555 

Hardware 

47 

146 

430 

272 

Hats  and  caps . number 

307 

66 

392 

137 

310 

133 

India-rubber  tires 

36 

88 

India-rubber  manufactures,  other 

2 

123 

254 

Leather,  all  kinds 

38 

556 

514 

59 

Machinery,  miscellaneous 

256 

349 

2,209 

2,064 

Matches.  _  _ _  _  _ 

448 

458 

4 

. 

7 

Match-making  material  .  pounds.. 

5,  271 

141 

16,  097 

527 

15,  671 

790 

Medicines  _ 

69 

200 

314 

484 

Milk,  condensed,  in  tins  pounds 

21 

80 

1,049 

170 

775 

146 

Needles. _ _ ...thousands.. 

659 

124 

775 

113 

916 

256 

1,634 

415 

Petroleum  products: 

Engine  oil  ..  American  gallons. 

8 

256 

70 

1,  276 

368 

1, 151 

395 

Gasoline  .  . . do _ 

61 

9 

1,004 

455 

'  659 

259 

Kerosene — 

American . . ..do _ 

2,294 

366 

12,  210 

1,001 

27,  337 

6,  013 

29, 198 

6,091 

Russian  .  do 

6,  436 

821 

Sumatra. . ...do... 

1,119 

141 

15, 190 

1,667 

357 

79 

1,041 

487 

Paper  and  stationery  . 

235 

906 

2,327 

2,409 

Perfumery 

10 

23 

127 

208 

Photographic  material . 

35 

52 

110 

139 

Railway  materials  ... 

2,004 

1,  789 

1,491 

1,517 

Seaweed  .  . . . pounds  . 

5,593 

68 

8,  067 

120 

11,711 

324 

8,  632 

260 

Silk,  artificial . . . . . 

751 

496 

446 

Soap.  _ 

70 

192 

319 

355 

Soda  ..  ...  _  .  .  .  ...pounds. 

2,539 

40 

13,  894 

180 

24, 113 

421 

26,  613 

468 

Sugar,  all  kinds 

1, 133 

3, 158 

4,  726 

6,285 

Timber,  all  kinds _ _ _ _  . 

'  525 

1,250 

665 

1,020 

Toilet  requisites _  .  .  .  _ _ 

19 

165 

170 

95 

Tobacco,  leaf . . . .  . 

5 

584 

1, 107 

Vehicles: 

Bicycles  and  parts 

12 

25 

212 

475 

Motor  cars  and  parts . . 

71 

530 

702 

Tramway  materials _ _  _ 

120 

779 

326 

Wines,  beers,  whiskies  _ 

259 

348 

562 

533 

Wireless  apparatus 

95 

30 

All  other  articles  _ 

2,602 

3,  407 

9,  300 

6,  356 

Net  total  imports.  ..  _ _ 

23,  977 

51,  757 

84,237 

83,  641 

TIENTSIN  CONSULAR  DISTRICT 


539 


Industrial  developments  during  and  following  the  war  period 
have  led  to  an  increased  demand  for  machinery  for  factories,  mills, 
and  mines,  in  the  fulfillment  of  which  America  has  played  a  lead¬ 
ing  part.  During  1923,  however,  imports  of  machinery  dropped  off 
by  2,250,000  taels,  primarily  because  of  unsettled  conditions.  Amer¬ 
ica  supplied  39  per  cent,  Great  Britain  27  per  cent,  Germany  13  per 
cent,  and  Japan  10  per  cent,  the  remainder  being  distributed  among 
various  European  countries. 

In  piece  goods,  for  the  four  years  1919  to  1922,  Japan  contributed 
65  per  cent,  Great  Britain  27  per  cent,  and  the  United  States  8  per 
cent.  With  the  exception  of  imports  from  Great  Britain,  the  pur¬ 
chases  during  1923  showed  a  decided  falling  off.  Japan’s  share 
was  64  per  cent,  Great  Britain’s  33  per  cent,  and  the  United  States, 
3  per  cent. 

Importations  of  wheat  and  flour  experience  seasonal  fluctuations, 
varying  with  comparative  crop  conditions  and  price  levels  as 
between  China  and  other  countries,  notably  the  United  States  and 
Canada.  There  have  been  large  increases  in  the  importation  of  for¬ 
eign  flour  and  foreign  wheat.  During  the  four  years  ending  1922 
imports  of  flour  amounted  to  52,196,666  pounds,  while  imports  for 
1923  totaled  192,715,200  pounds,  and  for  1924  179,843,200  pounds. 
The  increase  in  the  importation  of  foreign  wheat  during  the  four 
years  ending  1922  was  not  so  great,  averaging  about  45,333,000 
pounds  per  year,  as  compared  with  47,290,133  pounds  for  1923. 
In  1924  there  was  a  sharp  decrease  to  13,000,000  pounds. 

Tientsin  is  the  distributing  center  for  approximately  20  per  cent 
of  all  colors  and  dyes  imported  into  China.  There  is  a  steadily 
increasing  tendency  on  the  part  of  the  Chinese  to  substitute  foreign- 
manufactured  synthetic  dyes  for  vegetable  dyes  of  native  origin. 
In  recent  years  German  manufacturers  have  been  making  strenuous 
efforts  to  recapture  the  trade  in  dyes  and  chemicals  that  they  lost 
during  the  war.  At  present  Germany  can  be  credited  with  about  75 
per  cent  of  the  trade  in  dyes,  15  per  cent  come  from  America,  and 
the  remainder,  in  small  amounts,  are  supplied  by  Swiss,  French, 
British,  and  Japanese  manufacturers. 

Imports  of  illuminating  oils  continue  to  show  considerable  in¬ 
creases,  the  United  States  dominating  the  trade.  Other  articles 
for  which  there  is  a  demand  are  paper,  glass,  chemical  products, 
aniline  dyes,  stoves  and  grates,  worsted  and  other  woolen  goods, 
leather  and  leather  goods,  soap  and  toilet  articles,  medicines,  hard¬ 
ware,  metals,  galvanized  iron,  roofing  and  flat  sheets,  enameled 
ware,  ironware,  and  tobacco.  In  this  category  also  belong  machine 
tools  for  engineering,  carpentry,  iron  forges,  bicycle  and  motor¬ 
car  works,  as  well  as  hand  machines  for  sewing,  printing,  knitting, 
hat  making,  grain  cleaning,  washing,  and  pumping.  There  is  also 
an  appreciable  demand  for  motor  cars,  bicycles,  typewriters,  fur¬ 
niture,  industrial  machinery,  knitting  machines,  mining  and  smelt¬ 
ing  apparatus,  and  other  articles  that  usually  find  markets  in  a 
region  of  vast  potentialities  newly  opened  to  modern  development  and 
foreign  exploitation.  Among  articles  for  which  there  is  a  constant 
demand  are  watches  and  clocks,  jewelry,  phonographs  and  accessories, 
photographic  materials,  mirrors,  candles,  lamps  and  lamp  ware, 
clothing,  hats,  hosiery,  boots,  and  shoes.  The  United  States  already 


540 


COMMERCIAL  HANDBOOK  OF  CHINA 


participates  to  a  considerable  extent  in  supplying  these  lines,  which 
offer  a  favorable  field  for  extension.  The  chief  competitors  of  the 
United  States  in  this  market  are  Japan  and  various  European  coun¬ 
tries.  In  many  of  these  lines  Japan  and  the  European  countries 
are  ahead  of  the  United  States.  The  leading  lines  in  which  Japan 
has  to  a  great  extent  replaced  American  and  European  goods  in 
this  market  are  piece  goods,  chemical  products,  electrical  materials, 
paper,  and  indigo  dyes. 

EXPORTS 

A  detailed  statement  of  exports  from  Tientsin  during  the  years 
1903,  1913,  1923,  and  1924  is  given  below: 

[Quantities  are  in  thousands  of  units  given;  values  in  thousands  of  United  States  dollars] 


Articles 


1903 


Quan¬ 

tity 


Cotton  goods,  all  kinds... . - . 

Metals  and  minerals:  Brass,  iron, 

metal  dross,  etc . . 

Almonds _ pounds.. 

Animals,  living:  Cattle - number.. 

Beans,  total _ _ pounds. . 

Bones,  refuse . . . -do - 

Bran . . . . -do - 

Bristles _ do - 

Candles - - do - 

Carpets _ square  feet.. 

Cement - - pounds.  . 

Chestnuts. . do - 

Cigarettes. . do - 

Coal . . . . tons.. 

Coke . do - 

Cotton,  raw . . pounds.. 

Curiosities . . - . . 

Dates . pounds.. 

Egg  albumen  and  yolk,  dried  and 

moist _ pounds.. 

Egg,  fresh _ _ ...thousands.. 

Fibers,  hemp  and  jute. . pounds.. 

Firecrackers - do - 

Groundnut  cake  and  pulp - do - 

Groundnuts . do - 

Hair: 

Animal - - - 

Human _ pounds. . 

Hides: 

Ass  and  horse - do - 

Buffalo  and  cow - do - 

Horns,  deer,  young. . ...pairs.. 

Intestines: 

Pigs’ . . --- . 

Sheep’s - - - 

Licorice - - - pounds. . 

Matches. _ _ gross.. 

Mats,  straw  and  rush - 

Medicines - - 

Mushrooms _ pounds - 

Oil: 

Castor _ do - 

Groundnut _ do - 

Pears,  fresh - do - 

Salt _ _ do - 

Samshu _ do _ 

Seeds: 

Apricots,  bitter  and  sweet 

. . pounds.. 

Cotton _ do _ 

Linseed . . ...do _ 

Melon. . do _ 

Mustard . do _ 

Rape. . do _ 


1, 147 


9, 044 


2,  047 


1,044 


27 


32 


12,  252 


13,  299 


Value 


8 

137 

1,312 

5 


1,543 


58 


6,  701 


3,  259 


453 


106 


26 


618 


8 

1 

10 


113 


2 

104 

258 


171 

116 

1 

14 

131 

102 

1 

3 

75 


1913 


Quan¬ 

tity 


4,459 

2 

35, 310 
42,  626 
19 
2,  434 
4 


7,217 
3,  621 
119 
114 
1 

44, 851 


16,  435 

702 

75 

11, 169 
49 
3,184 
61,216 


568 

1,075 

3,591 

3 


48 

277 

28 


36 


117 


40 


2,  283 


107 

4 

375 
6,  933 
79,  486 
14,  427 


18,  191 
27,  265 
7,  756 


30, 878 


Value 


172 

68 

487 

79 

465 

237 


1,410 

1 

60 

33 
100 

62 

343 

5 

5,916 

388 

731 

34 
410 
474 

3 

66 

1,217 

301 

54 

136 

679 

77 

94 

6 

203 


512 

498 

90 


16 

64 

235 

524 


127 

436 

325 


470 


1923 


Quan 

tity 


(9 

15 

96,  353 
47,  475 
42,  379 

3,  372 
2,  305 

4,  439 
142, 164 

6,  504 
1,111 
284 
8 

75,  347 


31,  839 

5,  603 
385 
3,  466 
1,328 
7,  731 
52,  368 


699 

2,  002 
349 
3 


6,  464 
599 


193 

795 
5,014 
14,  619 
53,  324 
10,  627 


2,592 
36,  221 
17, 133 
5,291 
9,  375 
2,074 


Value 


428 

82 

(') 
595 
2,  201 
615 
588 
2,  751 
341 
3,440 
660 
289 
651 
1,  508 
81 

15,  698 
343 
1, 170 

1,404 

2,854 

156 

189 

106 

1,856 

325 

113 

387 

74 

208 

863 

431 

795 

106 

397 

439 

215 

59 

340 

203 

1,317 

426 


301 

421 

415 

298 

179 

39 


See  “Seeds,  apricot.’ 


1924 


Quan¬ 

tity 

Value 

80 

78 

(') 

0) 

39 

1,058 

70,  716 

1,640 

36,  437 

519 

48,  419 

673 

2,529 

2,  741 

1,334 

194 

5,  514 

4,  464 

92,  888 

418 

7, 089 

308 

1,239 

715 

238 

1,222 

5 

57 

55,  405 

12, 197 

292 

28, 078 

1,233 

8,433 

2, 122 

365 

2,660 

2, 190 

157 

650 

94 

1,519 

21 

43,041 

1,  527 

426 

660 

90 

907 

205 

398 

83 

2 

137 

848 

703 

4,  598 

503 

195 

43 

316 

634 

125 

137 

1,867 

136 

6,746 

471 

22, 071 

354 

58,  969 

1,612 

4,  916 

269 

3,  952 

422 

17,  880 

208 

12, 143 

322 

2,240 

133 

5,  621 

116 

874 

IS 

TIENTSIN  CONSULAR  DISTRICT  541 


[Quantities  are  in  thousands  of  units  given  ;  values  in  thousands  of  United  States  dollars] 


Articles 

1903 

1913 

1923 

1924 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

Quan¬ 

tity 

Value 

SlririQ  anH  fnrs  total 

1,965 

5 

813 

1 

1 

52 

24 

122 
45 
1,209 
1, 846 

3, 177 
20 
339 
147 

196 

142 

548 
260 
4,  398 
1,  391 

5,  791 
119 

2,  832 

46 
1,  748 
311 
635 

1,759 
397 
7,  751 

3,  858 

6, 100 
51 
2,  678 
42 

1,612 

331 

1,080 

1,654 
1,006 
10,  627 
3,935 

RnHa  nrnrinp.ts 

Straw  braid . .  . . .  .pounds.. 

Tallow,  animal _ do - 

Tobacco,  prepared.  ...  .  ..  -do - 

Vegetables,  dried  and  salted — do - 

Walnuts..  _ do - 

Wool: 

Camels’ _  ..  - do - 

Goats’ _ do - 

Sheep’s _  _ do - 

All  nt.hfir  artinlfis 

4,447 

49 

9 

1,  371 
957 

1,  714 
332 
15,  774 

1,017 

2,  448 

2 

4, 000 
6,341 

3,  724 
1,421 

29,  558 

7,  523 
523 

8,  712 

5,  584 
7,  377 

6,  853 
1,700 

42,  564 

6,  988 
484 
8,  168 
6,  066 
12,  716 

5,  043 
3,  213 
58,  332 

Total 

8,  489 

28,  226 

71,  604 

71,  772 

The  total  value  of  exports  of  cotton  from  Tientsin  nearly  doubled 
during  the  10-year  period  1913-1923.  The  development  of  the  cot¬ 
ton-mill  industry  in  North  China  has  served  to  stimulate  cotton 
growing,  and  the  export  of  raw  cotton  has  kept  pace  with  its  in¬ 
creased  cultivation  in  the  adjacent  hinterland.  At  present  Tientsin 
exports  about  25  per  cent  of  China’s  cotton. 

Exports  of  wool  have  also  shown  very  large  increases.  Of  China’s 
total  wool  clip,  85  or  90  per  cent  passes  through  the  port  of  Tientsin, 
though  some  contributing  areas  are  so  distant  that  a  year’s  time  is 
required  to  get  their  product  to  Tientsin.  Wool  from  Outer  Mon¬ 
golia,  Chinese  Turkestan,  and  distant  Kansu  find  their  outlet  at  this 
port. 

The  manufacture  of  Chinese  rugs  for  export  is  a  development  of 
recent  years,  and  rugs  may  now  be  said  to  constitute  one  of  the 
principal  exports  of  manufactured  products.  Eighty-nine  per  cent 
of  China’s  rug  exports  passed  through  Tientsin  in  1923. 

Sausage  casings  form  one  of  the  principal  exports.  Contributing 
territory  includes  Shantung,  Chihli,  Honan,  Shansi,  Shensi,  Kansu, 
Sinkiang  (Chinese  Turkestan),  Mongolia,  Manchuria,  and  Siberia. 
The  export  of  casings  has  witnessed  a  steady  growth  since  the  period 
following  the  Great  War,  and  may  be  regarded  as  capable  of  still 
further  development.  Tientsin  had  40  per  cent  of  China’s  export 
trade  in  casings  for  1923. 

Of  egg  albumen  and  yolk  during  1923,  Tientsin  contributed  about 
13  per  cent  to  China’s  export  trade,  the  leading  ports  being  Shang¬ 
hai  and  Hankow.  Of  eggs,  fresh  and  preserved,  however,  Tientsin 
contributed  30  per  cent  of  China’s  total  as  port  of  origin,  the  two 
other  leading  ports  being  Tsingtao  and  Shanghai. 

The  disruption  of  trade  in  Russia  during  the  past  few  years  has 
resulted  in  diverting  through  the  port  of  Tientsin  furs  and  skins 
that  formerly  were  sent  through  Moscow  and  Liepzig.  Foreign 
buyers  have  also  discovered  that  China,  Manchuria,  and  Mongolia 
represent  a  cheaper  source  of  supply  than  other  exporting  countries. 
As  a  result,  exports  of  furs  have  increased  year  by  year.  This  situa¬ 
tion  will  undoubtedly  obtain  until  such  time  as  a  return  to  former 
established  trade  channels  is  effected  in  Russia.  Furs  shipped 
through  Tientsin  include  squirrel,  rabbit,  fox,  sable,  kolinsky, 


542 


COMMERCIAL  HANDBOOK  OF  CHINA 


weasel,  and  marmot.  Lamb,  goat,  and  kid  skins,  as  well  as  dog  mats 
and  horsehides,  form  the  bulk  of  the  hide  and  skin  exports. 

The  manufacture  of  straw  braid  is  a  widely  distributed  industry 
throughout  North  China,  and  Tientsin  is  an  important  exporting 
center  for  this  commodity.  During  1923,  63  per  cent  of  China’s 
total  export  of  straw  braid  passed  through  the  port  of  Tientsin, 
chiefly  to  the  United  States. 

Walnuts,  peanuts,  beans,  horsehair,  licorice,  oilseeds,  and  ground¬ 
nut  cake  and  pulp  are  other  exports,  Tientsin  leading  all  China 
ports  in  exports  of  walnuts,  groundnuts  in  shell,  licorice,  and  cotton¬ 
seed. 

It  is  of  interest  to  note  that  in  1903,  of  the  total  export  of  Chinese 
produce  of  North  China  origin,  only  10  per  cent  was  shipped 
directly  to  foreign  countries  and  Hongkong.  In  1913,  20  per  cent 
went  to  foreign  countries  and  Hongkong;  while  in  1923,  60  per  cent 
was  shipped  directly  to  such  foreign  destinations,  and  only  40  per 
cent  to  Chinese  ports.  Since  1903  foreign  export  houses  have  found 
it  desirable,  instead  of  attempting  to  handle  North  China  products 
through  Shanghai,  to  establish  houses  nearer  the  source  of  supply 
and  export  directly  from  Tientsin  to  foreign  markets.  The  im¬ 
provement  of  the  Hai  River  has  brought  about  the  result  that  Brit¬ 
ish,  Japanese,  German,  and  American  ocean-going  freighters  now 
carry  a  heavy  percentage  of  the  exports  of  Tientsin  directly  to 
foreign  ports  without  the  necessity  of  transshipping  from  coasting 
steamers  at  Shanghai  or  Japan  ports.  There  is  still  a  considerable 
volume  of  shipments  by  coasting  steamer  to  Shanghai  for  trans¬ 
shipment  abroad,  but  the  business  is  handled  at  Tientsin  and  the 
cargo  routed  via  Shanghai  instead  of  entering  into  the  market  there. 

The  increased  volume  of  trade  and  the  extension  of  trading  facili¬ 
ties  in  the  form  of  foreign  import  houses,  banks,  etc.,  have  resulted 
in  the  past  20  years  in  detaching  Tientsin  very  largely  from  its  for¬ 
mer  position  of  substantial  dependence  upon  Shanghai. 

CHINWANGTAO  TRADE 

Chinwangtao  for  many  years  served  as  the  winter  port  or  “  jetty  ” 
for  Tientsin  trade  during  the  winter  months,  but  with  the  improve¬ 
ment  of  the  Hai  Ho  and  shipping  facilities  at  Tientsin,  where  the 
river  is  kept  open  in  winter  by  ice  breakers,  the  port  of  Chinwangtao 
assumes  less  importance  in  the  trade  of  the  district  as  a  whole. 

The  principal  items  of  foreign  imports  are  machinery  and  equip¬ 
ment  for  the  Kailan  mines  and  the  Tangshan  cement  works  and 
rolling  stock  and  equipment  for  the  Peking-Mukden  Railways  Kero¬ 
sene  is  another  important  item  of  import.  With  respect  to  these 
items  especially,  which  form  the  bulk  of  the  import  trade,  Chinwang¬ 
tao  may  be  said  to  have  a  trade  of  its  own  of  quite  respectable 
proportions. 

The  export  trade  is  made  up  principally  of  exports  of  coal,  cement, 
fire  brick,  and  fire  clay.  The  development  of  the  Kailan  coal  fields 
has  resulted  in  an  increase  in  the  coal  exports  from  Chinwangtao 
from  approximately  100,000  tons  in  1903  to  746,486  tons  in  1913  and 
2,075,715  tons  in  1923,  exclusive  of  supplies  for  steamers’  bunkers. 


TIENTSIN  CONSULAR  DISTRICT 


543 


MONEY,  BANKING,  AND  CREDIT 

BANKS 

The  table  below  shows  the  leading  banks  handling  foreign  ex¬ 
change  and  bills  in  the  Tientsin  consular  district: 


Name 

Nationality 

Head  office 

Capital 

International  Banking  Corporation.. 

American _ _ 

New  York, 

i  $10,000,000. 

American  Oriental  Banking  Corpo¬ 
ration. 

Hongkong  &  Shanghai  Banking 
Corporation. 

Chartered  Bank  of  India,  Australia 
&  China. 

Banque  de  L’lndo-Chine . . 

.do _ 

N.  Y. 

Shanghai. ..  .. 

3  $428,949 _ 

3  $20,000,000  . 

£3,000,000... 

68,400,000 

francs. 

10,000,000 

francs. 

55,000,000 

rubles. 

100,000,000 

yen. 

80,000,000 

yen. 

75,000,000 

francs. 

$1,000,000 

gold. 

3  $7,500,000.. 

British..  _ 

do.. . 

Hongkong _ 

London . . 

French _ 

Paris _  .. 

Banque  Franco- Chinoise  _ _ _ 

do _ 

.do _ 

Russo-Asiatic  Bank . . ... 

Russo-French. 

.  .do _ . 

Yokohama  Specie  Bank . .  . 

Japanese _ 

Yokohama. .. 

Bank  of  Chosen.. . . . 

.do _  . 

Seoul,  Chosen . 

Brussels . 

Shanghai _ 

Banque  Beige  pour  l’Etranger . . 

The  Italian  Bank  for  China . . 

Belgian  . . 

Italian. . . . 

Chinese-American  Bank  of  Commerce. 

Chinese _  . 

Peking.. . . 

Branches  in  cities 
in  district 


Tientsin  and  Pe¬ 
king. 

Tientsin. 

Tientsin  and  Pe¬ 
king. 

Do. 

Do. 

Do. 

Do. 

Do. 

Do. 


Do. 

Tientsin. 

Tientsin  and  Pe¬ 
king. 


1  Capital  and  surplus,  in  United  States  currency.  3  Chinese  currency. 

1  United  States  currency. 

CREDITS 


Local  export  firms  purchase  export  cargo  in  the  open  market  or, 
as  is  often  the  case,  make  their  purchases  on  a  forward-contract 
basis  from  interior  dealers.  Upon  acceptance  by  the  foreign  buyer 
of  the  Tientsin  firm’s  offer,  the  usual  procedure  is  for  the  buyer  to 
open  a  credit  in  favor  of  the  Tientsin  exporter.  If  the  credit  is 
opened,  the  exporter  generally  requests  and  is  usually  granted  ad¬ 
vances  in  the  form  of  packing  credits  from  the  bank  in  which  the 
credit  has  been  opened.  If  no  credit  has  been  opened,  the  exporter 
generally  has  recourse  to  his  own  bank  for  packing  credits  in  the 
form  of  overdrafts.  When  a  foreign  bank  grants  a  packing  credit  to 
a  Tientsin  firm  it  allows  the  firm  to  draw  on  the  bank  up  to  prac¬ 
tically  the  full  value  of  the  goods  to  be  shipped,  and  the  bank  gen¬ 
erally  expects,  and  sometimes  insists,  that  an  equivalent  amount  of 
exchange  be  settled  with  them  before  the  credit  is  granted.  In  re¬ 
turn  the  firm  gives  a  letter  of  guaranty  in  which  it  undertakes  to 
hold  the  cargo  at  the  disposal  of  the  bank  fully  insured  against  all 
risk.  The  interest  charged  is  from  7  to  8  per  cent.  The  goods  in 
question  may  be  stored  in  the  firm’s  own  godown  (warehouse)  or  in 
a  godown  designated  by  the  bank.  The  arrangement  continues  for  a 
period  long  enough  to  allow  the  firm  to  purchase  the  goods,  pack, 
and  ship  them. 

The  extension  of  packing  credits  by  the  banks  is  entirely  optional 
on  their  part  unless  the  export  credit  opened  specifically  provides 
for  packing  credits. 


544 


COMMERCIAL  HANDBOOK  OF  CHINA 


Credit  extensions  made  to  local  importers  vary  considerably,  de¬ 
pending  on  the  reputation  of  the  concern,  the  nature  of  the  goods, 
the  volume  of  sales,  the  state  of  competition,  and  other  considera¬ 
tions.  The  usual  practice  is  for  the  local  importer  to  arrange  with 
his  local  bank  for  the  opening  of  a  credit  with  a  foreign  correspond¬ 
ent  bank  in  favor  of  the  exporter  abroad;  against  this  credit  the 
local  bank  may  or  may  not  require  the  deposit  of  security  or  collat¬ 
eral,  the  amount  in  any  case  depending  upon  the  reputation  of  the 
firm  and  the  nature  of  the  goods.  As  there  is  no  local  acceptances 
market,  drafts  are  drawn  on  the  local  importer  instead  of  the  local 
bank,  the  acceptance  of  the  former  being  considered  in  the  light  of 
an  undisputed  instrument  of  liability. 

Upon  receipt  of  the  documents  and  the  acceptance  of  the  draft, 
the  cargo  remaining  under  custody  of  the  bank,  deliveries  may  be 
effected  to  Chinese  dealers  during  the  term  of  the  draft  in  the  fol¬ 
lowing  manner :  Chinese  dealers  are  usually  allowed  to  take  de¬ 
livery  of  import  goods  by  installments,  paying  against  installments 
usually  by  native  orders.  The  native  order  is  due  in  from  5  to  10 
days  and  is  generally  regarded  as  the  equivalent  of  cash.  The  Chi¬ 
nese  dealer  is  usually  given  two  months  in  which  to  clear  cargo,  but 
the  term  varies,  according  to  the  nature  of  the  goods. 

The  native  order,  in  effect,  is  nothing  more  nor  less  than  a  post¬ 
dated  check  by  the  Chinese  dealer  on  his  Chinese  bank.  Native 
orders  in  the  form  of  cashiers’  checks  of  native  banks  do  not  circu¬ 
late  to  any  great  extent  in  Tientsin.  It  was  at  one  time  the  practice 
of  native  banks  to  certify  the  checks  or  native  orders  of  dealers, 
and  they  then  became  the  obligation  of  the  native  bank,  but  this 
practice  has  now  largely  ceased.  Native  orders,  in  the  sense  of  post¬ 
dated  checks  by  Chinese  dealers  on  native  banks,  are,  however,  quite 
common.  They  usually  cover  a  5  or  10  days’  period  and  are  con¬ 
sidered  as  no  more  reliable  than  the  credit  of  the  drawer,  since  of 
course  no  responsibility  is  assumed  by  the  native  bank  unless  the 
check  is  “  certified  ”  by  the  bank. 

Business  transactions  and  credits  between  the  foreign  firms  and 
the  Chinese  buyer  are  generally  arranged  through  the  medium  of 
the  Toreign  firm’s  comprador,  the  comprador  system  applying  in 
Tientsin  as  elsewhere  in  China. 

No  standard  practice  with  reference  to  credit  extensions  can  be 
said  to  exist  in  the  district.  Import  merchants  require  such  terms 
of  credit  from  American  exporters  as  will  permit  their  meeting  the 
competition  of  European  products  offered  on  a  basis  of  liberal  credit 
extensions.  Competition  in  this  field  is  keen,  and  American  manu¬ 
facturers  who  anticipate  entering  this  market  must  be  prepared  to 
offer  terms  in  line  with  those  of  competing  manufacturers  of  other 
countries. 

Local  banks  are  in  a  position  to  know  what  credit  extensions  can 
be  made  to  local  firms  of  foreign  nationality.  From  the  head  offices 
of  American  banks  having  branches  in  this  district,  credit  reports 
can  be  obtained  on  any  local  firm  of  foreign  nationality. 

Not  many  Chinese  firms  are  sufficiently  familiar  with  foreign 
business  procedure  to  deal  directly  with  foreign  countries;  in  con¬ 
sequence,  import  transactions  are  usually  negotiated  through  the 
medium  of  a  local  firm  of  foreign  nationality.  American  exporters 


TIENTSIN  CONSULAR  DISTRICT 


545 


should  not  fail  to  investigate  requests  for  credit  extensions  on  the 
part  of  Chinese  concerns  prior  to  granting  such  extensions. 

LOCAL  CURRENCY  SITUATION 

The  currency  situation  is  as  complicated  in  this  district  as  it  is 
elsewhere  in  China. 

Prior  to  the  revolution  of  1911-12  the  Peiyang  dollar  was  in 
general  use,  and  many  are  still  in  circulation.  The  Yuan  dollar, 
the  new  dollar  currency  of  the  Republic,  has,  however,  supplanted 
"  the  Peiyang  and  provincial  dollars  formerly  in  use.  Exchange  fluc¬ 
tuations  have  a  marked  effect  on  both  import  and  export  trade;  the 
silver  currency  of  China  fluctuates  daily  and  hourly  in  comparison 
with  gold.  High  silver  militates  against  exports  and  favors  imports. 
In  January,  1920,  the  Chinese  silver  dollar  was  worth  $1.08  United 
States  currency;  in  March,  1921,  only  $0.31.  In  June,  1922,  the 
silver  dollar  at  Tientsin  had  a  value  of  $0.57  United  States  cur¬ 
rency,  and  at  the  end  of  1924,  $0,547. 

ADVERTISING 

There  are  approximately  300  newspapers  published  in  the  con¬ 
sular  district — 10  in  English,  2  in  French,  and  the  remainder  in 
Chinese.  Most  of  these  papers  are  published  in  Tientsin  and  Peking. 
The  following  is  a  list  of  the  principal  ones : 


Name 

Publication 

Language 

Ownership 

(nationality) 

Estab¬ 

lished 

Esti¬ 

mated 

circula¬ 

tion 

TIENTSIN 

North  China  Star _ _  .. 

Daily _ _ 

English _ _ 

American _ 

1918 

3,  000 

Peking  and  Tientsin  Times. . 

_ do  . . 

_ .do.  _ _ 

British 

1894 

1,  600 

North  China  Daily  Mail _ 

_ do.. . . 

_ do  .  ...  _ 

_ do _ _ 

300 

China  Advertiser.,  j _ 

Weekly _ 

_ do  _  .  . 

Japanese 

200 

Echo  de  Tientsin  _  . 

Daily _ _  _ 

French... 

French  . 

300 

China  Illustrated  Review  . . . 

Weekly  edition  of 

English _ _ 

British...  . 

600 

Peking  and 

Tientsin  Times. 

T’ai  Wu  Shih  Pao. . . 

Daily.  _ 

Chinese . .  . . 

Chinese. 

1917 

9,  600 

I  Shih  Pao _ _ _ 

_ do. . 

_ do . . 

. do _ 

1915 

37,000 

Ta  Chung  Hua  Shang  Pao._ 

_ do _ 

_ do _ _ 

_ do _ 

1920 

10,000 

Ho  Pei  Erh  Pao . . 

_ do.. . 

_ do  _  _ rzc _ 

_ do _ 

1919 

7,900 

PEEING 

North  China  Standard  ... 

.  ...do _ .  _ 

English . . 

Japanese _ 

Journal  de  Peking _ _  .. 

_ do . . . 

French...  . 

French 

Far  Eastern  Times _ _ 

_ do _ _  . 

English  and  Chinese. 

Chinese 

1923 

4,500 

Peking  Leader .  . . 

_ do.  . . . 

English _  .  ... 

.  .  .do  _ 

1918 

Peking  Daily  News  _ 

. do-  . . 

_ do 

.do 

1908 

Shun  T’ien  Shih  Pao... . 

_ do  _ 

Chinese _  .  .  . 

_ do _ 

I  Shih  Pao._ . . . 

_ do _ _  .. 

.  ...do . . 

.  ..  do.  _ 

1916 

Ching  Pao  . . . 

_ do _ 

.  _ do  . . 

_do 

1918 

Ch’en  Pao . 

_ do.  . . 

_ do _ _ 

.do 

1918 

Quotations  on  advertising  rates  are,  in  general,  meaningless;  they 
will  vary  with  the  inquirer  and  from  day  to  day.  Much  the  same  adver¬ 
tising  methods  successful  in  the  United  States  are  employed  in  North 
China,  with  necessary  modifications  and  allowances  for  the  differ¬ 
ences  in  the  degree  of  literacy  and  the  psychology  of  the  potential 

100020°— 26 - 36 


546 


COMMERCIAL  HANDBOOK  OF  CHINA 


buyer.  The  newspaper,  the  billboard,  handbills,  calendars,  motion 
pictures  in  the  larger  cities,  placards  in  trolley  cars,  all  are  employed 
as  advertising  mediums.  Electric  signs  are  used  both  in  Peking 
and  Tientsin,  but  so  far  to  a  limited  extent. 

MERCHANDISING  METHODS 

As  there  are  few  Chinese  firms  in  the  Tientsin  district  equipped 
for  direct  foreign  trade,  most  of  the  foreign  trade  is  carried  on 
through  American,  European,  and  Japanese  import  and  export 
houses,  acting  on  their  own  account  or  as  agents  for  foreign  prin¬ 
cipals.  A  number  of  such  houses  have  branches  or  connections  in 
the  L  nited  States.  In  establishing  China  agencies  it  is  preferable 
that  American  agencies  be  placed  with  American  firms,  if  possible. 
T\  here  the  market  in  particular  lines  offers  promise  of  business  of 
sufficient  volume,  the  American  exporter  might  be  well  advised,  after 
an  intensive  study  of  the  field  by  his  trained  representative,  to  estab¬ 
lish  his  own  branch  office,  but  this  measure  is  recommended  only  for 
lines  in  which  there  is  a  permanent  and  extensive  demand.  In  other 
cases  it  is  frequently  found  that  representatives  of  the  American 
manufacturers — expert  technicians  or  salesmen — can  effectively  be 
employed  on  the  staffs  of  the  China  houses  acting  as  agents,  thus 
insuring  to  the  American  exporter  not  only  the  facilities,  experience, 
and  prestige  of  the  established  China  house  (a  matter  of  outstanding 
-  importance)  but  the  opportunity  for  direct  representation  of  fairly 
reasonable  cost  for  the  purpose  of  detailed  study  of  the  market  and 
active  promotion  work.  Representatives  should  always  be  very 
carefully  selected  and  be  men  of  good  reputation  and  bearing.  It 
should  be  understood  that  nothing  of  permanent  value  can  be  accom¬ 
plished  in  China  by  “  rush  ”  and  impatience. 

TRAVEL  FACILITIES 

The  following  table  shows  the  principal  hotels  at  Peking  and 
Tientsin,  with  rates,  cable  addresses,  etc. : 


Rates,  including  meals  1 

Name  of  hotel 

Nation¬ 
ality  of 
ownership 

Cable 

address 

Single, 

room 

with 

bath 

Single, 

room 

without 

bath 

Two  per¬ 
sons, 
room 
with 
bath 

Single, 

per 

month 

Two  per¬ 
sons,  per 
month 

PEKING 

Grand  Hotel  de  Pekin2... 

French.. 

Pekinotel _ 

$10-$15 

$18-$25 

$175-$300 

$300-$500 

Grand  Hotel  des  Wagon 

British _ 

Wagonlits.. . 

9 

$8 

18 

150-  175 

300-  350 

Lits.2 

Ambassador  Hotel 3 _ 

Chinese... 

Ambassador 

8 

6-7 

13 

120-  140 

220 

TIENTSIN 

Astor  House  2._ . . 

British _ 

Astor . 

*  10 

*  8 

*  18 

200 

*  250 

Court  Hotel 2.  . 

_ do.  _ 

Court . . 

12 

10 

18-19 

200-  250 

300-  350 

Imperial  Hotel 2  . 

...do _ 

Hotelimp... 

9 

7-8 

16 

140-  160 

300 

1  Chinese  currency,  Yuan  dollars. 

2  American  plan. 


3  American  or  European  plan. 

4  Minimum  rate. 


TIENTSIN  CONSULAR  DISTRICT 


547 


While  not  always  necessary,  it  is  advisable  to  telegraph  a  few  days 
prior  to  arrival  at  Tientsin  or  Peking  to  obtain  accommodations  at 
the  hotels. 

A  knowledge  of  Chinese  is  not  essential  for  travel  on  the  main 
routes;  hotel  clerks  and  railway  conductors  speak  English.  A  valid 
passport  is  indispensable  for  identification  purposes  as  well  as  travel. 

TRADE  ORGANIZATIONS 

Following  is  a  list  of  important  trade  organizations  in  the  Tien¬ 
tsin  consular  district : 

American  Chamber  of  Commerce,  Tientsin. 

American  Chamber  of  Commerce,  Peking. 

British  Chamber  of  Commerce,  Tientsin. 

British  Chamber  of  Commerce,  Peking. 

Tientsin  General  Chamber  of  Commerce ;  international. 

French  Chamber  of  Commerce,  Tientsin. 

German  Chamber  of  Commerce,  Tientsin. 

Tientsin  Chamber  of  Commerce ;  Chinese. 

Peking  Chamber  of  Commerce :  Chinese. 

Japanese  Chamber  of  Commerce,  Tientsin. 

Japanese  Chamber  of  Commerce,  Peking. 

Italian  Chamber  of  Commerce,  Peking. 

Tientsin  Rotary  Club ;  international. 

Peking  Rotary  Club ;  international. 

Chinese  Bankers’  Association,  Tientsin. 

Chinese  Bankers’  Association,  Peking. 

Foreign  Exchange  Bankers’  Association,  Tientsin ;  international. 

Foreign  Exchange  Bankers’  Association,  Peking ;  international. 

The  chambers  of  commerce  and  Rotary  clubs  listed  above  function 
in  about  the  same  way  as  similar  organizations  in  the  United  States, 
but  their  organization  is  usually  limited  by  comparatively  small 
membership. 

PROPERTY  VALUES  AND  RENTS 

Property  values  in  different  sections  of  the  concessions  and  the 
native  city  of  Tientsin  vary  so  greatly  that  it  is  not  possible  to 
make  definite  statements  of  value.  In  general  the  value  of  land  in 
all  sections  is  steadily  rising.  In  the  business  sections  of  the  con¬ 
cessions  values  range  from  10,000  taels  ($8,000  United  States  cur¬ 
rency)  per  mow  (one-sixth  of  an  acre)  to  50,000  taels  ($40,000 
United  States)  per  mow,  depending  on  location.  Practically  all  of 
the  land  in  the  present  business  section  of  the  foreign  concessions  is 
built  on,  and  the  above  values  necessarily  include  valuations  on  the 
structures  as  well;  many  buildings  are  old,  however,  and  of  limited 
value^  The  prices  for  land  in  the  residential  areas  vary  from  2,000 
taels  ($1,600  United  States)  per  mow  to  7,000  taels  ($5,600  United 
States)  per  mow. 

In  certain  of  the  business  blocks  in  the  British  concession  land 
tenure  is  on  a  99-year  Crown  lease  from  the  British  Government, 
almost  two-thirds  of  which  lease  has  expired.  Certain  terms  for 
indefinite  extensions  have  been  proposed,  but  the  matter  is  not 
settled.  This  feature  of  the  situation  enters  into  land  values  in  the 
business  section  of  the  British  concession,  one  of  the  most  important 
sections  of  the  port. 


548 


COMMERCIAL  HANDBOOK  OF  CHINA 


Office  rentals  vary  according  to  the  location  of  the  offices  and  the 
condition  of  the  building.  For  steam-heated,  electrically  lighted 
offices  in  the  business  sections  of  the  British  and  French  conces¬ 
sions  the  monthly  rentals  range  from  4  taels  ($3.20  United  States) 
to  16.50  taels  ($13.20  United  States)  per  100  square  feet  of  floor 
space.  Many  of  the  office  buildings  are  old,  but  there  are  a  few 
that  have  been  recently  erected,  are  well  lighted  and  airy,  and  have 
built-in  vaults  and  strong  rooms  and  other  improvements. 

Rentals  for  residential  purposes  vary  from  $100  Yuan  (say,  $57 
United  States),  to  $140  Yuan  (say,  $80  United  States)  a  month  for  a 
four-room  house.  For  larger  residences  the  prices  will  range  upward 
at  about  $25  local  currency  (say,  $14  United  States)  a  month  for 
each  extra  room.  These  rentals  are  for  residences  in  the  more  desir¬ 
able  sections,  where  practically  all  foreigners  live,  and  for  houses 
with  indirect  heating  systems  and  sanitary  plumbing  installations. 

Godown  (warehouse)  storage  charges  vary  considerably  with  the 
articles  and  also  with  the  location  and  condition  of  the  warehouse. 
A  nominal  charge  for  the  storage  of  native  cotton  or  wool  is  10  tael 
cents  per  native  bale  per  month ;  on  piece  goods  the  charge  is  about  15 
tael  cents  per  month  per  case.  Godown  space  can  also  be  had  by  the 
cubic  foot ;  a  charge  of  2  tael  cents  per  month  per  cubic  foot  may  be 
considered  normal.  One  or  more  rooms,  or  a  floor,  of  a  godown  will 
bring  a  rental  on  the  basis  of  about  25  tael  cents  per  square  foot  of 
floor  space.  An  entire  godown  may  be  rented  for  less;  the  lowest 
estimate  obtained  is  10  tael  cents  per  square  foot.  These  rates  will, 
of  course,  vary  greatly  with  the  demand  for  storage  space,  terms  of 
rental,  nature  of  the  goods,  and  season  through  which  the  rental 
extends. 

TAXES  AND  OTHER  ASSESSMENTS 

Taxes  and  assessments  at  Tientsin  are  collected  from  the  owner 
of  the  property;  these  items  naturally  are  taken  into  consideration 
by  the  owner  in  fixing  rentals.  Their  character  is  indicated  below: 

British  concession. — Land  tax,  1  per  cent  of  the  assessed  value  of  all  land 
except  marshland  or  undeveloped  land,  which  is  taxed  at  the  rate  of  1  tael 
per  mow  a  year ;  tax  on  rentals,  11  per  cent  of  the  assessed  rental  value  of 
the  property. 

French  concession — Land  tax,  1  per  cent  of  the  assessed  value;  tax  on  ren¬ 
tals,  8  per  cent  of  the  assessed  rental  value. 

Ex-German  concession  {knovm  as  "First  special  administrative  area"). — 
Land  tax,  1  per  cent  of  the  assessed  value ;  rental  tax,  5  per  cent  of  the  assessed 
rental  value  of  the  property. 

Ex-Russian  concession  ( "Third  special  administrative  area"). — Land  tax, 
seven-eighths  of  1  per  cent  of  the  assessed  value ;  rental  tax,  6  per  cent  of  the 
assessed  rental  value. 

Italian  concession. — Land  tax,  three-fourths  of  1  per  cent  of  the  assessed 
value ;  rental  tax,  5  per  cent  of  the  rental  value.  Undeveloped  land  is  taxed  at 
20  taels  per  mow. 

LOCATION  OF  BUSINESS  ESTABLISHMENTS 

Foreign  business  offices  are  located  principally  in  the  British  and 
French  concessions;  warehouses  are  located  principally  in  these  con¬ 
cessions  and  in  the  ex-Russian  and  ex-German  concessions.  The 
British,  ex-German,  and  French  concessions  are  also  the  principal 
residential  sections,  with  the  Italian  concession  a  less  expensive  but 


TIENTSIN  CONSULAR  DISTRICT 


549 


quite  attractive  section.  The  ex-Russian  concession  is  the  principal 
area  yet  to  be  developed  for  business  and  residence  purposes.  The 
Belgian  concession  is  undeveloped  so  far,  except  for  one  industrial 
plant.  The  development  in  that  concession  is  expected  to  be  along 
factory  lines.  The  Japanese  concession  is  occupied  principally  by 
Japanese  and  Chinese  business  interests.  The  ex- Austrian  conces¬ 
sion  is  small;  with  the  exception  of  certain  streets  devoted  to  less 
expensive  foreign-style  dwellings,  the  property  is  largely  under 
Chinese  occupation.  The  ex-Russian,  ex-Austrian,  Italian,  and  Bel¬ 
gian  concessions  lie  on  one  side  of  the  Hai  Ho  and  the  Japa¬ 
nese,  French,  British,  and  ex-German  concessions  on  the  opposite 
side  of  the  river.  Berthing  space  for  steamers  has  been  developed 
on  the  side  of  the  river  where  the  British,  French,  and  ex-German 
concessions  lie,  but  the  railroad  yards  are  on  the  opposite  side.  The 
advantages  of  the  ex-Russian  concession  for  future  business  develop¬ 
ment  especially  are  well  recognized.  An  international  bridge  con¬ 
nects  the  French  concession  area  with  the  ex-Russian  area.  The 
Japanese  and  Italian  concessions  lie  upstream  beyond  the  bridge,  on 
opposite  sides  of  the  river,  and  are  not  as  convenient  for  shipping  as 
the  areas  downstream  from  the  bridge. 

LIVING  COSTS 

The  following  table  indicates  ordinary  living  expenses  in  Tientsin 
or  Pekin : 


Hotel 
board  and 
room,  per 
month 

Rents, 
small 
house  or 
apartment, 
per  month 

Estimated 
necessary 
living 
expenses 
per  month 

Single  man _ _ 

$175-$300 
175-  300 
300-  500 
350-  600 

1  $120 
120 
120 

2  175-  250 

$350 
350 
i  500 
750 

Single  woman.  ...  _ _  _ _ _ _ 

Married  couple.  . . . . .  . . . 

Married  couple  and  2  children.  . . . . . 

1  Minimum.  2  For  6  to  8  rooms. 


Prices  are  in  local  Chinese  currency  (Yuan  dollars).  There  are 
few  boarding  houses  in  Tientsin  or  Peking.  Occasionally  room  and 
board  are  obtainable  with  private  families  at  rates  slightly  lower 
than  the  hotel  rates. 

In  renting  houses  at  Tientsin  the  tenant  must  furnish  all  lighting 
fixtures,  and  generally  must  make  all  interior  repairs  and  provide 
for  the  upkeep  of  the  heating,  plumbing,  and  other  installations, 
besides  doing  all  interior  decorating  and  painting  during  the  term 
of  the  lease. 

Local  transportation  is  an  important  item  of  expense.  Hired 
motor  cars  cost  from  $3  to  $5  (silver)  an  hour.  The  average  busi¬ 
ness  man’s  rickshaw  hire,  if  he  does  not  use  a  motor  car,  will  amount 
to  approximately  $250  local  currency  per  annum. 

For  persons  with  families  the  rent  of  a  four-room  cottage  at  the 
seashore,  with  no  modern  improvements,  costs  from  $600  to  $800 
local  currency  for  the  season. 


550 


COMMERCIAL  HANDBOOK  OF  CHINA 


I  ig.  21.  Modern-type  Chinese  buildings,  part  of  plant  of  Teaching  University,  an  American,  missionary  institution  5  miles  north  of  Peking 


TIENTSIN  CONSULAR  DISTRICT 


551 


EDUCATIONAL  FACILITIES 

In  recent  years  steps  have  been  taken  to  provide  American  educa¬ 
tional  facilities  for  American  children  resident  in  North  China. 
The  Tientsin  American  School  and  the  Peking  American  School 
provide  grade-school  facilities,  and  the  North  China  American 
School  at  Tunghsien,  near  Peking,  provides  educational  facilities 
through  the  high-school  grades. 

SIGNIFICANT  COMMERCIAL  AND  ECONOMIC  CHANGES 

Changes  in  the  character  of  the  trade  of  the  port  are  apparent 
from  a  careful  study  of  the  customs  statistics.  Of  particular  interest 
has  been  the  falling  off  in  imports  of  foreign  gray  and  white  cotton 
piece  goods  and  yarn,  replaced  by  native  gray  goods  and  the  local 
production  of  cotton  yarn  and  cloth.  The  machinery  trade  shows  a 
growth  corresponding  to  the  industrial  development,  as  does  the 
import  of  electrical  equipment.  Exports  have  more  than  doubled 
during  the  past  decade,  and  the  import  trade  shows  an  increase  of 
64  per  cent,  this  increase  representing  not  only  a  greater  per  capita 
consumption  of  foreign  goods  but  a  greater  diversification  in  the 
character  of  imports,  including  goods  which  may  be  classed  as  other 
than  necessities. 


AMOY  CONSULAR  DISTRICT 


By  Consul  Leroy  Webber 

LOCATION  AND  AREA 

The  Amoy  consular  district  comprises  approximately  20,000  square 
miles  of  the  southern  portion  of  Fukien  Province,  lying  between  24° 
and  25°  N.  latitude,  and  between  117°  and  120°  E.  longitude.  The 
latitude  of  the  city  of  Amoy  corresponds  with  that  of  Key  West, 
Fla.  Amoy  is  334  miles  from  Hongkong,  603  from  Shanghai,  and 
778  from  Manila. 

South  Fukien  is  one  of  the  most  beautiful  districts  of  South 
China.  It  is  very  mountainous,  is  well  wooded,  and  has  many  short, 
shallow  streams.  The  climate  along  the  coast  in  the  eastern  part 
is  subtropical,  frosts  being  practically  unknown.  February  to  June, 
inclusive,  are  the  rainy  months.  The  average  annual  rainfall  is  48 
to  50  inches.  In  the  hot  summer  months  the  temperature  rises  to 
100°  F.,  with  a  humidity  of  88°  to  90°.  The  winter  temperature 
rarely  falls  below  50°  F.  The  months  of  November  to  January,  in¬ 
clusive,  comprise  the  dry  season  and  that  is  probably  the  best  time  to 
visit  Amoy.  The  district  is  well  protected  from  the  severe  typhoons 
of  the  summer  and  autumn  by  the  island  of  Formosa. 

POPULATION 

The  estimated  population  is  6,000,000,  practically  all  of  which  live 
in  towns  or  villages.  The  average  density  of  population  for  the 
district  is  approximately  300.  Resident  foreigners  in  the  district  in 
1924,  according  to  officials  statistics,  were  as  follows : 


Americans,  including  91  Philippine  Chinese _  233 

British _  243 

Danish _  10 

Dutch _ 101 

French _ j. _  38 

Japanese  and  Formosans _ 6,  298 

Russians _ 2 


Total _ 6,925 


Though  the  majority  of  the  population  engage  in  agricultural 
pursuits,  the  district  is  not  self-supporting.  Food  products,  including 
rice,  are  heavily  imported  annually.  The  purchasing  power  of  the 
people  is  small  and  in  consequence  the  standard  of  living  not  high. 

CITIES 

The  most  important  cities  of  the  district  are  shown  in  the  follow* 
ing  table: 

552 


AMOY  CONSULAR  DISTRICT 


553 


Cities 

Estimated 

population 

Euro¬ 

peans 

Ameri¬ 

cans 

American  firms  and  organizations 

Amoy  1 _ _ _ 

260, 000 

40,  000 
75,000 
75,  000 
40,000 
40,000 
25,  000 

2,  with  branches  or  representatives. 

15,  represented  by  foreign  and  Chinese  firms. 

2  religious  missions. 

1  religious  mission. 

Do. 

Do. 

Kulangsu  1 . . 

300 

5 

4 

3 

6 

87 

4 

Changchow  _ 

Chuanchow 

Shihma _ 

Tungan  _ 

5 

Anhai 

1  Treaty  port  and  foreign  concession. 


There  are  British  and  Japanese  concessions,  as  well  as  a  small 
nominal  American  concession  on  the  Amoy  Harbor  front. 

Kulangsu,  a  small  island  opposite  Amoy,  a  mile  long  and  one-half 
mile  wide,  was  made  an  international  settlement  by  China  in  1903. 
It  forms  the  foreign  consular  and  residential  section  of  the  port. 
It  is  administered  under  land  regulations  and  by-laws  agreed  upon 
between  the  powers  and  China.  The  administration  is  vested  in  a 
municipal  council,  consisting  of  five  foreigners  (elected  annually  by 
the  taxpayers)  and  one  Chinese  (appointed  by  the  Chinese  authori¬ 
ties).  The  acts  of  the  council  are  subject  to  a  certain  amount  of 
control  by  the  consular  body. 

The  foreign  population  of  the  island  is  placed  at  300  and  the 
Chinese  at  40,000.  In  addition  there  is  also  a  Japanese  and  Formosan 
population,  estimated  at  about  800. 

EDUCATION 

Education  continues  to  progress.  The  number  of  public  schools 
and  pupils  attending  them  is  on  an  increase.  Practically  all  of  the 
schools  now  embrace  the  more  practical  branches  of  study  in  addi¬ 
tion  to  the  regular  study  of  Chinese  literature  and  classics.  Public 
schools  are  generally  supported  by  Government  funds  and  by  tuition 
fees  received  from  the  scholars.  Both  public  and  private  educational 
institutions  draw  their  staffs  largely  from  those  educated  in  the 
foreign  mission  schools  or  colleges.  Throughout  south  Fukien  there 
are  many  American  and  foreign  mission  schools  of  various  denomi-' 
nations.  In  Amoy  there  are  a  number  of  private  higher-grade 
schools,  chief  among  which  is  the  Tung  Wen  Institute.  This  college 
was  established  about  26  years  ago  and  is  under  the  direction  of  an 
American  superintendent,  assisted  by  two  other  American  instruc¬ 
tors  and  a  staff  of  native  teachers.  The  enrollment  is  about  300  and 
the  institution  is  supported  by  endowment  by  local  Chinese  and  also 
by  tuition  fees. 

Probably  the  biggest  advance  made  along  educational  lines  in 
Amoy  has  been  the  establishment  in  1921  of  Amoy  University.  This 
university,  built  and  conducted  along  modern  lines,  has  been  heavily 
endowed  by  the  wealthy  Chinese  of  the  district.  Its  faculty  con¬ 
sists  of  graduates  of  American  or  European  universities,  and  it  has 
an  enrollment  of  240  students,  although  the  university  can  accom¬ 
modate  2,000.  There  are  10  large  buildings  now,  and  it  is  expected 
that  within  five  years  about  50  buildings  will  be  completed  and 
fitted,  making  the  Amoy  University  one  of  the  most  modern  and 
finest  educational  institutions  in  China. 


554 


COMMERCIAL  HANDBOOK  OF  CHINA 


AGRICULTURE 

Fully  60  per  cent  of  the  population  is  engaged  in  agriculture. 
Rice  is  the  chief  product  grown,  followed  in  order  of  importance  by 
tobacco,  sugar,  opium  poppy,  sweet  potatoes,  and  fruits.  Two  crops 
of  rice  are  harvested  yearly,  and  the  annual  production  is  estimated 
at  approximately  50,000  tons.  Most  of  the  production  is  consumed 
locally  for  food  and  in  the  manufacture  of  samshu,  a  native  wine 
which  is  exported  in  considerable  quantity.  The  average  annual  rice 
production  per  acre  is  estimated  at  9,870  pounds. 

Tobacco,  the  second  crop  in  importance,  is  cured  for  use  both  in 
China  and  for  export  to  Chinese  abroad.  South  Fukien  produces 
about  10  per  cent  of  China’s  total  tobacco  crop,  of  an  approximate 
value  of  $1,500,000  gold. 

About  6,000,000  piculs  of  sugar  are  produced  annually,  all  of 
which  is  consumed  locally.  There  are  several  small  sugar  factories 
having  some  modern  equipment.  Sugar  production  is  on  a  decline 
through  inability  to  meet  foreign  competition,  the  high  cost  of  labor, 
and  transportation  difficulties. 

Narcissus  bulbs  form  one  of  the  principal  exports  to  the  United 
States.  The  opium  poppy  is  cultivated  on  a  large  scale  in  the 
Tungan  district.  Sweet  potatoes  are  grown  throughout  the  district 
and  form  one  of  the  principal  native  foods.  The  principal  fruits 
are  pomelos  (grapefruit),  for  which  Amoy  is  celebrated;  oranges, 
bananas,  peaches,  pears,  lungngans,  and  persimmons. 

As  in  the  rest  of  South  China,  agricultural  methods  and  imple¬ 
ments  are  primitive.  The  water  buffalo  is  the  beast  of  burden. 
Hogs,  chickens,  and  ducks  are  raised  on  a  large  scale.  There  are  no 
sheep  or  cattle  in  the  district. 

Most  of  the  lands  used  for  farming  are  held  by  the  clans,  every¬ 
thing  being  more  or  less  directed  by  the  head  of  the  clan.  Loans  and 
mortgages  are  made,  usually  at  high  rates.  Where  land  is  leased  or 
rented  payments  are  made  in  the  form  of  crops.  The  first  crop  is 
generally  considered  payment. 

Fertilizers  are  extensively  used.  Bean  cake  and  sulphate  of 
ammonia  comprise  the  principal  types.  In  1923,  8,528,000  pounds 
of  sulphate  of  ammonia  and  1,586,169  piculs  of  bean  cake  were 
imported. 

FISHERIES 

Fish  are  plentiful  the  year  round,  and  fishermen  numerous  and 
skillful.  Nearly  all  fish  characteristic  of  the  China  coast,  including 
oysters,  shrimps,  and  prawns,  are  obtained  and  consumed  locally. 

MANUFACTURING 

The  following  list  gives  the  only  important  manufacturing  indus¬ 
tries  in  the  district : 


AMOY  CONSULAR  DISTRICT 


555 


Name 

Capacity 

Approxi¬ 

mate 

number  of 
employ¬ 
ees 

Approxi¬ 
mate 
capital  in 
industry 1 

Estimated  output 

Disposition  of  produc¬ 
tion 

Amoy  Tinning  Co. 

15,000  tins  daily — 

120 

$166, 000 

2,500,000  tins  per 

Local  consumption  and 
export  to  Amoy  Chi- 

China  Canning  Co. 

10,000  tins  daily... 

99 

10,000 

y£<ii . 

1,900,000  tins  per 
year. 

nese  in  Straits  Settle¬ 
ments,  Philippines, 
and  East  Indies. 

Liok  Hong  _ . 

30 

60,000 

20  tons  per  day _ 

Local  consumption. 

1  Gold  dollars. 


The  output  of  the  two  canning  factories  includes  canned  fish, 
meats,  vegetables,  salted  vegetables  and  shellfish,  fruits  in  sirup, 
preserved  fruits,  soy  and  soy  sauce. 

There  are  several  sugar,  paper,  ice-making,  brick,  and  tile  fac¬ 
tories  scattered  throughout  the  district,  but  none  is  of  any  outstand¬ 
ing  importance. 

LABOR  CONDITIONS 

Scarcity  of  labor  has  resulted  in  a  comparatively  high  wage  scale 
for  Amoy.  The  labor  wage  in  local  industrial  plants  averages  about 
60  cents  and  15  cents  (Mex.)  for  male  and  female  labor,  respectively, 
per  8-hour  day,  with  board  and  lodging.  Local  coolie  wages  average 
$1  (Mex.)  per  day,  which  is  high  compared  with  the  wage  scale  for 
imported  coolie  labor.  Nearly  all  the  available  local  labor  is  en¬ 
gaged  in  regular  occupation,  such  as  stevedoring,  lightering,  and 
passenger  carriage.  The  majority  of  the  factory  employees  are 
female.  Most  of  the  construction  work  is  performed  by  contractors 
from  outside  cities,  who  usually  bring  their  own  labor  with  them. 

COOLIE  MIGRATION 

It  is  a  peculiarity  of  this  district  that  all  the  Fukienese  who  emi¬ 
grate  go  to  the  Straits  Settlements,  the  East  Indies,  or  the  Philip¬ 
pines.  The  establishment  of  Chinese  colonies  in  these  places  was 
started  many  years  ago  by  the  natives  of  this  district.  Several  con¬ 
spicuous  instances  of  Chinese  having  returned  to  their  homes  with 
great  wealth  accumulated  in  the  above-mentioned  countries,  together 
with  the  insecurity  of  life  in  the  interior  and  excessive  taxation,  in¬ 
duces  others  to  go.  At  present  the  volume  of  this  emigration  appears 
to  be  greater  than  ever  before.  It  is  estimated  that  an  average  of 
100,000  leave  this  port  annually.  The  remittances  received  in  Amoy 
from  these  emigrants  amount  to  over  $20,000,000  gold  per  annum 
and  constitute  one  of  the  principal  sources  of  wealth  of  the  Province 
of  Fukien. 

MINERALS  AND  MINING 

While  there  are  extensive  deposits  of  iron  ore  and  coal  in  south 
Fukien,  the  production  of  these  minerals  is  negligible,  owing  to  the 
lack  of  transportation  facilities,  roads,  or  adequate  governmental 
protection  of  private  interests,  and  to  the  unattractiveness  of  Chi- 


556 


COMMERCIAL  HANDBOOK  OF  CHINA 


nese  laws  to  foreign  capital.  A  good  grade  of  anthracite  coal  is 
mined  in  various  parts  of  the  Province  by  Chinese  methods  and  is 
used  solely  for  consumption  in  this  district. 

TRANSPORTATION  AND  COMMUNICATION 

WATERWAYS 

The  district  is  poorly  equipped  for  inland  water  transportation. 
No  foreign  ocean-going  vessel  of  any  kind  would  find  it  possible  to 
navigate  the  south  Fukien  rivers.  The  principal  carriers  both  of 
freight  and  of  passengers  are  the  light-draft  native  junks  and  steam 
launches.  Tariffs  are  determined  by  the  traffic  and  facilities  avail¬ 
able  at  the  time.  A  conservative  estimate  places  the  inland  freight 
traffic  by  junks  at  an  average  of  about  600  tons  per  day,  with  a 
freight  charge  on  general  cargo  of  approximately  75  cents  (Mex.) 
per  ton. 

RAILWAYS 

The  single  railway  in  this  district  is  in  the  same  stage  of  con¬ 
struction  as  it  was  in  1911.  It  extends  inland  from  the  port  of  Amoy 
for  a  distance  of  about  17  miles,  where  the  lack  of  a  bridge  and  of 
available  funds  to  build  one  prevents  further  road  construction. 
The  road  is  at  present  valueless  to  commerce  and  will  probably 
remain  so  until  there  is  a  return  to  normal  conditions  in  China. 

•  ROADS 

There  are  but  three  roads,  of  a  total  length  of  47  miles,  in  south 
Fukien  suitable  for  motor  traffic.  Over  these  roads  a  motor  passen¬ 
ger  traffic  service  is  maintained,  but  freight  is  not  carried.  Pas¬ 
senger  rates  average  about  20  cents  per  mile  local  currency  for  first 
class  and  10  cents  per  mile  for  third  class.  There  are  about  50  motor 
cars,  all  American,  of  light,  passenger  type,  operated  in  this  district. 
The  roads  are  not  well  surfaced  and  require  constant  repair. 

TELEGRAPHS  AND  CABLES 

The  Great  Northern  Telegraph  Co.  (Danish)  operates  the  cable 
at  Amoy,  connecting  with  North  and  South  China  ports  as  well  as 
oversea.  The  cable  rates  are  those  which  obtain  in  other  parts  of 
China.  The  Chinese  Telegraph  Administration  maintains  a  land 
telegraph  service,  at  the  usual  rates  prevailing  in  China  (9  cents 
Mex.  per  English  word  and  5  cents  per  Chinese  word)  to  points 
in  Fukien  Province;  to  other  parts  of  China  18  cents  per  English 
word,  and  12  cents  per  Chinese  word. 

TELEPHONES 

The  telephone  service  between  the  international  settlement  of 
Kulangsu  and  Amoy  is  owned  and  operated  by  local  Chinese,  with 
500  phones  in  operation  at  Amoy  and  176  in  Kulangsu.  The  service 
costs  $6  local  currency  per  month.  The  two  cities  are  also  connected 
by  a  submarine  cable.  Most  of  the  equipment  is  modern  and  was 
recently  installed  by  an  American  company. 


AMOY  CONSULAR  DISTRICT 


557 


POSTAL  FACILITIES 

The  Chinese  Government  maintains  the  postal  service.  Postage 
rates  per  ounce  on  first-class  matter  are:  From  United  States,  5  cents 
gold;  from  Hongkong,  4  cents  (Mex.)  ;  from  Shanghai,  3  cents 
(Mex.)  ;  from  Manila,  10  centavos. 

An  average  of  about  30  days  is  required  for  American  mail  to 
reach  Amoy.  There  are  no  C.  O.  D.  arrangements  between  Amoy 
and  the  United  States,  but  Amoy  is  an  international  money-order 
office. 

SHIPPING  AND  WAREHOUSING  FACILITIES 

Forwarding  companies  in  America  should  book  through  freight 
to  Amoy  via  Hongkong,  and  it  would  be  advantageous  for  such  for¬ 
warding  companies  to  arrange  with  China  coast  steamship  com¬ 
panies  having  weekly  or  biweekly  services  to  take  delivery  at  Hong¬ 
kong  for  discharge  at  this  port.  Goods  should  never  be  sent  to 
Hongkong  and  Shanghai  with  instruction  to  notify  consignees  at 
coastal  ports.  The  China  Navigation  Co.  (British),  Douglas  S.  S. 
Co.  (British),  and  the  Osaka  Shosen  Kaisha  (Japanese)  are  the 
chief  handlers  of  interport  transportation.  These  firms  maintain 
regular  coastal  steamer  connections  with  Hongkong,  Swatow,  Foo¬ 
chow,  and  Shanghai.  In  addition,  there  are  several  other  lines 
having  direct  steamer  connections  with  the  Philippines  (Madrigal 
&  Co.  of  Manila),  Singapore  (Jardine  Ltd.,  and  Butterfield  &  Swire 
Ltd.,  of  Hongkong),  and  Java  (Java,  China,  Japan  Lijn,  Dutch). 

Parcel-post  shipments  from  the  United  States  might  be  used  to 
advantage  in  many  commodities. 

AMOY  HARBOR 

The  Amoy  Harbor  is  one  of  the  largest  and  best  deep-water  har¬ 
bors  in  the  Far  East.  The  outer  harbor,  which  is  landlocked,  is  an 
hour’s  run  from  the  main  steamship  lanes  and  is  frequently  sought  as 
a  place  of  refuge  for  vessels  during  typhoon  weather.  The  inner 
harbor  lies  between  islands  of  Amoy  and  Kulangsu.  The  minimum 
depth  of  anchorage  in  the  inner  harbor  at  low  water  is  about  30 
feet,  but  steamers  drawing  up  to  34  feet  may  safely  navigate  it  ordi¬ 
narily.  There  is  no  limit  in  the  outer  harbor. 

While  pilotage  is  not  compulsory,  it  is  advisable  that  vessels  em¬ 
ploy  a  pilot  when  entering  the  inner  harbor.  Current  pilotage  rates 
for  merchant  vessels :  Under  1,000  net  register  tons,  $20,  local  cur¬ 
rency;  over  1,000  tons,  2  cents  for  each  additional  ton;  over  2,000 
tons,  1%  cents  for  each  additional  ton.  Sailing  vessels  under  571  net 
register  tons  pay  $20  and  3 y2  cents  for  each  ton  over  571  tons;  naval 
vessels, '%  cent  for  every  displacement  ton. 

There  are  no  piers  or  wharves  at  Amoy.  Tying  up  to  the  pri¬ 
vately  owned  buoys  in  the  inner  harbor  is  usually  a  matter  of  ar¬ 
rangement  with  the  owners,  through  the  harbor  master.  There  are 
berths  for  17  ships,  2  of  which  will  take  vessels  over  400  feet  in 
length.  A  dry  dock,  owned  and  operated  by  the  Chinese  Govern¬ 
ment,  carries  limited  supplies  and  can  handle  ordinary  ship  repairs. 


558 


COMMERCIAL  HANDBOOK  OF  CHINA 


PORT  CHARGES 

Customs  tonnage  dues  are  charged  at  the  rate  of  0.40  haikwan 
(customs)  tael  per  net  registered  ton.  There  are  no  wharf,  light, 
hospital,  harbor,  sanitary,  or  other  dues,  except  in  the  case  of  quar¬ 
antine,  when  the  fees  due  the  port  health  officer  are  determined  and 
published  by  the  commissioner  of  customs,  after  a  joint  agreement 
'between  the  foreign  consuls  and  the  Chinese  superintendent  of 
customs. 

The  usual  charge  made  by  foreign  firms  acting  as  ships’  agents  is 
$50  Spanish  and  2 y2  to  5  per  cent  on  freight  discharged  or  loaded. 
The  matter  is  generally  one  for  special  arrangement. 

During  1923,  2,054  vessels,  aggregating  3,136,384  tons,  entered  and 
cleared  the  port  of  Amoy. 

CARGO-HANDLING  FACILITIES 

There  are  no  mechanical  facilities  for  handling  cargo.  The 
stevedoring  firms  employ  about  150  lighters,  of  capacity  from  10  to 
14  tons  each,  and  handle  all  the  cargo  loaded  or  discharged  here. 
The  rate  of  discharge  for  general  cargo  is  estimated  at  300  to  350 
tons  per  day. 

Cargo-discharge  rates  vary  from  24  to  27  cents  per  measurement 
ton  for  stevedorage;  and  are  5  cents  per  bag  of  225  pounds,  y2  cent 
per  bag  of  49  pounds,  and  21  cents  per  ton  for  lighterage  in  the  case 
of  such  commodities  as  flour,  rice,  and  coal.  The  average  coolie  hire 
is  about  80  local  cents  per  8-hour  day  per  man. 

Merchandise  for  this  district  must  be  more  than  ordinarily  well 
packed.  In  order  to  be  easily  handled  by  coolie  bearers  it  should  not 
exceed  60  pounds  in  weight  per  case,  and  goods  liable  to  deterioration 
on  account  of  climatic  conditions  should  be  packed  in  tin-lined  cases. 

STORAGE  FACILITIES 

There  are  no  public  warehouses,  but  there  are  scattered  throughout 
the  port  about  25  small  private  warehouses  which  are  unequipped 
with  modern  or  cold-storage  facilities.  These  have  a  total  cargo 
accommodation  of  about  60,000  tons.  Merchandise  at  Amoy  is  al¬ 
ways  accepted  ex  ship,  and  there  is  therefore  not  the  usual  free 
storage  period.  The  usual  rate  on  small  packages  (ordinary  cargo) 
is  1  local  cent  per  day  per  package  and  2  to  5  cents  per  day  on  larger 
packages.  No  fee  is  charged  on  goods  stored  in  customs  godowns 
but  cleared  off  in  24  hours.  After  that  period  fees  are  charged  up 
to  20  days,  for  a  longer  period  than  which  goods  can  not  be  stored. 

PUBLIC  WORKS 

ELECTRIC-LIGHT  PLANTS 

The  Amoy  Electric  Light  and  Power  Co.,  capitalized  at  $300,000 
in  local  currency,  is  controlled  by  local  Chinese  and  supplies  Amoy 
with  current.  The  plant  equipment  consists  of  four  turbogenerator 
sets,  with  a  combined  capacity  of  1,200  kilowatts,  power  furnished  by 
water  boilers  of  tube  type.  The  total  number  of  lights  in  use  is 


AMOY  CONSULAR  DISTRICT 


559 


100,000  in  40-watt  units.  The  plant’s  kilowatt  lighting  load  at  pres¬ 
ent  is  600  and  the  power  load  100.  Lighting,  service  is  furnished  at 
33  cents  per  meter  hour.  The  equipment  is  of  American,  British, 
and  German  manufacture. 

The  international  settlement  on  the  island  of  Kulangsu  has  an 
electric-light  plant  at  present  operated  by  a  Shanghai  electric  firm, 
but  plans  are  on  foot  to  have  a  British  firm  of  Hongkong  erect  and 
operate  a  modern  lighting  system. 

Changchow,  33  miles  inland,  is  supplied  with  a  small  plant 
equipped  partly  with  British  and  partly  with  American  materials. 
There  are  also  two  other  small  plants  in  the  district,  in  one  of 
which  the  machinery  is  of  American  and  British  manufacture,  while 
in  the  other  it  is  of  Japanese  manufacture.  Other  than  the  pro¬ 
posed  new  installation  at  Kulangsu,  there  is  little  immediate  pros¬ 
pect  of  further  electric  power-plant  extension  in  the  district. 

WATERWORKS 

Surface  wells  are  the  only  source  of  water  supply  in  this  district 
at  present.  The  Amoy  Waterworks  Co.  (Ltd.),  however,  has 
awarded  a  contract  to  a  German- Chinese  firm  for  the  installation 
of  a  modern  system  of  water  supply  in  the  city  of  Amoy.  The  con¬ 
tract  calls  for  the  construction  of  a  gravity  system  of  supply,  with  a 
capacity  of  500,000  gallons  daily,  a  storage  reservoir  of  270,000,000 
gallons  capacity,  3  filter  beds  of  a  total  daily  capacity  of  600,000 
gallons,  with  2  beds  operating  at  one  time,  the  total  cost  to  be 
$920,000  local  currency.  Work  started  in  October,  1924.  The  water¬ 
works  company  also  contemplates  the  expenditure  of  $280,000  local 
currency  for  reforesting  of  the  lands,  construction  of  buildings, 
roads,  jetties,  and  other  improvements. 

IMPORT  AND  EXPORT  TRADE 

The  total  trade  of  the  port  of  Amoy  in  1923  amounted  to 
$24,416,380  United  States  currency;  the  net  foreign  imports  were 
valued  at  $11,096,939,  and  imports  of  Chinese  goods  at  $9,331,192. 
Exports  to  foreign  ports  were  valued  at  $2,728,463  United  States 
currency;  exports  to  Chinese  ports  at  $1,259,786. 

Amoy  ranked  nineteenth  in  1923  among  40  Chinese  ports  listed  in 
the  Chinese  customs  returns.  The  balance  of  trade  was  heavily 
against  Amoy,  but  this  adverse  balance  is  considerably  offset  each 
year  by  the  large  volume  of  remittances  received  from  Amoy  Chinese 
abroad. 

In  1923  Hongkong  supplied  approximately  61  per  cent  of  the 
foreign  imports,  British  India  14  per  cent,  Japan  9  (largely  through 
Formosa),  and  the  United  States  6  per  cent  (principally  petroleum 
products).  Exports  in  1923  were  distributed  as  follows:  47  per 
cent  to  Singapore,  24  per  cent  to  the  Dutch  East  Indies,  8  per 
cent  to  Japan  and  Formosa,  8  per  cent  to  the  Philippines,  and  9 
per  cent  to  Hongkong. 

The  table  which  follows  shows  the  foreign  trade  of  Amoy  for  1913 
and  1923,  respectively: 


560 


COMMERCIAL  HANDBOOK  OF  CHINA 


Qross  imports  of  for¬ 
eign  goods 

Exports  (including  re¬ 
exports  of  native  goods) 

Total  trade 

1913 

1923 

1913 

1923 

1913 

1923 

British  India . 

Dutch  East  Indies. . 

France _ _ _ _ 

French  Indo-China _ 

Great  Britain _ 

Hongkong.. _ _ 

Japan  (including  Formosa) _ 

Philippines  . . 

Singapore,  Straits  Settlements. 

United  States  and  Hawaii _ 

Other  countries . . . 

Total.. . 

$365,  468 
243, 392 
590 
11, 087 
30,  034 
5,  729,  380 
492,  455 
28,  515 
599,  715 
455, 055 
2,124 

$361, 133 
1,  361,  526 

qo 

19,  875 
7,237 
6, 031,  723 
931,  785 
124,  342 
484,  399 
603,  316 
25,  540 

$103, 795 
411, 156 
10 
959 
618 
238, 701 
191,  841 
95,  612 
795,  711 
5,075 
3,298 

$96,  991 
705,  532 

1,  662 

271,  885 
233,  687 
243,  577 

1,  384,  228 

3,  415 

$469,  263 
654,  548 
600 
'  12,046 
30,  652 
5, 968,  081 
684,  296 
124, 127 

1,  395,  426 
460, 130 
5,  422 

$1,  458, 124 
1, 067,  058 
92 
21,  537 
7,237 
6,  303, 608 
1, 165, 472 
367,  919 
1,  868,  627 
603,  316 
28, 955 

7,  957, 815 

9,  950, 968 

1, 846,  776 

2, 940, 977 

9, 804,  591 

12, 891, 945 

Note. — Above  figures  are  in  United  States  currency,  converted  from  haikwan  taels  (the  official  customs 
unit)  at  the  following  values:  1913,  $0,729;  1923,  $0.8231. 

EXPORTS 

The  district  produces  little  for  export,  and  the  export  trade  repre¬ 
sents  in  large  measure  shipments  by  Chinese  merchants  of  native 
foodstuffs  and  other  products  intended  especially  for  consumption 
in  other  near-by  markets  and  by  colonies  of  Amoy  Chinese  in  foreign 
countries.  Approximately  70  per  cent  of  the  total  exports  go  to 
foreign  countries,  including  Hongkong.  The  remainder  is  shipped 
chiefly  to  other  ports  of  South  China.  There  are  no  direct  exports 
from  Amoy  to  the  United  States.  About  1,200  tons  of  narcissus 
bulbs  exported  annually  to  the  American  market  via  Hongkong  con¬ 
stitute  Amoy’s  sole  export  to  the  United  States.  The  volume  of 
exports  from  Amoy  to  the  Philippines  is  steadily  increasing.  Dur¬ 
ing  1923  the  declared  exports  amounted  to  $313,648  gold,  as  compared 
with  $235,719  in  1922  and  $54,558  in  1913. 

The  following  table  shows  the  principal  articles  exported  from 
Amoy  during  1913  and  1923 : 


Articles 

1913 

1923 

Quantity 

Value 

Quantity 

Value 

Bags  . . . number  . 

Bamboo  and  bamboo  ware _  ...  - 

408,  636 

$13,  513 
33, 926 
275 
5, 360 
26, 447 
148,  258 
14, 937 

404,  544 

$33, 435 
28,  705 
4,  780 
21,  500 
34,  360 
69, 825 
15, 135 
4,  500 
320 
45,  610 
782,  767 
40,  618 
591, 108 
144,  000 
26,  650 
25,  495 
270,  542 
664 
15,  944 
212, 446 
1,  619, 845 

Beans . . . . bushels.. 

Cordage  _ _ .tons.. 

Fish  and  fishery  products _ _ ..do _ 

Fruits.  . . . do _ 

Joss  sticks _ _ _ _ 

300 

14 

284 

2,744 

910 

98 

140 

920 

Umbrellas  (paper) . . . number.. 

20,  360 
1, 420 

Mats.  _ .  ...  do _ 

Medicines . . . . . . 

16,  200 

682 
16,  853 
515,  661 
739 
469,  241 
14,  838 

Paper . . . tons.. 

Plants  and  shrubs . . . . 

2,403 

2,090 

Tobacco.  _  . . . tons.. 

Samshu  (medicated). . . . do _ 

Soy .  .  . . . . . . . do _ 

2,209 

215 

1, 150 
636 
172 

Stones,  marbles,  granites,  etc  . 

Tea _ _ _ _ tons.. 

Turnips,  dried  and  salted _ do  . 

446 

120, 463 

497 

18 

410 

1,  356 

Vegetables . . . do _ 

Vermicelli  and  macaroni . . . ..do _ 

All  other . . . . 

2,  385 
1,565 

87, 050 
85,  683 
961,  051 

Total.. . .  . . . . 

2,  514,  977 

3, 988,  249 

Note.— Above  figures  are  in  United  States  currency,  converted  from  haikwan  taels  (the  official  customs 
unit)  at  the  following  values:  1913,  $0,729;  1923,  $0.8231. 


AMOY  CONSULAR  DISTRICT 


561 


IMPORTS 

Import  statistics  for  the  port  of  Amoy  indicate  the  peculiar 
conditions  due  to  the  large  yearly  migration  of  Amoy  Chinese. 
Import  items  include  practically  all  the  necessities  of  daily  life,  and 
so  emphasize  the  lack  of  industrial  enterprise.  Principal  items 
imported  from  foreign  countries  for  1913  and  1923  were  as  follows : 


Articles 

1913 

1923 

Quantity 

Value 

Quantity 

Value 

Cotton  goods  .  .  .  .  _ _ _  _ 

$1, 316, 102 
58, 018 
9,886 
48,  610 
12,844 
160,  282 
28,099 
942,  251 
52,  079 
76,  325 
62,  617 
140,  442 
27,  083 
14,  301 
614, 376 
670,  424 
92,  361 
9,  825 
182, 442 
37,944 

625, 478 
5,  994 
637,  742 
14,  827 
2, 016,  235 

$1, 107,  550 
158,  330 
91, 492 
63,897 
18,  350 
89, 950 
72,  800 
2, 008,  427 
63,  856 
195,  360 
57, 152 
171,  960 
28,085 
25,  295 
670, 166 
1,061, 164 
118,  270 
38,  935 
192,  218 
76,  892 

373,  013 
7,740 
646,  519 
31,  821 
3,  727,  697 

Woolen  goods  .  .  .  .  .  _  _ 

Woolen  and  cotton  goods  .  .  .  ..  .  _ 

Iron  and  steel  manufactures  ....  .... 

Quicksilver  _  .  ...  . .  .  ...  .  tons  . 

Tin  slabs  .  .  ...  ..  _  .  _  ...  ..-do... 

Tinplates  ...  .  .  ...  ...  _ do - 

Rice  and  paddy _  ....  . .  . do.  .. 

Cigarettes _  .  .  .  ... _ thousands.. 

Clothing,  hats,  boots,  etc.  .  .  _ 

11 
319 
376 
26,  665 
27, 156 

15 
164 
408 
42,649 
13,  565 

Coal...r _ _ _  ...  ...  .  .  _ tons.. 

Dyes  and  dyestuffs  .  _ 

12,562 

13, 175 

Electrical  materials  and  fittings  .  _ _ _ _ 

Enameled  ware  .  .  . . . . .  . 

Fish  and  fishery  products... . . . . . tons.. 

Flour .  . . .  .  _ barrels.. 

Ginseng . . .  .......  .  _ pounds 

Hosiery.  ...  . . . . .  .dozen  pairs  . 

Matches _  .  ...  .  ..  . . .  _  .  gross 

Milk,  condensed _ _ dozen  tins.. 

Oil: 

Kerosene. ..  ..  ..  _ _ .gallons  . 

Lubricating _  .  _ _  ... _ do _ 

Sugar,  white.  .  .  _ _  ...  ...  .  .  tons  . 

Umbrellas,  foreign . .  . . number  . 

All  other..  _  _ _ _ _  .  ..  . 

6, 175 
173,  818 
22,600 
15,  941 
899,  360 
29,  367 

4,  997,  584 
28,  699 
9,  785 
33,  258 

3,  885 
190,  700 
23,  057 
68, 985 
519,  459 
35, 452 

2,  218, 453 
40.  965 
7,  478 
61,838 

Total  ...  .  .  ...  _  _ _ ...  . 

7,  856,  587 

11,  096,939 

Note. — Above  figures  are  in  United  States  currency,  converted  from  haikwan  taels  (the  official  customs 
unit)  at  the  following  values:  1913,  $0,729;  1923,  $0.8231. 


The  following  is  a  list  of  the  principal  foreign  goods  imported  into 
Amoy,  showing  country  of  origin  and  place  of  purchase : 


Articles 


Country  of  origin 


Place  of  actual  purchase 


Cotton  goods _ 

Cotton  blankets _ 

Cotton  thread _ 

Cotton  yarn _ 

Handkerchiefs . . . 

Woolen  goods _ 

Woolen  blankets _ 

W  oolen  and  cotton  goods 
Iron  and  steel  manufactures 

Quicksilver _ 

Tin  slabs _ 

Tin  plates _ _ _ 

Rice  and  paddy _ 

Cigarettes _ _ 

Clothing . . . 

Hats _ 

Boots _ _ _ 

Coal _ _ _ 

Aniline  dye _ 

Electrical  materials  and  fittings.. 


England  and  Japan _ 

_ do _ 

_ do _ 

India  and  Japan _ 

England _ _ 

England  and  Australia _ 

England  and  Japan . . . 

do _ 

Great  Britain,  Japan  and  United 
States. 

Great  Britain _ 

Singapore  and  Yunnanfu _ 

United  States  and  Great  Britain.. 

Indo-China,  Siam,  and  India _ 

Shanghai  and  Great  Britain _ 

England,  Japan,  and  United 
States. 

Italy,  Japan,  England,  and  United 
States. 

United  States  and  Philippines _ 

Japan _ _ _ 

Germany _ _ _ 

United  States,  England,  and 
Japan. 


Hongkong  and  Japan. 

Hongkong  and  Kobe. 

Do. 

Hongkong  and  Japan. 

Hongkong  and  Singapore. 
Hongkong. 

Hongkong  and  Kobe. 

Hongkong  and  Japan. 

Hongkong  and  Kobe. 

Shanghai  and  Hongkong. 
Hongkong. 

Do. 

Hongkong,  Saigon,  and  Singapore. 
Shanghai. 

Hongkong. 

Hongkong,  Kobe,  and  Manila. 

United  States  and  Manila. 

Japan. 

Hongkong. 

Amoy,  Shanghai,  and  Hongkong. 


100020°— 26 - 37 


562 


COMMERCIAL  HANDBOOK  OP  CHINA 


Articles 

Country  or  origin 

Place  of  actual  purchase 

Enameled  ware  __  . . 

United  States _ _ _ 

Manila,  New  York,  and  Seattle. 
Kobe,  Seattle,  and  Hongkong. 
United  States  and  Hongkong. 
Hongkong. 

Kobe  and  Hongkong. 

Kobe. 

Hongkong.  - 
United  States  and  Java. 

Hongkong. 

Direct  and  through  Hongkong. 
Kobe  and  Hongkong. 

Hongkong. 

Do. 

Do. 

Fish  and  fishery  products. 

Flour.  .  ...  .  .  _  _ 

Japan  and  United  States...  . . 

United  States _ _ _ _ 

Ginseng...  .........  .  .  . 

Hosiery  .  .  _  ...  ... 

Matches.  _  .  ...  _ 

United  States  and  Japan _ 

Japan,  United  States,  and  Great 
Britain. 

Japan.  _  _  ... 

Milk,  condensed _ 

Oil,  kerosene . . . 

Oil,  lubricating.  ..  ....... 

United  States  and  Switzerland... 

United  States  and  East  Indies _ 

United  States.  _  . 

Sugar,  white. .  . . 

Umbrellas.  .  ..  ..  _ 

Sulphate  of  ammonia _ _ _ 

Machinery _ _ _ 

Java  and  Hongkong _ 

Japan,  France,  and  Hongkong _ 

England  and  United  States  _ 

Great  Britain. .  . . 

Paints _ _ _ _ 

...  .do.  . . . . 

Of  the  foreign  goods  imported  there  has  been,  on  the  whole,  a 
steady  gain  in  practically  all  items.  This  is  especially  marked  in 
the  items  of  rice,  hosiery,  flour,  canned  milk,  fish  and  fishery  prod¬ 
ucts,  and  oils.  American  goods  are  well  represented  in  these  latter 
items — particularly  in  the  flour,  milk,  and  oil  trade,  in  which  they 
predominate. 

As  Amoy  draws  most  of  its  foreign  supplies  from  Hongkong, 
the  port  of  transshipment  of  merchandise  from  all  parts  of  the 
world,  it  is  difficult  to  state  what  percentage  of  the  various  imports 
originated  in  the  several  countries,  Amoy  having  practically  no 
direct  import  trade,  with  either  the  United  States  or  Europe.  How¬ 
ever,  it  is  estimated  that  the  United  States  supplies  about  60  per 
cent  of  the  oil  products  imported,  64  per  cent  of  the  canned  milk, 
80  per  cent  of  the  flour,  most  of  the  tin  plate,  and  a  fair  percentage 
of  the  ginseng,  preserved  fish,  sewing  machines,  and  iron  and  steel 
manufactures.  Textiles  and  clothing  are  imported  from  Japan  and 
Great  Britain,  but  both  of  these  countries  are  gradually  losing 
ground  with  these  products,  owing  to  the  rising  competition  of 
native-made  goods. 

Bice  is  imported  chiefly  from  Indo-China,  Siam,  and  British 
India;  sugar  from  Java  and  Singapore;  cigarettes  from  Chinese 
production  in  other  districts  and  from  Great  Britain.  Great 
Britain  supplies  the  largest  share  of  machinery,  paints,  and  iron 
and  steel  imports. 

The  outstanding  Chinese  products  imported  are  yarns,  shirtings, 
hosiery,  candles,  cement,  paper  matches,  clothing,  bean  cake,  leaf 
tobacco,  vegetables,  and  fish.  Owing  to  their  cheapness  and  their 
proximity  to  the  local  market,  these  products  of  native  manufacture 
have  little  fear  of  foreign  competition.  Imports  of  native  goods 
into  Amoy  totaled  $9,331,192  gold  in  1923,  as  compared  with 
$4,686,987  for  1913. 

Amoy  and  its  hinterland  can  absorb  but  a  limited  amount  of 
foreign  goods,  and  there  is  little  apparent  likelihood  of  material 
increases  in  the  near  future.  Except  in  such  lines  as  oil,  flour,  and 
salted  fish,  direct  trade  with  the  United  States  is  not  very  feasible. 
Probably  the  wisest  course  for  the  American  manufacturer  inter¬ 
ested  in  this  market  is  to  place  the  sale  of  his  goods  in  the  hands 
of  an  American  house  well  established  in  the  large  distributing 
centers  of  China. 


AMOY  CONSULAR  DISTRICT 


563 


In  actual  direct  trade  American  firms  should  always  endeavor 
to  quote  c.  i.  f.  Amoy,  via  Hongkong  or  Shanghai,  or,  when  that 
is  impossible,  c.  i.  f.  Hongkong  or  Shanghai.  Local  importers  take 
little  interest  in  direct  purchases  from  the  United  States  unless 
they  are  able  to  base  retail  prices  on  c.  i.  f.  quotations. 

MONEY,  BANKS,  AND  CREDIT 

BANKS 

The  American-Oriental  Bank  of  Fukien  (American),  the  Hong¬ 
kong  &  Shanghai  Banking  Corporation  (British),  the  Bank  of 
Taiwan  (Japanese),  Nederlandsch  Indische  Handelsbank  (Dutch), 
and  the  Bank  of  China  (Chinese)  maintain  branches  in  Amoy. 
There  are  in  addition  numerous  Chinese  banks  handling  remittances 
from  the  Philippines,  Straits  Settlements,  etc.,  in  addition  to  local 
native  banking  business.  Credit  ratings  on  foreign  and  Chinese 
firms  can  be  had  only  through  the  banks. 

LOCAL  CURRENCY 

The  prevailing  currency  used  in  the  port  is  the  Amoy  dollar. 
Bills  of  exchange  and  interbank  balances,  however,  are  settled  in 
Yuan  dollars,  in  Japanese  yen,  and  in  Singapore,  Saigon,  and  Mexi¬ 
can  dollars.  Probably  90  per  cent  of  the  silver  dollars  in  circulation 
are  Yuan  dollars.  Exchange  between  native  and  foreign  banks  is 
settled  by  weight  rather  than  count,  owing  to  the  prevalence  of  the 
“  chop,”  or  mutilated  dollar.  The  Bank  of  China  note  is  the  princi¬ 
pal  paper  currency  in  circulation. 

CREDITS 

Most  export  credits  are  effected  through  letter  of  credit,  the  popu¬ 
lar  form  being  the  irrevocable  L/C.  As  Amoy  is  not  a  large 
exporting  center,  the  demand  for  export  credits  is  relatively  small. 

Import  credits  are  opened  through  ordinary  bills  for  collection, 
authorities  to  purchase,  irrevocable  letters  of  credit,  and  irrevocable 
confirmed  letters  of  credit.  The  “  authority  to  purchase  ”  is  popular 
with  some  of  the  local  firms  who  are  well  known  to  foreign  firms 
through  previous  dealings.  The  irrevocable  letter  of  credit  is  the 
most  preferred  form  for  import  credits  and  is  encouraged  whenever 
possible.  A  confirmed  irrevocable  letter  of  credit  is  very  seldom 
used  except  in  the  case  of  highly  specialized  imports,  or  in  special 
cases. 

MERCHANDISING  METHODS 

While  the  general  custom  is  to  purchase  foreign  goods  through 
importing  houses  at  Hongkong,  a  limited  volume  of  foreign  imports 
is  bought  through  Shanghai,  Manila,  and  Japan.  The  business  of 
the  port  is  in  the  hands  of  a  comparatively  few  firms.  The  foreign 
firms  in  Amoy  take  care  of  most  of  the  import  trade  and  usually  act 
as  local  representatives  of  Hongkong  and  Shanghai  importers. 
Japanese  firms  deal  chiefly  in  Japanese  goods,  while  Chinese  firms 
deal  with  both  foreign  and  native  Hongkong  houses  and  with  Chinese 


564 


COMMERCIAL  HANDBOOK  OF  CHINA 


abroad.  The  number  of  foreign  lines,  particularly  American  and 
British,  handled  by  Chinese  is  increasing.  On  account  of  its  prox¬ 
imity  to  Hongkong,  the  principal  distributing  center  for  South 
China,  and  the  excellent  transportation  facilities  between  that  great 
port  and  Amoy,  foreign  manufacturers  interested  in  this  market 
usually  locate  their  agencies  at  Hongkong. 

American  firms,  however,  should  be  careful  when  appointing 
Hongkong  agents  not  to  make  their  sales  rights  so  iron-bound  that 
an  Amoy  firm,  if  it  chooses,  may  not  purchase  direct  from  the  Ameri¬ 
can  manufacturer.  Caution  should  be  exercised  also  not  to  place 
agencies  with  foreign  houses  already  handling  competitive  lines, 
as  often  in  such  circumstances  agencies  are  taken  merely  to  pro¬ 
tect  lines  already  on  the  market,  and  with  no  design  to  push  the 
American  product. 

Import  business  is  handled  both  by  direct  purchase  and  upon 
commission  basis.  In  the  latter  case  local  agents  generally  take 
2 y2  per  cent  commission.  In  reexporting  from  Amoy  to  inland 
ports  local  firms  assume  no  responsibility  for  delivery  and  none  as 
to  fluctuations  in  exchange;  nor  is  there  insurance  or  other  protec¬ 
tion  against  piracy  and  pilferage.  It  is  left  to  the  purchaser  to  stand 
all  losses.  Ordinarily  business  between  Amoy  and  upcountry  mer¬ 
chants  is  conducted  on  a  cash  basis,  or  a  credit  of  15  to  30  days. 
In  some  cases,  payments  are  made  by  installments  which  fall  due 
on  the  various  Chinese  festival  days. 

ADVERTISING 

The  best  means  of  advertising  in  this  district  are  probably  the 
poster,  and  the  free  distribution  of  such  attractive  specialties  as 
mirrors,  fans,  calendars,  and  similar  articles.  Advertisement  of  for¬ 
eign  goods  in  the  Chinese  papers  of  Amoy  has  not  yet  proved  of 
value.  The  six  Chinese  newspapers  have  a  combined  circulation  of 
approximately  5,800,  and  the  average  daily  rate  is  10  cents  (Mex.) 
per  line,  with  discounts  for  more  extended  space  and  time.  For  ad¬ 
vertisements  running  to  one  year  the  average  rate  is  about  $100 
(Mex.)  per  month  for  a  full  page. 

The  Hongkong  and  Shanghai  papers  in  the  English  language  are 
read  by  all  foreigners  as  well  as  by  a  large  percentage  of  the  foreign - 
educated  Chinese.  These  papers  form  a  fairly  good  advertising 
medium. 

TRADE  ORGANIZATIONS 

The  Amoy  General  Chamber  of  Commerce,  including  all  non- 
Chinese  nationalities,  protects  interests  of  the  foreign  mercantile 
community,  and  in  Amoy,  Changchow,  and  Chuanchow  there  are 
Chinese  chambers  of  commerce.  These,  with  the  various  guilds, 
exercise  considerable  influence  on  commercial  interests  in  the  dis¬ 
trict.  The  guilds  of  Amoy  include  one  engaged  in  the  North  China 
trade,  another  in  the  trade  with  Hongkong  and  the  East  Indies, 
and  others  for  the  Formosan  trade,  silk-goods  trade,  drug  trade, 
paper  trade,  and  other  special  lines.  There  are  no  foreign  attor¬ 
neys  in  Amoy,  and  legal  matters,  when  necessary,  should  be  placed 
in  the  hands  of  American  attorneys  located  in  Shanghai. 


AMOY  CONSULAR  DISTRICT 


565 


AMERICAN  INTERESTS 

Three  American  firms  have  branches  or  representatives  in  Amoy. 
In  addition,  there  are  about  15  other  American  firms  represented 
by  foreign  and  Chinese  importing  houses.  The  lines  represented 
include  condensed,  evaporated,  and  dried  milk;  flour;  machinery; 
marine  engines;  tires  and  automobiles;  sewing  machines;  raisins; 
canned  food  products.  American  steamship  lines  are  also  repre¬ 
sented.  The  extensive  missionary  interests  in  this  district  maintain 
hospitals,  schools,  and  churches  throughout  the  whole  of  south 
F  ukien. 

LIVING  COSTS 

A  small  six-room  dwelling  suitable  for  a  foreigner  rents  for  ap¬ 
proximately  $125  gold  per  month.  Servant  wages  vary  from  $12 
(local  currency)  for  a  coolie  to  $25  for  cook  or  number-one  boy. 
The  average  outlay  per  month  for  servants  for  two  may  be  con¬ 
servatively  estimated  at  $80.  Expenses  for  food,  lights,  etc.,  should 
be  placed  at  $100  per  head.  Office  space,  which  can  generally  be 
obtained  with  the  foreign  firms  located  on  the  harbor  front  in  Amoy, 
is  at  a  premium,  and  varies  from  $100  upwards.  Ordinary  desk 
space,  including  small  room,  rents  for  $50  per  month.  The  above 
amounts  are  in  local  currency. 

Clothing,  foodstuffs,  and  other  necessaries  of  life  retail  for  about 
5  to  15  per  cent  above  the  prices  prevailing  at  Hongkong. 

CHANGES  IN  TRADE  CONDITIONS  IN  RECENT  YEARS 

The  district  as  a  whole  has  changed  very  little  during  the  past  10 
years.  Progress  can  be  reported  in  the  increased  consumption  of 
foreign  goods,  owing  to  the  return  of  a  large  number  of  foreign- 
educated  Chinese  from  abroad  and  to  the  education  of  the  natives 
to  the  use  and  advantages  of  foreign  merchandise.  American  manu¬ 
facturers  and  exporters  of  oil  products,  of  flour,  milk,  and  other 
food  products,  of  hardware,  electrical  specialties,  and  motor  vehicles, 
have  all  benefited  by  this  demand  for  foreign  goods. 

Chinese  factory  products,  however,  have  established  themselves 
as  an  important  factor  in  competition  with  foreign  goods. 


ANTUNG  CONSULAR  DISTRICT 

By  Consul  William  R.  Langdon 

LOCATION  AND  AREA 

Antung  is  the  gateway  between  Chosen  (Korea)  and  Manchuria, 
and  the  Antung  consular  district  comprises  18,000  square  miles 
of  the  southeastern  portion  of  Shengking  (Fengtien  or  Mukden) 
Province.  It  corresponds  in  latitude  with  Oregon,  Iowa,  and  Massa¬ 
chusetts. 

Antung  is  reputed  to  have  one  of  the  best  climates  in  North 
China — dry,  cold,  and  sunny  in  winter,  and  hot  but  not  humid  in 
the  summer.  The  average  annual  rainfall  is  85  inches,  not  includ¬ 
ing  11  inches  of  melted  snow.  The  average  minimum  temperature 
is  —8°  F. ;  average  maximum  temperature,  89°  F.  The  rainy  season 
is  from  July  10  to  August  20;  the  dry  season  September  to  April. 

POPULATION 

The  official  estimate  in  1916  gave  the  population  as  1,652,000.  It 
is  estimated  that  about  80,000  Chinese  from  Shantung  and  other 
Provinces  arrive  in  the  district  each  year  and  approximately  54,000 
leave.  Estimating  the  net  annual  immigration  at  26,000  for  the  past 
eight  years,  and  the  natural  increase  of  population  over  the  same 
period  at  40,000,  the  present  population  may  be  given  as  about 
2,000,000.  The  average  density  for  the  whole  consular  district  is  106 
per  square  mile. 

CITIES 

The  leading  cities  of  the  district  are  shown  in  the  following  table : 


City 

Popula¬ 
tion,  esti¬ 
mated 

Europeans 

Americans 

American 

business 

firms 

Antung  _ _ _ _ _ 

i  140, 000 
25,000 
12,  000 
12,  000 
10,  000 
10,  000 
8,000 
8,000 
3,000 

49 

5 

2 

Linkiang . . . .  . . . 

Fengh  wangcheng. . . 

3 

Changpaifu.  . . . 

Takushan . . . . 

4 

Suiyuen _  ......  _ 

6 

2 

Chwangho 

Kwantien 

2 

Tatungkow 

1  Includes  10,500  Japanese  and  Koreans. 


Antimg  is  the  distributing  center  of  imports  for  Yalu  River  set¬ 
tlements,  the  export  entrepot,  and  the  manufacturing  center  of  the 
region.  There  is  an  extensive  and  well-kept  Japanese  settlement, 
comprising  about  5  square  miles  in  the  level  portion  of  the  city, 
administered  by  the  South  Manchuria  Railway  Co.  Europeans  live 

566 


ANTUNG  CONSULAR  DISTRICT 


567 


both  in  the  Japanese  settlement  and  in  the  native  city,  which  is  sani¬ 
tary  and  well  administered.  The  Japanese  and  Koreans  living 
across  the  Yalu  River  in  the  Korean  city  of  Shingishu  and  neigh¬ 
boring  towns  and  villages  are  an  important  factor  in  the  retail 
trade  of  the  port. 

Linkicmg  is  a  native  city,  and  the  central  market  of  Yalu  River 
timber.  Changpaifu  is  also  a  timber  market. 

Tatungkony  is  a  treaty  port  and  has  a  Chinese  maritime  custom¬ 
house.  It  was  an  important  timber  export  center  in  the  early  days 
of  the  industry,  but  with  the  silting  up  of  the  approach  to  the  port  it 
is  now  a  moribund  Chinese  village. 

American  and  European  kerosene,  sugar,  and  cigarette  companies 
have  native  agents  and  keep  consignment  stocks  in  all  the  other 
towns  named.  Foreign  fire-insurance  companies  are  also  represented 
by  native  firms. 

AGRICULTURE 

In  the  following  table  are  given  the  principal  agricultural  prod¬ 
ucts  in  the  order  of  their  importance : 


Products 

Planting  season 

Harvesting  season 

Average 
produc¬ 
tion  per 
acre 

Estimated 

annual 

production 

Disposition 

Beans  1 _ 

Early  May _ 

Middle  of  Sep¬ 
tember. 

_ do _ _ _ 

Bushels 

49 

Bushels 

8, 000,  000 

5, 000,  000 

12,  000,  000 

10, 000,  000 

680,  200 

90  per  cent  brought  to 
Antung  for  crushing 
and  export. 

4,000,000  bushels  ex¬ 
ported  annually. 

500,000  bushels  exported 
annually,  balance  con¬ 
sumed  locally. 

250,000  bushels  exported 
annually,  balance  con¬ 
sumed  locally. 

Consumed  locally. 

Do. 

Millet _ 

_ do _ 

37 

Corn. . . 

End  of  April _ 

End  of  September. 

_ do . . . 

61 

Kaoliang  orsor- 
ghum. 

Rice . . 

Early  May . . 

42 

Middle  of  May  _ 

_ do.  . . . 

56 

Tobacco . . 

Middle  of  April .. 

August-September 

Pounds 

2  600 

1  For  details  of  the  bean-crushing  industry  see  under  “  Manufacturing  and  industrial  development.” 
*  On  farms  of  South  Manchuria  Ry. 


Millet  is  of  growing  importance  and  closely  related  to  Japan’s 
food  problem.  Four  million  bushels,  on  an  average,  are  exported 
annually  (in  1923  it  was  6,000,000)  to  Chosen,  where  millet- is  con¬ 
sumed  as  a  substitute  for  rice,  thus  increasing  the  surplus  of  Korean- 
grown  rice  available  for  export  to  Japan. 

Corn  is  the  staple  diet  of  the  Shangtung  immigrants  and  their 
descendants,  who  comprise  about  a  third  of  the  population  of  the 
consular  district. 

Kaoliang  is  the  staple  diet  of  the  Manchurian  Chinese.  It  is  also 
the  principal  fodder  of  draft  animals  in  the  region. 

Rice  cultivation  is  largely  in  the  hands  of  Korean  settlers.  The 
quantity  raised  is  still  relatively  insignificant,  but  is  increasing  rap¬ 
idly  every  year  as  new  areas  are  being  irrigated. 

Tobacco. — Farmers  usually  raise  enough  tobacco  to  meet  their  own 
requirements.  The  leaf  is  very  coarse  and  is  not  exported.  The 
South  Manchuria  Railway  Co.  is  conducting  experiments  in  tobacco 


568 


COMMERCIAL:  HANDBOOK  OF  CHINA 


cultivation  near  Fenghwangcheng.  It  distributes  American  yellow 
tobacco  seed  to  farmers,  supervises  its  cultivation,  and  buys,  pre¬ 
pares,  and  sells  the  crop  in  Mukden.  The  farms  under  the  com¬ 
pany’s  supervision  comprise  372  acres,  and  223,560  pounds  of  leaf 
are  produced  by  them  each  year. 

SERICULTURE 

This  consular  district  is  the  largest  producing  area  of  wild  silk 
or  tussah  cocoons  in  the  world.  The  climate,  as  well  as  the  species 
of  scrub  oak  that  covers  the  hillsides,  is  ideally  suited  to  tussah  silk¬ 
worm  culture.  The  annual  crop  is  estimated  at  between  four  and 
four  and  one-half  billion  cocoons.  Most  of  the  cocoons  raised  in 
the  district  are  brought  to  Antung,  where  they  are  reeled  or  shipped 
to  Chefoo  for  reeling.  The  proportion  of  Manchurian  cocoons  com¬ 
ing  to  Antung  to  be  reeled  is  increasing  each  year. 

FORESTRY  AND  LUMBERING 

Lumbering  is  the  oldest  industry  of  the  Antung  district,  and  ref¬ 
erences  to  rafting  operations  on  the  Yalu  River  are  found  in  the 
earliest  European  works  on  travel  in  this  region.  An  official  Sino- 
Japanese  corporation,  created  by  international  treaty  in  1908  and 
called  the  Yalu  Timber  Co.,  controls  the  industry  to-day  by  virtue 
of  certain  privileges.  Besides  engaging  in  felling  operations  on  its 
own  account,  the  company  has  the  first  option  on  all  Yalu  timber 
offered  for  sale  in  Antung.  It  also  collects  an  impost,  or  royalty, 
for  the  two  Governments  on  all  timber  which  it  does  not  purchase. 
The  impost  at  present  is  9  per  cent  ad  valorem  (temporarily  reduced 
by  22  per  cent  to  relieve  the  depression  prevailing  in  the  local 
industry).  The  average  annual  production  of  timber  for  the  years 
1914—1923  has  been  18,665,000  cubic  feet,  mostly  of  softwood  varie¬ 
ties,  notably  Korean  five-leaved  red  pine,  white  pine,  and  larch. 
Among  the  hardwoods  produced  in  commercial  quantities  are  oak, 
ash,  walnut,  elm,  and  chestnut. 

MINERALS  AND  MINING 

While  the  region  is  rich  in  minerals,  none  are  worked  on  a  com¬ 
mercial  scale.  In  a  pamphlet  entitled  “  Useful  Minerals  and  their 
Distribution  in  South  Manchuria,”  by  Dr.  Bunkichi  Toheida,  of  the 
Geological  Institute  of  the  South  Manchuria  Railway  Co.,  are  listed 
Ihe  more  important  deposits  known  to  exist  in  the  Eastern  Marches 
of  Manchuria,  as  the  consular  district  is  known,  with  notes  concern¬ 
ing  concessionnaires,  mining  operations,  etc.,  of  each.  The  following 
deposits  deserve  mention : 

Iron. — Miaoerhkou,  5  miles  east  of  Nanfen  on  Antung-Mukden 
line.  Owned  by  Penhsihu  Colliery  &  Mining  Co.  (Okura  &  Co.)  ; 
200  tons  of  rich  ore  are  produced  daily. 

Gold. — The  Long  White  Mountain  in  the  consular  district, 
from  which  rise  the  Yalu,  Sungari,  and  Tumen  Rivers,  was  the 
Klondike  of  China  in  the  latter  part  of  the  Manchu  dynasty.  Euro¬ 
pean  travelers  and  explorers  continually  came  upon  lone  individuals, 
outlaws  for  the  most  part,  washing  gold  in  out-of-the-way  creeks. 
These  operations  appear  to  have  ceased  with  the  economic  develop- 


ANTUNG  CONSULAR  DISTRICT 


5G9 


ment  of  the  region  and  with  the  greater  profit  to  be  had  from  felling 
and  rafting  timber. 

At  Wangerhshan,  on  upper  Yalu,  and  Tamiaokou,  5  miles  south 
of  Tunghua,  Bush  Bros.  (British  firm)  were  granted  concession  to 
work  these  deposits  by  the  Viceroy  in  Mukden  in  the  Imperial  regime, 
but  the  concession  was  never  ratified  by  Peking  and  operations  never 
undertaken. 

At  Paomachuan  (38  miles  south  of  Tunghua).  Gold  and  alluvial 
deposits  of  passable  quality  occur  in  fair  quantities.  Huachang 
Kungssu,  Chinese  firm,  is  the  concessionaire. 

Copper. — Pyrites  are  found  along  the  Yalu  River  at  Tungyuan- 
ling,  2  miles  below  Antung.  About  half  a  million  pounds  of  copper 
were  produced  annually  while  the  deposits  were  mined.  Operations 
have  been  suspended  since  1922. 

At  Santaokou,  27  miles  northeast  of  Kuantien,  copper  pyrites  of 
fine  quality  is  found  in  small  quantities.  There  is  no  concession¬ 
aire,  and  no  operations  are  in  progress  at  present. 

Lead. — Fine  quality  lead  in  small  quantities  is  found  at  Laojenkou 
and  Erhpengtientzu,  both  12  miles  southeast  of  Huaijen.  There  are 
no  concessionnaires. 

This  mineral  occurs  also  at  Tiennankou  and  Chingchentzu,  25 
and  27  miles  west  of  Tunfyuanpu  on  the  Antung-Mukden  line.  The 
concessionnaire  is  Japanese.  Mining  operations  are  in  progress. 

Coal. — There  are  numerous  deposits  everywhere.  The  output  is 
usually  sold  locally. 

Asbestos. — This  mineral  occurs  at  Tahuangkou  in  Kuantien  pre¬ 
fecture,  and  is  mined  in  small  quantities.  The  product  is  mostly 
poor  grade,  brittle,  and  nonfibrous. 

Graphite. — Deposits  occur  at  Shihchutzu,  on  Yalu  River  30  miles 
above  Antung. 

Exports  in  1922  of  minerals  produced  in  the  neighborhood  of 
Antung  were  as  follows:  Graphite,  53,466  pounds;  asbestos,  1,066 
pounds. 

TRAPPING  AND  FUR  TRADE 

While  few  valuable  fur-bearing  animals  are  trapped  in  the  Antung 
district,  considerable  quantities  of  red  fox,  raccoon,  and  badger 
skins  are  brought  to  Antung  from  the  interior.  Large  stocks  of 
otter  skins  of  North  Manchurian  and  Chosen  origin  are  also  to  be 
found  in  the  Antung  fur  market  at  all  times.  Dogskins  are  very 
plentiful  in  the  market,  dog  raising  being  a  profitable  side  line  of 
farmers  in  the  neighboring  districts  of  Chosen.  Deerskins  of  local 
and  Chosen  origin  are  also  common. 

Although  Antung  is  essentially  a  retail  fur  market,  fur  skins  have 
been  exported  in  the  following  quantities  in  recent  years:  1920, 
249,073  pieces;  1921,  269,466;  1922,  136,629. 

MANUFACTURING  AND  INDUSTRIAL  DEVELOPMENT 

The  following  are  the  principal  manufacturing  industries  of  this 
consular  district,  showing  the  equipment,  number  of  employees, 
capital,  estimated  output,  and  disposition  of  product: 

Tussah-silh  reeling. — Thirty-seven  steam  filatures  with  22,000  reels; 
10,550  employees;  approximate  capital,  $800,000;  estimated  output, 


570 


COMMERCIAL  HANDBOOK  OF  CHINA 


17,291  boxes,  of  133  pounds  (in  1923)  ;  90  per  cent  exported  to  Japan 
and  10  per  cent  to  Shanghai. 

There  are  also  30  hand  filatures  with  2,400  reels;  1,550  employees; 
approximate  capital,  $32,000;  estimated  output,  2,638  boxes,  of  133 
pounds. 

Bean  milling . — Twenty-five  mills  with  hydraulic  presses;  1,100 
employees;  approximate  capital,  $1,500,000;  estimated  output, 
5,000,000  pieces  of  bean  cake,  34,000,000  pounds  of  oil;  exported  to 
Chosen,  Japan,  and  Swatow. 

Sawmilling. — Twenty-two  power  mills;  800  employees;  approxi¬ 
mate  capital,  $3,290,000;  estimated  output  per  day,  when  operating 
at  full  capacity,  600,000  square  feet;  exported  to  Chosen  and  Japan, 
part  of  output  consumed  locally. 

The  total  equipment  of  these  22  mills  is  as  follows :  Circular  saws, 
89;  band  saws,  22;  gang  saws,  53;  automatic  saw  sharpeners,  11; 
circular  box-making  saws,  82. 

Yam  making  ( waste  tussah  gassed  yarn). — One  mill;  1,900  em¬ 
ployees;  approximate  capital,  $1,115,000;  estimated  output,  400,000 
pounds  of  yarn  annually;  exported  to  Japan  and  Europe. 

Match  maternal. — One  mill;  793  employees;  approximate  capital, 
$800,000;  estimated  output  per  day,  5,000  shipping  cases,  5,000,000 
match  boxes,  200  bags  of  match  sticks;  exported  to  Tientsin. 

Paper  pulp. — One  mill ;  operation  suspended  since  1922 ;  approxi¬ 
mate  capital,  $2,000,000;  estimated  output,  15,000  tons  per  year; 
originally  intended  for  Japanese  market. 

Blasting  and  sporting  powder. — One  mill;  approximate  capital, 
$1,000,000;  for  Manchurian  mines  and  sporstmen. 

Pongee  weaving. — One  mill  of  30  looms;  60  employees;  product 
exported. 

The  tussah-reeling,  bean-milling,  match-making,  and  pongee¬ 
weaving  industries  are  in  the  hands  of  Chinese.  The  sawmill,  yarn, 
explosives,  and  pulp  factories  are  all  owned  and  managed  by  Japan¬ 
ese.  The  pulp  mill  was  shut  down  in  1922,  and  operations  have  not 
been  resumed  since,  owing  to  the  inability  to  compete  in  the  Japanese 
market. 

LABOR  CONDITIONS 

The  following  table  shows  the  conditions  existing  in  the  four 
leading  industries  of  the  district : 


Industries 

Wages  (monthly) 

Board  and  lodging 

Hours 

of 

work 

Efficiency 
of  labor 

Male 

Female 

Silk  reeling _ 

$4.  50 

5.  50 
10.  00 

Food  and  lodging  fur¬ 
nished. 

_  do  .  .  . . - 

9 

12 

9 

9 

Mediocre. 

Good. 

Do. 

Mediocre. 

Bean  milling _ __ _ _ _ 

Sawmilling _ _ _ _ _ 

None  ...  _ _ _ 

Rice  cleaning _ _ _ 

$9.  00 

_ do  _ 

The  figures  in  the  table  are  the  approximate  equivalents,  in  United 
States  currency,  of  the  different  currencies  paid  for  wages.  Silk¬ 
reeling  boys  get  small-silver  coin  $9.60  (equal  to  $8  Mex.)  per 
month.  Bean-press  hands  get  small-silver  coin  $12  ($10  Mex.) 


ANTUNG  CONSULAR  DISTRICT 


571 


per  month.  Experienced  sawmill  operatives — that  is,  those  feeding 
and  handling  the  saws — get  $1,  Mukden  paper  currency,  per  day. 
Rice-cleaning  girls  get  60  to  70  sen,  Japanese  currency,  per  day. 

The  hours  of  labor  given  are  also  approximate.  In  the  silk- 
reeling  industry,  for  instance,  each  boy  is  given  1,000  cocoons  to 
unwind  at  the  beginning  of  the  day.  After  he  has  reeled  these 
cocoons  his  time  is  his  own.  Skillful  reelers  require  7  hours,  while 
new  hands  take  11  hours  for  the  same  job.  Food  and  wage  con¬ 
siderations  bring  the  total  hire  of  a  silk-reeling  operative  up  to 
small-silver  coin  $20  per  month  (between  $9  and  $9.50  U.  S.  cur¬ 
rency).  The  food  is  of  the  coarsest,  usually  boiled  corn  meal 
or  corn  bread,  with  cabbage,  turnips,  or  similar  cheap  vegetables. 
Sawmill  hands  get  about  the  same  kind  of  food.  Meat  and  wheat- 
flour  cakes  are  served  to  theln  twice  a  month.  The  lodging  ac¬ 
commodations  are  of  the  simplest  kind.  In  the  silk  mills  the 
operative  unrolls  his  bedding  and  sleeps  beside  his  reel.  The  sleep¬ 
ing  quarters  in  the  bean  mills  are  slightly  better. 

TRANSPORTATION  AND  COMMUNICATION 

WATERWAYS 

The  port  of  Antung  is  closed  by  ice  from  the  middle  of  November 
until  the  end  of  March.  Shipping  at  present  is  confined  to  Chinese 
coast  and  Japan  Sea  steamers  of  not  more  than  2,000  tons.  It  is 
roughly  divided  into  three  classes:  Timber  to  Tientsin  and  Tsing- 
tao;  bean  cake  to  Swatow  and  to  Korean  and  Japanese  ports;  and 
general  cargo  from  and  to  Shanghai  and  Japanese  ports.  All  cargo 
is  discharged  into  lighters  or  junks  at  Santaolangtou,  the  port  of 
Antung,  or  at  the  Tatungkow  or  intermediate  anchorage,  and  hauled 
froTn  there  to  the  steamship  companies’  warehouses  in  Antung. 

Pilots  are  necessary  at  all  times,  as  old  anchorages  are  continually 
silting  up  and  new  ones  being  formed.  The  shipping  of  the  port 
in  1923  was  as  follows: 


Nationality 

Ocean  steamers 

Sailing  vessels 

Number 

Tonnage 

Number 

Tonnage 

British . . . . .  __  _ _ _ 

124 

146,  456 

Japanese  ..  ..  . . . . .  _  __  .  _ 

298 

225,  618 

374 

10, 096 

Chinese  . _  _  _ _ _ ...  _ 

214 

149,  746 

Total _  _  _ _  _  _  _  . 

C36 

521,  820 

374 

10, 096 

American  goods  should  be  shipped  direct  either  to  Dairen  or  to 
Shanghai  to  avoid  the  delay  and  expense  of  a  second  transshipment, 
which  is  necessary  if  they  are  landed  at  Kobe,  Hongkong,  etc.  Steam¬ 
ship  services  to  Dairen  and  Shanghai  are  regular  and  frequent,  and 
the  Antung  consignee  receives  his  goods  promptly  from  those  ports. 
Care  should  be  exercised  to  insure  the  arrival  of  shipments  before 
the  closing  of  the  port  if  possible.  If  shipments  are  made  during 
the  closed  season,  they  should  be  direct  to  Dairen,  from  where  they 
may  be  hauled  to  Antung  by  rail  without  further  transshipment. 


572 


COMMERCIAL  HANDBOOK  OF  CHINA 


RAILWAYS 

The  only  railway  line  operating  in  the  district  is  the  Antung-Muk- 
den  section  of  the  South  Manchuria  Kailway.  The  distance  from 
Antung  to  Suchiatun  (main  line  South  Manchuria  Kail  way)  is  161 
miles.  Passenger  fares,  first  class,  7  sen  per  mile;  second  class,  4 y2 
sen;  third  class,  2 y2  sen  (1  sen  equals  y2  cent  gold). 

This  line  is  connected  with  the  main  Chosen  (Korean)  line  of  the 
South  Manchuria  Kailway  and  is  the  principal  highway  of  Japanese 
exports  to  Manchurian  tiade  marts.  It  also  provides  Chosen  with 
coal  from  the  Fusliun  and  Penhsihu  collieries  in  the  Mukden  con¬ 
sular  district.  All  goods  entering  or  leaving  Antung  via  rail  from 
or  to  Chosen  enjoy  a  reduction  of  one-third  of  the  import  or  export 
duty. 

No  railroads  are  under  construction  at  present,  nor  is  there  any 
publicly  known  outstanding  concession  for  railroad  construction  in 
the  consular  district.  A  light  railroad  from  Antung  to  some  deep 
anchorage  on  the  coast  free  from  ice  throughout  the  winter  would 
in  all  likelihood  be  a  very  useful  and  profitable  enterprise.  The 
South  Manchuria  Kailway  Co.  has  had  under  contemplation  for 
many  years  the  construction  of  a  spur  from  the  main  Chosen  line  to 
Tasurugi  (Tashito),  a  deep,  ice-free  anchorage  on  the  Chosen  coast 
of  the  Yalu  Delta.  Such  a  branch  would  not  only  make  Antung 
accessible  by  steamer  in  the  winter  but  it  would  also  permit  ocean 
steamships  of  deeper  draft  to  discharge  cargo  for  Antung  in  the 
open  season.  At  present  the  following  ports  are  connected  by  rail 
with  Antung:  Dairen  in  the  Kwantung  leased  territory  and  Fusan, 
Chemulpo,  and  Chinnampo  in  Chosen. 

ROADS 

In  the  city  of  Antung  all  streets,  both  in  the  Japanese  settlement 
and  in  the  native  city,  are  adaptable  to  motor  transportation;  it  is 
estimated  that  there  are  only  seven  motor  cars  in  operation.  During 
the  winter  months  there  are  five  motor  busses  that  run  between  An¬ 
tung  and  Takushan,  a  distance  of  60  miles.  The  passenger  fare  is  $3. 
Such  other  so-called  roads  as  exist  in  the  consular  district  can  be  ne¬ 
gotiated  only  by  heavy  Manchurian  carts  pulled  by  from  four  to 
seven  animals.  There  are  no  definite  plans  for  road  construction  at 
present. 

TELEGRAPHS 

Chinese  Telegraph  Administration. — This  service  maintains  con¬ 
tacts  with  all  telegraph  offices  in  China  and  foreign  countries  and 
with  important  towns  in  the  interior  of  the  district.  There  are  29 
stations  in  the  Antung  consular  district.  The  rate  to  Shanghai  is 
18  cents  (Mex.)  ;  to  New  York,  $2.16  (Mex.). 

Imperial  Japanese  Department  of  C ommunications. — This  bureau 
has  contacts  with  points  in  the  South  Manchuria  Kailway  zone, 
Kwantung  leased  territory,  Japanese  Empire,  foreign  countries, 
and  China  via  Japan.  Offices  are  maintained  at  all  railroad  stations. 
The  rate  to  Shanghai  is  0.23  yen ;  to  New  York,  2.16  yen  ($1,077 
United  States  currency). 


ANTUNG  CONSULAR  DISTRICT 


573 


TELEPHONES 

Antung  has  a  local  telephone  system  operated  by  the  Chinese 
municipality.  There  are  530  subscribers.  Approximate  rates  are 
$3  per  month.  The  cost  of  installation  is  borne  by  the  subscribers. 
Japanese  equipment  is  used;  manual  operation. 

The  Imperial  Japanese  Department  of  Communications  operates 
a  telephone  system  in  Antung  having  891  subscribers.  It  has  long¬ 
distance  connections  with  all  points  in  the  South  Manchuria  Railway 
zone,  including  Mukden,  Changchun,  Dairen,  Newchwang,  and  with 
Pingyang  in  Chosen.  The  rates  are  $3.49  per  month ;  cost  of  instal¬ 
lation  is  borne  by  subscriber;  Japanese  equipment;  manual  operation. 

Fenghwangcheng  has  a  local  telephone  system  operated  by  the 
Chinese  municipality;  there  are  50  subscribers;  Japanese  equipment; 
manual  operation. 

POSTAL  FACILITIES 

The  Chinese  Postal  Administration  covers  the  interior  of  the  con¬ 
sular  district  very  efficiently.  In  Antung  it  receives  and  accepts  for 
transmission  mail  matter,  money  orders,  and  parcels  from  and  to  the 
United  States  at  the  rates  prevailing  at  other  first-class  post  offices  in 
China.  The  Japanese  Department  of  Communications  has  two  post 
offices  in  the  Japanese  settlement  in  Antung  and  maintains  offices  at 
other  important  stations  along  the  Antung-Mukden  line.  These 
handle  mail  matter,  parcels,  and  money  orders  from  and  to  the 
Japanese  Empire,  railway  zone  in  Manchuria,  and  all  foreign  coun¬ 
tries. 

Foreign  postal  remittances  in  both  Chinese  and  Japanese  post 
offices  are  limited  to  $100  and  their  foreign  equivalent,  and  both 

offices  accept  for  transmission  parcels  weighing  up  to  11  kilograms. 

* 

PUBLIC  UTILITIES 

ELECTRIC-LIGHT  PLANTS 

The  South  Manchuria  Railway  Co.’s  plant,  equipped  with  two 
3,500-kilowatt  dynamos  (rates  10  cents  per  kilowatt  hour)  is  ade¬ 
quate  for  the  present  lighting  and  industrial  requirements  of  both 
the  Japanese  settlement  and  the  native  city  of  Antung.  It  also  sup¬ 
plies  the  city  of  Shingishu,  Chosen,  across  the  Yalu  River  from 
Antung,  with  its  light  and  power.  The  Chinese  municipality  is 
planning  to  erect  a  1,000-kilowatt  plant  to  supply  light  and  power 
to  the  new  industrial  section  of  north  Antung.  The  harnessing  of 
the  current  of  the  upper  Yalu  River  for  generating  electricity  has 
been  under  contemplation  for  a  long  time.  In  1923  a  survey  of  the 
current  and  different  heads  was  made  under  the  auspices  of  the 
South  Manchuria  Railway  Co.  The  findings  of  the  survey  party 
are  said  to  have  been  disappointing,  and  action  on  the  project  has 
been  deferred  indefinitely. 

WATERWORKS 

The  railway  company  waterworks  serve  only  the  Japanese  settle¬ 
ment,  in  which  reside  some  10,500  Japanese,  3,000  Koreans,  and 
20,000  Chinese.  The  Chinese  municipality  has  definite  plans  for 


574  COMMERCIAL  HANDBOOK  OF  CHINA 

constructing  waterworks  for  the  native  city,  and  is  laying  aside  a 
special  fund  for  that  purpose.  According  to  its  program,  the 
waterworks  project  will  be  carried  out  in  1926  or  1927,  depending 
on  the  economic  condition  of  the  native  city. 

TRAMWAYS 

There  are  no  tramway  systems  in  the  consular  district.  The 
South  Manchuria  Railway  Co.  in  its  preliminary  budget  estimates 
for  1922-23  included  an  item  for  the  construction  of  a  tramway 
system  in  Antung  over  a  period  of  two  years,  but  it  was  struck 
off  in  the  final  budget  and  has  not  been  proposed  since. 

CONSERVANCY  AND  RECLAMATION  WORKS 

The  Yalu  River  is  rapidly  deteriorating  as  a  navigable  channel, 
and  is  in  urgent  need  of  conservancy  work.  Being  an  international 
river,  reclamation  enterprises  of  any  kind  involve  diplomatic  nego¬ 
tiation,  and  can  not  be  executed  without  the  cooperation  of  both 
Chinese  and  Japanese  Governments.  In  1922  a  plan  of  conservancy 
was  submitted  to  the  authorities  concerned,  by  the  Chinese  Mari¬ 
time  Customs  Commissioner  at  Antung,  and  received  their  ap¬ 
proval.  There  is  no  doubt  that  definite  action  of  some  sort  will 
be  taken  with  the  advent  of  stable  central  authority  in  China. 

EXPORT  AND  IMPORT  TRADE 

EXPORTS 

The  value  of  exports  from  Antung  in  1923  amounted  to  $43,- 
183,279,  disposed  of  as  follows:  To  Japan  and  Chosen,  $34,477,188; 
to  Chinese  ports,  $8,706,091. 

Outside  of  a  few  small  shipments  of  ginseng  and  pongee  silk, 
with  a  total  value  of  $1,151,  there  were  no  direct  exports  to  the 
United  States  in  1923.  The  only  products  of  the  region  marketable 
and  finding  their  way  to  the  United  States  are  tussah  reeled  raAv 
silk,  reeling  waste,  and  pongee  silk.  These  articles  are  shipped 
from  Antung  to  the  Shanghai  market  and  there  bought  by  direct 
exporters  to  the  United  States.  Raw  tussah  valued  at  approxi¬ 
mately  $16,000,000  was  produced  in  China  in  1923,  of  which  the 
United  States  took  over  $7,000,000  worth.  Over  half  of  this  silk 
was  produced  in  Antung,  and  yet  there  was  no  direct  connection 
between  the  American  market  and  this  source  of  supply.  A  num¬ 
ber  of  reasons — notably  the  lack  of  banking  and  exchange  facilities, 
the  absence  of  any  silk  testing  agency,  the  relative  insignificance  of 
tussah  in  the  American  silk  industry,  the  local  commercial  view¬ 
point,  and  the  ignorance  of  the  reelers — are  responsible  for  this 
state  of  affairs. 

Nevertheless,  it  is  difficult  to  explain  the  neglect  of  this  important 
source  of  raw  material  by  American  manufacturers.  Outside  of 
official  delegates  from  the  silk  industry,  no  American  silk  buyer  has 
ever  found  it  worth  his  while  to  visit  Antung  for  the  purpose  of 
establishing  direct  personal  contacts  with  producers  and  studying 
ways  and  means  of  doing  direct  business  with  them.  The  difficulty 
of  financing  shipments  is  not  insurmountable,  for  telegraph  facili- 


ANTUNG  CONSULAR  DISTRICT 


575 


ties  are  excellent,  and  producers  can  quote  in  Shanghai  taels,  which 
are  quoted  by  American  banks,  as  well  as  Antung  or  Chengping 
taels,  which  are  not  quoted,  and  can  draw  on  credits  opened  for  them 
in  Shanghai.  Japanese  buyers  contract  for  their  purchases  on  the 
spot  and  pay  for  them  in  yen  at  prevailing  exchange  rates.  There 
is  no  apparent  reason  why  American  buyers  could  not  do  the  same. 

Eighty  per  cent  of  the  tussah  silk  production  of  Antung  goes  to 
the  silk  mills  in  Fukui,  Japan,  where  it  is  woven  into  pongee  for 
the  American  market  to  the  value  of  about  $10,000,000  every  year. 
The  development  of  the  pongee  weaving  industry  in  Antung,  the 
logical  center  of  pongee  manufacture,  is  retarded  by  the  limited  capi¬ 
tal  of  the  reelers  and  the  lack  of  direct  interest  in  this  market  on  the 
part  of  American  pongee  users.  There  is  no  doubt  that  the  industry 
would  be  greatly  stimulated  by  the  presence  or  occasional  visit  of 
American  buyers.  Pongee  weaving  offers  an  opportunity  for  profit¬ 
able  investment  of  American  capital. 

IMPORTS 


The  figures  in  the  following  table  show  the  principal  articles  im¬ 
ported  into  Antung  in  1913  and  1923 : 


Imports 


Cotton  goods: 

Shirtings,  gray _ _ _ 

Sheetings,  gray _ 

Shirtings,  white,  plain,  and  figures _ 

Drills _ _ _ 

Jeans _ 

Cambrics,  lawns,  muslins,  white,  dyed,  and  printed 

Chintzes  and  plain  cotton  prints _ 

T  cloths,  gray _ 

Printed  T  cloths _ _ _ 

Turkey-red  cottons  and  T  cloths _ 

Dyed  cottons: 

Shirtings  and  sheetings _ _ _ 

Drills _ 

Jeans _ 

Cotton  italians,  Venetians,  lastings,  and  poplins-  - _ 

Cotton  flannel _ 

Fancy  woven  cloth _ 

Cottons,  yarn  dyed _ 

Japanese  cotton  cloth _ _ 

Velvets,  velveteen _ _ _ 

Yarn,  cotton _ _ _ 

Thread,  cotton,  spools _ _ _ 

Chinese  sheetings _ _ . _ _ 

Chinese  drills _ _ _ 

Chinese  yarn _ 

Iron  bars,  nails,  pigs,  wire,  sheets,  etc _ 

Galvanized  iron _ 

Bags,  gunny,  cotton,  etc _ 

Cement _ _ 

Cigarettes _ _ _ 

Dyes,  etc.:  Artificial  indigo _ 

Fish,  dried,  fresh,  etc _ 

Flour _ _ _ _ _ 

Glass. _ _ 

Hides . . . . 

Milk,  canned _ _ _ 

Oil,  engine _ _ _ 

Oil,  kerosene: 

American _ _ _ _ _ 

Sumatra... _ _ 

Paper . . . . . . 

Rice _ _ _ 

Soap,  toilet _ 

Soda _ _ 

Sugar _ _ _ _ _ 

Wines:  Sake . . . . . . . . 

Tobacco _ _ _ _ _ _ 


pieces. . 

..do _ 

..do _ 

..do _ 

..do _ 

..do _ 

..do _ 

..do _ 

..do _ 

-_do.--- 


_ do _ 

_ do _ 

..  .pounds.. 

_ gross.. 

_ pieces.. 

_ do _ 

... pounds. . 

_ tons.. 

..  .pounds.. 

_ pieces.. 

...pounds.. 
thousands.. 
... pounds.. 

_ do _ 

_ do _ 

_ boxes.. 

...pounds.. 

_ dozen.. 

_ gallons.. 

. .do _ 

. do _ 

...  pounds.. 

_ do _ 

_ dozen.. 

...pounds.. 

. do _ 

_ do _ 

. do 


1913 


24,  506 
1, 308, 876 
39,  422 
71,  771 
46,  662 
2,  515 
1,307 
2,  909 
20 
5,  330 


316,  869 
33,  426 
826,  400 
6,  490 
4,242 
360 
62,  400 
1, 152 
285,  733 
486,  834 
3,  344,  000 
42,  918 
171,  333 

2,  578,  000 
22,  753,  333 

1,738 
650, 133 
3,  803 
11,  410 

673,  680 
471,315 
702,  666 
7,  836,  266 
44,  666 
1,  774,  400 

3,  890, 932 
911,  333 


1923 


421,  200 
149, 136 
111,831 
117,  331 
549,  346 
7,  930 
78,  363 
29,  871 
2,  265 
85,  255 

25, 157 
156,  394 
248,  592 
53,  488 
25,  723 


28,  843,  346 


115,245 
10,  084, 858 
57,  636 
159,  278 
10, 056 
200, 037 
4,  890 

1,  483,  216 

2,  459,  298 
6,  750,  728 

82,  254 
264,  404 
6,  353,011 
14,  045,  864 
6, 030 
2,  417,  956 
3,  823 
105,  576 

722,  330 
184, 000 
1,441,454 
69,286 
116,281 

1,  875, 167 
10,  640, 000 

2,  808,  278 

3,  622,  521 


do 


..do _ 

..do _ 

..do.. 

11,  882 

..do.  .. 

10,  235 

.yards. . 
..do _ 

285, 164 

576 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  imports  into  Antung  in  1923  originated  as  follows: 


From  Japan  and  Chosen _ $22,  074,  060 

From  foreign  countries  (via  Chinese  ports) _  2,386,993 

From  Chinese  ports  (Chinese  products) _  4,527,634 


Total _  28,  988,  687 


Approximately  60  per  cent  of  Japan’s  share  in  the  above  trade 
consisted  of  transit  rail  shipments  to  interior  markets  entered  at  the 
Antung  customhouse.  The  remainder  of  Japanese  and  other  imports 
represent  local  consumption.  Japan  practically  monopolized  the 
cotton  goods  import  trade  of  the  port,  which  amounted  to  $15,276,000. 

Imports  of  American  goods  in  1923  via  Shanghai,  Dairen,  and,  to  a 
lesser  degree,  Kobe,  are  known  or  estimated  to  have  been  as  follows : 


Article 

Quantity 

Value 

Wheat  flour  ...  .  . . . . ..  ... _ barrels-. 

Cigarettes _ _  .  .  ...  _  .  .  ..  ..thousands.. 

Kerosene..  ..  . . . .  .  -  ...  _ _ gallons.. 

Engine  oil.  _  _  _  .  _  _  _ _ _ _ do  .. 

Condensed  milk.. _ _  .  .  .  _  _ _ _  .dozen  cans  . 

Iron  and  steel  products . . . .  ..  . . .  ...  ._  .tons  . 

Candles _  ..  _  ....  .  _ _  .  ...  _  .  boxes.. 

Clocks,  watches,  eyeglasses _  .  ..  ....  ..  _  _ _ _ _  _ 

71, 663 
100,  550 
722,  330 
105,  576 
3,823 
2,  130 
420 

$477,  078 
400,  000 
222,  452 
44,  658 
5,312 
132, 000 
11,000 
10,000 
15,000 
30,000 
44,  200 
20,000 
34,  450 
11,000 

Electrical  goods _ _  .....  _  _ _  _ _ _ _  .  _ 

Hardware  and  tools  (mostly  saws,  wood  screws,  and  files).  ...  . . . 

Leather,  enameled  calf  and  kid _  ...  pounds.. 

Leather,  sole..  .  .  ...  _  _ _ _  _  ...  ..  do  ... 

Sewing  machines.  . . . . .  . . 

86,716 
81,  662 

Photographic  materials _  ..  .  _ 

Total..  ..  _  .  _  _ _ _ _ _ 

1,  457, 150 

To  the  foregoing  total  should  be  added  perhaps  $100,000  more, 
representing  the  value  of  canned  food  products,  raisins,  chemicals, 
unclassified  machinery,  wire  screening,  soaps,  toilet  articles,  pro¬ 
prietary  medicines,  and  novelties. 

Perhaps  the  most  noteworthy  change  in  the  import  trade  of  the 
port  since  its  opening  to  foreign  commerce  is  the  elimination  of 
American  and  British  cotton  goods  from  the  market  by  Japanese 
products.  Considering  Japan’s  geographical  advantages,  this  change 
became  inevitable  with  the  development  of  the  Japanese  cotton  in¬ 
dustry  and  with  the  improvement  of  the  quality  of  the  products 
turned  out  by  Japanese  mills.  The  rebate  of  one-third  of  the  import 
duty  on  products  imported  by  rail  from  Chosen,  which  went  into 
effect  upon  the  completion  of  the  Yalu  bridge  in  1913,  in  accord  with 
the  custom  at  other  land  frontier  stations  in  China,  further  hastened 
the  end  of  the  American  cotton  goods  trade  in  southeastern  Man¬ 
churia,  where  it  once  flourished.  . 

Outside  of  the  selling  organization  of  large  American  corporations 
and  Japanese  firms  of  international  repute,  which  consign  stocks  to 
native  merchants  under  the  shop-guaranty  system,  the  marketing  of 
American  goods  is  in  the  hands  of  small  retail  dealers.  Under  pres¬ 
ent  conditions  the  most  advisable  course  for  American  manufacturers 
of  products  marketable  in  this  consular  district  is  to  have  their 
traveling  representatives  make  periodic  visits  to  Antung  with  the 
object  of  taking  orders  from  retailers  and  putting  them  in  touch  with 
agencies  carrying  stocks. 


ANTUNG  CONSULAR,  DISTRICT 


577 


MONEY,  BANKING,  AND  CREDIT 

BANKS 

The  Bank  of  Chosen  (Japanese)  and  the  Chung  Foo  Union  Bank 
(Chinese,  whose  American  correspondent  is  the  American  Express 
Co.)  maintain  branches  at  Antung,  but  the  former  does  not  handle 
American  bills. 

LOCAL  CURRENCY 

The  currency  situation  in  Antung  appears  hopeless  to  the  uniniti¬ 
ated  foreigner.  The  following  currencies  are  used,  subject  to  inter¬ 
related  exchange  rates  influenced  by  supply  and  demand,  imports  and 
exports,  speculation,  confidence  or  apprehension,  and  other  factors: 
The  Antung  or  Chengping  tael,  the  small  silver  dollar,  the  depre¬ 
ciated  Mukden  provincial  government  and  Bank  of  China  bank  note, 
cojiper  coins,  big  silver  or  Yuan  dollars,  Bank  of  Chosen  gold-yen 
notes,  and  Japanese  currency. 

Tussah  silk,  tussah  cocoons,  bean  cake,  bean  oil,  and  timber  are 
quoted  in  Antung  taels,  settlements  of  which  are  made  in  local 
native  bank  orders,  sycee,  or  silver  coins  at  prevailing  exchange 
rates.  Tael  settlements  between  native  producers  and  Japanese 
buyers  are  made  in  yen  at  prevailing  rates.  Native  retailers  all 
price  their  goods  in  small-coin  dollars.  The  Shanghai,  Tientsin, 
and  Chefoo  tael  exchange  of  the  Antung  tael  is  quoted  daily  on 
the  market,  and  the  relation  between  these  currencies  is  largely 
governed  by  trade  conditions  existing  between  those  ports.  The 
Antung  tael  is  generally  slightly  lower  than  the  Shanghai  tael, 
seldom  exceeding  10  points.  Mukden  provincial  government  and 
Bank  of  China  bank  notes  are  used  almost  exclusively  in  the  interior. 
These  are  heavily  depreciated  and  subject  to  meteoric  fluctuations. 
Very  few  big  silver  or  Yuan  dollars  are  in  circulation,  and  no  goods 
are  priced  in  that  currency.  Remittances  to  Shanghai  and  Tientsin 
are  made  by  native  bill  brokers  and  exchange  shops,  or  by  direct 
arrangement  between  exporters  and  importers.  The  local  agency  of 
the  Bank  of  China  also  remits  money  and  cashes  orders  to  and  from 
other  Chinese  ports,  but  its  discount  rates  (from  2  to  5  per  cent) 
are  too  high  to  attract  much  business. 

The  par  value  of  the  Yuan  dollar  is  small-silver  coin  dollar  1.20. 
It  rises  as  high  as  1.30  and  falls  as  low  as  1.17.  In  times  of  peace 
and  confidence  the  Yuan  dollar  exchanges  for  Mukden  provincial 
or  Bank  of  China  bank  note  dollars  only  1.50,  but  this  rate  rises  to 
as  much  as  2.30  in  time  of  civil  war  or  fear  thereof. 

CREDITS 

American  firms  carrying  stocks  and  otherwise  doing  business  in 
Antung  and  the  interior  usually  have  their  native  agents  turn  over 
their  receipts  to  some  exchange  shop  or  small  banking  establishment, 
which  remits  the  amounts  thus  turned  in  to  the  central  agency 
in  Shanghai  or  Mukden  at  favorable  opportunities.  This  service 
is  usually  performed  free  of  charge  in  return  for  the  use  of  the 
money  while  it  is  in  their  hands.  Foreign  firms  carry  on  business 

100020°— 26 - 38 


578 


COMMERCIAL  HANDBOOK  OF  CHINA 


as  a  rule  through  a  comprador,  who  acts  as  guarantor  for  sub¬ 
agents  and  attends  to  collections  and  remittances. 

While  the  existing  exchange  situation  may  appear  prohibitive 
of  direct  business  between  American  exporters  and  native  mer¬ 
chants,  the  difficulty  is  not  altogether  insurmountable.  The  direct 
sale  of  American  goods  would  no  doubt  be  complicated  without  a 
selling  organization  on  the  spot.  Credits  would  certainly  be  out 
of  the  question,  and  native  merchants  would  have  to  remit  cash 
with  their  orders.  They  could  doubtless  do  this  through  their 
Shanghai  correspondents. 


ADVERTISING 

Newspaper  advertising  is  not  profitable  in  view  of  the  small  pro¬ 
portion  of  the  native  population  reading  newspapers.  Billboards 
and  bright-colored  posters  appear  to  be  productive  of  best  results. 
Conspicuous  brands  on  containers  of  staple  products  like  flour,  sugar, 
and  kerosene,  are  also  helpful.  Native  consumers  are  inclined  to 
favor  goods  which  carry  with  them  small  premiums,  no  matter  how 
worthless.  Sales  schemes  of  all  kinds,  particularly  in  the  cigarette 
business,  entailing  prizes,  free  moving-picture  shows  and  theatricals, 
and  the  like,  seem  to  obtain  very  good  results. 

Catalogues  should  invariably  have  export-trade  price  lists  and 
discounts  inserted  in  them,  as  prospective  importers  are  much  less 
interested  in  descriptions  of  quality  and  capacity  of  goods  than 
they  are  in  price.  This  is  particularly  true  in  the  case  of  machinery 
to  be  used  in  mills  about  to  be  established  by  corporate  funds  or  re¬ 
quired  for  municipal  purposes. 

TRAVEL  FACILITIES 

In  Antung  the  Japanese  hotel,  Anto,  has  20  rooms,  American  plan. 
Booms  can  also  be  had  on  the  European  plan.  There  are  also  numer¬ 
ous  Japanese  inns  in  Antung.  The  Shingishu  Hotel,  in  Shingishu, 
Chosen,  just  across  the  river  from  Antung,  has  10  rooms,  American 
or  European  plan. 

American  travelers  going  from  China  to  Chosen  or  Japan  via 
Antung  must  have  a  valid  Japanese  visa  on  their  passports.  A 
Japanese  passport  inspection  is  conducted  on  the  train  as  soon  as  the 
border  is  crossed.  Travelers  without  proper  travel  documents  are 
taken  off  the  train  and  deported  to  Antung. 

In  view  of  the  difficulty  of  securing  guides  and  interpreters  in 
Antung,  American  commercial  travelers  new  to  the  place  will  find  it 
helpful  to  get  in  touch  with  the  American  consulate  without  delay. 

During  the  navigation  season  there  is  one  weekly  sailing  from 
Antung  to  Shanghai  by  British  coastwise  vessels.  The  fare  is 
$50  (Mex.),  per  first-class  passage.  There  are  also  biweekly  sail¬ 
ings  to  Tientsin  on  Japanese  steamers,  the  first-class  fare  being 
35  yen.  After  the  port  is  closed,  travel  by  rail  to  Dairen  is  necessary 
in  order  to  make  steamer  connections.  Antung  is,  of  course,  connected 
with  the  entire  Chinese  Government  and  Chinese  Eastern  Railway 
systems,  and  through  tickets  are  issued  at  the  Antung  station  to 
any  point  on  those  systems. 


ANTUNG  CONSULAR  DISTRICT 


579 


TRADE  ORGANIZATIONS 

The  Chinese  Chamber  of  Commerce  is  the  municipal  body  of  the 
native  city,  as  well  as  a  commercial  organization.  It  collects  all  city 
taxes  and  carries  out  all  city  public  works.  It  also  owns  exclusive 
tracts  of  city  land.  In  the  commercial  field  it  makes  trade  investiga¬ 
tions,  issues  letters  of  introduction  to  its  members,  and  otherwise 
assists  commercial  travelers  and  trade  investigators,  acts  as  liqui¬ 
dator  and  receiver  in  bankruptcy  proceedings,  arbitrates  in  com¬ 
mercial  disputes,  and  is  a  very  powerful  and  helpful  agent  in 
general. 

The  Japanese  Chamber  of  Commerce  is  a  purely  commercial 
organization,  and  its  purpose  is  to  foster  Japanese  trade,  both  im¬ 
port  and  export,  in  the  consular  district.  It  maintains  for  Japanese 
manufacturers  a  commercial  museum  of  the  raw  products  of  the 
region,  and  of  manufactured  Japanese  goods  for  local  buyers.  An 
interesting  feature  of  the  Japanese  commercial  museum  is  its  dis¬ 
play  of  Yalu  timber  and  locally  manufactured  lumber  specimens. 
The  museum  itself  is  built  of  logs  from  the  Yalu  forests  in  their 
natural  state. 

The  Chinese  Silk  Guild  is  an  association  of  raw  tussah-silk  reelers. 
The  activities  of  the  association  are  connected  with  the  advancement 
of  the  local  silk  industry. 

PROPERTY  VALUES  AND  RENTS 

In  the  native  city  of  Antung  the  purchase  price  of  land  is  from 
$280  to  $560  per  mow  (733%  square  yards).  The  rent  of  good  office 
quarters  on  the  best  streets  is  from  $25  to  $60  per  month.  Residences 
rent  for  from  $35  to  $75  a  month. 

In  the  Japanese  settlement  of  Antung,  the  right  of  purchase  is 
not  extended  to  foreigners,  but  land  may  be  leased  for  a  term  of  20 
years  and  ownership  of  buildings  is  allowed.  Good  office  quarters 
may  be  rented  for  60  to  100  yen  a  month.  The  rent  of  a  house  with 
a  garden  varies  from  30  to  100  yen  per  month. 

LIVING  COSTS 

The  amounts  shown  in  the  following  table  are  the  minimum  re¬ 
quired  to  maintain  respectability  and  good  standing  in  the  com¬ 
munity.  The  estimated  living  expenses  given  represent  the  average 
cost  of  keeping  up  a  domestic  establishment.  Single  men  may  run 
a  mess  together  and  reduce  individual  expenses  considerably.  An 
important  item  in  living  costs  in  Antung  is  winter  clothing. 


Hotel, 
board  and 
room  per 
month 

Board 

(includ¬ 

ing 

servants’ 

wages) 

Rent 
(not  in¬ 
cluding 
heat  and 
light) 

Living 

expenses 

Single  man _ _  _  __  _  __  _ _  ... 

Yen 

200  to  250 

$60 

$30 

30 

$110 

95 

Single  woman . .  .  ...  .  _  ...  .. 

200  to  250 

45 

Married  couple _  _ _ _ _  .  _.  ...  _ 

300  to  375 

90 

50 

165 

Married  couple  with  two  children. ..  .....  . 

115 

60 

200 

580 


COMMERCIAL  HANDBOOK  OF  CHINA 


Foreigners  coming  to  Antung  to  reside  must  naturally  be  pre¬ 
pared  to  miss  the  recreational  facilities  of  larger  and  gayer  foreign 
communities  in  the  Far  East,  and  to  lead  quiet  and  monotonous 
lives.  These  disadvantages,  however,  are  offset  to  a  certain  extent  by 
a  number  of  considerations,  among  which  are  clear,  blue  skies  and 
a  splendid  climate,  the  opportunity  to  save  money,  and  outdoor 
recreational  facilities  in  magnificent  natural  surroundings.  The 
local  Chinese  Maritime  Customs  maintains  for  its  staff  a  club  to 
which  all  foreign  residents  may  belong.  Persons  fond  of  hunting 
have  opportunities  for  sport  unequaled  in  any  other  part  of  China. 
The  tidal  flats  of  the  Yalu  Delta  are  alive  with  geese  and  all  manner 
of  wild  fowl  at  certain  seasons  of  the  year ;  and  pheasants,  deer,  and 
wild  boar  abound  in  the  neighboring  districts  of  Chosen.  In  the 
athletic  line  there  are  tennis  in  the  summer  and  skating  throughout 
the  winter.  Children  of  school  age  may  be  sent  to  the  schools  for 
foreign  children  in  Pingyang  and  Seoul,  Chosen,  6<  and  12  hours, 
respectively,  from  Antung  by  rail. 

CHANGES  IN  TRADE  CONDITIONS  IN  RECENT  YEARS 


Perhaps  no  port  in  the  Far  East  has  grown  so  rapidly  in  com¬ 
merce  and  population  in  recent  years  as  has  Antung.  During  the 
10-year  period  from  1913  to  1923  the  sea-borne  trade,  which  relates 
to  goods  consumed  and  produced  in  Antung  alone,  increased  four¬ 
fold. 

The  population  of  the  city  in  the  period  1913  to  1923  is  estimated 
to  have  increased  threefold.  While  the  imports  for  local  consump¬ 
tion  have  grown  proportionately,  it  is  the  industrial  development 
of  the  port  that  is  most  astonishing. 

Year  after  year  since  1913  exports  have  exceeded  imports  in  in¬ 
creasing  proportions.  The  wealth  represented  by  this  steady  excess 
has  remained  in  the  land,  and  its  manifestations  are  apparent  every¬ 
where. 

The  phenomenal  growth  of  the  port  must  be  attributed  to  the 
completion  of  the  Antung-Mukden  Railway  in  1911  and  to  its  link¬ 
ing  up  with  the  Japanese  Government  Railway  sj^stem  in  1913  by 
means  of  the  Yalu  River  bridge.  The  Antung-Mukden  Railway 
affords  a  striking  example  of  the  potentialities  for  trade  and  indus¬ 
trial  development  lying  in  railroad  construction  in  China. 


CHANGSHA  CONSULAR  DISTRICT 


By  Vice  Consul  C.  D.  Meinhardt 

LOCATION  AND  AREA 

The  Changsha  consular  district  lies  south  of  the  Yangtze  River  in 
Central  China  and  includes  Hunan  Province,  with  an  area  of 
83,000  square  miles,  and  Kweichow  Province,  with  an  area  of  67,000 
square  miles.  It  is  thus  the  equivalent  in  size  to  New  England, 
New  York,  and  Indiana  combined,  and  lies  between  25°  and  30° 
north  latitude,  about  the  same  as  Florida. 

The  climate  is  damp,  with  much  fog  and  many  clouds,  especially 
in  winter  and  spring.  The  average  annual  rainfall  is  60  inches. 
May  and  June  are  the  rainiest  months,  late  summer  and  autumn  con¬ 
stituting  the  dry  season.  The  average  minimum  temperature  is  56° 
F.  and  the  average  maximum  temperature  71°  F. 

POPULATION 

The  Chinese  postal  census  of  1910  estimated  the  population  at 
40,000,000 — 29,000,000  in  Hunan  and  11,000,000  in  Kweichow.  The 
average  density  for  Hunan  is  350  per  square  mile,  for  Kweichow 
165,  and  for  the  whole  district  267.  The  foreign  population  num¬ 
bers  about  900,  including  400  Americans,  200  Japanese,  and  150 
British. 

CITIES 


In  the  following  table  is  given  the  estimated  population  of  the 
important  cities  in  this  consular  district : 


City 

Population, 

estimated 

Europeans 

Americans 

American 

business 

firms 

HUNAN 

Changsha1  ..  . . . . 

535, 800 

140 

140 

2 

Changteh _  _  _ _ _ _ 

300, 000 

15 

10 

None. 

Siangtan _  _  _ _ 

300, 000 

5 

31 

None. 

Yochow  1  _ _ _  _  . 

4,  500 

10 

35 

None. 

KWEICHOW 

Kweiyang _ __  _  .  .  . .  _ 

100, 000 

None. 

k  • 

1  Treaty  port. 


The  other  principal  cities  in  Hunan  are  :  Hengchow,  21  Americans ; 
Filing,  18  Americans;  Chenchow,  18  Americans;  Paoking  and  Yung- 
chowT.  In  Kweichow  the  chief  cities  are  Anshun,  Tsunyi,  and 
Hsingyi,  with  no  American  residents.  None  of  these  cities  have  a 
population  of  more  than  50,000. 

There  are  no  foreign  concessions  or  settlements  in  the  district. 

581 


582 


COMMERCIAL  HANDBOOK  OF  CHINA 


Changsha  and  Siangtan  are  the  chief  distributing  centers  for  the 
trade  of  eastern  and  central  Hunan,  while  Yochow  and  Changteh 
are  distributing  centers  for  the  north  and  west. 

AGRICULTURE 

Changsha  produces  a  great  variety  of  products  of  the  soil,  as  rice, 
tea,  beans,  ramie,  sesame,  bamboo,  wood  oil,  vegetable  tallow,  cotton, 
tobacco,  melons,  fruits,  wheat,  buckwheat,  barley,  maize,-  yams, 
opium,  indigo,  taro,  ginger,  water  chestnuts,  and  arrowroot  (or  lily 
root). 

The  production  per  acre  of  these  crops  is  extremely  difficult  to  as¬ 
certain  owing  to  the  irregularity  of  the  fields  and  the  varied  units 
of  measurement.  The  annual  rice  harvest  is  estimated  at  about 
360,000,000  bushels;  cotton,  260,000  piculs  (1  picul  equals  180 
pounds)  ;  wheat,  330,000  bushels.  From  2  to  3  piculs  of  180  pounds 
each  of  rice  are  produced  per  mow,  or  about  54  bushels  per  acre. 
Beans  are  said  to  average  about  14  bushels  per  acre,  and  tobacco 
about  1,200  pounds. 

MINERALS  AND  MINING 

Hunan  has  large  deposits  of  antimony,  lead,  zinc,  iron,  tin,  bis¬ 
muth,  tungsten,  coal,  manganese,  arsenic,  and  quicksilver.  It  is  the 
yearly  exports  of  approximately  $3,000,000  (United  States  currency) 
worth  of  these  products  that  settles  for  a  substantial  part  of  the 
Province’s  yearly  import  of  $11,000,000  (United  States  currency) 
worth  of  foreign  goods.  Still  the  present  production  of  ores  is  no 
criterion  of  the  mineral  wealth  of  the  Province.  The  Hunanese, 
according  to  their  own  historians,  have  been  miners  since  the  time 
of  the  Chou  dynasty  (1122  to  255  B.  C.),  and  yet  the  number  of 
minerals  in  the  Province  has  not  been  completely  determined  nor  the 
extent  of  deposits  ascertained.  The  scanty  reports  which  come  from 
Kweichow  suggest  considerable  mineral  wealth,  but  its  exploitation 
is  not  as  yet  of  much  importance  and  will  not  be  until  political, 
commercial,  and  transportation  conditions  are  improved. 

ANTIMONY 

The  antimony  deposits  of  Hunan  are  the  most  extensive  in  the 
world,  and  it  is  from  these  deposits  that  well  over  50  per  cent  of  the 
world’s  demand  is  supplied.  The  principal  mining  fields  are  located 
in  the  central  part  of  the  Province,  in  a  section  bounded  by  the  four 
cities  of  Yiyang,  Siangtan,  Mukangchow,  and  Yuanchow.  The 
largest  deposits  are  near  Yiyang,  Paoking,  Sinhwa,  and  Sikwang- 
shan,  the  latter  being  the  most  important  source  of  production  at  the 
present  time.  Qualified  engineers  have  estimated  the  visible  ton¬ 
nage  at  2,000,000  tons  of  ore.  The  ore  is  stibnite  (antimony  sul¬ 
phide),  and  occurs  in  the  form  of  seams,  pockets,  and  masses  em¬ 
bedded  in  a  stratum  of  quartzite  sandstone  150  feet  thick  covered  by 
a  45-foot  layer  of  limestone.  The  richness  of  the  ores  varies  from 
those  mined  at  Sikwangshan,  which  average  about  25  per  cent  anti¬ 
mony,  to  some  of  the  small  outlying  mines,  which  have  as  high  as 
60  per  cent  of  the  metal.  Most  of  the  picked  ore  which  is  being 
exported  at  this  time  contains  30  per  cent  of  antimony.  Antimony 


CHANGSHA  CONSULAR  DISTRICT 


583 


crude  assays  about  70  per  cent  antimony,  while  antimony  regulus  is 
usually  warranted  to  be  99.5  per  cent  pure,  arsenic  being  the  most 
conspicuous  impurity.  Some  antimony  oxide  is  also  produced  for 
export  by  furnaces  located  at  Sikwangshan.  The  number  of  anti¬ 
mony  mines  and  mining  companies  is  variously  estimated  at  from 
200  to  300.  Some  are  active,  but  many  are  not.  An  increase  in  the 
price  of  antimony  usually  brings  some  of  the  inactive  ones  into  life ; 
a  fall  in  the  price  produces  the  opposite  result. 

Mining  for  the  most  part  is  done  in  a  primitive  Chinese  fashion, 
galleries  being  driven  in  all  directions  without  any  attempt  at  syste¬ 
matization.  The  small  mining  companies  either  sell  to  the  smelters 
located  near  the  mines  or  have  their  ores  treated  by  them,  making 
payment  in  kind,  and  generally  sell  the  crude  or  regulus  through 
Chinese  brokers  to  the  exporting  firms  located  in  Changsha.  The 
Herrenschmidt  process  is  used  in  producing  the  regulus. 

LEAD  AND  ZINC 


The  lead-zinc  zone,  as  it  is  denominated  by  local  mining  engi¬ 
neers,  comprises  a  diagonal  section  of  the  Province  about  75  miles 
wide,  extending  in  a  northeast-southwesterly  direction  across  the 
Province  and  lying  to  the  south  of  the  antimony  zone.  The  place 
these  two  minerals  occupy  in  the  industrial  life  of  the  Province  may 
be  understood  from  the  customs  statistics  for  1923,  which  show  a 
combined  export  of  lead  and  zinc  valued  at  1,107,060  teals.  The 
principal  production  center  for  these  ores  at  present  is  at  Shuikou- 
shan,  212  miles  south  of  Changsha  or  32  miles  south  of  Hengchow 
on  the  Siang  River.  There  are  other  small  mines,  the  only  one  of 
importance,  however,  being  that  near  Chenchow  under  the  control  of 
a  German  company. 

The  ore  deposits  at  Shuikoushan  consist  of  large  irregularly 
shaped  bodies  of  galena,  zinc  blend,  and  iron  and  copper  pyrites. 
Official  records  covering  the  past  20  years  show  that  the  mine  has 
produced  during  this  period  more  than  50,000  tons  of  lead  con¬ 
centrates  and  i26,000  tons  of  zinc  concentrates,  but  there  are 
abundant  evidences  that  the  mines  have,  been  worked  by  the  natives 
for  centuries.  The  average  value  of  mine  samples  is  9  ounces  silver, 
12.4  per  cent  lead,  and  26.7  per  cent  zinc.  Both  the  Shuikoushan 
and  the  Chenchow  mines  are  nearly  exhausted  unless  new  deposits 
are  discovered.  The  Shuikoushan  mines  are  controlled  by  the 
Hunan  government,  and  purchases  of  ores  by  exporting  companies 
must  be  made  through  two  or  three  conflicting  groups  of  govern¬ 
ment  officials,  which  renders  purchasing  by  foreign  exporting  firms 
difficult  and  uncertain. 


TIN 


The  tin  deposits  are  located  in  the  most  southerly  part  of  Hunan, 
in  what  is  known  as  the  tin-tungsten-bismuth  zone.  Since  the 
larger  part  of  the  tin  mined  in  Hunan  moves  south  through  Kwang- 
tung,  it  is  impossible  to  say  what  amount  is  produced.  The  ores 
are  cassiterite  embedded  in  limestone  tilted  and  marmorized  by  the 
granite  mass.  The  limestone  is  probably  Devonian.  The  tin  of 
Hunan  is  of  very  good  quality;  the  ores  assay  about  70  per  cent 
tin;  and  the  smelted  metal  is  usually  99  per  cent  pure  tin,  the  im- 


584 


COMMERCIAL  HANDBOOK  OF  CHINA 


purities  being  small  quantities  or  traces  of  antimony,  arsenic,  copper, 
lead,  silver,  and  bismuth. 

There  are  many  tin  mines  being  worked,  usually  by  small  Chinese 
companies,  which  have  concessions  from  the  Hunan  government. 
The  most  productive  mines  are  in  the  Ichang  and  Lanhwa  districts. 
With  the  concessions  which  the  mining  companies  receive  from  the 
Hunan  Board  of  Mines  goes  the  stipulation  that  all  ores  shall  be 
sold  to  the  board  at  a  price  agreed  upon  beforehand.  The  Govern¬ 
ment,  therefore,  controls  most  of  the  output  of  tin. 

TUNGSTEN  AND  BISMUTH 

Tungsten  occurs  principally  in  the  mountains  on  the  south  and 
southwest  border  of  Hunan  in  deposits  which  are  associated  with 
tin  and  bismuth.  The  ore  is  wolframite  (tungstate  of  iron  and 
manganese)  ;  the  tungsten  trioxide  (W03)  content  averages  68  per 
cent;  but  the  concentration  of  the  metal  so  far  has  proved  to  be 
rather  low  and  it  is  not  unusual  to  find  3  to  4  per  cent  of  tin  and 
2  to  3  per  cent  of  arsenic.  There  are  over  200  Chinese  companies 
engaged  in  the  mining  of  tungsten.  Operations  are  conducted  in 
the  most  primitive  fashion  and  marketing  is  carried  on  in  very 
much  the  same  manner  as  in  the  case  of  antimony — that  is,  selling 
through  brokers  to  Changsha  exporting  firms.  According  to 
engineers  who  have  crossed  the  country,  wolfram  exists  in  large 
quantities;  an  increase  in  the  demand  for  tungsten  would  greatly 
accelerate  the  production  in  Hunan,  for  the  present  exports  are  no 
criterion  of  the  potential  output. 

A  French  mining  engineer,  after  making  a  survey  of  the  Province, 
stated  that  in  the  future  bismuth  would  probably  be  the  most  gen¬ 
erally  exploited  mineral  in  Hunan.  The  present  production  of  bis¬ 
muth,  the  export  of  which  does  not  even  call  for  separate  entry  in 
the  customs  returns,  is  infinitesimal  in  comparison  with  the  resources. 
The  bismuth,  which  occurs  as  a  sulphide,  is  combined  chemically 
with  lead  and  mechanically  with  iron  pyrites.  A  French  company 
is  smelting  a  little  bismuth  at  present,  but  production  on  a  paying 
basis  requires  a  more  extensive  outlay  of  capital  than  any  company 
under  existing  conditions  is  willing  to  make. 

IRON  AND  MANGANESE 

Little  progress  has  been  made  in  the  working  of  the  reported 
extensive  iron  resources  of  Hunan.  The  principal  producing  section 
at  present  is  in  the  south  central  part  of  the  Province,  with  the  city 
of  Paoking  as  a  center.  Native  methods  of  mining  and  smelting 
are  used  and  the  pigs  are  shipped  to  the  larger  cities  of  the  Prov¬ 
ince  for  the  use  of  the  local  ironworkers  only. 

Manganese  occurs  abundantly  in  Hunan,  but  there  is  compara¬ 
tively  little  of  the  ore  which  is  of  an  exportable  quality — that  is, 
45  per  cent  or  over  of  manganese,  under  10  per  cent  of  silica,  and 
less  than  2  per  cent  of  sulphur.  However,  ore  coming  up  to  these 
specifications  is  mined  in  the  Siangtan  district,  30  miles  south  of 
Changsha.  Large  deposits  containing  38  and  40  per  cent  of  man¬ 
ganese  are  to  be  found  at  Leiyang  and  Changning,  south  of  Heng- 
chow,  which  could  be  very  profitably  used  if  the  Province  ever  de- 


CHANGSHA  CONSULAR  DISTRICT 


585 


velops  into  a  steel-producing  center.  Most  of  the  exports  of  man¬ 
ganese  from  Hunan  are  for  Chinese  or  Japanese  consumption. 

ARSENIC 

Arsenic  in  both  its  mispickel  and  realgar  forms  is  mined  in  Hunan. 
The  principal  production  centers  are  in  the  Chenchow  and  Kwei- 
yang  districts  in  the  south  and  in  Fenghwang  district  in  the  west. 
The  white  arsenic  ore  (mispickel)  carries  from  8  to  15  per  cent  of 
arsenic ;  the  percentage  of  arsenic  in  the  realgar  is  somewhat  higher. 
The  realgar  is  unimportant  from  the  standpoint  of  foreign  trade; 
white  arsenic,  on  the  other  hand,  within  the  past  few  years  has  be¬ 
come  an  important  article  of  export,  particularly  to  the  United 
States.  The  mining  is  carried  on  after  native  methods  by  Chinese 
mining  companies,  which  sell  the  refined  arsenic  oxide  “  cake  ”  to 
exporting  firms. 

QUICKSILVER 

Mercury  occurs  in  the  west  of  Hunan  near  the  border  of  Kwei¬ 
chow.  Only  two  mines  are  being  worked  at  this  time — one*  at 
Hantzuping,  20  miles  west  of  Fenghwang,  and  the  second  at  Tatung, 
25  miles  southwest  of  that  town.  The  ore  is  cinnabar  (mercuric 
sulphide).  At  Hantzuping  the  deposits,  in  which  cinnabar  is  asso¬ 
ciated  with  a  carbonaceous  material,  occur  under  a  layer  of  dolomite 
6  feet  thick.  At  Tatung  the  ore  is  embedded  in  a  mass  of  dolomite 
slate  100  feet  thick  in  small  crystals.  The  mines  show  evidences  of 
having  been  worked  for  several  centuries.  At  both  mines  the  richer, 
picked  ore  is  crushed  by  hand  and  panned  down  for  the  cinnabar 
content,  but  the  poorer  ore  and  the  tailings  from  the  panning  are 
retorted  for  their  quicksilver  content.  The  production  of  cinnabar 
and  quicksilver  in  Hunan  is  several  times  larger  than  the  customs 
statistics  show,  since  much  of  the  cinnabar  is  consumed  locally  and 
a  part  of  the  quicksilver  finds  its  way  out  of  the  Province  through 
other  avenues  than  the  customhouses. 

GOLD  AND  SILVER 

Gold  is  washed  in  several  places  in  the  Province,  but  it  is  secured 
in  paying  quantities  only  at  the  mines  located  in  Pinkiang,  in  north¬ 
western  Hunan.  These  mines  are  controlled  by  the  Hunan  Board  of 
Mines.  A  local  mining  engineer  has  stated  that  there  are  large  de¬ 
posits  in  the  Pinkiang  mines  which,  if  worked  in  a  modern  and  ef¬ 
ficient  way,  could  be  made  to  produce  gold  in  considerable  quantities. 
Other  gold  mines  are  located  in  the  district  of  Taoyuan,  on  the  Yuan 
River;  at  Liulincha,  in  the  district  of  Shenchow;  and  at  Huitung, 
in  the  southwestern  part  of  the  Province.  Some  silver  is  obtained 
in  the  production  of  other  minerals,  notably  lead,  but  the  amount 
is  not  large  and  is  consumed  locally  by  the  silversmiths. 

COAL  AND  COKE 

The  coal  fields  of  Hunan  are  rich  and  extensive,  containing  both 
the  anthracite  and  bituminous  varieties.  The  largest  fields  occur 
between  the  Siang  River  and  the  eastern  border  of  the  Province. 
Richthofen  estimates  the  area  of  these  eastern  fields  to  be  approxi- 


586 


COMMERCIAL  HANDBOOK  OF  CHINA 


mately  21,700  square  miles,  but  points  out  that  a  great  part  of  the 
area  is  covered  by  a  sediment  many  thousand  feet  thick  and  more 
recent  in  age  than  the  coal  formation.  He  divides  this  field  into  two 
nearly  equal  portions,  calling  one  the  Lei  River  field  and  the  other 
the  Siang  River  field.  Of  the  Lei  River  field  the  most  important 
region  is  situated  on  both  sides  of  the  Lei  River.  All  of  these  de¬ 
posits  are  anthracite. 

The  Siang  River  coal  field  is  a  reappearance  of  the  coal  measures 
north  of  the  Lei  River  field  where  the  Lei  River  joins  the  Siang. 
Here,  however,  the  measures  are  quite  different  in  character  from  the 
formations  in  the  Leiyang  field  and  probably  precede  them  in  age. 
They  bear  bituminous  coal  altogether. 

Coal  is  also  found  in  the  west  of  the  Province  around  Shenchow 
and  Yuanchow.  Fairly  large  deposits  occur  in  the  district  about 
Paoking,  whence  the  coal  is  exported  by  the  Tzu  River  to  Hankow. 
The  mining  and  trade  in  Hunan  coal  is  entirely  in  the  hands  of 
small  Chinese  companies.  Under  more  efficient  management  and  by 
the  employment  of  modern  mining  methods  the  output  of  coal  in 
Hunan  could  be  increased  many  times  and  the’  cost  of  production 
substantiallv  reduced. 

Much  of  the  coal  and  practically  all  of  the  coke  exported  through 
the  Changsha  customhouse  originates  in  the  adjoining  Province  of 
Kiangsi  at  the  Anyuan  mines  near  the  Hunan  border.  The  trade  is 
entirely  in  the  hands  of  the  Chinese. 

OTHER  MINERALS 

Other  minerals  found  in  LIunan  in  varied  amounts  and  exploited 
only  slightly  or  not  at  all  include  sulphur,  graphite,  alum,  nickel, 
cobalt,  copper,  molybdenum,  and  asbestos.  Although  there  are  large 
deposits  of  graphite  in  Hunan,  it  is  all  amorphous,  and  hence  enters 
very  little  into  the  trade  of  the  Province.  The  mines  might  be 
worked  profitably  on  a  large  scale  under  foreign  management.  Sul¬ 
phur  is  produced  principally  at  Pingkiang,  Sinhwa,  and  Chenchow 
from  the  destructive  distillation  of  iron  pyrites.  Alum  is  mined 
in  small  quantities  for  local  consumption.  Cobalt,  copper,  and  nickel 
are  found  in  variable  quantities  in  the  lead-zinc  zone  and  molyb¬ 
denum  in  the  zone  of  tin,  tungsten,  and  bismuth. 

TRADE  IN  MINERALS 

The  Hunan  Board  of  Mines  has  supervision  over  all  the  mining 
enterprises  of  Hunan ;  in  some  cases  this  supervision  amounts  to 
direct  control,  as  in  the  case  of  the  lead-zinc  mines  at  Shuikoushan, 
in  others  to  only  nominal  control.  It  is  a  well-known  regulation  of 
the  Chinese  Government  that  foreigners  can  not  own  a  controlling 
interest  in  mining  enterprises,  and  it  is  this  regulaton  more  than 
anything  else  which  is  responsible  for  the  slow  development  of  the 
mineral  resources  of  Hunan.  Some  of  the  foreign  companies  located 
in  Changsha  are  taking  a  more  or  less  active  part  in  the  mining  and 
smelting  end  of  the  business,  but  they  are  constantly  beset  with  diffi¬ 
culties.  In  some  cases  advances  of  capital  are  made  to  Chinese 
mining  companies  which  contract  to  turn  over  a  certain  per  cent  of 
the  output  of  the  mine  to  the  investor ;  in  other  cases  the  foreign  firm 
takes  virtual  control,  operating  under  grants  to  Chinese  firms. 


CHANGSHA  CONSULAR  DISTRICT  587 


Neither  of  these  methods,  however,  has  proved  to  be  a  satisfactory 
substitution  for  legal  proprietorship. 

The  bulk  of  the  trade,  therefore,  is  conducted  through  the  medium 
of  Chinese  brokers  or  representatives  of  mining  companies  who 
arrange  contracts  between  the  foreign  exporting  companies  and 
the  producers.  The  customary  manner  of  payment  is  cash  against 
delivery  in  Changsha  godowns  (warehouses),  but  the  practice  of 
paying  “  bargain  money  ”  upon  contracts  has  grown  up. 

Owing  to  certain  local  trade  conditions,  direct  trade  in  minerals 
between  foreign  importers  and  Chinese  mining  companies  is  gen¬ 
erally  impracticable  and  often  impossible.  The  company  wishing 
to  purchase  Hunan  minerals  must  either  establish  its  own  agency 
in  Changsha  or  buy  through  the  exporting  firms  which  are  located 
there  and  are  engaged  in  the  business. 

The  following  table  contains  the  exports  of  minerals  from  Hunan 
for  the  calendar  year  1923.  The  United  States  took  50  per  cent  of 
the  antimony  exports  for  that  year,  and  large  portions  of  the  arsenic, 
tungsten,  and  quicksilver  shipments.  The  greater  part  of  the  zinc 
and  lead  went  to  Germany  and  Belgium;  coal,  coke,  and  manganese 
to  Japan ;  and  tin  and  tungsten  to  Hongkong  for  transshipment. 


Items 


Antimony: 
Regulus 
Crude. . 

Ore _ 

Arsenic _ 

Coal _ 

Coke _ 

Lead: 

Smelted 
Ore _ 


1923 

Items 

1923 

Quantity 

Value 

Quantity 

Value 

Haikwan 

Haikivan 

Piculs 

taels 

Piculs 

taels 

193, 962 

1, 250,  778 

Manganese  ore  . . . 

318,  713 

128, 629 

47,  027 

221,  606 

Quicksilver.  _  .... 

385 

50,  436 

32,  849 

152,  575 

Tin,  in  slabs... 

2,  447 

138,  647 

5,  480 

49,  649 

Tungsten  ore.  .  . 

4,  878 

48, 155 

i  80,  744 

484,  464 

Zinc: 

1  160,  590 

2,  354,  249 

Spelter  ... 

10,  607 

97,  584 

Ore _  .  .  ... 

979,  473 

658,  812 

49 

529 

84,  509 

284,  211 

1  Tons. 

Note. — One  picul  equals  133^  pounds  avoirdupois,  and  the  value  of  the  haikwan  tael  in  1923  was  80 
cents,  United  States  currency. 


MANUFACTURING  AND  INDUSTRIAL  DEVELOPMENT 


Statistics  relative  to  Hunan  industries  are  not  available,  and  esti¬ 
mates  as  to  the  capacity,  capitalization,  and  output  of  native  en¬ 
terprises,  with  a  few  exceptions,  would  be  pure  guesswork,  apt  to 
be  more  misleading  than  informative.  The  industries  of  the  two 
Provinces  are  still  in  the  domestic  handicraft  stage  which  obtained 
in  Europe  prior  to  the  industrial  revolution. 

Cloth  dyeing  and  weaving;  paper  making;  the  manufacture  of 
firecrackers,  grass  cloth,  furniture,  hair  rugs,  paper  umbrellas;  em¬ 
broidering,  oil  pressing,  tea  firing;  and  the  making  of  iron,  brass, 
and  pewter  ware — each  is  an  important  industry  made  up  of  hun¬ 
dreds — in  some  cases,  thousands — of  home,  farm,  and  small-shop  pro¬ 
ducers  whose  individual  contributions  when  lumped  together  make 
an  aggregate  output  of  considerable  size.  The  more  than  $1,000,000 
worth  of  synthetic  dyes  which  are  imported  into  Hunan  is  evidence 
of  the  fact  that  cloth  dyeing  is  an  important  industry,  yet  it  is 


588  COMMERCIAL  HANDBOOK  OE  CHINA 

doubtful  that  any  one  of  the  hundreds  of  dyeing  shops  has  a  capitali¬ 
zation  of  $1,000. 

Cotton  weaving  and  spinning  fall  within  the  same  category,  ex¬ 
cept  that  in  the  case  of  the  flatter  a  modern  cotton-spinning  mill 
supplements  the  output  of  tlie  spinning  wheels.  This  mill  is  the 
property  of  the  Hunan  government,  which  has  leased  it  to  local 
business  men  for  a  period  of  15  years.  The  capitalization  of  the 
leasing  company  is  $600,000  (silver)  and  the  value  of  the  mill  prop¬ 
erty  is  estimated  at  $1,600,000.  There  are  60,000  spindles  in  the 
mill,  the  number  of  employees  is  2,200  (one-third  of  normal  number), 
and  the  monthly  output  averages  2,400  bales  of  yarn.  There  is  one 
flour  mill  in  Hunan,  located  at  Changsha,  with  a  capitalization  of 
$200,000  (silver),  an  annual  output  valued  at  $200,000  (silver),  and 
a  working  force  of  326  men,  which  partially  supplies  the  local  de¬ 
mand  for  wheat  flour.  Three  small  glass  factories  located  at 
Changsha  manufacture,  for  local  consumption,  oil  lamps,  lamp  chim¬ 
neys,  glass  tiles,  and  vases,  the  value  of  their  combined  yearly 
output  being  something  over  $75,000  (silver.) 

Furniture  making,  manufacturing  of  shoes  and  leather  goods, 
and  tailoring,  though  often  overlooked  because  of  their  small-scale 
character,  occupy  positions  of  importancce  in  the  industrial  life  of 
the  Province  both  as  employers  of  thousands  of  workmen  and  as 
makers  of  practically  all  of  the  clothing,  shoes,  and  household  fur¬ 
nishings  used  by  the  natives. 

The  yearly  exports  of  firecrackers,  valued  at  $1,000,000;  paper, 
$290,000;  grass  cloth,  $150,000;  brass  ware,  $12,000;  umbrellas, 
$130,000;  and  rugs,  $3,000,  which  are  only  a  fraction  of  the  total 
production,  since  the  local  consumption  of  these  commodities  is  very 
large,  represent  the  output  of  hundreds  of  small  producers,  who  roll 
the  firecrackers  by  hand,  manufacture  the  paper,  brass  ware,  and 
umbrellas,  and  weave  the  grass  cloth  and  rugs  in  their  homes  or 
shops  and  sell  to  native  retailers  or  to  firms  which  assemble  the 
goods  for  export.  Tea  firing  and  oil  pressing  are  done  for  the 
most  part  on  the  farm  of  the  producer.  Wood  oil  is  expressed  by 
means  of  crude  wooden  presses,  the  inefficiency  of  which  is  responsible 
for  considerable  waste.  The  large  volume  of  trade  in  wood  oil 
will  eventually  demand  more  modern  and  scientific  methods  in  the 
production.  The  brick  and  tile  kilns  of  Hunan  completely  supply 
the  large  and  general  demand  for  this  type  of  building  material. 
The  product  of  the  kilns  is  not,  as  a  rule,  of  very  durable  quality, 
although  bricks  made  in  Liling  are  said  to  be  of  excellent  grade. 
The  individual  brickyards  do  not  represent  the  investment  of  much 
capital,  but  the  aggregate  capitalization  of  such  industries  is  well 
over  $1,000,000  (silver). 

LABOR  CONDITIONS 

A  noteworthy  recent  development  affecting  labor  conditions  in 
Hunan  has  been  the  general  advance  in  the  scale  of  wages.  This 
has  been  particularly  noticeable  in  the  building  trades,  which  have 
been  very  active  during  recent  years  because  of  the  street-widening 
program  initiated  in  Changsha  as  well  as  in  other  cities  of  the 
Province.  The  pay  for  carpenters  and  bricklayers  has  increased 
from  35  to  50  cents  a  day  in  silver  and  that  for  unskilled  helpers 


CHANGSHA  CONSULAR  DISTRICT 


589 


from  25  to  30  cents  a  day.  Employees  in  the  mining  and  smelting 
industries  receive  a  minimum  of  40  cents  a  day ;  those  in  the  dyeing 
trades  receive  about  the  same  amount  but  with  food  and  lodging 
included.  Weavers  are  furnished  their  food  and  paid  35  cents  a 
day;  pieceworkers  in  the  cotton  mill  are  paid  from  25  cents  to  $1 
a  day,  according  to  the  nature  of  their  work.  The  wages  of  work¬ 
ers  in  the  trades  connected  with  the  manufacture  of  firecrackers, 
glass,  flour,  umbrellas,  etc.,  are  determined  by  the  amount  of  work 
turned  out.  The  average  increase  in  wages  may  be  roughly  placed 
at  25  per  cent.  The  average  number  of  hours  in  a  working  day  is 
10,  although  workers  receiving  piece  wages  usually  work  longer, 
and  employees  in  the  cotton  mill  have  an  8-hour  schedule. 

The  employment  of  women  and  children  in  Hunan  is  quite  com¬ 
mon,  especially  in  the  making  of  firecrackers,  embroidery,  grass 
cloth,  and  other  piecework  trades  which  allow  the  laborers  to  work 
in  their  homes.  The  spinning  and  weaving  industries  are  also  large 
employers  of  female  labor.  The  rate  of  wages  for  the  type  of  labor 
under  discussion  is  substantially  less  than  that  for  male  workers. 

The  laborers  in  the  various  branches  of  industry  are  organized 
into  labor  unions,  which  in  turn  are  united  into  a  general  federation 
of  labor  with  headquarters  at  Changsha. 

TRANSPORTATION  AND  COMMUNICATION 

WATERWAYS 

The  thousands  of  miles  of  rivers  in  Hunan  furnish  its  chief  means 
of  transportation,  in  which  thousands  of  junks  are  used.  Junk 
transportation  rates  are  subject  to  extreme  and  sudden  fluctuations, 
due  to  difficulties  of  navigation,  shortage  of  boats,  military  dis¬ 
turbances,  and  bandits.  All  shipping  arrangements  must  be  made 
locally.  Likin  is  collected  on  goods  in  transit,  except  between  the 
treaty  ports  of  Changsha  and  Yochow.  The  rates  of  taxation  are 
not  published,  and  so  vary  with  conditions.  In  addition,  small  des¬ 
tination  taxes  are  often  levied  on  goods  at  the  end  of  their  journey. 

RAILWAYS 

There  are  no  railway  lines  under  construction,  but  it  is  expected 
that  the  Hunan  section,  270  miles,  of  the  Canton-Hankow  Railway 
will  eventually  be  continued  for  about  250  miles  to  connect  with 
the  Kwangtung  section.  This  line  will  then  be  one  of  the  most 
important  trunk  lines  of  the  country.  At  present  the  roadbed  and 
rolling  stock  of  the  line  are  in  a  very  dilapidated  condition,  owing 
to  the  exhaustion  of  capital  and  the  frequent  commandeering  of 
the  line  by  the  military.  Coal  and  coke  from  the  mines  at  Anyuan, 
Kiangsi,  now  furnish  the  chief  freight. 

ROADS 

Thirty  miles  of  the  road  from  Changsha  to  Siangtan  are  con¬ 
structed  for  and  30  miles  adaptable  to  motor  transportation. 

The  road  from  Siangtan  to  Siangsiang  has  29  miles  constructed 
for  and  29  miles  that  can  be  adapted  to  motor  transportation.  A 
continuation  of  this  road  is  partially  completed  for  30  miles  more 
to  Yungfeng,  and  a  still  further  stretch  of  60  miles  is  contemplated. 


590 


COMMERCIAL  HANDBOOK  OF  CHINA 


Another  road,  approximately  100  miles  long,  has  been  started  to  con¬ 
nect  Hengchowfu  and  Chenchow  in  southern  Hunan. 

Motor  cars,  carts,  and  camels  are  not  used  for  the  transportation 
of  goods,  nor  are  pack  animals  extensively  used. 

TELEGRAPHS 

The  Chinese  Government  Telegraph  Administration  maintains  64 
offices  in  the  district.  The  service  is  slow,  inefficient,  and  unreliable, 
owing  to  the  semi-independence  of  the  two  Provinces.  There  are  no 
cables  and  no  wireless  stations. 

TELEPHONES 

The  only  telephone  system  in  the  district  is  at  Changsha,  operated 
by  the  Hunan  Telephone  Administration.  It  has  a  manual  ex¬ 
change,  with  934  telephones  in  use.  A  line  with  a  single  telephone 
at  the  end  extends  to  Siangtan,  30  miles  south  of  Changsha.  Tele¬ 
phone  rates  are  $6  Mex.  per  month,  and  a  deposit  of  $30  Mex.  is 
required  from  subscribers.  Equipment  is  of  American  make. 

POSTAL  FACILITIES 

An  efficient  postal  service  reaches  all  cities  and  many  smaller 
places  in  the  district.  The  usual  facilities  are  offered. 

PUBLIC  UTILITIES 

ELECTRIC-LIGHT  PLANTS 

The  electric-light  companies  in  the  district,  all  owned  and  oper¬ 
ated  by  Chinese,  are : 

The  Hunan  Electric  Light  &  Power  Co.,  Changsha,  Hunan. — Generator 
capacity,  1,525  K.  V.  A.;  units,  3  German  (A.  E.  G.)  generators  200  K.  V.  A. 
each,  one  German  (Siemens)  generator  300  K.  V.  A.,  one  American  generator 
625  K.  V.  A. ;  prime  movers,  4  steam  engines  and  one  600  horsepower  steam 
turbine ;  current,  alternating,  50  cycles,  220  voltage  at  customers’  terminals ; 
number  of  customers,  4,000;  service,  18  hours  in  24;  rates,  15  cents  (silver) 
per  kilowatt  hour ;  flat  charge  of  $1  per  month  per  light  in  absence  of  meter. 

Kwang  Hwa  Electric  Light  Co.,  Changsha,  Hunan. — Generator  capacity  650 
K.  V.  A.;  make  of  generator  A.  E.  G.  (German)  ;  prime  movers,  two  Curtis 
steam  turbines ;  current,  alternating,  50  cycles,  220  voltage  at  customers’ 
terminals ;  number  of  customers,  2,000 ;  service,  14  hours  in  24 ;  rates,  15 
cents  per  kilowatt  hour  or  flat  charge  for  each  light  in  absence  of  meter  of 
$1  per  month. 

Yiyang  Electric  Light  Co.,  Yiyang,  Hunan. — Two  units,  American  make  ;  prime 
mover,  one  steam  turbine  (American  make)  ;  current,  alternating,  60  cycles, 
125  volts;  number  of  customers,  1,000;  service,  9  hours  in  24;  rates,  $1  (Yuan) 
per  month  per  light ;  no  meters. 

The  Tung  Hai  Electric  Light  Co.,  Yochow,  Hunan. — Generator,  Japanese 
make  (Masaki  Iron  Works)  ;  capacity,  42  kilowatts;  prime  mover,  one  petrol¬ 
eum  engine  (Japanese)  ;  current,  direct,  120  voltage  at  generator  and  termi¬ 
nals;  number  of  customers,  500;  service,  8  hours  in  24;  charge,  $1.20  (Yuan) 
per  month  per  light. 

Electrification  in  Hunan  is  progressing  at  an  encouraging  rate, 
there  being  many  cities  and  some  of  the  mines  in  the  Province  which 
await  only  the  coming  of  more  stable  political  conditions  before 
establishing  electric  power  and  light  plants.  The  rivers  flowing 
through  the  mountainous  mineralized  regions  afford  abundant  oppor¬ 
tunities  for  the  utilization  of  their  “  white  coal.” 


CHANGSHA  CONSULAR  DISTRICT 


591 


WATERWORKS 

There  are  no  waterworks  in  the  district,  although  a  system  is  badly 
needed  at  Changsha,  and  even  in  some  of  the  smaller  cities. 

SHIPPING  AND  WAREHOUSING  FACILITIES 

HARBOR  FACILITIES 

As  all  of  the  ports  in  Hunan  are  river  ports  without  any  public 
docks,  dock  accommodations,  or  special  facilities  for  the  handling  of 
cargo,  it  is  necessary  for  all  steamers,  tugs,  and  lighters  to  anchor 
in  the  stream  or  alongside  private  floating  docks  or  pontoons. 
Coolie  carriers  and  open  boats  are  used  for  transferring  cargo  from 
vessels  to  shore.  The  depth  of  water  varies  with  the  season  and  the 
distance  from  shore.  For  instance,  in  summer,  ocean-going  vessels 
can  anchor  at  Yochow,  and  coasting  vessels  can  even  reach  Chang¬ 
sha;  but  when  the  water  is  low,  not  even  the  shallow-draft  river 
steamers  can  leave  the  Yangtze  River  at  Yochow  to  enter  the 
waters  of  this  Province.  Cargo  for  the  interior  is  transshipped 
at  Changsha,  Yochow,  Changteh,  and  Siangtan  for  shipment  farther 
into  the  interior  by  junks.  These  are  sometimes  towed  by  launches. 

Cargo-handling  facilities  for  heavy  cargo  must  be  provided  by  the 
ships  or  lighters  conveying  it,  for  there  are  no  cranes,  shears,  or  other 
devices  for  the  handling  of  cargo  at  any  of  the  ports.  The  rate  at 
which  cargo  is  discharged  from  vessels  depends  upon  the  number 
of  coolies  who  can  work  without  interfering  with  each  other. 

The  customary  precautions  should  be  taken  in  the  packing  and 
marking  of  packages  to  guard  against  pilferage  and  wet  weather. 

WAREHOUSING 

All  ordinary  needs  for  storage  facilities  are  met  in  all  of  the  trad¬ 
ing  centers  of  the  district  by  private  warehouses,  mainly  owned  by 
the  foreign  shipping  companies.  The  warehouses  are  generally  of 
brick  construction,  with  wood  used  in  some  of  the  interiors.  Goods 
are  transported  by  coolies  and  wheelbarrows.  Cargo  can  seldom  be 
stored  in  the  open  owing  to  the  humidity  and  frequent  rainfall. 
Storage  charges  average  about  1  tael  a  ton  per  month  in  first-class 
warehouses. 

EXPORT  AND  IMPORT  TRADE 

The  value,  in  haikwan  taels,  of  the  exports  and  imports  of  this 
district  for  the  years  1913  and  1923  are  shown  in  the  following 
table : 


Port 

Exports 

Imports 

Exports  and  imports 

1913 

1923 

1913 

1923 

1913 

% 

1923 

Changsha _ - 

Haikwan  taels 
8,  719,  525 
3,  635,  050 

Haikwan  taels 
15,  729,  983 
15, 498,  678 

Haikwan  taels 
12,  778, 157 
2, 133,  257 

Haikwan  taels 
10. 909, 204 
4,  525, 133 

Haikwan  taels 
21,  497,  682 
5,  768,  307 

Haikwan  taels 
26,  639,187 
20, 023,  811 

Yochow. . . 

Total _ 

12,  354,  575 

31,  228,  661 

14,911,414 

15,  434,  337 

27,  265,  989 

46,  662,  998 

Note. — The  value  of  the  haikwan  tael  in  1913  was  73  cents  (United  States  currency);  in  1923  it  was  80 
cents. 


592 


COMMERCIAL  HANDBOOK  OF  CHINA 


EXPORTS 

The  exports  of  minerals  and  metals  have  been  discussed  in  the  sec¬ 
tion  given  to  the  treatment  of  that  subject,  and  it  is  only  necessary 
here  to  call  attention  to  the  growth  in  the  trade  in  these  products 
during  the  years  covered  by  the  tables.  The  dominant  place  wdiich 
wood  oil  (tung  oil)  occupies  in  the  exports  from  Yochow  is  worthy 
of  note;  practically  all  of  this  oil  goes  to  the  United  States.  Since 
a  great  part  of  the  exports  from  Changsha  and  Yochow  is  sent 
to  Hankow  and  Shanghai  for  invoicing  and  export,  no  figures  are 
obtainable  as  to  the  final  destination  of  the  goods  except  in  a  gen¬ 
eral  way.  Thus,  since  it  is  known  that  the  United  States  is  one  of 
China’s  best  customers  for  such  products  as  antimony,  wood  oil, 
tungsten,  bristles,  feathers,  and  firecrackers,  and  as  Changsha  and 
Yochow  are  exporters  of  these  products,  it  is  safe  to  assume  that 
there  is  a  considerable  trade  between  this  district  and  the  United 
States. 

In  the  following  table  are  given  the  quantity  and  value  of  the  prin¬ 
cipal  exports  through  the  port  of  Changsha  for  the  j^ears  1913 
and  1923 : 


* 

Items 

1913 

1923 

Quantity 

Value 

Quantity 

Value 

Haikwan 

Haikwan 

Piculs 

taels 

Piculs 

taels 

Hides  and  skins _  _  _ _ _ 

9, 467 

209,  214 

800 

12, 800 

Feathers,.,  _  _ _ _ 

940 

10,  643 

657 

10, 243 

Bamboo  shoots _  ...  _ _  _  .  ... 

1,946 

59,  655 

3, 341 

73, 045 

Cereals: 

Rice. . .  . .  . .  .  ..  .  . 

314,  712 

711,  248 

685,  744 

1, 960, 463 

Wheat  ...  _ _ _ _  ... _ 

14,  330 

40, 123 

8,  835 

19, 878 

Fruit,  dried...  ...  ...  . .  . . . 

125 

1,412 

1,057 

17,  842 

Chinese  wood  oil  .  .  .  _  ______ 

14, 123 

216  505 

Tea  oil _ _ _  _  _  ...  _ 

268 

2,  973 

3;  030 

34,  330 

Tea,  black .  ...  ...  ... _ _ _ 

20 

567 

31,  220 

999, 040 

Camphor  ...  ...  ...  .  .  _  ...  ..  .  ...  ..  .. 

81 

4, 007 

79 

5, 093 

Tobacco,  leaf  ..  ..  _ _  _  _ 

1, 138 

16, 153 

10,  015 

120, 180 

Carpets .  ..  .  ..  _ 

4,  922 

Cordage _  _  _  ...  .  ...  ..  . 

46 

520 

406 

4,  361 

Cotton  ..  .  ..  ...  _ 

50 

183 

Grass  cloth _  _  _  ..  ..  ..  ...  ..  ...  _ _ 

1,408 

243,  377 

798 

220,  722 

Hair,  human  _  .  ....... _ _ 

2,316 

148,  688 

1,508 

63,  331 

Hemp _  _  ..  ..  _ _  _ _ _ _ _ 

28,  370 

255, 045 

22,  704 

423, 656 

Paper: 

First  quality..  ..  ..  _ _ _ 

252 

7,  797 

713 

10,  452 

Second  quality  .  .  .  _ _ _ _ 

40, 117 

319,  332 

30,  937 

319, 884 

Joss..  ..  _  .  .  ...  _ 1 _ 

2,359 

15,  936 

2,  916 

19,  675 

Coal _ _  ...  _  .  .... 

i  257,  924 

1,  612,  025 

1  80,  744 

484,  464 

Coke.  _  .  _  _ ...  .  .  . . . 

»  137,  306 

1, 194,  525 

1  160,  590 

2,  354,  249 

Antimony: 

Regulus.  ...  .  .  _ _ _  _ _ 

151,  536 

637, 080 

193,  962 

1,  250,  778 

Crude.. .  .  __________  ..  _ _ 

47, 027 

221,  606 

Refuse ...  _  _ _  _ _ _  _ 

105,  756 

35,  589 

Ore _  .  ..  .-_  ......  .  _  ...... 

70, 039 

137;  374 

32,  849 

152,  575 

Iron,  pig - 

4,  200 

15,  330 

3,  495 

11,673 

Lead.  .  ....  _  _  _ 

9,  978 

60, 453 

Lead  ore _ _  _  _  _  _  _  ... 

59,  590 

177,  350 

84,  509 

28L  211 

Manganese  ore. _  .  _  .....  .  ... 

318,  713 

128,  629 

Tin  in  slabs.  ..  .  _  ...  .  _  .  ... 

2,  970 

99,  934 

2,  447 

138, 647 

Tungsten  ore...  .  .  .  _ ...  .... _ 

4,  878 

48, 155 

Zinc  ore _  ......  ....  . 

163,  850 

146,  295 

979,  473 

658, 812 

Zinc  spelter  .  .....  .  .  .  ......... 

200 

2,426 

10,  607 

97,  584 

Brass  ware  .,  .....  .....  . . 

1,534 

21, 132 

469 

17,  705 

Arsenic.  _! _  .....  .  _  ..  .  ...  _ 

3,  793 

50, 869 

5,  480 

49,  649 

Fireworks _  .  ........  ...  _ 

62, 052 

768, 199 

96,297 

1,  604,  308 

Medicines _  .  _  ...  .... _ 

28,  525 

34,  075 

Realgar  _  _  .  ..  .  ... _ _ 

1,  142 

2, 034 

56 

588 

Bristles _  _ _ _ _ 

880 

42,  812 

835 

124,  306 

Umbrellas,  paper _  _ ....  _ _  .  . 

2  73,  780 

9,  931 

2  132, 126 

23,  782 

1  Tons.  2  Pieces. 

Note. — One  picul  equals  133K  pounds  avoirdupois.  The  value  of  the  haikwan  tael  in  1913  was  73  cents; 
in  1923,  80  cents. 


593 


CHANGSHA  CONSULAR  DISTRICT 


In  the  following  table  are  given  the  quantity  and  value  of  the  prin¬ 
cipal  exports  through  the  port  of  Yochow  for  the  years  1913  and 
1923 : 


Hides  and  skins _ 

Tallow,  animal _ 

Wax,  yellow _ 

Feathers _ 

Bamboo  shoots. . 

Rice _ 

Chinese  wood  oil _ 

Seeds: 

Lily - 

Rape _ 

Sesame _ 

Tallow,  vegetable _ 

Tea: 

Black _ 

Green _ 

Leaf _ 

Camphor _ 

Nutgalls _ 

Coir _ _ 

Ramie _ 

Cotton _ 

Paper,  second  quality 

Medicines _ 

Soda _ 

Varnish _ 

Bristles... _ _ 


1913 


1923 


Items 


Quantity 


Piculs 


Value 


Haikwan 

taels 


Quantity 


Piculs 


Value 


Haikwan 

taels 


8, 493 
223 
117 
347 


322,  753 
2,560 
4,666 
4,080 


849,  968  1,  929,  384 

36,  813  329, 108 


7,571 

618 

76 

370 

275 


220,  251 
9,468 
3,086 
6,112 
9,367 


463,  914 


1,  861,  355 


5,745 


71, 123 


8,  447  55,  919 

5,  657  62,  793 


7,238 

862 

13 

7,899 


238, 130 
2,  326 
84 

89,  812 


2 

4 

1,287 

5 

7,280 


45 
65 
13, 082 
247 
153, 026 


4,  057 
1,  377 
384 


58,  380 
25,  764 
1,  396 
6,  620 


2,  675  67,  785 

301  8, 086 


6,253 
110 
819 
160 
24,  264 
2,265 
48, 051 
28,  464 
37 


1, 315 
5,072 
87 


141,318 
1,417 
5,311 
7,  896 
457,  619 
13,  068 
665,  506 
962,  937 
295 
62,  056 
10,  069 
262,  730 
3,  962 


Note.— One  picul  equals  1333^  pounds  avoirdupois.  The  value  of  the  haikwan  tael  in  1913  was  73  cents ; 
in  1923  it  was  80  cents. 

IMPORTS 

The  greater  part  of  the  goods  entered  at  Yochow  are  destined  for 
Changteh  (a  city  more  important  commercially  than  Yochow)  and 
the  northwest  part  of  the  Province.  Changsha,  on  the  other  hand, 
although  it  is  the  reservoir  from  which  the  southern  half  of  the 
Province  draws  its  supplies  of  foreign  goods,  is  itself  the  largest 
and  most  advanced  market  for  such  goods  in  Hunan. 

No  figures  can  be  given  regarding  the  sources  of  foreign  goods, 
since  practically  all  such  trade,  with  the  exception  of  that  from 
Japan,  is  indirect,  but  rough  estimates,  based  on  observations  in  the 
Changsha  market,  may  be  made  for  some  of  the  more  important 
articles.  The  piece-goods  trade  is  dominated  by  Great  Britain  and 
Japan;  the  United  States  and  Great  Britain  divide  the  petroleum 
trade  between  them;  Germany  has  OA^er  50  per  cent  of  the  trade  in 
dyes,  with  the  United  States  and  Japan  having  about  equal  shares; 
Hongkong  and  J apan  furnish  most  of  the  local  import  of  sugar ;  the 
British  and  Chinese  control  the  tobacco  market;  machinery  is  fur¬ 
nished  by  the  United  States,  Germany,  England,  and  Japan  (there 
is  a  growing  preference  for  American  machinery  and  electrical  sup¬ 
plies)  ;  Belgium  is  the  source  of  most  of  the  glass;  France  and  Japan 
of  the  perfumes,  toilet  articles,  and  soaps;  the  United  States  and 
Great  Britain  of  the  tinned  plates;  the  United  States  has  a  large 
portion  of  the  trade  in  canned  foods;  and  Japan  furnishes  the 

100020°—  26 - 39 


594 


COMMERCIAL  HANDBOOK  OF  CHINA 


greater  part  of  such  products  as  buttons,  needles,  stationery,  utensils, 
lamps  and  lampware,  toys,  and  many  cheap  articles  of  manufacture. 

As  stated,  most  of  the  import  trade  passes  through  Hankow  and 
Shanghai  importing  houses  before  reaching  this  district.  Local 
agencies  or  branches  are  maintained  by  the  firms  dealing  in  such 
articles  as  kerosene,  dyes,  machinery,  cigarettes,  toilet  articles,  and 
electrical  supplies.  Many  of  the  local  dealers  in  foreign  goods  ef¬ 
fect  purchases  through  representatives  which  they  send  periodically 
to  Shanghai  or  through  Chinese  merchant  guilds  in  that  city  with 
whom  they  maintain  connections. 

While  it  would  seem  that  so  extensive  and  varied  a  mining  in¬ 
dustry  as  exists  in  Hunan  would  afford  a  considerable  market  for 
mining  machinery,  such  is  not  the  case.  Much  of  the  machinery 
which  was  imported  during  the  prosperous  years  of  expansion, 
near  the  end  of  and  just  after  the  World  War,  has  been  abandoned 
because  its  use  was  unprofitable  or  because  it  was  ruined  by  careless 
handling.  This  is  a  discouraging  but  nevertheless  true  state  of 
affairs.  There  is,  of  course,  some  machinery  used  at  the  Shuikoushan 
lead-zinc  mines  and  at  the  Sikwangshan  antimony  mines,  but  the 
vast  majority  of  the  ores  are  extracted  without  the  aid  of  machinery. 
Cheap  labor  (40  cents  silver  a  day  for  a  miner),  inexperienced  and 
careless  operators,  the  small  size  of  claims,  and  the  risk  involved  in 
making  large  capital  investments  because  of  the  political  unrest  in 
the  Province,  with  its  concomitant  insecurity  of  property,  makes  a 
large-scale  introduction  of  mining  machinery  unprofitable  and  im¬ 
practicable. 

In  the  following  table  is  shown  the  quantity  and  value  of  the 
principal  imports  through  the  port  of  Changsha  in  the  years  1913 
and  1923 : 


1913 


1923 


Items 


Fish  and  fishery  products... 

Leather . . 

Machine  belting - 

Milk,  condensed... . 

Flour _ _ 

Fruits,  dried - - 

Pepper,  white  and  black _ 

Sugar _ _ _ 

Agar-agar . . 

Cigarettes _ 

India-rubber  products _ 

Cotton  piece  goods: 

Shirtings . . . 

Sheetings _ 

Printed  cottons _ 

Dyed  cottons _ _ 

Drills - - - .* — 

Flannel _ 

Unenumerated _ 

Cotton  yarn _ 

Woolen  and  cotton  mixtures 

Woolen  goods _ 

Bags  of  all  kinds _ 

Clothing _ 

Books _ _ _ 

Furniture- _ _ 

Paper _ _ _ 

Sandalwood _ _ _ 

Stationery. . 


Quantity 


Value 


Quantity 


Value 


Haikwan 

taels 


Haikwan 

taels 


piculs. .  4, 049 

..do 458 


piculs 


_ do _ 

_ do _ 

_ do _ 

_ do _ 

_ do _ 

thousands.. 


471 
1,644 
3,  788 
183,  875 
40,  928 
30,009 


89,  524 
42,  052 
2,121 
9,908 
1,854 
29,  581 
71,  643 
987,  919 
103,  356 
65, 144 
2,146 


3,  234 
1,  679 


912 
1,788 
7,  251 
4, 445 
104,  721 
29,  883 
13,412 


104,691 
81,  262 
6, 570 
23,  200 
8,205 
112,714 
74, 176 
1, 015,  814 
128, 499 
84, 080 
17,  657 


pieces.. 

..do _ 

..do _ 

..do _ 

..do _ 

..do _ 


510,  394 

44,  060 
57,  590 

185,  073 
55,  346 

45,  987 


piculs. . 


60, 106 


pieces. . 


1, 081, 193 


piculs.. 


9,003 


1, 960, 161 
114, 811 
116,  329 
815,  743 
209,  949 
153,  400 
606,  859 
1,  502,  549 
156,  497 
246,  059 
156,  189 
55,  049 
13,  761 
5,  327 
135, 467 
87,964 
46,361 


116, 972 
17,  980 
21,  638 
97, 190 
50 
4, 328 


7,119 


6,515 


1,  398,811 
108, 144 
118,313 
807, 053 
336 
23,  261 
228,  560 
395,  710 
53,  370 
44,718 
67,  097 
35,  307 
5,278 
15,  820 
124,  223 

60. 852 

20.852 


CHANGSHA  CONSULAR  DISTRICT 


595 


1913 


1923 


Items 

Quantity 

Crucibles  _  _  _ 

Gasoline  and  petroL  -  ..  _  _ gallons.. 

Lamps  and  lamp  ware.  .  _  _ _ _ 

5,051 

Looking-glass  and  mirrors.  _  _  .  .  _ _ 

Oil: 

Kerosene . .  ...  ...  .  ...  gallons.. 

Lubricating...  .  .  ...  .  .do  ... 

Glass  (window)  and  glassware  ...  _  ..  ... 

8,  228, 958 
59,091 

Copper,  bars,  ingots,  slabs  _  ...  ..  ..  .piculs  . 

Lead,  pigs  and  bars.  ....  .  ...do  ... 

Iron  and  mild  steel,  old  and  new _ do _ 

Tin  in  slabs . . .  .  .  .  do _ 

Tinned  plates _  ....  ...  _  .  ...do _ 

Bedsteads.  .  .  ..-  ...  ..  ..  .  pieces.. 

Clocks  and  watches . . . .  .  .  _ do _ 

Needles..  .  .  ...  ...  .  ....  thousands.. 

Electrical  materials  and  fittings...  ..  .  . . 

25,  630 
6,888 
89,  263 
195 
13, 091 
633 
21, 335 
187, 130 

Machinery.  ..  _  ..  .  .  .  ..... _ 

Machines,  sewing,  etc _  _ _  .  .  .  _ _ 

Telegraph  and  telephone  materials..  _ _  ... _ 

Dyes: 

Aniline _ _ _  _ _ _  . 

Indigo,  artificial. ..  . .  -...  ..piculs  . 

Medicines.  ........  ------  .  .... 

17, 034 

Paints  and  paint  oil . . . piculs  . 

Perfumery  and  cosmetics _  ...  . .  . 

355 

Soaps  and  materials  for  making  .  . .  ..  ..  .. 

Soda _  _  ......  __  ..  . 

7,  973 
17,  061 
286 

Buttons... . .  ..  _  ..  _  ..gross.. 

Candles.  .  ...  _ _  .  _  ..  .  .  piculs.. 

Instruments,  muscial  and  scientific _  . 

Photographic  materials _  _ .  _  ....  ..  _ 

Postal  parcels.  _ _  _ _  ..' _ _ 

Printing  and  lithographic  materials  _  .  .  .  ...  _ 

Toys  and  games...  ..  .  _ _  .  .  _ 

Umbrellas _  ....  _  ..  ..  .  ..pieces  . 

176,  668 

Value 


Haikwan 
taels 
17,  592 
1,333 
68,  591 
12,  360 

992,  649 
17,  928 
66,  111 
777,  680 
48, 974 
319, 070 
8, 465 

87,  847 
5,567 

27,  922 
37,  426 
44,  468 
306, 117 
33,  350 
44, 421 

148,  028 
478,  840 

88,  330 
3,  735 

12,  600 
46,  597 
16,  593 

6,  727 
3,203 

28, 496 

7,  923 
63, 431 
36,  217 

5, 408 
74,  615 


Quantity 


8,719 


9,  512,  870 
98,  698 


169 
3,  716 
15,  698 
344 

21,  888 
326 
9,  201 
76, 450 


8,514 


497 


4,  822 
35,  442 
926 


115,  690 


Value 


Haikwan 
taels 
28,  277 
6,  028 

50,  872 
28,804 

2,  892,  716 
43,  663 
72,  861 
5,  505 
32, 992 
86, 956 
21, 186 
195,  616 
5,  759 

22,  789 
22, 830 
55, 131 

176,  037 
22, 977 
4,527 

625,  810 
442,  217 
67,  270 

51,  683 
49,  818 

23,  226 
12,  822 
12,  279 
17,  730 
16,  067 
10,  328 
57, 677 
19,  347 
12, 123 
67,  552 


In  the  following  table  are  shown  the  quantity  and  value  of  the 
principal  imports  through  the  port  of  Yochow  for  the  years  1913 
and  1923: 


Items 

1913 

1923 

Quantity 

Value 

Quantity 

Value 

Leather _ ✓ _ _ piculs 

Haikwan 

taels 

447 
2, 985 
228 
86,  273 
1,788 
2,  965 

Haikwan 
taels 
21,082 
6,512 
1,138 
805,  508 
25,  437 
27, 049 
1,231 

1, 376,  636 
108, 144 
71,  709 
658,  985 
291 
169,  723 
40, 255 
28, 199 
32,  284 
1,949 
5, 951 
15,  643 
8,298 
3,123 
9, 437 
10,  779 

Milk,  condensed  _  ..  .  ..  ...  dozens. . 

Flour  _ _ _ _ _  .....  .  ..  piculs.. 

1,075 

1,642 

Sugar.. . .  .  .  ...  ..  _  .  __\do  ... 

Pepper  ..  .  ..  ..  ..  ...... _  do _ 

Cigarettes  _  ..  .  _ _ _  _ _  thousands .. 

India-rubber  products.  ...  .  _  .  . . 

7,  269 
40 
2,  360 

39, 808 
806 
5, 068 

Cotton  piece  goods: 

Shirtings  _  _ _  .  .  ....  _ pieces.  _ 

Sheetings..  _ _  .  ...  .do _ 

Printed  .  .  _ _ ...  ........  .  do _ 

Dyed  -  -  - do _ 

Drills _ ...  .  .  _  ...  _  ..  do _ 

Unenumerated. _  ..  ..  ..  ...  ...  ...  .  .  ... 

112,  801 
1,070 
3,739 
38,  781 
10, 148 

922, 143 
114,  811 
22,  313 
180,  619 
39, 050 
94,  527 
941,046 
18,  866 
16,  600 
37,  436 
6, 465 
3,788 
264 
1,438 
446 

4, 185 

114,  486 
17, 980 
12,  890 
76,  590 
49 

Cotton  yarn _  _  ...  .  ...  _ piculs.. 

Cotton  and  woolen  mixtures  .  .  .... 

37,  433 

682 

Woolen  goods  ..  .  .  _  ...  _ 

Bags  of  all  kinds  .  ..  ...  _  _ pieces.. 

Clothing.. .  _ _ _  . 

260, 900 

21,  266 

Paper _ _  .  _ 

Sandalwood _  _ _  _ _  _ _ _  .  piculs.. 

Stationery  ..  ..  ....  ..  ...  _  .  _  ...  . 

27 

642 

Glass  windows  ...  ..  _  ...  .  .  . . boxes.. 

Lamps  and  lamp  ware... . . . . . 

127 

2, 087 

596 


COMMERCIAL  HANDBOOK  OF  CHINA 


Items 

1913 

1923 

Quantity 

Value 

Quantity 

Value 

Oil: 

Kerosene. . . . .  .  _ gallons.. 

Lubricating..  ..  .  .  _  ..  .do  ... 

Lead,  pigs  and  bars  _  ...  .  ....  piculs  . 

Iron  and  mild  steel  (all  kinds)  _  .  _ _  .  do _ 

Steel  ..  _ _ _  ... _  ... _  ..  _ _ 

902, 510 
103 

7 

1,159 

6 

850 

Haikwan 
taels 
148, 104 
28 
50 
5, 391 
30 

1,100 

1,919 

1,024 

Q3 

6, 006 

7,011 
478, 840 
2,630 
32 
95 
2,115 
3, 006 
216 
202 
144 
262 
10, 665 
3,825 

2, 495,  245 
1, 703 
589 
3,  262 
1,075 
723 

Haikwan 
taels 
787, 735 
788 
5,144 
20, 975 

5,  982 
2,150 
9,  577 

12,  438 
12,  394 

4,  353 

40, 286 
220, 995 
10,  776 
1,256 
11,276 

6,  766 
2,  977 
1,287 

5,  591 
3, 099 

125 
17,549 
10,  680 

Clocks  and  watches .  .  ....  ..  _  .pieces.. 

Enamelware  .  . . .  .  _ _  _ 

Needles _  _  .  ...  ...  thousands.. 

Electrical  materials  and  fittings  .  .  .  .  ..  .  . . . 

5,120 

40,  274 

Machines,  sewing,  etc _  ..  .  _ _ _ 

Dyes: 

Aniline.  .....  .  _ _  _ ...  _ 

Indigo,  artificial .  .  _  _ _ _  .piculs.. 

Medicines  _ _ _  _  ..  .  _ 

3,  360 

3, 936 

Paint  and  paint  oils.. .  ...  _ _  ..  piculs.. 

Perfumes  and  cosmetics  .  .  .  _  _ 

4 

74 

Soaps  and  materials  for  making  _  _ 

Soda.  _  .  .  .  _  piculs. . 

Buttons _  ..  _  .  _  ..  gross.. 

Candies _ _ ....  .  .  _  .  ..  ipiculs.. 

Photographic  materials  ..  ..  .  _ _ _ _ 

1,  339 
600 
18 

899 
3, 362 
313 

Postal  parcels.  .  .  ..  .  .  .  ..  _ _ 

Stores,  household _ _ _ _ _  _  _ 

Umbrellas.  ..  ..  _  ..  _ _ pieces.. 

9,240 

19, 376 

MONEY,  BANKING,  AND  CREDIT 

BANKS 

There  being  no  foreign  banks  in  the  district,  foreign  exchange 
must  be  handled  through  the  banks  in  Shanghai  or  Hankow.  A 
few  modern  Chinese  banks  have  agencies  in  Changsha  only  to  facili¬ 
tate  note  redemption  and  remittances,  but  they  do  not  finance  trade. 
There  are  many  private  “  native  banks  ”  making  short-term  loans 
at  high  interest,  but  a  city  of  the  size  and  importance  of  Changsha 
needs  a  sound  modern  bank. 

LOCAL  CURRENCY 

The  currencies  mainly  used  in  this  district  are  “  clean  ”  Chinese 
silver  dollars  and  light-weight  double  coppers,  or  20-cash  pieces. 
Large  amounts  of  Hankow  dollar  bank  notes  are  in  circulation, 
particular^  those  issued  by  the  Bank  of  China  and  Bank  of  Com¬ 
munications.  Kwangtung  20-cent  silver  coins  are  common  in  south¬ 
ern  Hunan,  but  are  seldom  used  elsewhere.  Other  coins  and  silver 
sycee  are  very  seldom  met  with.  Only  a  few  dollars,  fractional 
and  copper  notes,  are  issued  in  Hunan  by  private  institutions  and 
chambers  of  commerce.  Owing  to  past  experiences  with  worthless 
paper  currency  the  Hunanese  are  very  loath  to  permit  the  issuance  of 
irredeemable  paper  currency  by  the  Government  or  any  of  its  insti¬ 
tutions.  In  Kweichow,  however,  fairly  large  amounts  of  notes  have 
been  forced  on  the  people  by  the  constantly  shifting  troops,  with  the 
result  that  the  notes  are  greatly  discounted. 

Seasonal  demands  bring  about  marked  changes  in  the  amounts  of 
silver  dollars  and  dollar  notes  in  circulation ;  an  excess  of  provincial 
exports  over  imports  creates  a  demand  for  ready  money  which  must 
be  met  by  its  shipment  from  Hankow.  This  proves  to  be  costly 
when  transportation  facilities  are  lacking  or  are  insecure,  as  in  times 
of  low  water  and  military  disturbances.  Again,  excessive  imports 


CHANGSHA  CONSULAR  DISTRICT 


597 


or  heavy  up-country  purchasing  creates  a  demand  for  remittances 
on  Shanghai  and  Hankow,  which  has  even  forced  notes  to  a  premium, 
when  silver  shipments  were  difficult  to  make.  Remittance  charges  to 
Shanghai  are  usually  one-half  of  1  per  cent,  but  sometimes  go  as 
high  as  3  or  5  per  cent.  Foreign-exchange  fluctuations  are  not 
greatly  felt,  since  most  foreign  trade  is  carried  on  through  down¬ 
river  ports,  and  much  of  the  trade  in  and  out  of  the  district  is  only 
from  or  to  other  parts  of  the  country. 

CREDITS 

No  facilities  exist  for  the  financing  of  import  or  export  trade,  which 
is  therefore  required  to  seek  such  facilities  from  the  foreign  banks 
in  Shanghai  and  Hankow,  where  branches  of  the  larger  firms  exist. 
Within  the  district  itself  native  drafts  issued  by  the  merchants  on 
their  representatives  in  other  cities,  as  well  as  the  actual  transporta¬ 
tion  of  money,  are  common  forms  of  remittances.  Native  trade  is 
financed  by  short  personal  loans  payable  the  1st  and  15th  of  each 
moon. 

ADVERTISING 

Six  daily  newspapers  with  a  combined  circulation  of  15,000,  sev¬ 
eral  educational  and  industrial  monthly  magazines,  picture  shows, 
free  space  for  posters,  and  a  population  of  ready  and  impressionable 
recipients  of  free  samples  and  such  novelties  as  calendars,  caps,  and 
fans  offer  ample  opportunity  to  the  firm  or  agency  for  bringing 
its  wares  to  the  attention  of  the  local  public.  The  two  magazines 
meriting  special  mention  are  the  Shih  Yeh  Tsa  Chih,  an  industrial 
monthly,  and  the  Kwang  Yeh  Tsa  Chih,  a  mining  monthly.  The 
Hunanese  are  thorough  readers  of  their  papers  and  an  attractive 
advertisement,  in  Chinese,  of  course,  is  a  sure  way  of  bringing  for¬ 
eign  goods  to  the  notice  of  the  consumers. 

The  large  amount  of  centrally  located  free  wall  space  in  Changsha 
and  other  cities  renders  the  employment  of  posters  an  especially 
effective  method  of  advertising. 

TRADE  ORGANIZATIONS 

The  chief  trade  organizations  in  this  district  are  the  Chinese 
chambers  of  commerce  located  in  all  the  important  cities  and  the 
British  Chamber  of  Commerce  in  Changsha.  Closely  related  to  the 
chambers  of  commerce  are  the  trade  and  provincial  guilds,  which 
are  generally  mutual  aid  societies  receiving  contributions  from  its 
members  for  the  benefit  of  those  in  need.  They  stabilize  trade  and 
regulate  its  customs  and  practices. 

TRAVEL  FACILITIES 

Changsha  is  best  reached  by  one  of  the  passenger  steamers  plying 
between  that  city  and  Hankow  during  the  high-water  season  from 
April  to  November.  The  railway  journey  is  tedious,  uncomfortable, 
and  lacking  in  the  usually  expected  facilities  for  meals,  heating, 
lighting,  and  sleeping  arrangements. 

Hotel  accommodations  in  Changsha 'for  foreigners  leave  much  to 
be  desired.  Travelers,  therefore,  often  prefer  to  lodge  on  board 


598 


COMMERCIAL  HANDBOOK  OF  CHINA 


ship  while  in  port,  if  they  are  not  so  fortunate  as  to  have  friends 
in  the  city  to  whom  they  can  go.  Accommodations  may  be  secured 
at  the  Changsha  Hotel,  the  Tien  Lou  Chu,  and  the  Italian  Hotel, 
all  under  Chinese  management. 

PROPERTY  VALUES  AND  RENTS 

Desirable  business  locations  at  Changsha  are  expensive,  especially 
for  foreign  firms.  From  $1  to  $2  silver  has  been  paid  per  square 
foot  for  land  on  the  bund  by  foreign  concerns.  Office  buildings  con¬ 
taining  eight  rooms  rent  for  $250  silver  per  month.  Warehouse  rent 
depends  upon  several  conditions,  such  as  the  type  of  the  building, 
location,  height  above  flood  level,  and  rental  period.  The  shipping 
companies  charge  about  1  tael  per  ton  for  storing  ordinary  mer¬ 
chandise.  Foreign-style  houses  are  seldom  for  rent,  but  when  they 
can  be  secured,  about  $150  must  be  paid  per  month  for  a  medium¬ 
sized  house.  Even  then  plumbing  and  heating  facilities  are  seldom 
supplied. 

Except  for  taxes  of  8  per  cent  of  the  value  of  the  property  levied 
when  real  estate  is  transferred,  the  only  property  taxes  collected 
are  certain  police  taxes,  approximately  equivalent  to  half  a  month 
rent  collected  semiannually.  The  cost  of  street  improvements  and 
lighting  is  shared  by  the  adjacent  occupants. 

LIVING  COSTS 

Since  there  are  no  hotels  or  boarding  houses  catering  to  foreigners 
or  at  all  suitable  for  them,  it  is  practically  essential  for  all  perma¬ 
nent  residents  to  keep  house  for  themselves.  Room  and  board  may 
be  occasionally  secured  for  from  $60  to  $150  silver  per  month. 

Club  dues  are  but  $5  per  month.  There  are  no  motor  cars,  but 
private  rickshas  are  generally  necessary.  They  cost  about  $150 
each  and  require  a  monthly  expenditure  of  $12  for  maintenance. 
Tennis  and  pony  riding  afford  practically  the  only  recreation 
facilities  at  moderate  costs.  The  education  of  children  is  a  serious 
problem,  the  solution  of  which  has  been  aided  by  the  employment 
of  a  teacher  for  foreign  children  by  the  Yale  Mission. 

CHANGE  IN  TRADE  CONDITIONS  IN  RECENT  YEARS 

The  most  significant  change  or  development  in  trade  conditions 
in  the  Changsha  consular  district  during  recent  years  has  been  the 
enlarged  role  which  the  United  States  plays  in  the  commerce  of  the 
district.  Because  of  America’s  large  imports  of  raw  products,  such 
as  wood  oil,  antimony,  tungsten,  arsenic,  fireworks,  and  bristles, 
which  were  much  less  10  years  ago,  it  is  Hunan’s  best  customer.  Ten 
years  ago  the  products  of  the  United  States,  excepting  kerosene  and 
machinery,  were  scarce  in  the  district.  To-day  American  dyes,  elec¬ 
trical  supplies,  canned  food  products  and  flour,  rubber  goods,  per¬ 
fumery  and  cosmetics,  and  many  other  sundry  manufactures  occupy 
prominent  places  in  the  imports  of  the  district. 

Another  turn  which  the  trade  has  taken  in  recent  years  is  the  in¬ 
creased  use  of  Chinese  manufactured  goods,  such  as  textiles,  soaps, 
utensils,  cigarettes,  and  cheap  manufactures  imitating  western 
products. 


CHEFOO  CONSULAR  DISTRICT 


By  Vice  Consul  A.  Grant  Swaney 

LOCATION  AND  AREA 

The  Chef oo  consular  district  consists  of  the  12  hsien  (counties) 
comprising  the  great  Shantung  Promontory,  which  extends  north¬ 
westward  from  northern  China,  separating  the  Gulf  of  Chihli 
(Pechili)  and  the  Yellow  Sea.  Its  area  is  approximately  10,000 
square  miles,  or  slightly  greater  than  that  of  Vermont.  Lying  be¬ 
tween  36°  10'  and  37°  50'  N.  latitude,  it  approximates  the  latitudinal 
belt  of  central  California,  but  the  climate  is  more  nearly  that  of  the 
New  England  States. 

The  rainfall  for  1922  at  Chefoo,  which  is  situated  on  the  northern 
coast  of  the  district,  wTas  31.46  inches.  The  rainy  season  occurs  dur¬ 
ing  the  months  of  June,  July,  and  August.  The  winters,  although 
somewhat  shorter  than  New  England  winters,  are  at  times  severely 
cold.  Snowfalls  are  heaviest  in  late  December  and  January.  Chefoo 
had  a  mean  monthly  maximum  temperature  for  1922  of  80°,  and  a 
mean  monthly  minimum  temperature  of  25.3°  F.  The  average  max¬ 
imum  temperature  was  62°  F.,  and  the  average  minimum  tempera¬ 
ture  48°.  The  district  is  subject  to  prolonged  droughts  and  sudden 
floods,  but  the  latter  are  not  destructive  of  life  and  property  as  are 
the  inundations  of  the  low  plain  in  the  north  central  part  of  Shan¬ 
tung  Province,  in  the  Tsinan  consular  district. 

PHYSICAL  FEATURES 

The  Chefoo  district  in  general  is  extremely  rough  and  moun¬ 
tainous.  Low  hills  along  the  seacoast  give  place  farther  back  to 
mountain  peaks,  which  are  well  over  3,000  feet  high  in  the  north 
central  part  of  the  promontory,  where  they  form  the  north-south 
watershed.  The  north-flowing  streams  empty  into  the  Gulf  of 
Chihli  and  the  south-flowing  ones  into  the  Yellow  Sea. 

In  the  southwestern  section  the  mountains  decrease  in  elevation, 
becoming  low  hills  which  gradually  merge  into  a  low  plain  subject 
to  inundation,  it  being  the  drainage  area  of  the  rivers  flowing  almost 
due  north,  parallel  to  the  course  of  the  Yellow  River,  and  emptying 
into  the  Gulf  of  Chihli. 

There  is  almost  a  total  absence  of  forests  in  the  district,  though 
there  are  growths  of  stunted  oak  and  pine  on  the  mountain  ranges. 

POPULATION 

The  population  of  the  district  is  estimated  at  4,039,342  (Chinese 
Post  Office  estimate,  1922),  or  about  that  of  Texas.  The  population 
averages  404  to  the  square  mile,  or  about  equal  to  that  of  New 

599 


600 


COMMERCIAL  HANDBOOK  OF  CHINA 


Jersey.  The  most  densely  populated  regions  are  along  the  seacoast 
and  the  numerous  small  streams  of  the  interior,  where  the  natives 
more  easily  find  a  livelihood  than  in  the  mountainous  regions. 

CITIES 

Chef oo  has  a  population  estimated  at  90,000,  but,  as  there  is  a  large 
floating  element,  it  is  likely  that  during  certain  seasons  the  number 
falls  far  below  that.  In  Chefoo  reside  about  700  foreigners,  about 
50  of  whom  are  Americans.  There  are  149  American  citizens  in  the 
consular  district.  The  city  covers  an  area  of  about  12  square  miles, 
is  under  the  direct  administration  of  a  Chinese  territorial  official 
(taoyin),  and  is  policed  by  Chinese.  A  section  of  the  town  has  been 
settled  by  foreigners  for  residential  and  business  purposes,  and 
although  this  area  is  under  Chinese  administration,  such  municipal 
matters  as  lighting,  drainage,  sanitation,  and  fire  protection  are  in 
the  hands  of  an  international  committee,  composed  equally  of 
foreigners  and  Chinese. 

Consulates  are  maintained  by  the  United  States,  Great  Britain, 
France,  and  Japan.  In  addition  there  are  honorary  acting  consu]s 
for  the  Netherlands,  Norway,  and  Belgium,  and  an  honorary  acting 
vice  consul  for  Sweden. 

Chefoo  was  opened  as  a  port  in  March,  1862,  under  the  treaty  of 
1858  with  Great  Britain.  Because  of  its  situation  on  the  northern 
end  of  the  Shantung  Promontory  it  is  off  the  main  trade  routes  and 
is  served  by  coasting  vessels  from  Shanghai  and  Tientsin.  The  only 
adequate  transportation  connections  with  the  interior  of  the  Prov¬ 
ince  are  by  means  of  a  motor  road  running  to  Weihsien,  on  the 
Kiaochow-Tsinan  Kailway.  The  natural  harbor  at  Chefoo  proving 
inadequate,  a  breakwater  and  other  harbor  works  have  been  built, 
which  now  give  Chefoo  a  harbor  adequate  to  meet  the  demands  made 
upon  it.  Chefoo  is  usually  spoken  of  as  an  outport  of  Shanghai,  as 
most  of  the  local  trade  is  carried  on  through  that  port  and  nearly 
all  shipments  for  abroad  are  transshipped  from  coasting  vessels  to 
the  ocean  freighters  there. 

Japan  enjoys  a  naturally  favorable  geographic  position  in  regard 
to  the  trade  of  this  part  of  China,  and  there  are  convenient  steam¬ 
ship  communications  between  Chefoo,  Dairen,  and  Chosen. 

Lnngkow  was  made  an  w  open  port  ”  by  the  Chinese  Government 
in  November,  1915,  as  a  result  of  the  desires  of  the  Japanese,  the 
port  having  been  used  by  them  for  the  landing  of  their  army  in 
preparation  for  the  attack  upon  Tsingtao.  However,  their  interests 
have  now  waned  to  a  great  extent.  Little  use  has  been  made  of  the 
pier  and  warehouses  erected  in  1919  and  there  is  little  prospect  of 
any  improvement  in  the  near  future.  The  population  is  about  5,900. 
Motor  transport  service  operating  between  Chefoo  and  Weihsien 
has  proved  of  much  value  to  the  town,  which  is  on  a  branch  line 
running  from  Hwanghsien.  In  the  hinterland  of  Lungkow  ver¬ 
micelli  is  manufactured  and  shipped  to  southern  China  ports. 

Laichow ,  a  city  of  about  100,000  population,  not  open  to  foreign 
commerce,  is  in  the  extreme  western  part  of  the  Chefoo  consular  dis¬ 
trict  on  the  motor  road  to  Weihsien,  about  120  miles  from  Chefoo. 
There  are  not  more  than  15  foreigners  residing  in  the  city,  12  of 
whom  are  missionaries.  The  principal  industries  are  the  making  of 


CHEFOO  CONSULAR  DISTRICT 


601 


straw  braid,  the  making  of  talcum  powder  from  soapstone,  the  weav¬ 
ing  of  cloth,  and  the  making  of  thread,  towels,  and  candles.  As  is 
the  case  in  all  other  parts  of  this  district,  agriculture  is  carried  on 
near  the  city,  and  the  usual  agricultural  products  are  produced  in 
large  quantities. 

Two  large  foreign  oil  companies — one  American,  the  other  Brit¬ 
ish — have  established  distributing  agencies  in  Laichow.  No  other 
foreign  commercial  interests  are  represented. 

’Weihaiwei  is  situated  in  the  leased  territory  of  Weihaiwei  and 
does  not  properly  come  within  the  Chefoo  consular  district.  The 
territory  was  leased  to  Great  Britain  under  a  convention  signed  July 
1,  1898.  The  trade  of  the  territory  is  not  very  extensive,  but  it  is  a 
popular  summer  resort,  visited  by  foreigners  from  all  parts  of  China 
and  used  as  summer  headquarters  by  the  British  China  Squadron. 
According  to  the  latest  census  there  are  246  foreigners  residing  in 
Weihaiwei,  including  government  officials,  members  of  the  naval 
detachment,  and  the  small  military  detachment  maintained  there 
by  Great  Britain.  The  Chinese  population  of  the  leased  territory  is  . 
approximately  154,416. 

AGRICULTURE 

Northeastern  Shantung  is  primarily  an  agricultural  district.  The 
majority  of  the  natives  are  very  poor  and  the  landholdings  are  ex¬ 
tremely  small.  In  most  cases  the  farms  consist  of  a  few  mow  (a  mow 
is  approximately  %  of  an  English  acre),  and  in  many  cases  these 
small  holdings  support  large  families,  though  the  standard  of  living 
is  of  necessity  exceptionally  low. 

CROPS  AND  YIELDS 

Small  though  the  landholdings  usually  are,  a  variety  of  produce, 
is  grown.  The  principal  crops  are  millet,  beans,  wheat,  corn,  peanuts, 
sweet  potatoes,  kaoliang  (kafir  corn),  fruits,  vegetables,  tobacco, 
and  some  cotton  in  the  southern  part  of  the  district.  For  the  sericul¬ 
ture  industry  scrub-oak  trees  and  mulberry  bushes  are  grown.  The 
fruits  produced  in  northeastern  Shantung  are  large  and  luscious, 
comprising  apples,  apricots,  grapes,  pears,  plums,  persimmons,  and 
melons.  Truck  gardening  has  been  extensively  developed  and  the 
vegetables  grown  are  of  surprising  size  and  quality. 

The  soil  is  poor,  being  extremely  sandy  along  the  seacoast,  and  the 
generous  use  of  fertilizers  is  necessary.  Bean  cake  and  animal 
manure  form  the  principal  means  of  enrichment,  the  former  being 
used  more  for  cereal  crops  and  the  latter  for  truck  gardens.  There 
being  no  means  of  irrigation,  occasional  severe  droughts  sometimes 
cause  much  suffering  as  the  wells,  ponds,  and  small  streams  dry  up. 
Prolonged  rains  also  bring  an  occasional  failure  of  the  crops. 

Considering  the  inferior  quality  of  the  soil  and  the  number  of 
years  it  has  been  tilled,  the  yield  of  the  principal  crops  is  somewhat 
surprising.  Though  no  official  statistics  are  obtainable,  the  follow¬ 
ing  estimates  of  the  yield  per  acre  are  believed  accurate :  Beans,  16 
bushels;  kaoliang,  81  bushels;  corn,  24  bushels;  cotton,  685  pounds; 
ginger,  5,000  pounds;  hemp,  1,000  pounds;  millet,  80  bushels;  pea¬ 
nuts,  2,995  pounds;  peas,  867  pounds;  seasame,  798  pounds;  sweet 
potatoes,  118  bushels;  tobacco,  667  pounds;  wheat,  19  bushels. 


602 


COMMERCIAL  HANDBOOK  OF  CHINA 


PEANUTS 


Many  years  ago  peanuts  were  introduced  into  Shantung  Province 
by  an  American  missionary,  and  on  account  of  the  adaptability  of 
the  soil  and  climate,  they  are  now  grown  extensively  throughout  this 
district,  forming  one  of  the  chief  agricultural  exports.  Exporta¬ 
tion  of  peanuts  has  been  greatly  facilitated  since  two  shipping  com¬ 
panies — one  American,  the  other  German — have  included  Chefoo  in 
their  ports  of  call  in  order  to  take  direct  freight  to  foreign  countries. 
The  Chefoo  peanuts  are  much  whiter  and  are  believed  superior  in 
quality  to  those  produced  around  Tsingtao  or  on  the  Yangtze. 

Coast  freight  and  transshipping  expenses  at  Shanghai,  however, 
added  to  the  still  more  expensive  mule  transport  from  the  interior 
to  Chefoo,  have  so  far  acted  as  a  drawback  to  the  development  of 
this  industry. 

TRADE  IN  AGRICULTURAL  PRODUCTS 


.  Through  the  port  of  Lungkow  are  exported  fresh  fruits,  particu¬ 
larly  to  Dairen.  In  1921,  825  short  tons  were  exported,  in  1922  the 
amount  fell  to  572  tons,  but  increased  again  in  1923  to  1,077  tons. 

The  following  stable  sIioavs  the  agricultural  products  exported 
through  the  port  of  Chefoo  for  these  years : 


Products 

1921 

1922 

1923 

Bean  cake..  . . 

_ _ _  short  tons. 

10,  580 

8,  057 

6,582 

Beans  and  peas _ _ 

...  ..  .  .  .pounds. 

365, 467 

187,  864 
405, 185 

51,066 

Eggs,  fresh.  - 

Fruits: 

.  ...  _ _ dozen  . 

854,  949 

139,  024 

Fresl.  pears . . 

_ pounds.. 

292,  133 

702,  800 

600,  933 

Unclassified _ 

_  _ tons.. 

7,  723 

7, 124 

5,501 

Peanuts: 

Unshelled _  ...  .. 

_ do  ... 

6,  880 

3,789 

5, 107 

Shelled _ 

_ _  _  .  do  ... 

5,303 

5,  678 

5, 497 
510 

Licorice.  . .  .  _ 

_  .  ...  .do... 

787 

465 

Mats,  rush  and  straw...  ... 
Oil: 

_  _ do _ 

9, 188 

5,962 

5,737 

Bean.  _  ... 

...  ..  _ _ pounds.. 

435,  733 

671,  733 

818,  400 

Peanut . .  ..  .. 

..  _ tons. 

759 

800 

1,070 

Sesamum  seed _  ... 

...  _ _  .pounds  . 

46,800 

48,800 

22,000 

Seed: 

Apricots _ ...  .  ... 

_ do _ 

279,  733 

242,  400 

234, 133 

Melon  _  _  .. 

_  .do _ 

571,  200 

208,  933 

280,  133 

Straw-braid _  _  .. 

_ do _ 

237,  733 

210,  533 

242,  933 

Vegetables  . . 

.  _  .tons.. 

2,  633 

1,936 

1,728 

Wines  and  spirits  (made  in  Chefoo) _  .  . 

...  .  ..dozen  bottles  . 

19,064 

9,  002 

9,  833 

GRAPE  CULTURE 

For  many  years  the  propagation  of  wine  grapes  in  the  hinter¬ 
land  of  Chefoo  has  been  eminently  successful,  but  the  industry  is 
still  in  its  infancy.  More  detailed  information  concerning  wine¬ 
making  will  be  found  under  the  discussion  of  manufacturing  and 
industrial  development. 

LIVESTOCK 

Cows,  pigs,  and  goats  are  found  in  small  numbers  throughout  the 
district,  but  so  far  as  can  be  ascertained  there  are  no  herds  of  cattle, 
except  perhaps  in  Hwanghsien  and  Penglaihsien.  In  1921,  2,420 
cowhides  were  shipped  through  the  native  customs  at  Chefoo;  in 
1922,  1,756  hides;  and  in  1923,  3,681  hides.  In  1923  pigskins 


CHEFOO  CONSULAR  DISTRICT 


603 


amounting  to  38,933  pounds  were  exported  from  Lungkow.  Chick¬ 
ens  are  kept  by  most  of  the  native  farmers,  and  the  eggs  produced 
are  shipped  to  the  principal  cities  of  China  and  Manchuria. 

AGRICULTURAL  METHODS 

No  modern  agricultural  machinery  is  used  in  the  district.  A  rough 
wooden  plow,  usually  drawn  by  a  donkey  or  mule,  but  often  by 
a  human  being,  is  used  to  break  the  ground,  which  is  subsequently 
worked  over,  foot  by  foot,  with  crude  hand  implements  until  prop¬ 
erly  prepared  to  receive  the  seed.  All  cultivation  is  done  with  hoes 
of  a  peculiar  Chinese  pattern. 

Crops  are  harvested  by  hand.  Grains  are  pulled  up  by  the  roots, 
bound  in  bundles  and  carried  to  the  threshing  floor,  where  the  roots 
and  about  6  inches  of  the  stalk  are  cut  off.  The  heads  and  greater 
part  of  the  stalk  are  then  placed  upon  the  threshing  floor  and  al¬ 
lowed  to  dry  thoroughly.  The  kernels  are  threshed  out  either  by 
means  of  a  flail  or  a  small,  heavy  iron  (or  stone)  roller  with  a  cor¬ 
rugated  surface.  The  straw  is  then  gathered  and  the  grain  swept 
up.  Though  the  means  are  crude,  the  grain  is  thoroughly  threshed. 
Chefoo  farmers  are  too  poor  to  indulge  in  modern  methods  and 
machinery. 

There  is  no  system  of  Government  finance  for  the  agricultural  in¬ 
dustry,  and  when  in  need  of  funds  farmers  are  forced  to  seek  the 
aid  of  private  financial  institutions,  which  grant  such  loans  only 
at  a  very  high  rate  of  interest. 

MINERALS  AND  MINING 

Very  meager  information  is  obtainable  concerning  the  minerals 
in  this  district.  Deposits  of  lead  were  discovered  in  1913,  but  min¬ 
ing  operations  have  been  carried  on  only  within  the  last  few  years. 
The  ore  is  galena.  If  was  analyzed  in  Dairen  and  was  reported  to 
be  of  good  quality,  with  evidences  of  silver.  Small  quantities  of 
gold  occur,  but  so  far  only  the  lead  is  being  mined,  and  that  in 
very  small  quantities.  Only  one  lead  mine  is  being  worked.  This 
mine  is  at  Shi  Shan  Dzwang,  Chishiahsien,  where  the  principal 
vein  was  approximately  1  foot  wide  at  the  outcrop.  Smelting 
operations  are  carried  on  at  the  mine  and  the  lead  is  transported 
out  on  mule  back.  The  output  is  about  335  pounds  per  day.  As 
lead  does  not  enter  into  the  export  figures  of  either  Chefoo  or  Lung¬ 
kow,  it  is  probably  sold  locally. 

Labor  is  very  cheap  and  plentiful  in  the  Chefoo  district,  and  the 
mining  operations  do  not  warrant  the  use  of  modern  mining  ma¬ 
chinery.  It  is  believed  that  under  present  conditions  there  is  no 
market  for  such  machinery. 

MANUFACTURING  AND  INDUSTRIAL  DEVELOPMENT 

HAIR  NETS 

Chefoo  is  noted  as  one  of  the  hair-net  centers  of  the  world;  but, 
in  reality,  few  nets  are  actually  made  in  the  city.  The  manufacture 
of  hair  nets  is  mainly  a  cottage  industry,  the  major  quantity  being 
made  by  villagers  in  the  interior  in  their  own  homes.  It  is  a  spare- 
hour  occupation  for  the  younger  members  of  the  family,  the  delicate 


604 


COMMERCIAL  HANDBOOK  OF  CHINA 


knots  requiring  keen  eyesight.  Itinerant  buyers  collect  the  nets 
and  ship  them  to  their  principals  in  Chefoo,  where  they  are  in¬ 
spected  and  prepared  for  shipment  abroad. 

Before  the  World  War  the  hair,  obtained  principally  from  comb¬ 
ings,  was  sent  to  Europe  for  preparation  and  then  returned  to 
China  for  manufacture.  But  the  war  transferred  the  preparation 
of  the  hair  to  the  United  States.  At  present  much  of  the  hair  is 
prepared  locally,  not  always  with  the  best  results. 

The  wholesale  bobbing  of  women’s  hair  in  the  United  States  and 
Europe  has  given  the  industry  a  serious  setback.  In  1921  hairnets 
were  exported  to  the  value  of  $5,022,721;  in  1922  such  exports  fell 
to  a  value  of  $3,459,560,  and  in  1923  to  $2,323,978.  Of  the  total 
nets  exported  in  1923,  slightly  less  than  75  per  cent  went  to  the 
United  States. 

BOBBIN  LACE 

Another  home  industry  which  merits  special  mention  is  the  manu¬ 
facture  of  bobbin  lace.  As  is  usual  with  many  of  the  industries 
of  northeastern  Shantung,  its  manufacture  is  not  confined  solely 
to  the  cities,  but  is  carried  on  by  the  natives  of  the  interior  as  a 
holne  industry.  The  completed  pieces  are  bought  by  dealers  in  the 
cities  and  marketed.  During  the  late  war  the  quality  of  the  laces 
deteriorated  greatly,  owing  to  the  fact  that  the  supply  of  best 
quality  thread  from  Europe  was  cut  off.  The  laces  have  now 
reached  their  former  standard  of  perfection,  but  the  value  of  the 
exports  has  decreased  considerably  since  1922.  In  1923  the  value 
of  the  lace  exported  was  $466,568,  as  against  $1,007,167  during  the 
previous  year. 

SILK 

Of  major  importance  is  the  reeling  of  silk  from  Shantung  and 
Manchurian  cocoons.  Shantung  pongee  is  known  the  world  over 
for  its  splendid  appearance  and  fine  wearing  qualities. 

The  raw  silk,  or  tussah,  is  produced  by  killing  the  chrysalis  by 
perfectly  dry  heat.  The  cocoons  are  then  stored  away  and  before 
unreeling,  they  are  first  softened  by  being  subjected  to  steam. 
Eight  cocoons  are  usually  unreeled  at  a  time  to  make  one  thread, 
which  under  favorable  conditions  will  attain  a  length  of  1,000 
yards.  The  hanks  of  thread  are  made  up  and  sold  under  a  particu¬ 
lar  chop,  or  trade-mark. 

There  is  one  cocoon  guild  in  Chefoo  known  as  the  Chefoo  Silk 
Manufacturers’  Union,  which,  together  with  the  Chefoo  Silk  Im¬ 
provement  Commission,  is  endeavoring  to  promote  the  production 
of  more  cocoons  locally  and  thus  discourage  the  importation  of 
Manchurian  cocoons.  The  comparatively  small  local  supply  of 
cocoons  comes  from  Chihsiahsien,  Haiyanghsien,  Jungchenghsien 
and  Chimohsien. 

There  are  in  Chefoo  33  silk  filatures,  with  equipment  varying 
from  212  to  616  hand  looms.  Every  100  reelers  require  10  men 
for  steaming,  preparing  the  cocoons,  and  “making  the  silk  into  hanks. 
There  are  also  29  silk  hongs. 

The  manufacturing  of  pongee  is  not  confined  solely  to  the  cities 
of  the  district,  but  the  industry  is  carried  on  in  the  interior  wherever 
a  few  cocoons  can  be  raised. 


CHEFOO  CONSULAR  DISTRICT 


605 


The  weaving  is  done  on  crude  handmade  looms  with  bamboo 
teeth.  A  gum  made  from  beans  is  used  to  stick  the  threads  together. 
Not  being  a  regulated  industry,  there  is  consequently  a  lack  of  uni¬ 
formity  in  the  widths  and  lengths  of  finished  material.  Finished 
pieces  range  in  width  from  IT  to  43  inches,  while  the  length  varies 
from  16  to  50  yards,  and  the  weight  from  21  to  260  ounces.  The 
average  sizes  are  18  to  20  inches  in  width  and  20  yards  in  length; 
or  33  inches  in  width  and  20,  30,  and  50  yards  long.  There  is  a  con¬ 
siderable  range  in  weights,  usually  from  30  to  125  ounces.  There  is, 
however,  a  tendency  toward  standardization. 

In  some  respects  the  outlook  for  the  silk  industry  in  the 
Chefoo  district  is  not  bright,  because  of  the  complacency  of  the 
Chinese  filature  owners  in  depending  upon  another  section  of  the 
country  for  cocoons.  Shantung  has  always  obtained  the  bulk  of 
necessary  cocoons  from  Manchuria.  Filatures  in  Chefoo  have  stead¬ 
ily  decreased  in  number,  while  those  in  Manchuria  and  in  Antung 
and  vicinity  have  increased. 

In  1921,  13,741,200  pounds  of  cocoons  were  imported  into  Chefoo, 
principally  from  Manchuria.  In  1922  importations  increased  to 
15,606,400  pounds,  but  in  1923  fell  to  9,447,066  pounds.  This  marked 
decrease  is  attributed  to  several  causes.  During  1923  it  was  reported 
that  there  was  a  shortage  of  cocoons  in  Manchuria.  The  condition  is 
also  attributed,  in  part,  to  direct  shipments  from  Manchuria  to 
Japan,  but  the  chief  cause  is  undoubtedly  the  increase  of  silk  fila¬ 
tures  in  Manchuria.  Wild  cocoons  in  the  following  quantities  were 
imported  through  the  native  customs  during  the  years  indicated : 
In  1921,  8,304,800  pounds;  1922,  12,357,466  pounds;  1923,  10,273,066 
pounds.  During  1923  the  inducement  of  higher  pay  caused  an  ex¬ 
odus  of  expert  spinners  from  Chefoo  to  the  Manchurian  filatures,  and 
the  recruiting  is  still  going  on.  This  has  resulted  in  the  closing  down 
of  many  Chefoo  filatures  for  want  of  skilled  labor  and  has  auto¬ 
matically  reduced  the  demand  for  cocoons. 

During  1923  high  prices,  combined  with  unfavorable  exchange, 
hindered  the  pongee  trade ;  but  the  poor  quality  of  the  silk  put  on  the 
market  has  probably  added  to  the  present  bad  condition  of  this  im¬ 
portant  industry. 

The  advent  into  the  Chefoo  pongee  industry  of  a  factory  with  mod¬ 
ern  weaving  machinery  has  created  much  interest.  Although  the 
weaving  is  perfect,  the  quality  seems  inferior  to  that  of  the  hand- 
woven  material.  The  factory  has  a  capacity  of  40  to  50  pieces  daily 
and  its  development  will  be  closely  watched  by  interested  silk  manu¬ 
facturers  and  dealers  in  Chefoo. 

PEANUT  OIL 

The  production  of  peanuts  has  already  been  commented  on  in  con¬ 
nection  with  agriculture.  It  remains  only  to  be  emphasized  that  this 
product  is  one  of  the  chief  agricultural  exports  of  this  district  and 
that  the  culture  of  peanuts  has  been  gradually  expanding  since  being 
introduced  many  years  ago.  In  1923,  5,107  short  tons  of  unshelled 
and  5,497  short  tons  of  shelled  nuts,  making  a  total  of  10,604  tons, 
were  exported  through  the  Maritime  Customs.  For  1923  the  port  of 
Chefoo  ranked  sixth  in  China  in  the  quantity  of  peanuts  exported, 


606  COMMERCIAL  HANDBOOK  OF  CHINA 

being  surpassed  in  this  respect  by  Tsingtao,  Shanghai,  Nanking, 
Tientsin,  and  Dairen,  in  the  order  named. 

With  the  construction  of  roads  and  the  development  of  adequate 
transportation  facilities  (which  factor  will  tend  to  cheapen  the  price 
of  the  peanuts  produced  in  the  interior  and  brought  to  Chefoo),  there 
is  no  reason  why  the  industry  should  not  grow  rapidly. 

Another  industry,  the  growth  of  which  depends  directly  upon  the 
expansion  of  the  peanut-growing  activities,  is  the  extraction  of  oil 
from  the  nut.  There  are  several  mechanical  presses  for  this  purpose 
in  Chefoo,  but  much  of  the  work  is  done  by  hand.  In  1923,  2,139,733 
pounds  of  peanut  oil  were  exported  through  the  port  of  Chefoo. 

BEAN  CAKE  AND  OIL 

The  soy  bean  is  extensively  grown  in  northeastern  Shantung,  and 
the  extraction  of  the  oil  ranks  as  one  of  the  industries  of  importance. 
The  by-product,  bean  cake,  is  used  extensively  in  China  as  a  fer¬ 
tilizer  and  is  also  utilized  as  cattle  feed.  In  1923,  6,582  tons  of  bean 
cake  were  exported  through  the  port  of  Chefoo. 

The  oil  is  extracted  both  by  hand  and  by  machinery.  Exporta¬ 
tions  have  been  increasing  for  the  last  three  years,  reaching  818,400 
pounds  in  1923.  This  increase  may  be  partly  explained  by  the  poor 
harvest  of  cottonseed  in  the  United  States,  though  no  direct  ship¬ 
ments  are  recorded. 

VERMICELLI 

The  manufacture  of  vermicelli  in  the  vicinity  of  Chefoo  and 
Lungkow  has  assumed  greater  proportions  during  the  past  few  years. 
The  product  is  made,  both  in  factories  and  in  the  homes,  from  the 
flour  of  a  small  bean,  which  is  usually  harvested  in  September.  The 
1923  crop  was  bountiful,  particularly  in  the  vicinity  of  Lungkow, 
from  which  port  9,696  short  tons  were  shipped  during  that  year, 
principally  to  South  China  ports.  As  exportations  from  Lungkow 
have  increased,  the  quantity  shipped  through  the  port  of  Chefoo 
have  decreased  slightly.  The  total  quantity  exported  from  the 
Chefoo  consular  district  during  1923  was  18,913  short  tons. 

WINE 

The  growing  of  wine  grapes  in  the  vicinity  of  Chefoo  was  begun 
in  about  1895  and  their  propagation  has  been  steadily  progressing 
since  that  time. 

The  capital  invested  in  the  wine  industry  is  given  as  $3,000,000 
Mex.  ($1,500,000  United  States)  and  the  annual  turnover  from 
$200,000  to  $300,000  Mex.  ($100,000  to  $150,000  United  States). 

In  October,  1924,  there  were  about  3,000  mow  (approximately  500 
English  acres)  of  wine  grapes  under  cultivation  on  East  Hill  and 
West  Hill,  in  the  immediate  vicinity  of  Chefoo.  From  650,000  to 
800,000  pounds  of  wine  grapes  are  produced  annually.  Extensive 
concrete  wine  cellars  have  been  built  below  sea  level,  and  the  first 
wines  were  sold  only  after  the  industry  had  been  in  operation  for 
about  10  years. 

The  wine  produced  in  Chefoo  is  exported  to  Japan,  Chosen 
(Korea),  Philippine  Islands,  the  Straits  Settlements,  and  all  the 
principal  cities  of  China. 


CHEFOO  CONSULAR  DISTRICT 


607 


The  manufacturers  seem  intent  upon  improving  their  product, 
and  are  reclaiming  more  land,  planting  more  grapes,  and  studying 
conditions  in  connection  with  the  marketing  of  the  product. 

DEEP-SEA  FISHING 

Deep-sea  fishing  is  carried  on  in  the  waters  off  the  Shantung 
Promontory,  with  Chefoo  as  one  of  the  important  bases  for  the 
curing  of  the  catches  and  the  preparing  of  the  product  for  expor¬ 
tation. 

There  are  no  figures  available  as  to  the  annual  catch,  but  in  view 
of  the  fact  that  great  quantities  are  consumed  by  the  Chinese  and 
that  5,427  short  tons  of  dried  and  salt  fish  were  exported  from 
Chefoo  in  1923  (an  increase  of  1,421  tons  over  the  previous  year), 
it  is  believed  that  this  industry  is  a  far-reaching  one. 

In  August,  1924,  the  fishermen  of  Chefoo  formed  an  association 
to  protect  their  mutual  interests  and  to  forestall  the  operation  of 
fishing  vessels  of  other  nations  in  the  waters  off  Shantung  Promon¬ 
tory. 

In  1923  cockles  and  clams  to  the  amount  of  317,600  pounds,  and 
756,667  pounds  of  prawns  and  shrimps  were  exported  through  the 
Maritime  Customs  from  the  Chefoo  district  to  Manchurian  and 
other  Chinese  ports. 

LABOR  CONDITIONS 

Labor  is  both  cheap  and  plentiful  at  all  times  in  the  Chefoo  dis¬ 
trict,  and  as  a  result  there  is  every  year  a  migration  of  coolie  labor 
to  Manchuria.  The  average  working  day  in  most  of  the  industries 
in  Chefoo  is  8  to  10  hours.  In  the  hair-net  industry,  which  employs 
mostly  female  labor,  the  daily  wage  is  $0.18  Mex.  ($0.09  United 
States.)  Pongee  weavers  are  usually  paid  $5  Mex.  ($2.50  United 
States)  per  piece  of  30  yards.  Workers  employed  in  the  extraction 
of  peanut  oil  receive  $12  Mex.  ($6  United  States)  per  month;  those 
employed  in  the  local  wine  industry  are  paid  $15  Mex  ($7.50  United 
States)  per  month.  As  most  of  the  other  industries  of  the  district 
are  the  so-called  home  industries,  where  no  wages  are  paid,  as  such, 
it  is  impossible  to  give  any  figures  for  the  remuneration  of  the 
workers. 

It  is  impossible  to  estimate  fairly  the  efficiency  of  Chinese  labor. 
With  the  exception  of  agriculture  there  are  in  this  district  no  indus¬ 
tries  sufficiently  similar  to  industries  in  the  United  States  to  permit 
a  comparison  of  the  relative  labor  turnover. 

TRANSPORTATION  AND  COMMUNICATION 

TRANSPORTATION 

There  are  no  navigable  waterways  and  no  railways  in  the  Chefoo 
consular  district.  There  is  a  Government-owned  road  about  200 
miles  in  length,  running  from  Chefoo  to  Weihsien  on  the  Kiaochow- 
Tsinan  Railway,  which  is  graded  as  a  railway  bed.  In  the  latter 
part  of  1923  this  highway  was  leased  for  a  period  of  10  years  by  the 
Ministry  of  Communications,  on  behalf  of  the  Chinese  Government, 


608 


COMMERCIAL,  HANDBOOK  OF  CHINA 


to  the  Chefoo-Weihsien  Motor  Road  Co.  (Ltd.).  In  1924  this  com¬ 
pany  had  under  operation  passenger,  freight,  and  mail  service  by 
motor  car  between  the  Kiaochow-Tsinan  Railway  to  Weihsien  and 
Chefoo. 

Railway  connections  between  these  two  cities  are  greatly  needed  at 
present  in  order  to  open  up  Chefoo  and  the  intervening  country 
more  extensively  to  commerce  and  trade. 

The  Chefoo-Weihsien  Motor  Co.  (Ltd.)  operates  approximately 
50  motor  cars,  passenger  and  freight,  between  the  two  cities.  The 
trip  of  about  200  miles  is  usually  made  in  9  hours.  First-class  fare 
is  $12  Mex.  ($6  United  States).  Freight  rates  are  exceedingly  high, 
being  90  cents  Mex.  ner  10  catties  ($0.45  United  States  per  13.33 
pounds),  or  Sy2  cents  gold  per  pound. 

Owing  to  the  lack  of  navigable  waterways,  railroads,  and  prop¬ 
erly  constructed  highways,  the  bulk  of  goods  transported  to  and 
from  the  interior  is  carried  on  mules,  donkeys,  and  by  coolie  car¬ 
riers  and  wheelbarrows.  The  Shantung  wheelbarrow — consisting 
of  a  heavy  wheel  about  3  feet  high  with  side  racks  for  goods — is  the 
common  means  of  transportation  for  heavy  goods.  A  strong  coolie 
is  capable  of  wheeling  600  pounds  15  miles  in  a  day  over  beaten 
tracks. 

There  is  little  uniformity  in  the  transportation  charges  in  the 
Chefoo  district,  but  it  is  believed  that  the  following  figures  give  the 
average  costs : 


Type  of  carrier 

Average  load 

Mileage 
per  day 

Charge  (United  States 
currency) 

Motor  car  (Chefoo  to  Weihsien  only)... . . 

Any  load... _ 

200 

$0.45  per  13.3  pounds.1 
1.00  per  day. 

0.75  per  day. 

.50  per  day. 

.75  per  day. 

Mule  . . . . . . . 

320  pounds..  .  . 

30 

Donkey.  _ _ _ _ _ _ _ _ _ 

160  pounds _ 

30 

Wheelbarrow _ _  _ _  _  _ _ 

667  pounds ...  ._ 

15 

Coolie  carrier  .  . . . . . . .  . 

107  pounds _ _ 

30 

1  There  is  no  reduction  in  tariff  for  long  distance  or  quantity  of  hauling. 


TELEGRAPHS,  CABLES,  AND  WIRELESS  SERVICE 

Adequate  cable  communications  are  maintained  with  the  world 
through  Shanghai  and  Tientsin,  and  also  with  other  parts  of  China 
by  the  land  lines  of  the  Chinese  Telegraph  Administration,  which 
is  under  the  jurisdiction  of  the  Ministry  of  Communications. 

Two  cable  companies,  the  Great  Northern  and  the  Eastern  Ex¬ 
tension,  operate  the  cables  of  the  Chinese  Telegraph  Administration 
as  the  Submarine  Telegraph  Service.  There  are  2  cables  to  Tien¬ 
tsin,  1  to  Weihaiwei,  1  to  Tsingtao,  1  to  Shanghai,  and  1  to  Dairen 
(formerly  owned  by  the  Russian  Government  but  taken  over  by 
Japan  after  the  Russo-Japanese  War). 

Situated  about  2  miles  west  of  Chefoo  there  is  a  wireless  station, 
which  is  also  owned  by  the  Chinese  Government;  but  it  is  little 
used,  if  at  all,  for  commercial  messages.  It  has  a  wave  length  of 
600,  1,200,  and  1,600  meters  and  a  sending  radius  of  650  miles  by 
day  and  1,200  miles  by  night.  It  maintains  communication  with 
Peking,  Tsingtao,  Woosung,  and  Foochow,  and  with  ships  at  sea. 


CHEFOO  CONSULAR  DISTRICT 


609 


TELEPHONES 

Chefoo  has  the  only  telephone  system  in  the  consular  district. 
It  is  operated  by  the  Chinese  Government  Telephone  Administration. 
Official  statistics  for  July,  1924,  are  as  follows: 


Number  of  centrals _  1 

Number  of  telephones _  782 

Miles  of  wire  (all  local) _  63 

Telephone  conversations  per  day _  13,  200 

Investment  in  plant  (Mex.  currency) _ $134,000 

Gross  monthly  revenue  (Mex.) -  $3,000 


The  original  telephones  installed  were  manual  type,  of  Norwegian 
manufacture.  Supplies  and  repair  parts  now  come  from  Japan. 

POSTAL  FACILITIES 

There  are  no  foreign  post  offices  operating  in  the  Chefoo  consular 
district,  but  adequate  and  efficient  postal  services  are  maintained  by 
the  Chinese  Postal  Administration.  Parcel-post  facilities  between 
the  United  States  and  this  district  operate  smoothly.  In  1923  parcels 
numbering  71,000  weighing  771,610  pounds,  and  valued  at  $3,000,000, 
were  sent  out  from  the  Chefoo  post  office.  Under  normal  conditions 
first-class  mail  matter  from  Sew  York  is  in  transit  from  27  to  35 
da}^s.  The  regular  international  postal  rates  apply  to  all  mail. 

SHIPPING  AND  WAREHOUSING  FACILITIES 

HARBOR  FACILITIES 

There  are  no  facilities  for  docking  at  the  port  of  Chefoo.  Coast¬ 
wise  and  deep-sea  vesels  anchor  in  the  “  inner  harbor  ”  about  one- 
half  mile  from  the  wharves.  The  depth  on  entering  the  harbor  is 
20  feet  at  lowest  water,  and  at  high  water  in  the  summer,  between 
27  and  30  feet.  At  highest  water  in  the  winter  the  depth  is  26  feet. 
The  inner  harbor,  where  foreign-type  ships  usually  anchor,  has  an 
average  depth  of  20  feet. 

There  is  one  600-foot  pier,  but  it  has  not  yet  been  opened  for 
public  use.  All  cargo  is  transferred  to  shore  by  means  of  lighters 
of  up  to  20  tons’  capacity. 

Imports  consigned  to  the  interior  usually  have  to  be  repacked  to 
suit  the  mode  of  transportation  to  be  employed,  all  goods  being 
carried  on  mules  or  donkeys,  by  coolie  carriers,  or  on  wheelbarrows. 
Shipments  consigned  to  cities  and  villages  along  the  Chefoo  and 
Weihsien  road,  however,  are  often  conveyed  by  motor  car. 

Coastwise  vessels  and  most  of  the  deep-sea  ships  calling  at  Chefoo 
are  able  to  anchor  in  the  inner  harbor,  which  has  an  average  mini¬ 
mum  depth  of  20  feet.  No  mechanical  devices  of  any  kind  are  avail¬ 
able  for  handling  cargo,  all  such  work  being  done  by  coolie  labor  and 
by  means  of  lighters.  Cargo  can  be  discharged  at  the  rate  of  about 
100  tons  per  hour. 

The  cost  per  ton  of  transporting  cargo  from  ship’s  tackle  to  the 
docks  depends  entirely  upon  the  class  of  cargo. 

100020°— 26 - 40 


610 


COMMERCIAL  HANDBOOK  OF  CHINA 


STORAGE  FACILITIES 

Warehouse  facilities  at  Chefoo  are  limited.  Most  of  the  large 
commercial  companies  have  private  godowns  (warehouses).  The 
buildings  are  constructed  of  brick,  stone,  and  concrete,  and  are  quite 
modern.  When  not  in  use  by  the  owners,  space  may  be  obtained 
from  them  for  temporary  storage.  The  charges  vary  greatly  ac¬ 
cording  to  the  class  of  goods. 

The  lack  of  suitable  public  or  customs  warehouses  is  one  of  the 
drawbacks  in  handling  cargo  at  this  port.  Goods  discharged  from 
the  lighters  are  usually  piled  on  the  customs  jetty  and  often  remain 
exposed  for  days,  or  until  such  time  as  the  owner  passes  them  through 
the  customs.  In  inclement  weather  the  goods  are  covered  with 
straw  mats,  which  afford  fairly  adequate  protection. 

All  importers  are  allowed  to  use  the  customs  jetty,  but  it  is  the 
general  rule  that  goods  are  not  to  remain  longer  than  three  days. 
If  not  removed  within  this  period  the  shipper  is  subject  to  the  pay¬ 
ment  of  wharfage  dues  of  1  copper  per  piece  each  day  until  the 
shipment  is  removed.  In  the  case  of  bulky  goods  this  charge  is 
increased  and  sometimes  amounts  to  as  much  as  15  cents  Mex. 

($0,075  United  States)  per  piece  per  day. 

* 

PUBLIC  WORKS  AND  UTILITIES 

ELECTRIC  LIGHT  PLANTS 

Chefoo ’s  electric  plant  was  installed  under  the  supervision  of 
Japanese  engineers,  the  equipment  being  supplied  by  Japan.  The 
system  carries  a  kilowatt  lighting  load  of  100,  and  a  kilowatt  power 
load  of  200.  Rates  for  lighting  service  are  of  two  kinds — a  fixed 
monthly  basis  and  a  meter  basis.  The  rate  per  lamp  (vacuum  bulb) 
per  month,  under  the  flat  rate,  varies  from  $0.90  Mexican  for  a  10- 
candlepower  lamp  to  $2.50  Mex.  for  a  50-candlepower  lamp.  For 
gas-filled  half-watt  bulbs,  the  rate  is  slightly  higher  in  proportion 
to  the  candlepower. 

Meter  rates  are  $0.35  Mex.  per  kilowatt  hour.  Meter  rent  is 
$0.50  Mex.  per  meter  per  month.  The  minimum  charge  for  lamps 
installed  is  $0.50  Mex.  per  month.  The  service  is  quite  adequate  to 
meet  the  demands  made  upon  it. 

There  are  also  small  lighting  plants  at  the  ports  of  Lungkow  and 
at  Tengchowfu. 

WATERWORKS 

There  are  no  waterworks  in  any  of  the  cities  in  the  Chefoo  con¬ 
sular  district.  Water  is  obtained  from  wTells — usually  on  the 
premises,  in  the  case  of  foreigners.  Only  distilled  water,  or,  at  least, 
water  that  has  been  previously  boiled,  is  used  by  foreign  residents. 

HARBOR  IMPROVEMENT 

The  harbor  of  Chefoo  is  not  naturally  well  protected.  In  order 
to  afford  adequate  protection  for  ships  at  anchor,  it  was  found  neces¬ 
sary  to  construct  a  mole  on  the  vrest  side  and  a  breakwater  to  the 
northeast.  The  two  entrances  are  now  amply  protected,  but  owing 
to  gradual  silting  up  of  the  harbor  in  many  places  dredging  has  be- 


CHEFOO  CONSULAR  DISTRICT 


611 


come  necessary.  A  grab-type  dredge  has  been  ordered  by  the  Che- 
foo  Harbor  Improvement  Commission  for  use  in  this  work.  It  is 
estimated  that  1,000,000  cubic  yards  of  silt  will  have  to  be  removed 
to  put  the  harbor  in  proper  condition. 

The  work  is  to  be  paid  for  from  the  funds  of  the  Chefoo  Harbor 
Improvement  Commission,  which  are  obtained  by  the  assessment 
and  collection  of  a  breakwater  surtax  of  7 y2  per  cent  of  the  regular 
5  per  cent  customs  import  and  export  duties.  All  harbor  improve¬ 
ments  are  paid  for  in  this  manner. 

EXPORT  AND  IMPORT  TRADE 

The  table  below  gives  the  total  imports  and  exports,  foreign  and 
Chinese,  through  the  Maritime  Customs  at  Chefoo  during  the  years 
indicated  : 


Items 

1913 

1923 

Imports  of  foreign  goods: 

From  foreign  countries  and  Hongkong.  .  _  ...  . . 

$3, 804,  685 
3,  747,  283 

$4,  329,  038 
4,  668,  336 

From  Chinese  ports _ _ _  .  _ _ 

Total  foreign  imports _ _ _ _ _ _  _ 

7,  551,  968 

8,  997,  374 

Reexports  of  foreign  goods: 

To  foreign  countries  and  Hongkong _ ....  ..  .....  ... 

301,  570 
749,  728 

1,  205,  874 

2,  078,  562 

To  Chinese  ports _ _ _ _  _  .  .  ..  . . .  .. 

Total  foreign  reexports _ _ ....  .  .... 

1,  051,  298 

3,  284,  436 

Net  total  foreign  imports _ _  .  .... 

6,  500,  670 

5,  712,  938 

Imports  of  Chinese  products _ _ _  .  .  ... 

7,  607,  467 

14,  504,  244 

Reexports  of  Chinese  products: 

To  foreign  countries _ _ _ _ _  ... 

761,  323 
603,  306 

1,  484,  716 
1,  492,  949 

To  Chinese  ports . . . . .  .  .  _ 

Total  native  reexports _ _  .....  ..... 

1,  364,  629 

2,  977,  665 

Net  total  native  imports _  ...  ... _ _ _  ..  .. 

6,  242,  838 

11,  526,  579 

Exports  of  Chinese  products  of  local  origin: 

To  foreign  countries  and  Hongkong _  _ _ _ 

2,  666,  421 

7,  688, 164 

5,  839,  096 
12,  540,  705 

To  Chinese  ports _ _ _  ...  .  ... _ 

Total  exports  of  local  origin  _  ......  .  ... 

10,  354,  585 

18,  379,  801 

Gross  value  of  the  trade  of  the  port.. .  ......  ..  .  . . 

25,  514,  020 
23,  098,  093 

41,881,419 
35,  619,  318 

Net  value  of  the  trade  of  the  port..  ...  _  _  _ _ _  _ _ _ _ 

From  the  foregoing  table  it  is  apparent  that  the  trade  of  Chefoo 
has  been  continually  increasing,  a  gain  over  $12,000,000  occurring  be¬ 
tween  1913  and  1923. 

Before  the  construction  of  the  Shantung  Railway,  in  1904,  Chefoo 
was  the  most  important  port  in  Shantung  Province,  and  its  trade  far 
exceeded  that  of  its  nearest  competitor;  but  since  the  advent  of  the 
railway  from  Tsingtao  to  Tsinan  and  the  building  of  the  Tientsin- 
Pukow  Railway,  which  was  completed  in  1912,  Tsingtao  has  rapidly 
outgrown  Chefoo  as  a  port,  because  of  the  superior  distribution 
facilities  made  available  by  the  railway  connections  with  the  in¬ 
terior.  Goods  destined  for  the  interior  of  Shantung  Province,  which 
formerly  came  through  Chefoo,  may  now  be  most  expeditiously  sent 
by  rail  through  Tsingtao,  Shanghai,  or  even  Tientsin.  In  spite  of 
the  drawback  of  inadequate  connections  with  the  interior,  Chefoo 


612 


COMMERCIAL  HANDBOOK  OF  CHINA 


has  held  its  own  as  a  port  from  year  to  year,  but  its  future  develop¬ 
ment  depends  almost  entirely  upon  the  construction  of  a  railway  to 
Weihsien  on  the  Kiaochow-Tsinan  line. 

EXPORTS  FROM  CHEFOO 

The  following  table  shows  the  principal  native  products  exported 
through  the  port  of  Chefoo  during  1913  and  1923 : 


Articles 

1913 

1923 

Quantity 

Value  in 
United 
States 
currency 

Quantity 

Value  in 
United 
States 
currency 

Animals,  live.-.  .  _ head.. 

Bags  (all  kinds) .  number.. 

Bean  cake  .  _  ..tons.. 

Beans  _ _ do  ... 

Bones  ..  ..  ...  ...  ....... _ _ do  ... 

Chinaware,  earthenware,  and  pottery _ do _ 

Cereals  ...  _  ..  _ do _ 

5,  794 
183,  618 
19,  611 
123 
163 
22 
44 

$4,  947 
13,  978 
488, 823 
4,  456 
2,265 
3,  607 

1,  896 
115,030 

1 

55, 310 
6,582 
25 
300 

$22 
21, 835 
213,  259 
878 
4,  728 
3,  724 
82 

145,  460 
28,  426 
16,  814 

Clothing,  Chinese,  boots  and  shoes _ _  _.  . 

Dates _ _  .  _  _ tons  . 

4Q* 

139,  020 

Eggs,  fresh  and  preserved  - - -  ...  ..dozen  . 

Fruits,  dried  and  preserved _ _ tons  . 

615, 121 

1,  400 

39,  775 
81,  346 
36,  979 
315, 168 

Fruits,  fresh  _ _ _ do.. 

5,  003 
614, 180 

Fish  and  fishery  products  _ _ _ do.... 

Ginseng _ _  _ pounds. 

4,  655 

4,  610 

Groundnuts  (peanuts)  . . . . tons.. 

Hair  nets . . . . . . . . 

11,  460 

655,  404 

10,604 

714,  950 
2,  323,  978 
3,  752 
533,  220 
47,  760 
14, 177 
114,  648 
20,948 

54,504 
157,  912 

Josssticks..  .  _ _ _ pounds. 

28,000 

3,118 

Lace,  embroideries,  etc _ _ _ _ 

Licorice.. . . . . . tons.. 

Mats.. _ _ _ _ number. . 

Medicines _  _  _ 

922 
112,  697 

93,  619 
7,343 
71,  739 
30,  512 

50, 136 
2,242 
14,  905 
9,299 

510 
86,  030 

N  ankeens _ pieces. . 

Oil: 

Bean . . . . ...tons.. 

Peanut _  ..  _ do _ 

Vegetable  and  other _ _ _ _  .  do.  . 

884 

482 

14 

96 

51 

1  61, 466 

409 
1,  069 

Paper,  all  kinds.  _ _ _ do.  . 

17,  798 
304,  210 
37,  992 

4,  862,  306 

441,  532 
44,  070 

5,  748,  005 
171,  292 

44,  375 
1,  066,  924 
37,012 
121,  308 

442,  717 

Salt  _ _ _ do _ 

Seeds,  all  kinds  .  _ _ _ do _ 

Silk,  raw  (all  kinds).  _ _ do.  . 

758 

829 

87 

6,000 

427 

81,  607 
2,  791,  303 
727,  878 
24, 140 
2, 137,  467 

257 

Silk  waste. _ _ do  ... 

Silk  piece  goods _  .  .pounds. . 

505 

Silk  pongees _  .  .tons.. 

Straw  braid  _ _ _ do _ 

663 

121 

1,226 

8,802 

Vegetables  (all  kinds).  _ _ _ do _ 

Vermicelli  and  macaroni _ _ .do _ 

Postal  parcels  not  otherwise  classified _ 

1,024 
16,  259 

21, 153 
2, 141,  640 
15,  776 

Sundries,  unenumerated.  _ _ _ 

All  other  articles _ _ 

357,  034 

Total.. _ _ _ _ 

10,  354,  585 

18,  379, 801 

1  Pounds. 


The  distribution  of  the  above  exports  was  as  follows :  In  1913, 
$2,666,421  to  foreign  countries  and  Hongkong,  and  $7,688,164  to 
Chinese  ports;  in  1923,  $5,839,096  to  foreign  countries  and  Hong¬ 
kong,  and  $12,540,705  to  Chinese  ports. 

The  most  notable  growTth  in  the  exports  of  Chefoo  during  the  past 
20  years  has  been  in  the  exportation  of  hair  nets.  No  nets  were  made 
in  1903,  nor  were  any  declared  in  the  Maritime  Customs  returns  in 
1913;  in  1921,  however,  exports  of  hair  nets  exceeded  a  value  of 
$5,000,000.  This  was  the  peak,  as  such  exports  have  since  declined, 
owing  to  the  new  fashions  in  dressing  women’s  hair. 

Raw  silk  exports  also  practically  doubled  in  the  10-year  period, 
1913-1923.  Raw  silk  to  the  value  of  $2,791,303  was  exported  in  1913, 


CHEFOO  CONSULAR  DISTRICT 


613 


and  to  the  value  of  $4,862,306  in  the  latter  year.  Exports  of  pongee 
silks  have  also  greatly  increased — from  slightly  over  $2,137,467  in 
1913  to  $5,748,005  in  1923. 

The  exports  of  lace  goods  and  embroideries  show  an  even  greater 
percentage  growth.  This  industry  was  apparently  developed  by  the 
demand  in  the  United  States  during  the  war,  primarily  because  the 
supply  of  such  articles  from  Belgium  and  France  had  been  cut  off. 

In  the  20-year  period,  however,  certain  exports  declined.  The  ex¬ 
ports  of  live  animals,  for  example,  decreased  by  nearly  $400,000,  and 
the  1923  exports  of  bean  cake  were  less  by  $1,000,000  as  compared 
with  1923.  These  decreases  were  probably  due  in  the  case  of  cattle 
to  the  superior  export  facilities  offered  by  the  port  of  Tsingtao,  and 
in  the  case  of  bean  cake  to  the  increased  production  in  Manchuria, 
which  went  out  by  way  of  Dairen.  It  is  also  probable  that  railway 
shipments  from  the  interior  of  Shantung  were  made  to  Shanghai  and 
Tientsin,  and  thence  shipped  abroad. 

The  total  value  of  goods  exported  to  foreign  countries  in  1913  was 
$10,354,585,  or  an  increase  of  $1,704,731  over  the  1903  exports.  In 
1923  the  total  foreign  exports  amounted  to  $18,379,801,  an  increase 
of  $8,025,216  over  1913  and  $9,729,947  over  1903  exports. 

EXPORTS  FROM  LUNGKOW 

This  port  was  not  opened  to  foreign  trade  by  the  Chinese  Govern¬ 
ment  until  late  in  1915,  and  1916  was  therefore  the  first  full  year  in 
which  Lungkow  was  engaged  in  foreign  trade.  The  total  value  of 
its  exports  to  foreign  countries  in  1916  was  a  little  over  $360,000, 
which  was  increased  in  1923  to  a  total  of  $1,970,229,  or  a  gain  of 
over  500  per  cent. 

Vermicelli,  however,  is  the  only  commodity  of  particular  im¬ 
portance  exported  through  Lungkow.  In  1916  the  shipments  of  this 
product  amounted  to  $117,868;  seven  years  later,  in  1923,  the 
value  had  increased  to  $1,628,961,  or  about  five-tenths  of  the  entire 
export  trade  of  the  port.  South  China  ports  take  the  bulk  of  the 
vermicelli  shipments  from  Lungkow. 

IMPORTS  THROUGH  CHEFOO 

The  following  table  shows  the  quantity  and  value  of  imports 
through  Chefoo,  from  foreign  countries  and  through  Hongkong  and 
Chinese  ports,  1913  and  1923 : 


Articles 

1913 

1923 

Quantity 

Value  in 
United 
States  cur¬ 
rency 

Quantity 

Value  in 
United 
States  cur¬ 
rency 

Bags  (all  kinds) ..  . . . number. 

$12,  208 
5,746 
45,  510 
1,460 
244,  425 

66,  051 
82,  609 
22,  423 
25,114 
2,325 

$30,  856 
6,  707 
72, 868 
6,  897 
13,  136 

69,  343 
196, 131 
19,  420 
45, 437 
901 

Brass  and  yellow  metal  .  .  tons 

17 

30,  863 
171 

3,  968 

Cigarettes .  . .  _  _  .  .  thousands.. 

Cigars _  __do _ 

Colors,  dyes  and  paints: 

Aniline _  . 

33,  376 
220 
1,  972 

Indigo,  artificial _ .  .  _  .  ...  .pounds.. 

Paints  and  paint  oil _  .  do 

Other  kinds _  .......  ...  .  .do 

Copper  (all  kinds) _ _  .  tons 

534,  533 
431,  600 
594,  000 

6 

708,  800 
270,  400 
888,  400 

2 

614 


COMMERCIAL  HANDBOOK  OF  CHINA 


Articles 


1913 


1923 


Quantity 


Value  in 
United 
States 


Quantity 


Value  in 
United 
States 


Cotton  goods: 

Blankets . . number.. 

Cambrics,  lawns  and  muslins. . pieces.. 

Cotton  prints . do - 

Drills . . do _ 

Dyed  lastings,  italians,  poplins,  and  Venetians 

_ number.. 

Flannelettes,  dyed  and  printed. . . . do _ 

Japanese  cloth  and  crPpe _ _ yards.. 

Jeans . . pieces.. 

Sheeting,  gray,  plain... . ...do _ 

Shirting,  gray,  plain... _ _ _ do _ 

Shirting  and  sheeting  dyed,  plain  and  figured  .do _ 

Shirting,  white . ...do _ 

Thread  (balls) . . pounds.. 

Velvets  and  velveteen... . yards.. 

Yarns . . tons.. 

Fish  and  fishery  products . ..do _ 

Flour . . . barrels.  . 

Glass,  window . . .boxes.. 

Iron  and  mild  steel,  new: 


currency 


18, 864 
21,416 
53,  635 
26,  841 


$6,  271 
12,  376 
98,  021 
78,  028 


79,  853 
10,  358 
653,  945 
68,  872 
255, 121 
35, 480 
942 
95,  870 
14,  933 
82, 190 

3,  595 
135 

73,  032 

4,  317 


268,  590 
24,  983 
9,548 
173,  280 
710,  215 
75,  390 
3,  076 
292,  889 
6,894 

18,  069 
928,  807 

19,  798 
297,  808 

11,  061 


Bars . . 

Nail  rods . 

Nails  and  rivets.. . 

Iron  and  mild  steel,  old . 

Leather.. _ _ 

Looking  glasses  and  mirrors 


_ tons.. 

...do _ 

...do _ 

_ tons.. 

pounds.. 


537 
348 
457 
5,  064 
124, 400 


20,204 
12,  332 
26,  284 
114,  389 
32,  361 
9,620 


Oil: 


Kerosene. . 

Lubricating  and  vegetable 
Paper  (including  cardboard). . 

Pepper,  black  and  white . 

Soda . . . . 

Soap,  laundry  and  toilet _ 

Sugar,  including  sugar  candy.. 
Woolen  and  cotton  mixtures  .. 


gallons.  . 

...do _ 

...tons.. 

...do _ 

...tons.. 


tons.. 


51, 450 
12, 185 


77 

1, 101 


8,724 


17,  823 
6,  370 
95,  885 
16,  699 
28,  529 
26,  434 
515,  111 
7,948 


currency 


12, 496 
39, 829 
978 


$9, 378 
23,  764 
149,  794 
4,  559 


43,  347 
5,692 

11,680 
22,  730 

3,  573 

44,  663 
170 

51,  253 
20, 133 
37,  712 
203 
270 

106, 126 

4,  956 


334,  771 
34,  582 
817 
104,  735 
17,  581 
205,  602 
909 
326,  682 
26,  326 
17,  945 
142,  726 
70,003 
739, 182 
20,494 


191 


8,992 


491 
6, 109 
226,  033 


44,  300 
172,  604 
59,  329 
10, 420 


1,  076,  615 
36,  427 


103 

1,346 


9,587 


245, 102 
18,239 
83, 408 
15,  492 
28,934 
19,  023 
928,  054 
12,  370 


Woolen  goods: 

Blankets  and  rugs . 

Lastings . . . 

Long  ells . . . . 

Yarn  and  cords . . 

All  other _ _ .... 

Postal  parcels  not  otherwise  classified 
All  other . . 

Total . 


SUMMARY 

Imports  from  foreign  countries  and  Hongkong 
Imports  from  Chinese  ports . 

Total  imports . . . 

Reexports  to  foreign  countries  and  Hongkong  . 
Reexports  to  Chinese  ports _ 

Total  net  imports _ _ _ 


pounds.. 
..  pieces.. 

...do _ 

pounds.. 


44,  568 
620 
83 
187 


10,  766 
5,535 
3,599 
13,  766 
6,  369 
28,  494 
3,  010,  475 


7,  551,  968 


3,  804,  685 
3,  747,  283 


4,313 

20 

120 

108 


1,  708 
315 
1,026 
13,  070 
9,770 
26, 131 
4,  607,  541 


8,  997,  374 


4,  329,  038 
4,  668,  336 


7,  551,  968 


301,  570 
749,  728 


6,  500,  670 


8,  997,  374 


1,  205,  874 

2,  078,  562 


5,  712,  938 


The  foregoing  table  reveals  that  the  imports  through  the  port  of 
Chefoo  have  fallen  off  almost  a  million  dollars  in  the  10  years  from 
1913  to  1923. 

The  reason  for  such  a  decrease  has  already  been  referred  to; 
namely,  the  development  of  the  Kiaochow  region,  and  the  port  of 
Tsingtao,  and  the  building  of  railways  into  the  interior  of  Shantung 
Province.  Goods  destined  for  the  interior  (except  for  the  north¬ 
eastern  part  of  the  Province)  are  now  imported  to  Tsingtao,  Shang¬ 
hai,  or  Tientsin,  and  then  shipped  by  rail  to  their  destination; 
whereas,  in  earlier  years,  much  of  the  importing  for  large  areas  of 
the  Province  was  done  through  Chefoo. 


CHEFOO  CONSULAR  DISTRICT 


615 


There  has  been  a  decided  increase  in  the  value  of  artificial  indigo 
imported,  and  a  noticeable  falling  off  in  the  value  of  cotton-goods 
imports,  particularly  in  sheetings  and  yarns. 

Considerable  increase,  however,  can  be  seen  in  the  value  of  flour 
imported  in  1923  as  compared  with  1913. 

A  substantial  decrease  has  taken  place  in  the  importation  of  kero¬ 
sene.  This  may  be  accounted  for  by  the  establishment  of  additional 
distributing  stations  in  the  interior  and  the  making  of  shipments  by 
rail. 

IMPORTS  THROUGH  LUNGKOW 

The  following  table  shows  the  principal  net  imports  through 
Lungkow  from  foreign  countries  and  Chinese  ports  for  the  years 
1916  and  1923.  As  has  been  noted  before,  Lungkow  was  not  opened 
to  foreign  trade  until  late  in  1915. 


Articles 

1916 

1923 

Quantity 

Value  in 
United 
States 
currency 

Quantity 

Value  in 
United 
States 
currency 

Candles  (all  kinds) _ _ pounds 

14, 933 
25 

$1,  280 
1,524 
4,  774 
12,  229 
2, 160 
6,754 
59,  468 

1,160 

1,026 

4,726 

1,  764 
25,  728 
11, 116 

3,  553 

8,032 
32,  213 

1.311 
2,536 
1, 150 
3,  390 

2,  042 
30,  736 

1,587 

2,597 

1,248 

2.312 
3,781 

3,  716 
10,  493 

9,034 

Cereals:  Rice  and  paddy  _  __  tons 

Chinaware,  coarse  and  fine _  _ _  _  _ 

Cigarettes. ._  .  .  _  ...  .  _  ...thousands.. 

Clocks  and  watches _ ........  _ _  ...number. 

3,  967 

$12,  619 

6,850 

828 

Clothing,  hats,  etc _  .  .  _ 

3, 457 
137, 143 

Cotton  yarn.  _.  _  .... _  pounds 

Cottons,  dyed,  plain,  and  colored: 

Italians  _ _  _ _ _  ..  .  pieces  _ 

927,  866 

209,  600 

205 
134 
759 
195 
6,  948 
2,686 
855 

Venetians.  .  _  .  ....  do 

Lastings...  ..  ...  _ _  _ _ _  .  .do  .. 

Cottons,  dyed,  figured:  Poplins _  .  .  _ do _ 

Cotton  prints,  plain _  _ _  _ ....do  . 

Cotton,  Turkey  red  and  dyed  T  cloths _  .  ...do _ 

Cotton  jeans..  ...  ... _ _ ......  .do.  .. 

Dyes,  colors,  and  paints: 

Aniline _ _ 

2,435 

2,850 

4,  443 
6,464 

Indigo,  artificial _  ..  tons.. 

64 

13,200 

17 

Unclassed  _  _  .  .  _  pounds  . 

Paints  and  paint  oil . . . . tons.. 

Electrical  material  and  fittings. _ _ _ _ _  . 

Enameled  ware  ..  _  _  _  ...... 

Fish  and  fishery  products _  ....  tons.. 

Flour  ...  _  _ _ _ _  do  .. 

37 

2,255 

33 
629 
29 
415 
19,  866 

58 

45 

70 

401 

93 

Fruits,  fresh.  ....  .  ..  .  .  do  .. 

Flannelettes,  plain,  dyed,  and  printed _  .  pieces  . 

Hides  and  skins,  undressed..  .  ...  ..  ..  .  pounds. 

72 

510 

3, 179 

1,  486 

Iron  and  mild  steel,  new: 

Bars.  ..  _  ..  _  _  .  tons.. 

Nails  and  rivets  _ _  .  do  . 

Unenumerated _  ...  _  .  .  do  . 

Iron  and  mild  steel,  old.  .  ..  _  do  .. 

Iron,  galvanized  sheets...  ...  _  do  . 

Japanese  cotton  cloth...  .  ..  _ yards.. 

538,  824 

23,  256 

Lamps  and  lampware..  ....... 

2,788 

3,806 

9,600 

1,238 

2.596 

93,  307 
4,282 
7,  360 
3,453 
10.  280 
7,  369 

8,564 

7.596 
10,  792 

4,590 

946 

2,784 

Looking  glasses  and  mirrors. . 

1,978 

1,580 

Machinery,  propelling  (boilers  and  turbines) _ 

Mats  (all  kinds) _  _  ...  pieces  . 

29,  362 
15, 467 

366,  645 
10,  275 
62 

Matches  _ _  _  .  gross. . 

Oil: 

Kerosene.  _  _ _ American  gallons. . 

Lubricating _ _ _ _ gallons 

92,  750 

68,  645 

21,  249 

8,846 

Paper,  including  cardboard _ .....  .  .tons  . 

Perfumery  and  cosmetics _ 

15 

1,  380 

Soda...  _  _ _ _ _  tons.. 

339 
16,  303 

2,005 

1,503 

Spirits  of  wine _ _ _  gallons. . 

Shirting: 

Gray,  plain _ _ _ pieces. . 

White,  plain _  _  .  .  do 

1, 321 

3,799 

Sundries,  unenumerated _ _ _ _  ...... 

Seaweed  and  agar-agar..  .  _ _ pounds.. 

195,  733 
233 

Sheeting,  gray,  plain . .  .....  ...  ..*.  pieces.. 

Soap _ _ _ _ _ _ _ 

20, 412 

54,  205 

1,  581 

616 


COMMERCIAL  HANDBOOK  OF  CHINA 


Articles 

\ 

1916 

1923 

Quantity 

Value  in 
United 
States 
currency] 

Quantity 

Value  in 
United 
States 
currency 

Sugar: 

Brown.. . . . . .  ... _ tons.. 

White. . . . . . .  ..  .  .do  ... 

Refined _  _ _  _ _  _ do  ... 

Candy..  ..  ...  ______________  ...  pounds  _ 

Toys  and  games . .  ._  ...  ...  _ 

122 

336 

90 

35, 466 

$7, 471 
27,  852 
10,  743 
1,891 

354 
613 
547 
102,  533 

$29,  719 
59, 824 
57, 103 
6,  463 
1,697 
3,  865 
1,010 
33,  485 

Vehicles,  motor  cars..  .  _ _ _ _  .  ... 

Wax,  paraffin _ _  ...  .....  ...  .  ... 

All  other  articles..  _  ..  _ _ _  ... 

35,  133 

Total.. . . .  .  .  . . . 

372,  010 

627,  957 

SUMMARY 

Imported  from  foreign  countries  and  Hongkong . 

17,  800 
610, 157 

Imported  from  Chinese  ports . .  ...  -...  . 

_ _ 

372,  616 

Total  foreign  imports. . . . .  . 

372,  010 

627,  957 
2,  020 

Reexported  to  Chinese  ports . . .  .  _ 

Net  total  foreign  imports. .  .  .  _  ....._ 

372,  010 

625,  937 

It  is  evident  from  the  foregoing  statistics  showing  the  imports 
into  Lungkow,  that  there  has  been  a  decided  increase  since  the 
opening  of  the  port  in  1915.  The  only  items  imported  during  1923 
which  showed  any  material  decrease  as  compared  with  the  value  of 
importations  in  1916  are  cotton  yarn,  Japanese  cotton  cloth,  matches, 
and  cotton  sheeting. 

The  total  import  trade  for  1923  shows  a  gain  of  $253,927  over 
the  1916  imports,  or  an  increase  of  about  68  per  cent. 

MONEY,  BANKING,  AND  CREDIT 

BANKS 

There  are  three  banks  in  Chefoo  which  handle  foreign  exchange 
and  bills.  The  Hongkong  and  Shanghai  Banking  Corporation  is 
a  British  institution  with  extensive  branches  for  foreign  trade 
throughout  China.  The  second,  the  Russo- Asiatic  Bank,  is  now 
under  French  direction,  with  its  head  office  in  Paris.  The  third, 
the  Shanghai  Commercial  and  Savings  Bank,  a  Chinese  institution, 
with  head  office  in  Shanghai,  also  does  foreign  banking  and  ex¬ 
change  business. 

LOCAL  CURRENCY 

The  coins  in  circulation  throughout  the  Chefoo  consular  district 
are  the  usual  copper  and  silver  pieces  known  as  “small  money/’ 
Mexican  silver  dollars,  Hongkong  trade  dollars,  Chinese  Yuan 
Shih-kai  and  Peiyang  dollars  constitute  “big  dollars.”  In  many 
jfiaces  in  the  interior  the  Peiyang  and  the  Yuan  Shih-kai  dollar 
only  are  accepted  without  discount.  Shantung  taels  (representing 
a  definite  weight  of  silver)  form  the  basis  of  business  transactions. 

CREDITS 

Foreign-exchange  business  in  Chefoo  is  usually  transacted  under 
letter  of  credit  and  payment  against  documents  through  banks. 


CHEFOO  CONSULAR  DISTRICT 


617 


Owing  to  the  almost  constant  fluctuations  in  the  value  of  silver  it 
is  safest  to  quote  prices  in  United  States  gold  currency,  unless  the 
order  is  accepted  by  cable  and  the  rate  of  exchange  fixed. 

The  comprador  plays  an  important  part  in  all  business  transac¬ 
tions  involving  local  foreign  firms.  In  the  important  firms  he  is 
usually  a  man  of  considerable  wealth  and  guarantees  all  the  tran¬ 
sactions  of  his  house  with  the  native  Chinese. 

MERCHANDISING  METHODS 

Trade  catalogues,  unless  printed  in  the  Chinese  language,  are  of 
little  use  for  distribution  to  the  ordinary  Chinese  firms. 

Local  merchants  are  seldom  in  a  position  to  place  large  direct 
import  orders  and  usually  depend  for  their  immediate  requirements 
upon  stocks  carried  in  Shanghai  and  Tientsin.  American  firms 
entering  the  North  China  market  have  found  it  most  advantageous 
to  establish  branches  or  connections  in  one  of  the  larger  ports,  and 
later  to  extend  their  connections  to  the  outports,  with  native  agencies 
in  the  interior. 

ADVERTISING 

The  following  table  adequately  portrays  the  limited  circulation 
and  cheapness  of  advertising  in  the  newspapers  published  in  Chefoo, 
both  Chinese  and  foreign : 


Name 


Ai  Kuo  Pao . ... 

Sin  Pao _ 

Chung  Shing  Pao.. 

Chiao  Tung  Pao _ 

Chefoo  Jin  Pao _ 

Chefoo  Shang  Pao.. 

Ta  Min  Pao _ 

Chefoo  Daily  News. 


Date 

estab¬ 

lished 

Esti¬ 

mated 

circula¬ 

tion 

J 

Adver¬ 
tising 
rate  per 
word  1 
per  day 
(United 
States 
currency) 

1919 

2,300 

$0. 0025 

1922 

600 

.005 

1913 

3,  300 

.005 

1915 

2,600 

.005 

1912 

5,  900 

.006 

1914 

3,  400 

.006 

1921 

800 

.0035 

1924 

180 

1  1.50 

1  Chefoo  Daily  News,  $1.50  per  column  inch. 

Note. — All  the  papers  listed  above  are  published  daily;  all  are  Chinese-owned  and  published  in  the 
Chinese  language,  excepting  the  Chefoo  Daily  News,  which  is  British-owned  and  is  published  in  English. 


TRADE  ORGANIZATIONS 

There  are  two  foreign  chambers  of  commerce  in  Chefoo,  namely, 
Chefoo  General  Chamber  of  Commerce,  of  an  international  char¬ 
acter,  and  the  British  Chamber  of  Commerce.  These  organizations 
undertake  to  be  of  service  to  their  members  by  the  periodical  com¬ 
pilation  of  trade  statistics,  and  by  summarizing  and  analyzing  trade 
and  market  conditions  affecting  their  members.  Trade  disputes  are 
also  arbitrated  by  the  Chefoo  General  Chamber  of  Commerce. 

There  is  a  Chinese  chamber  of  commerce  in  Chefoo  which  works 
in  cooperation  with  other  chambers  throughout  Shantung  and  China 
for  the  facilitation  of  commerce  and  commercial  activities. 


618 


COMMERCIAL  HANDBOOK  OF  CHINA 


Guilds  exist  in  most  of  the  trades.  They  are  usually  local  or¬ 
ganizations  and  are  not  associated  with  similar  guilds  in  other 
cities,  except  that  sometimes  branches  of  a  guild  may  exist  in  the 
neighboring  towns  and  villages.  The  guilds  are  of  a  permanent 
character,  and  officers  are  elective.  They  concern  themselves  mainly 
with  the  commercial  interests,  individual  and  collective,  of  their 
members,  and,  in  addition,  settle  trade  disputes  and  enact  trade 
legislation.  In  some  communities  the  guilds  establish  standards  of 
weights  and  measures,  fix  the  rates  of  commissions,  determine  set¬ 
tling  days,  and  generally  see  that  business  is  conducted  honestly. 

TRAVEL  FACILITIES 

During  the  summer  months  coastwise  steamers  en  route  to  Tien¬ 
tsin  and  Shanghai  call  at  Chefoo  almost  daily,  and  also  touch  at 
Weihaiwei.  There  are  weekly  sailings  to  Tsingtao  direct  and  also 
weekly  connections  with  Dairen,  Manchuria,  by  Japanese  steamers. 
It  is  possible  to  reach  Tientsin  and  Shanghai  by  land,  leaving  Chefoo 
on  the  motor  busses  of  the  Chefoo-Weihsien  Motor  Road  Co.  (Ltd.) 
and  transferring  to  the  Kiaochow-Tsinan  line  at  Weihsien  and  again 
changing  to  the  express  trains  of  the  Tientsin-Pukow  Railway  at 
Tsinan.  The  motor  cars  cover  the  distance  of  about  200  miles  in 
9  hours,  leaving  each  terminal  daily. 

HOTELS 

There  are  two  hotels  in  Chefoo  where  commercial  travelers  may 
reside  in  a  reasonable  degree  of  comfort — the  Astor  House  and  The 
Broadway.  Both  hotels  are  conducted  on  the  American  plan. 
There  are  no  regularly  established  boarding  houses  in  Chefoo, 
although  in  the  summer  many  of  the  local  residents  offer  accom¬ 
modations. 

There  is  one  small  hotel  at  Weihaiwei,  but  none  at  the  port  of 
Lungkow. 

LIVING  COSTS 

Hotel  board  and  room,  depending  somewhat  upon  the  season  of 
the  year,  ranges  from  $150  to  $200  Mex.  ($75  to  $100  United  States) 
a  month  for  one  person;  for  a  married  couple  without  children, 
from  $275  to  $375  Mex.  per  month,  and  for  a  married  couple  with 
two  children,  from  $400  to  $480  Mex.  depending  upon  the  age  of 
the  children. 

PROPERTY  VALUES  AND  RENTS 

Land  values  have  increased  in  the  last  few  years,  owing  to  the 
enhanced  importance  of  Chefoo  as  a  port,  following  the  construc¬ 
tion  of  modern  harbor  works  and  the  growth  of  the  hair-net  in¬ 
dustry.  The  war  caused  the  shifting  of  the  hair-net  industry  to 
China,  and  large  sums  of  money  were  invested  in  Chefoo  in  fac¬ 
tories  and  the  necessary  equipment.  This  brought  an  influx  of 
workers,  and  property  values  and  rents  rose  to  a  high  level.  Since 
early  in  1923  there  has  been  a  slight  downward  trend  on  account 
of  the  falling  off  of  trade  in  the  products  of  various  industries. 


CHEFOO  CONSULAR  DISTRICT 


619 


First-class  land  for  commercial  purposes  in  Chefoo  is  worth  (in 
terms  of  Mexican  currency)  $6,000  per  mow;  second-class  land, 
about  $4,000  per  mow;  and  third-class  land  about  $2,000  per  mow 
(6.6  Chinese  mow  equal  1  English  acre). 

It  is  estimated  that  a  Chinese  building  for  commercial  purposes 
can  be  built  for  $120  (Mex.)  per  “chien”  (room).  The  estimated 
cost  for  the  erection  of  an  ordinary  foreign-style  building  is  $650 
(Mex.)  per  “chien.”  In  most  cases  rent,  either  for  commercial 
premises  or  for  residences,  is  fixed  at  about  10  per  cent  of  the  value 
of  the  property. 

In  “  Section  One  ”  of  Chefoo,  the  international  settlement,  taxes 
are  levied  and  assessed  at  the  rate  of  7  per  cent  of  the  value  of  the 
premises.  In  other  sections  of  the  city  taxes  are  levied  at  the  rate 
of  3  per  cent  of  the  rent  paid. 


CHUNGKING  CONSULAR  DISTRICT 


By  Vice  Consul  R.  L.  Smyth 

LOCATION  AND  AREA 

Chungking  consular  district  comprises  the  Province  of  Szechwan 
and  all  of  Tibet  (considered  separately  at  end  of  this  section)  ex¬ 
cept  the  Kokonor  region.  The  Province  of  Szechwan  lies  in  west¬ 
ern  China  between  26°  and  34°  north  latitude — corresponding  to 
that  of  Texas — and  98°  and  110°  east  longitude.  Beyond  its  western 
border  lies  Tibet,  which,  excluding  the  Kokonor  region,  extends  from 
28°  to  36°  north  latitude  and  79°  to  98°  east  longitude. 

The  area  of  Szechwan  is  218,533  square  miles  and  of  Tibet  463,320 
square  miles,  a  total  for  the  district  of  681,853  square  miles,  or 
about  three-fifths  the  area  of  the  United  States  east  of  the  Missis¬ 
sippi  River. 

CLIMATE 

Western  Szechwan  is  dry,  the  winters  cold  and  summers  warm. 
Eastern  Szechwan  generally  is  mild,  with  rapid  changes  in  tempera¬ 
ture,  much  fog,  and  a  sky  usually  overcast.  In  the  Chengtu  Plain 
the  temperature  rarely  exceeds  100°  F.  Summer  is  the  rainy  season. 

The  climate  along  the  Yangtze  River  is  semitropical.  At  Chung¬ 
king  the  average  minimum  temperature  is  about  35°  and  the  average 
maximum  temperature  106°  F.  The  summers  are  hot  and  the  humid¬ 
ity  extreme.  During  autumn  and  winter  the  sun  rarely  appears 
through  the  blue-gray  vapor  that  obscures  the  sky.  The  average 
rainfall  is  about  50  inches.  The  climate  of  Tibet  is  generally  dry, 
subject  to  great  extremes  of  heat  and  cold  and,  in  the  southern  part, 
to  much  rainfall  and  snow. 


POPULATION 

The  population  of  Szechwan  Province  is  estimated  at  between 
fifty  and  sixty  millions.  At  60,000,000  the  density  per  square  mile 
would  be  270.  The  Chengtu  Plain,  45  by  90  miles,  has  the  densest 
population,  estimated  at  more  than  2,000  per  square  mile. 

Chinese  estimates  place  the  population  of  Tibet  at  6,430,000,  but 
it  is  probably  considerably  less.  At  these  figures  the  population 
would  be  14  per  square  mile. 

CITIES 

Chungking ,  opened  in  March,  1891,  is  the  only  treaty  port  in 
Szechwan  Province.  It  is  situated  on  a  rocky  promontory  at  the 
junction  of  the  Kialing  and  Yangtze  Rivers,  about  1,550  miles  from 
the  mouth  of  the  Yangtze.  Its  population  is  about  500,000.  Euro¬ 
peans  number  about  200;  Americans,  55,  including  children;  Amer- 

620 


CHUNGKING  CONSULAR  DISTRICT 


621 


ican  business  firms,  15.  Consulates  are  maintained  by  France,  Ger¬ 
many,  Great  Britain,  Japan,  Italy,  and  the  United  States.  The 
Japanese  have  a  concession  on  the  south  side  of  the  river  below  the 
city,  but  it  has  never  been  developed. 

Chungking  is  the  chief  commercial  center  of  Szechwan.  Manu¬ 
facturing,  especially  silk  filatures,  is  developing  rapidly.  The  chief 
industries  are  silk  reeling,  manufacture  of  leather  and  leather  goods, 
matches,  glassware,  and  pottery.  The  preparation  of  bristles,  of 
skins,  and  of  medicinal  and  other  raw  products  for  export  employ 
large  numbers  of  people.  The  city  is  also  the  seat  of  a  Government 
mint.  There  are  no  restrictions  as  to  foreign  residence,  foreigners 
living  anywhere  in  the  city  and  also  on  the  hills  across  the  river. 

Chengtu ,  the  provincial  capital,  is  on  the  Chengtu  Plain,  in  cen¬ 
tral  Szechwan.  The  population  is  about  700,000:  Europeans,  120; 
Americans,  100,  including  children.  There  are  no  American  firms. 
Chengtu  Plain  has  an  excellent  irrigation  system  and  is  a  rich  agri¬ 
cultural  district.  The  city  is  an  important  educational  center,  botli 
for  Chinese  and  foreign  institutions.  There  are  no  foreign  conces¬ 
sions.  France  and  Great  Britain  maintain  consular  offices,  and  the 
Chinese  Government  has  a  mint  and  arsenal. 

Wanhsien  is  on  the  Yangtze  River,  halfway  between  Chungking 
and  Ichang.  It  is  not  an  open  port,  although  a  branch  of  the  Chung¬ 
king  Maritime  Customs  has  functioned  there  since  March,  1917. 
The  estimated  population  is  between  150,000  and  200,000 :  Europeans, 
about  20;  Americans,  11;  American  business  firms,  2.  Wanhsien  is 
the  distributing  center  for  a  large  area  and  the  principal  export 
point  in  China  for  wood  oil.  Other  exports  are  untanned  goatskins, 
medicines,  and  silk.  The  principal  import  is  cotton  yarn.  Two 
large  American  firms,  an  oil  and  a  wood-oil  firm,  have  offices  at 
W  anhsien. 

Suifu  is  at  the  junction  of  the  Yangtze  and  Min  Rivers.  It  has  a 
population  of  about  150,000 :  Europeans,  25 ;  Americans,  30.  There 
are  no  American  business  firms.  Suifu  is  an  important  distributing 
center  for  a  large  area  and  is  the  terminus  for  ships  from  Chung¬ 
king  during  the  summer  months.  It  is  an  important  American  mis¬ 
sionary  center. 

Other  important  cities  are  Tzeliutsing,  the  salt-mining  center; 
Kiating,  silk  center  on  the  Min  River ;  LuchoAv,  between  Chungking 
and  Suifu ;  Hochow  and  Paoning,  on  the  Kialing  River ;  and  Ivwei- 
chowfu,  between  Wanhsien  and  Ichang.  Tatsienlu,  an  important 
city  in  western  Szechwan,  is  the  meeting  place  of  the  trade  between 
China  and  Tibet. 

AGRICULTURE 

Agriculture  is  the  principal  occupation  of  the  people  of  Szechwan. 

Rice  is  the  most  important  crop  and  is  generally  cultivated 
throughout  the  “  Red  Basin.”  It  is  planted  in  April  and  harvested 
in  August.  The  average  production  is  45  bushels  per  acre.  It  is 
the  chief  foodstuff  of  the  people,  and  the  entire  crop  is  consumed 
in  the  Province. 

Wheat  is  planted  in  August  and  harvested  in  May.  The  average 
crop  is  between  25  and  30  bushels  per  acre.  Some  wheat  is  exported 
to  other  parts  of  China,  but  the  greater  part  is  consumed  in  the 
Province. 


622 


COMMERCIAL  HANDBOOK  OF  CHINA 


Rape  is  grown  extensively  for  oil  and  cooking  purposes.  It  is 
planted  in  September  and  harvested  in  May. 

The  soy  bean  is  very  generally  cultivated,  chiefly  as  an  article  of 
food.  It  is  planted  in  April  and  harvested  in  August.  A  variety  of 
other  beans,  as  winter  and  summer  crops,  are  also  grown  as  articles 
of  diet. 

Maize  is  widely  grown  throughout  Szechwan.  It  is  planted  in  April 
and  harvested  in  June.  The  average  crop  is  about  30  bushels  per 
acre,  as  the  crop  is  usually  raised  on  poor  soil. 

Hemp  (Cam)nabis  sativa  and  Abutilon)  is  widely  cultivated.  The 
crop  season  of  the  Cannabis  is  February  to  June  and  of  the  Abutilon 
April  to  August.  The  latter  is  exported  in  considerable  quantity. 

Tobacco  is  a  large  crop  of  the  Chengtu  plain.  Tobacco  shoots  are 
transplanted  in  March  and  the  harvest  is  gathered  in  June.  To¬ 
bacco  leaf  forms  a  considerable  item  in  the  exports  of  the  Province. 

Sugar  of  two  kinds  are  grown,  the  red  for  chewing  purposes  only, 
and  the  white  or  yellow  for  manufacture  into  sugar.  The  cane  is 
ripe  in  October  and  November.  Brown  sugar  is  exported  in  large 
quantities  to  other  parts  of  China. 

Sweet  potatoes  are  widely  cultivated,  but  the  entire  crop  is  con¬ 
sumed  in  the  Province. 

The  most  primitive  farm  implements  are  used.  The  water  buffalo 
is  the  common  farm  animal,  and  a  spade,  a  sickle,  and  a  one-handled 
wrooden  plow  with  an  iron  shovel  comprise  the  principal  implements 
in  universal  use.  Night  soil  is  the  common  fertilizer;  refuse  cakes 
of  crushed  rapeseed  and  beans,  and  crushed  animal  bones  are  other 
fertilizers. 

IVater  buffaloes  and  cows  are  the  most  common  livestock.  Ponies 
are  used  for  riding.  Every  household  raises  for  market  a  few  pigs, 
which  are  noted  for  the  excellence  of  their  flesh.  Goats  are  raised  in 
considerable  numbers.  A  few  chickens  are  raised  by  every  family, 
and  large  numbers  of  ducks  are  raised  for  sale  to  restaurants.  In 
western  Szechwan  and  Tibet  grazing  is  the  chief  industry  of  the 
people,  sheep  and  goats  being  found  in  great  numbers. 

Land  holdings  are  invariably  small.  Farmers,  who  are  usualty 
on  the  border  of  poverty,  obtain  financial  assistance  either  by  selling 
their  crop  before  it  is  ripe  or  by  borrowing  from  their  market  town, 
the  latter  being  the  common  practice.  Throughout  Szechwan  these 
towns  have  frequent  market  days,  on  which  occasions  the  farmer 
takes  his  produce  to  the  market  for  sale. 

MINERALS  AND  MINING 

The  mineral  wealth  of  Szechwan  is  confined  chiefly  to  the  region 
west  of  the  Min  River.  Although  this  region  is  as  yet  imperfectly 
known,  it  is  believed  to  be  rich  in  mineral  resources.  Gold,  silver, 
copper,  lead,  zinc,  coal,  iron,  antimony,  white  copper,  gypsum,  mica, 
and  other  minerals  are  found.  The  chief  mining  centers  are  Yachow, 
Tatsienlu,  Ningyuanfu,  and  Huilichow.  Zinc,  lead,  coal,  and  iron 
are  important  deposits  of  the  Yachow  region;  gold  and  silver  of 
Tatsienlu;  gold,  lead,  and  zinc  of  Ningyuanfu;  and  copper  of 
Huilichow. 


CHUNGKING  CONSULAR  DISTRICT 


623 


COAL 

In  the  “  Red  Basin  ”  the  principal  minerals  to  be  found  are  coal, 
iron,  and  salt.  Coal  is  widely  distributed  throughout  the  Province, 
but  in  many  places  it  is  of  poor  quality.  The  best  coal  is  found 
around  Suifu,  Yachow,  Chengtu,  and  along  the  Kialing  River.  No 
accurate  statements  have  been  made  as  to  the  quantity  of  coal  mined 
annually,  but  it  is  variously  estimated  between  300,000  and  800,000 
tons.  Coal  is  mined  by  primitive  native  methods,  as  there  has  been 
no  great  demand  in  the  past  for  coal.  Now,  however,  with  the 
development  of  manufacturing  industries  and  the  rapid  increase  in 
steam  vessels  on  the  upper  Yangtze,  the  demand  for  coal  is  increas¬ 
ing,  and  modern  methods  will  doubtless  be  adopted  eventually. 

IRON 

Iron  is  widely  distributed  and  is  usually  found  in  the  same  regions 
as  coal.  Chichianghsien  is  one  of  the  most  important  iron-ore  dis¬ 
tricts.  The  iron  mined  is  limited  to  the  local  demand  and  none  is 
exported. 

SALT  AND  PETROLEUM 

The  principal  salt-producing  centers  are  Tzeliutsing,  Wutungchiao 
(in  Kiating  district),  Yangtaocheng  (in  Paoningfu  district),  and 
Kweifu,  the  first  being  the  most  important.  The  brine  wells  of 
Szechwan  are  famous,  and  the  production  of  salt  is  one  of  its  im¬ 
portant  industries.  The  primitive  methods  of  raising  brine  by 
buffalo  winches  and  bamboo  rope  attached  to  bamboo  buckets  are 
still  generally  employed,  but  during  recent  years  simple  steam 
bailing  machinery  has  been  introduced  at  Tzeliutsing.  These  plants 
consist  of  an  ordinary  steam  winch,  the  drums  of  which  hold  about 
3,000  feet  of  half-inch  wire  rope.  Steam  is  supplied  by  a  vertical 
cross-tube  type  of  boiler.  The  plants  are  crude  and  inefficient,  but 
have  been  adopted  because  of  their  cheapness.  Considerable  modern 
drilling  machinery  has  been  purchased  by  the  Chinese  well  owners 
at  Tzeliutsing  and  is  being  installed  under  the  supervision  of  an 
American  expert,  sent  especially  for  the  work.  Within  a  few  years 
the  entire  equipment  will  probably  be  modernized.  Some  of  the 
wells  are  3,000  feet  deep.  Natural  gas  is  used  as  a  fuel  for  evapora¬ 
tion  purposes.  The  number  of  salt  wells  in  operation  at  Tzeliutsing 
in  1923  was  1,580,  and  the  salt  produced  in  Tzeliutsing  and  vicinity 
amounted  to  5,366,590  piculs,  or  318,535  long  tons. 

Petroleum  is  found  in  the  salt-well  regions,  but  none  has  been 
refined  and  marketed. 

MINING  METHODS 

Mining  in  Szechwan  is  carried  on  entirely  by  natives  and  by 
primitive  methods,  modern  machinery  being  used  only  at  Tzeliuts¬ 
ing.  Mining  affairs  are  handled  by  a  mining  bureau  in  Chengtu. 

MANUFACTURING  AND  INDUSTRIAL  DEVELOPMENT 

The  principal  industries  in  Szechwan  Province  are  reeling  of 
silk;  wood  oil,  salt,  leather,  glass,  and  bristle  industries;  cotton- 


624 


COMMERCIAL  HANDBOOK  OF  CHINA 


cloth  and  grass-cloth  weaving;  and  the  manufacture  of  paper,  sugar, 
matches,  and  cigars. 

SILK 

The  silk  industry  has  made  great  progress  in  recent  years.  The 
chief  centers  for  the  reeling  and  weaving  of  silk  are  Chungking, 
Chengtu,  Kiating,  Shunking,  and  Tungchwan.  Although  by  far 
the  great  part  of  the  silk  exports  from  this  Province  are  raw  silk, 
the  number  of  modern  filatures  is  increasing  rapidly.  Many  of  them 
are  steam  filatures,  Japanese  methods  and  management  predominat¬ 
ing.  There  are  now  some  modern  filatures  in  Chungking,  employing 
many  workers.  The  silk  industry,  apart  from  the  modern  filatures 
at  Chungking  and  Chengtu,  is  carried  on  chiefly  by  crude  methods, 
but  the  silk  woven  at  Chengtu  and  Kiating  is  exceedingly  strong, 
tough,  and  durable.  This  silk  does  not  seem  to  have  been  exported 
to  the  United  States  in  any  quantity,  though  its  excellent  wearing 
qualities  should  recommend  it  to  purchasers  there,  especially  for 
the  making  of  shirts. 

WOOD  OIL 

The  wood-oil  industry  now  takes  an  important  place  in  the  in¬ 
dustries  of  Szechwan.  The  growth  of  the  industry  during  the  last 
decade  has  been  remarkable.  Wood  oil  is  obtained  from  the  seeds  of 
the  fruit  of  the  wood-oil  tree  ( Aleurites  Fordii ),  which  flourishes 
on  rocky  hills  and  in  the  poorest  of  soils.  The  yield  is  about  40 
per  cent  by  weight  of  the  kernels.  At  present  the  oil  is  extracted 
from  the  seeds  by  crude  native  presses,  and  it  is  believed  that  mod¬ 
ern  presses  would  increase  the  quantity  of  oil  obtained.  The  center 
for  this  industry  is  Wanhsien,  which  lies  in  the  heart  of  the  produc¬ 
tion  area.  The  oil  is  used  by  the  Chinese  as  a  varnish,  especially 
for  woodwork.  It  is  exported  in  large  quantities,  the  United  States 
being  the  largest  purchaser.  Although  Szechwan  is  the  largest  pro¬ 
ducer  of  wood  oil  in  China,  the  center  for  its  export  is  Hankow,  in 
Hupeh  Province.  There  the  oil  is  purified  and  piped  into  ocean 
tankers. 

OTHER  INDUSTRIES 

Salt. — The  salt  industry  has  been  discussed  under  the  section  on 
minerals  and  mines. 

Cloth. — The  grass-cloth  and  cotton-cloth  industries  are  important. 
Cotton-cloth  weaving  is  carried  on  in  numerous  small  factories,  prin¬ 
cipally  on  native  wooden  looms,  though  a  few  modern  machines 
have  been  introduced  recently.  This  industry  is  steadily  increasing, 
as  is  shown  by  the  enormous  quantities  of  cotton  yarn  which  are  im¬ 
ported  into  the  Province  every  year.  Grass  cloth  is  made  from  hemp, 
widely  cultivated  in  the  Province.  The  hemp  fiber  is  made  into 
threads  by  women  and  woven  into  cloth  on  native  looms.  There  are 
no  large  factories  and  no  modern  machinery  is  employed. 

Sugar. — The  manufacture  of  sugar  is  an  important  industry.  It 
is  extracted  from  sugar  cane  by  native  methods  and  is  not  refined. 
The  sugar  produced  is  very  coarse,  but  is  in  great  demand  in 
Szechwan  and  down-river  Provinces.  The  principal  centers  of  this 
industry  are  Tzechow,  Neikiang,  Kienchow,  Kaihsien,  and  Wan¬ 
hsien. 


CHUNGKING  CONSULAR  DISTRICT 


625 


Paper. — Paper  manufacture  is  a  very  general  industry.  The  chief 
centers  are  Mienchuhsien,  Kienchow,  Luchow,  Wanhsien,  and  Chi- 
chiang.  At  present  only  native  methods  are  used,  but  modern  ma¬ 
chinery  will  doubtless  soon  be  introduced.  Szechwan  has  abundant 
raw  material  for  paper  making. 

Leather. — The  preparation  of  leather  and  manufacture  of  leather 
goods  has  made  good  progress  during  the  last  few  years,  although 
the  Province  still  exports  large  quantities  of  skins  and  hides.  Chung¬ 
king  and  Chengtu  are  the  chief  centers  for  this  industry.  In  Chung¬ 
king  there  are  16  factories,  using  principally  native  methods  and 
machinery,  and  at  Chengtu  there  are  about  the  same  number,  in¬ 
cluding  a  military  leather  factory  employing  Japanese  machinery. 
The  products  consist  of  leather  valises,  shoes,  belts,  and  other  leath- 
erware,  which  are  of  good  quality  and  for  which  a  satisfactory  mar¬ 
ket  exists. 

Matches. — The  match-making  industry  has  developed  rapidly,  and 
there  are  over  20  match  factories  in  the  Province,  of  which  about 
one-half  are  located  in  Chungking.  Only  native  machinery  is  used 
and  the  product  is  poor. 

Glass. — There  are  10  glass  factories  in  the  Province.  Lamp  chim¬ 
neys  are  produced,  principally  from  melted  broken  glass,  and  win¬ 
dow  glass  and  some  fancy  glassware  are  also  manufactured.  There 
are  a  few  soap  factories,  but  the  quality  of  the  product  is  not  good. 
Flour  milling  is  carried  on,  but  not  with  great  success.  Other 
products  manufactured  are  tiles  and  bricks,  furniture,  rattan  ware, 
and  cigars.  The  Szechwan  cigar,  which  is  commonly  smoked  in  the 
Province,  is  much  smaller  than  the  ordinary  American  cigar,  being 
about  2  to  3  inches  in  length  and  three-eighths  to  one-half  inch 
thick. 

ARSENAL  AND  MINT 

A  Government  arsenal  and  mint  are  located  at  Chengtu  and  a 
mint  at  Chungking.  The  Chengtu  arsenal  is  at  present  in  good 
condition,  being  under  the  direction  of  a  Chinese  trained  in  Ger¬ 
many.  Although  the  plants  are.  equipped  with  fairly  modern  ma¬ 
chinery  they  have  all  suffered  from  the  disturbed  conditions  which 
have  existed  in  Szechwan  during  the  past  decade.  The  continual 
change  in  management  has  prevented  progress. 

SUMMARY 

It  will  be  noted  from  the  above  that  most  of  the  industries  of 
Szechwan  are  carried  on  in  primitive  ways  and  use  primitive  tools. 
The  Province  has  vast  quantities  of  raw  material,  and  with  the 
introduction  of  modern  methods  and  machinery  progress  should  be 
rapid.  A  factor  which  should  encourage  the  development  of  manu¬ 
facturing  in  the  Province  is  the  prohibitive  freight  rates  on  the 
upper  Yangtze.  This  should  stimulate  the  manufacture  of  bulky 
raw  materials  into  lighter  finished  products,  with  a  consequent  sav¬ 
ing  in  transportation  charges. 

LABOR  CONDITIONS 

There  is  an  ample  supply  of  satisfactory  labor  in  Szechwan. 
Most  of  the  industries  in  the  Province  are  still  carried  on  in  a  small 


100020°— 26 - 41 


626  COMMERCIAL  HANDBOOK  OF  CHINA 

way  and  by  primitive  methods,  and  often  the  labor  is  supplied  by 
the  family  operating  a  small  plant.  In  the  larger  industries  labor 
is  obtained  in  the  immediate  vicinity  of  the  factory.  There  are  no 
large  industrial  centers  as  in  the  United  States,  and  no  labor  ques¬ 
tion  has  yet  arisen.  There  are  a  number  of  guilds  formed  of  work¬ 
men  in  the  same  industry,  such  as  the  leather  workers’  guild,  but  no 
large  organizations ;  consequently,  strikes  are  almost  unknown.  The 
number  of  laborers  is  usually  greater  than  the  demand,  and  a  worker 
stays  in  one  place  for  years.  Because  modern  machines  are  not  com¬ 
mon,  skilled  labor  for  modern  factories  would  have  to  be  trained. 

The  wages  in  the  principal  industries  are  as  follows :  Silk  reeling 
and  weaving,  female,  20  cents  per  day;  cotton-cloth  weaving,  male 
and  female,  $6  per  month;  salt,  male,  $1.50  per  month;  carpenter, 
mason,  and  stone  mason,  male,  50  cents  per  day;  native  shoemaker, 
male,  $6  per  month;  ordinary  coolie,  male,  $3  per  month,  female, 
$2  per  month;  common  laborers,  unloading  cargo,  etc.,  50  cents  per 
day. 

TRANSPORTATION  AND  COMMUNICATION 

WATERWAYS 

The  Y angtze  River  is  the  sole  means  of  transportation  to  and  from 
Szechwan  Province.  Until  the  beginning  of  this  century  all  traffic 
was  carried  on  by  junks,  and  the  trip  from  Ichang  through  the 
gorges  and  rapids  of  the  Yangtze  was  a  dangerous  one,  requiring 
three  weeks  or  more  to  reach  Chungking.  It  was  not  until  1914  that 
suitable  shallow-draft  steam  vessels  were  put  on  with  a  sufficiently 
large  carrying  capacity  to  make  them  commercially  successful.  Since 
then  steam  navigation  on  the  upper  Yangtze  has  developed  rapidly, 
and  the  progress  during  the  past  few  years  has  been  phenomenal. 
The  trip  from  Ichang  to  Chungking  is  now  3  to  5  days,  and  the 
return  trip  2  to  4  days,  with  cargo  ranging  from  50  to  300  tons  per 
vessel.  Forty  steam  vessels  now  operate  on  the  upper  Yangtze,  10 
of  which  are  American.  In  the  winter,  low-water  season,  the  larger 
vessels  can  not  operate,  but  IT  are  able  to  navigate  the  river  through¬ 
out  the  year. 

Freight  rates  on  the  upper  Yangtze  are  still  inordinately  high, 
but  are  being  reduced  with  the  increase  of  steam  transportation. 
In  1914  a  total  of  2,163  vessels  entered  and  cleared  at  Chungking,  of 
which  90  were  river  steamers  and  2,073  were  native  junks;  in  1923, 
of  a  total  of  874  entered  and  cleared  628  were  river  steamers  and 
246  native  junks. 

Of  the  navigable  tributaries  of  the  Yangtze,  the  Min  River  is 
navigable  for  junks  and  steamers  below  Kiatingfu,  except  in  winter, 
and  as  far  as  Chengtu  for  small  junks  throughout  the  year.  The 
Ya  River  is  navigable  for  rafts  between  Kiating  and  Yachowfu. 
It  is  the  principal  route  by  which  foreign  goods  are  sent  to  Yachowfu 
and  beyond  to  western  Szechwan.  The  Lu  River,  which  enters  the 
Yangtze  at  Luchow,  is  navigable  below  Kienchow  for  small  craft. 
The  Kialing,  which  joins  the  Yangtze  at  Chungking,  is  navigable  for 
junks  to  Paoning,  a  distance  of  200  miles. 

The  only  important  tributary  of  the  Yangtze  flowing  north  is  the 
Kungtan  River,  which  joins  it  at  Fuchow,  and  is  navigable  by  junks 
as  far  as  Shihnanfu,  in  Kweichow  Province,  in  high  water. 


CHUNGKING  CONSULAR  DISTRICT 


627 


RAILWAY  PROJECTS 

There  are  no  railways  in  Szechwan  either  in  operation  or  under 
construction.  The  following  lines  are  either  under  agreement  for 
future  construction  or  are  being  considered : 

Szechwan-Hankow  Railway. — The  Hukuang  Railway  loan  of 
1911,  made  by  the  Four  Nations  Group,  composed  of  American, 
British,  French,  and  German  bankers,  provides  for  the  construction 
of  the  Szechwan-HankoAV  Railway.  The  Ichang-Kweichowfu  sec¬ 
tion,  part  of  which  is  in  Szechwan,  was  assigned  as  the  American 
section  for  construction.  The  final  survey  of  the  line  was  completed 
in  1915,  but  only  a  little  construction  work  has  been  done.  The 
length  of  this  section  is  132  miles.  A  preliminary  survey  of  the 
contemplated  extension  to  Chengtu  via  Chungking  was  carried  out 
in  1914  by  American  engineers  from  the  Ichang-Kweichowfu  section. 

Tatung -Chengtu  Railway. — A  preliminary  contract  was  signed  on 
August  14,  1913,  by  representatives  of  the  Societe  Beige  des  Chemins 
de  Fer  en  Chine  and  the  Societe  Francaise  de  Construction  et  Ex¬ 
ploitation  de  Chemins  de  Fer  en  Chine.  This  railway  will  be  ap¬ 
proximately  960  miles  long,  and  at  Tatung  will  connect  with  the 
Peking-Kalgan  Railway. 

T amchow -Chungking  Railway. — Early  in  1914  La  Banque  In- 
dustrielle  de  Chine  entered  into  an  agreement  with  the  Chinese 
Government  for  the  construction  of  a  railway  from  Yamchow  via 
Nanning,  Posi,  and  Singyi  to  Yunnanfu  and  thence  via  Weining  in 
Kweichow  to  Chungking,  where  it  will  connect  with  the  extension 
of  the  Szechwan-Hankow  line.  The  approximate  length  of  this  line 
is  1,000  miles. 

Yunnan- Szechwan  Railway. — A  survey  of  the  line  from  Yunnan 
to  Suifu  (or  Luchow),  made  by  American  engineers,  was  completed 
in  1911.  Its  length  is  about  450  miles.  It  is  undoubtedly  this  line 
that  is  contemplated  in  the  concession  of  La  Banque  Industrielle  de 
Chine  referred  to  above. 

It  will  be  seen  that  the  above  agreements  provide  for  a  system  of 
trunk  lines  in  western  China  running  north  and  south,  and  another 
trunk  line  running  east  and  west  paralleling  the  Yangtze  River,  con¬ 
necting  the  rich  Province  of  Szechwan  with  the  great  down-river 
markets  of  Hankow  and  Shanghai. 

During  January,  1925,  a  report  was  current  that  a  railroad  would 
be  built  to  connect  Tzeliutsing,  the  great  salt-mining  district,  with 
Luchow,  on  the  Yangtze  River,  a  distance  of  70  miles.  It  was  stated 
that  this  railroad  would  be  financed  by  the  salt  merchants,  who 
desire  to  provide  a  rapid  and  convenient  outlet  for  their  salt. 

There  have- been  a  number  of  projects  on  the  part  of  the  provincial 
authorities  for  railway  lines,  particularly  one  to  connect  Chungking 
and  Chengtu,  but  owing  to  the  continual  change  in  officials  no  pro¬ 
gress  has  been  made,  and  there  is  but  little  hope  that  any  action  will 
be  taken  until  the  development  of  a  stable  government. 

ROADS 

Although  a  few  miles  of  good  roads  have  been  constructed  in  the 
vicinity  of  Chengtu  during  the  past  year,  the  roads  in  Szechwan 
are  still  narrow,  rough,  and  unfit  for  vehicular  traffic.  The  roads 


628 


COMMERCIAL  HANDBOOK  OF  CHINA 


are  invariably  paved  with  flagstones,  laid  crossways.  Some  im¬ 
portant  roads  are  as  much  as  5  feet  wide,  but  usually  the  roads  are 
narrower.  Over  the  ever-recurring  hills  in  the  Province  these  flag¬ 
stones  are  arranged  in  steps,  which,  on  account  of  the  steep  slopes  of 
many  hills,  make  a  far  more  satisfactory  road  for  the  traffic  than  an 
even-surfaced  one. 

The  Chinese  authorities  in  Chengtu  made  a  great  improvement 
in  the  city  streets  during  the  year  1924  by  having  them  widened  and 
paved  with  native  cement.  A  modern  road  has  also  been  constructed 
between  Chengtu  and  Kwanhsien,  a  distance  of  50  miles.  There 
are  about  200  rickshas  and  a  few  automobiles  in  Chengtu. 

The  principal  trade  routes  and  routes  of  travel  are  the  following : 
(a)  The  “Ta-lu,”  or  Great  Road,  from  Peking  via  Taiyuanfu, 
Sianfu,  and  Hanchungfu,  which  passes  through  Paoning,  Tung- 
chwan,  Chengtu,  Yachowfu,  Tatsienlu,  Litang,  and  Batang  and 
thence  leads  on  to  Lhasa,  the  section  of  this  road  west  of  Chengtu 
being  the  one  over  which  the  greater  portion  of  the  trade  with  Tibet 
is  carried;  (b)  the  road  from  Yachow  to  Yunnan,  which  passes 
through  the  Chienchang  Valley  and  the  city  of  Ningyuanfu;  ( c )  the 
road  along  the  Min  River  from  Chengtu  to  Suifu;  ( d )  the  road  from 
Chungking  to  Chengtu,  which  passes  through  Tzechow;  ( e )  the 
road  from  Chengtu  to  Wanhsien  via  Shunchinfu  and  Suitingfu, 
which  is  of  considerable  commercial  significance  and  will  become 
more  important  with  expansion  in  the  trade  of  Wanhsien. 

Land  transportation. — Human  carriers  constitute  the  usual  means 
of  transportation  by  land;  the  trade  with  Tibet  is  entirely  trans¬ 
ported  in  this  way.  Pack  animals,  both  ponies  and  mules,  are  used 
to  some  extent.  Transportation  by  pack  animals  is  slower  than  by 
coolies.  Traveling  is  usually  done  in  sedan  chairs,  carried  by  two 
to  four  coolies,  who  travel  about  30  miles  per  day. 

By  reliable  “  coolie  hongs  ”  (establishments  providing  coolies 
for  labor  and  transportation  purposes)  at  Chungking,  the  rate  for 
porterage  to  Chengtu  is  now  quoted  as  $14  Mex.  ($7  United  States 
currenc}^)  per  coolie  carrying  a  load  of  70  catties  (about  93  pounds) 
for  the  journey,  which  takes  10  days.  At  this  rate  transportation 
costs  about  $168  (United  States  currency)  per  ton  of  2,240  pounds. 
The  distance  is  about  300  miles.  Chair  bearers  receive  the  same 
amount.  The  rate  for  pack-animal  transportation  for  the  same  jour¬ 
ney  is  quoted  as  15  cents  Mex.  (8  cents  United  States  currency)  per 
catty  (iy3  pounds  avoirdupois),  each  mule  or  pony  carrying  a  maxi¬ 
mum  of  200  catties.  At  this  rate  goods  are  carried  the  300  miles  for 
$156  (United  States  currency)  per  ton.  Transportation  rates  have 
almost  doubled  during  the  last  10  years,  owing  largely  to  the  constant 
commandeering  of  coolies  and  pack  animals  by  the  military. 

TELEGRAPH,  CABLES,  AND  WIRELESS  SERVICE 

The  telegraph  service  of  Szechwan  Province  is  furnished  by  the 
Chinese  Telegraph  Administration.  There  are  49  stations  now  in 
operation.  Two  lines  run  east  from  Chungking  into  Hupeh  Prov¬ 
ince  and  two  run  south  into  Kweichow  Province.  From  Chengtu  a 
line  runs  west  via  Yachow  to  Batang,  with  a  branch  to  Ningyuanfu. 
There  is  also  a  line  connecting  Chengtu  with  Peking  via  the  Prov¬ 
ince  of  Shensi,  Telegraph  charges  within  the  Province  are  at  the 


CHUNGKING  CONSULAR  DISTRICT 


629 


rate  of  9  cents  Mex.  (5  cents  United  States  currency)  per  word, 
and  to  other  Provinces  18  cents  Mex.  per  word.  The  rate  to  New 
York  is  $1.80  Mex.  per  word.  The  address  is  charged  for. 

Most  of  the  equipment  in  use  is  of  German  manufacture.  Mate¬ 
rials  are  purchased  by  public  tender  by  the  telegraph  supply  depart¬ 
ment  of  the  Ministry  of  Communications  at  Shanghai. 

There  is  no  commercial  wireless  in  the  Province,  but  several  of 
the  foreign  gunboats  have  wireless  equipment. 

TELEPHONES 

There  are  two  public  telephone  systems  in  Szechwan,  one  in 
Chungking  and  one  in  Chengtu.  Both  are  controlled  by  the  military 
authorities,  but  the  telephone  service  has  been  extended  to  the  public. 
The  original  equipment  of  the  Chungking  system  was  British  In¬ 
sulated  &  Helsby  Cables  Co.,  to  which  other  equipment  has  been 
added.  There  are  now  over  100  telephone  instruments  in  use  in 
Chungking.  The  rates  are  $8  Mex.  per  month.  Part  of  the  Chengtu 
system  is  of  American  make.  The  number  of  telephones  in  use  is 
about  350,  and  the  rates  are  approximately  the  same  as  those  in 
Chungking. 

POSTAL  FACILITIES 

The  Chinese  Government  Post  Office  provides  the  postal  facilities 
for  Szechwan  Province.  The  report  of  the  post  office  for  1923  gives 
the  total  length  of  postal  lines  in  the  Province  as  66,431  li,  or  about 
22,143  miles.  At  the  end  of  that  year  there  were  183  post  offices  and 
suboffices  and  731  postal  agencies.  Mail  is  carried  by  couriers,  post 
boats,  and  steamers.  Couriers  travel  on  foot  and  carry  a  maximum 
load  of  64  pounds.  On  most  routes  they  travel  day  and  night  with 
first-class  mail.  Pony  pack  trains  are  used  for  heavy  mail  when 
water  transportation  is  not  available.  First-class  mail  between 
Ichang  and  Chungking  is  carried  throughout  the  year  by  steamers, 
but  during  the  winter  second-class  mail  and  parcels  are  carried  by 
junk. 

The  postal  rates  are  1  cent  Mex.  for  city  mail  and  3  cents  Mex.  for 
mail  to  other  parts  of  the  Province  or  other  Provinces  of  China. 
The  rates  to  the  United  States  are  governed  by  the  international 
postal  agreement. 

It  usually  takes  from  35  to  40  days  to  receive  first-class  mail  mat¬ 
ter  from  New  York. 

SHIPPING  AND  WAREHOUSING  FACILITIES 

HARBOR  FACILITIES 

Owing  to  a  difference  of  60  to  100  feet  between  the  summer  and 
winter  water  levels  of  the  Yangtze  River  at  Chungking,  there  are 
no  stationary  wharfs  or  docks  in  the  harbor.  Ships  arriving  at 
Chungking  must  either  tie  up  at  pontoons,  which  are  changed  with 
variations  of  the  water  level,  or  anchor  at  one  of  the  several  anchor¬ 
ages. 

There  are  about  eight  recognized  anchorages  within  the  Chung¬ 
king  harbor  limits.  Not  all  of  these  are  available  at  the  same  time 
owing  to  the  changing  water  level.  As  the  subject  of  anchorages  at 


630 


COMMERCIAL  HANDBOOK  OF  CHINA 


different  water  levels  is  too  complex  to  be  treated  here,  inquirers  are 
referred  to  the  various  publications  of  the  Chinese  Maritime  Cus¬ 
toms. 

There  are  at  present  at  Chungking  some  14  pontoons  of  various 
sizes  and  construction.  Six  of  these  are  owned  by  foreign  shipping 
firms,  and  the  greater  part  of  the  remainder  are  either  rented  or 
leased  by  foreign  firms. 

The  ships  which  anchor  in  the  river  transfer  their  cargo  to 
lighters  and  those  which  tie  up  at  pontoons  transfer  their  cargo  onto 
the  pontoons  or  into  lighters.  With  the  exception  of  one  ship  which 
has  a  steam  derrick  and  a  few  oil  tankers,  all  cargo  is  transferred 
from  the  ships  to  lighters  and  pontoons  by  Chinese  coolies.  A  coolie 
is  paid  40  cash  per  package  when  discharging  cargo  and  60  cash 
when  loading.  The  size  of  the  package  is  immaterial,  the  payment 
being  according  to  the  number  of  coolies  required  to  carry  it.  As 
the  present  exchange  is  about  3,400  cash  to  $1  Mex.,  40  cash  is 
about  1  cent  Mex.,  or  one-half  cent  in  United  States  currency. 
An  average  of  about  30  tons  an  hour  can  be  loaded  and  an  average  of 
40  tons  per  hour  discharged  by  coolies. 

Goods  for  the  Szechwan  trade  should  be  strongly  packed  but 
not  in  heavy  packages,  preferably  not  more  than  100  pounds  if  the 
goods  are  to  be  carried  inland. 

WAREHOUSING  AND  STORAGE 

There  are  only  a  few  public  warehouses  in  Chungking.  One,  a 
modern  concrete  warehouse,  and  another,  a  Chinese  building  of 
brick  and  timber,  belong  to  British  firms.  Each  of  them  has  a 
capacity  of  approximately  700  cargo  tons.  An  American  company 
has  a  limited  storage  space  available  in  short-term,  small-quantity 
lots.  Warehouse  charges  for  a  bale  of  cotton  yarn  (3!/3  piculs,  or 
approximately  440  pounds)  are  about  42  cents  Mex.  per  month. 

PUBLIC  WORKS  AND  UTILITIES 

ELECTRIC-LIGHT  PLANTS 

The  only  lighting  plants  in  this  Province  are  at  Chungking, 
Chengtu,  Luchow,  Suifu,  and  Tzeliutsing. 

The  Chungking  plant  was  installed  by  a  British  company,  and 
the  engines,  boilers,  stokers,  superheaters,  and  feed-water  heaters  are 
British  products.  The  electric  equipment  is  German.  The  capacity 
of  the  plant  is  500  kilowatts;  the  generating  voltage  is  440  and  the 
consumer’s  220.  Distribution  is  on  three- wire  system  through 
balancers.  The  total  lamp  capacity  of  the  plant  is  16,000  20-watt 
lamps.  The  monthly  charge  for  service  is  $1.80  Mex.  per  20- watt 
tungsten  lamp;  light  is  furnished  from  6  p.  m.  to  about  11  p.  m. 
The  plant  has  not  proved  a  financial  success. 

The  Chengtu  plant  is  operated  by  a  Chinese  company,  the  Ch’i 
Ming  Electric  Light  Co.  It  was  installed  by  a  German  firm,  but 
some  of  the  machinery  was  supplied  by  a  British  company.  Equip¬ 
ment  is  the  same  in  general  as  in  the  Chungking  plant.  The  capacity 
of  the  plant  is  125-kilowatt  volt  amperes.  The  current  is  alternat¬ 
ing,  50  cycles,  3,300  volts. 


CHUNGKING  CONSULAR  DISTRICT 


631 


There  is  another  company  in  Chengtu,  the  Shang  Yeh  Electric 
Light  Co.  The  machinery  is  said  to  be  German. 

There  is  a  small  electric  plant  at  Luchow,  with  80-horsepower 
engine.  The  plant  generates  12  kilowatts  and  has  a  voltage  of  100. 
The  total  lamp  capacity  is  about  500. 

Small  electric-light  plants  have  recently  been  installed  in  Suifu  and 
Tzeliutsing. 

Undoubtedly  Szechwan  Province  offers  a  rich  field  for  the  instal¬ 
lation  of  lighting  plants.  The  beginning  has  not  been  very  pro¬ 
pitious,  as  the  present  companies  are  not  operating  profitably.  The 
Chinese  have  not  yet  learned  that  machinery  needs  care  and  much 
attention  to  every  little  detail.  For  firms  obtaining  a  contract  to 
install  a  lighting  plant  it  would  be  advisable  to  insist  upon  the  em¬ 
ployment  of  a  foreign  engineer  for  at  least  three  years. 

However,  the  future  for  lighting  plants,  as  for  many  other  types 
of  public  works  in  Szechwan,  depends  largely  upon  the  establish¬ 
ment  of  a  stable  government  in  the  Province.  Under  present  con¬ 
ditions  Chinese  are  not  willing  to  invest  their  money  in  such  enter¬ 
prises. 

CONSERVANCY  WORKS 

In  1915  an  Upper  Yangtze  Conservancy  Board  was  organized 
in  which  the  Maritime  Customs  was  represented  but  the  board  did 
not  function.  A  certain  amount  of  work  has  been  accomplished  by 
private  effort  and  by  the  Maritime  Customs  in  removing  dangerous 
rocks  at  several  of  the  worst  rapids  and  in  Chungking  Harbor. 

IRRIGATION  WORKS 

The  Chengtu  Plain,  with  an  area  of  about  2,400  square  miles  and 
a  reputed  population  of  5,000,000,  has  an  irrigation  system  which, 
according  to  Chinese  history,  dates  from  the  third  century  before 
the  Christian  era.  At  Kwanhsien  the  Hsi,  or  Sungpan  River,  de¬ 
bouches  from  the  mountains  and  divides  its  waters  among  the  many 
channels  that  cross  the  plain  from  the  northwest  to  the  southeast. 
Here  the  streams  converge  to  form  the  Min  River,  which  empties 
into  the  Yangtze  at  Suifu.  These  streams  have  been  supplemented 
by  a  multitude  of  canals,  whereby  an  almost  perfect  distribution  of 
water  throughout  the  whole  plain  has  been  effected.  Of  this  irriga¬ 
tion  system  Richthofen  states  that  it  u  is  probably  not  excelled  in  per¬ 
fection  anywhere  ” 

EXPORT  AND  IMPORT  TRADE 

The  trade  of  Szechwan  Province  is  tributary  to  Shanghai  and 
Hankowr  and  is  largely  in  the  hands  of  Chinese,  acting  either  for 
themselves  or  as  local  agents  for  foreign  firms  in  the  down-river 
ports.  The  foreign  firms  in  Szechwan,  with  the  exception  of  two 
large  concerns  importing  kerosene,  are  primarily  exporters  of 
native  produce  and  do  very  little  importing.  There  is  practically 
no  direct  trade  between  Szechwan  and  foreign  countries.  Exports 
from  the  Province  are  sent  to  Shanghai  and  Hankow,  where  they 
are  prepared  for  export  abroad. 


632 


COMMERCIAL  HANDBOOK  OF  CHINA 


Exports  destined  for  the  United  States  are  rarely  declared  at  the 
American  consulate  in  Chungking.  The  goods  are  shipped  down  the 
river  and  consular  invoices  taken  out  by  the  exporting  firms  at  the 
American  consulates  in  Shanghai  and  Hankow. 

The  principal  features  in  the  trade  of  Szechwan  during  the  last 
decade  have  been  the  rapid  change  from  native  junk  transportation 
to  steam  transportation  on  the  upper  Yangtze,  the  increase  in  the 
import  of  kerosene  and  Chinese  cotton  goods,  and  the  increase  in  the 
export  of  wood  oil  and  grass  cloth. 

The  following  table  gives  the  gross  and  net  value  of  foreign  goods 
passing  through  the  Maritime  Customs  at  Chungking  during  the 
years  1903,  1913,  and  1923 : 


1903 

1913 

1923 

Imported  from  foreign  countries  and  Honkgong _  ... _ 

Haikwan  taels 

Haikwan  taels 
778, 435 
10, 433, 656 

Haikwan  taels 
671, 398 
7, 430, 052 

Imported  from  Chinese  ports _ _ _ _ _ 

18, 073,921 

Total  foreign  imports _  ...  . . . . 

18, 073, 921 
582 

11, 212, 091 
3,631 

8, 101, 450 
44,542 

Reexported  to  Chinese  ports  (chiefly  to  Ichang  and  Wanhsien) 

Net  total  foreign  imports . . . . 

18, 073, 339 

11,  208,  460 

8, 056,  908 

It  will  be  noted  that  imports  of  foreign  goods  have  declined  con¬ 
siderably  since  1903.  This  is  because  foreign  cotton  goods,  particu¬ 
larly  cotton  yarn,  have  been  displaced  by  Chinese  cotton  goods,  or 
rather  cotton  goods  manufactured  in  China  by  Chinese  and  foreign 
factories. 

EXPORTS 

The  total  exports  from  Chunking  increased  from  8,276,796  Haik- 
wan  taels  in  1903  to  24,576,773  in  1923,  a  notable  increase,  particu¬ 
larly  as  the  figures  for  1903  include  an  item  of  over  2,000,000  taels 
for  opium,  an  article  which  does  not  now  appear  in  the  customs 
figures. 

The  10  leading  exports  in  1903,  in  the  order  of  their  importance, 
were  opium,  silk,  musk,  hides  (cow  and  buffalo),  bristles,  goatskins, 
white  wax,  sheep  wool,  nutgalls,  and  hemp.  In  1923  the  leading 
items  were  silk,  grass  cloth,  goatskins,  Chinese  medicines,  bristles, 
white  wax,  leaf  tobacco,  sheep  wool,  fungus,  and  wood  oil. 

Generally  speaking,  native  products  are  first  collected  by  peddlers 
and  disposed  of  in  the  small  market  towns.  They  are  then  brought 
to  market  centers  or  larger  towns  by  dealers,  who  in  turn  sell  them 
to  agents  of  Chungking  merchants.  An  abundance  of  waterways 
facilitates  transportation  to  Chungking. 

The  principal  exports  from  Chungking  during  the  years  1903 
and  1923  are  given  in  the  following  table  (in  which  all  figures  rep¬ 
resent  thousands,  both  for  quantity  and  for  value)  : 


CHUNGKING  CONSULAR  DISTRICT 


633 


Commodities 

1903 

1923 

Quantity 

Value 

Quantity 

Value 

Haikwan 

Haikwan 

taels 

taels 

Bambnn  shoots _  _  . 

Diculs 

9 

107 

Bones _ _ _ _ -  -- _ _ _ 

7 

11 

Books.  Drinted.  .. .  ..  _  _ _ _ _ 

5 

37 

Bristles .  .. .  -  -  -- 

. ..piculs. 

11 

320 

13 

1, 129 

Cordage,  all  kinds . _  .  . . _  . 

. . do _ 

5 

42 

Feathers - - - 

..  .  _ do  ... 

3 

14 

5 

59 

Fiber,  coir - - - 

_  ..do.  . 

3 

8 

9 

77 

Fungus . . .  --  - 

.  _ do  .. 

3 

116 

7 

466 

Glue  .  _  _  _ _ 

2 

32 

Grass  cloth  .  .  .  _  _  .  _ 

_ piculs.. 

11 

3,568 

Hair,  human  . . _  .  -  _  -- 

. do _ 

3 

14 

Hides,  cow  and  buffalo _ 

_ do _ 

19 

431 

12 

248 

Intestines .  _  _  -  _ 

245 

Lead: 

Pig  _ _  __  _ 

_  .piculs.. 

5 

30 

White _ _ 

_ do... 

3 

2 

35 

Leather _  _  _ 

_  ..do  ... 

1 

47 

1 

124 

Lily  flowers,  dried _  _  _  _ 

.  _ do _ 

8 

115 

Mats  (not,  including  matting)  _ 

.  .  .Dieces. 

439 

170 

Medicines.. .  .  _  _ _ _ 

75 

1, 861 

Musk  .  .  _  _  . 

750 

17 

351 

Nutgalls. . .  ...  _  _  ... 

...  ...  .piculs.. 

11 

193 

25 

236 

Oil,  wood.  _ _ _ _ _ _ 

1 

432 

Opium.  _ _  .  _ 

..  _ piculs.. 

6 

2,  374 

Paper. .  . . . .  .....  .. 

. .do... 

16 

Peel,  orange. _ _ _  _ 

...  .  .  ..do _ 

3 

12 

7 

30 

Rhubarb _  .  _  _ 

. . do _ 

11 

116 

8 

146 

Silk  cocoons,  refuse . . . . . 

. do _ 

14 

337 

15 

390 

Silk  piece  goods. _ _  _  .  ..  _ 

.  _ do _ 

18 

54 

Silk,  pongee _ _ _  ..  .  .  _ 

. do _ 

45 

Silk,  raw,  total..  . . .  . . 

_ _ do _ 

8 

1,441 

14 

9,  101 

Filature . . . .  . 

. . do.  .. 

6 

2,  783 

Waste. .  ...  ...  _ _ _  _ _ _ 

. do _ 

5 

4,  738 

Skins,  goat,  untanned. . .  . 

. ..pieces.. 

639 

316 

1,434 

2,563 

Sugar,  brown  _  ..  ......  _ 

. .  piculs. 

8 

28 

32 

208 

Tallow,  animal. .  . .  .  _ ...  .  . 

. do _ 

6 

59 

3 

39 

Tallow,  vegetable _ _  _ 

. do _ 

1 

6 

Tin,  Yunan _ _ _  _ 

. . do _ 

1 

33 

Tobacco,  leaf  and  stalk  .  _ _  _ 

. . do  ... 

36 

774 

Turmeric . . . . . . 

. . do..  . 

25 

69 

36 

202 

V  arnish _ _ _ _ _  _ _ 

. .  .do..  . 

1 

86 

Vegetables,  all  kinds _ ...  _ 

. . .do..  . 

8 

35 

Wax,  white _ _  ... 

. . ...do _ 

6 

280 

7 

1,059 

Wool..  _ _ _ _ _ 

_ do.... 

25 

258 

All  other . .  .  .  . .  ...  .  _ _ 

879 

515 

Total.. . . .  .  ...  _  ...  .  _ 

8,  276 

24,  577 

Silk,  the  largest  export  from  Szechwan,  accounted  for  two-fifths 
of  the  total  exports  from  Chungking  in  1923,  and  the  silk  filature 
industry  is  developing  rapidly.  Grass  cloth,  manufactured  from 
ramie  fiber,  ranks  second  among  the  exports  for  1923. 

The  bristles  exported  from  Szechwan,  especially  the  white  bristles, 
are  considered  the  best  in  China,  and  a  large  American  manufac¬ 
turer  of  toothbrushes  has  recently  placed  a  representative  at  Chung¬ 
king  to  engage  principally  in  the  export  of  white  bristles.  The 
black-bristle  trade  is  largely  in  the  hands  of  the  Japanese  and 
British. 

Tobacco  ranks  seventh  among  Chungking’s  exports,  Szechwan 
tobacco  leaf  proving  particularly  popular  in  other  Provinces  of 
China  in  the  making  of  cigars  and  cigarettes. 

Medicinal  products,  such  as  licorice,  aconite,  snakeroot,  and  scull- 
cap  are  exported  in  considerable  quantities,  although  the  bulk  of 
the  output  is  for  use  of  the  Chinese. 


634 


COMMERCIAL  HANDBOOK  OF  CHINA 


Fungus  of  two  kinds,  black  and  white,  is  another  peculiar  export 
from  Szechwan.  The  white  fungus  is  a  great  delicacy  of  Chinese 
diet,  the  present  market  price  being  $30  (United  States  currency)  a 
pound. 

Winter  is  the  trade  season  for  musk.  Formerly  Germany  made 
large  purchases,  but  in  recent  years  France  and  other  countries 
have  bought  still  more  to  be  used  as  the  basis  for  perfumes.  Exports 
of  musk  have  decreased,  however,  owing  to  the  development  of  the 
manufacture  of  synthetic  musk  in  Europe. 

Exports  of  buffalo  and  cow  hides  and  sausage  casings  have  de¬ 
creased,  owing  in  the  case  of  hides  to  the  development  of  a  local 
leather  industry. 

Nutgall  exports  have  shown  a  steady  increase,  as  has  also  brown 
sugar. 

IMPORTS 

• 

Imports  are  purchased  chiefly  at  Shanghai  by  local  Chinese  firms, 
except  in  the  case  of  sewing  machines,  cigarettes,  and  kerosene, 
which  are  distributed  largely  by  the  foreign  firms  which  manufac¬ 
ture  them.  The  following  table  shows  the  principal  articles  of 
import  at  Chungking  for  the  years  1903  and  1923 : 

[Quantity  in  thousands  of  units;  value  in  thousands  of  Haikwan  taels] 


Commodities 

1903 

1923 

Quantity 

Value 

Quantity 

Value 

FOREIGN  GOODS 

BSche  de  mer. . - . 

Huttons  _ _ 

. piculs.. 

_ _ gross.. 

1 

109 

Haikwan 

taels 

51 

37 

1 

Haikwan 

taels 

64 

hi  n  aware  .  _ _ 

10 

Cigarettes  -  _ 

_ number .. 

9,  599 

70 

Clocks  and  watches... . . . 

. ...do _ 

9 

11 

3 

9 

flntt.nn  manufactures,  total 

16,  771 

2  685 

Piece  goods  .  _ _ 

2,  587 

2  627 

Yarn.. . . . — . 

. piculs.. 

391 

14, 184 

1 

58 

Drugs  and  chemicals 

70 

168 

Dyes,  total _  .  . . . . . 

441 

Aniline,  .  .  ... 

116 

315 

Indigo,  artificial..  . 

. .  piculs .. 

2 

113 

Fans,  palm-leaf . . 

_ number .. 

1,707 

12 

591 

19 

Fish  and  fish  nroducts  .  _  _ 

_  _  .-  Diculs  _ 

3 

3 

104 

Furniture  and  materials _  ..  ... 

46 

Ginseng  . . 

..  .niculs  _ 

102 

120 

Glass  and  glassware. . . . . 

8 

17 

Damns  and  lamD  ware, _ 

9 

73 

Metals  and  minerals: 

CoDDer  __  ...  . 

niculs 

12 

431 

Iron  and  steel,  total.  ___ 

101 

324 

Bars  . 

niculs 

60 

87 

Hardware,  stoves,  etc  . 

60 

36 

Nails . . 

_  piculs 

2 

11 

Needles..  . . . . . 

..  ... number  . 

230,995 

41 

Tinned  plates . . .  . . 

.  .piculs.. 

8 

64 

Wire,  galvanized  ___  _  _  _ 

_ 'do 

9 

126 

Quicksilver _  __  _  _  _  _ 

18 

Tin _ ... 

niculs 

1 

51 

White  metal . . 

20 

Machinery.  _  ...  _  . 

38 

Oil,  mineral: 

Fuel . . . 

tons  . 

1 

17 

Gasoline. . . . . . . 

...gallons  . 

16 

11 

Kerosene . . 

62 

8 

5,809 

1,737 

Paper . .  ...  .  _ _ 

3 

55 

Perfumery _  _  _ 

41 

39 

Seaweed  and  agar-agar . . 

. piculs.. 

13 

30 

17 

50 

Silk  goods,  artificial . 

36 

15 

CHUNGKING  CONSULAR  DISTRICT 


635 


Commodities 

1903 

1923 

Quantity 

Value 

Quantity 

Value 

foreign  goods— continued 

Haikwan 

taels 

Haikwan 

taels 

Snan.  toilet, 

8 

30 

Spices. .. _ _ _ _ - - - - 

_ piculs  . 

4 

95 

6 

246 

Woolen  grinds  and  mixtures 

192 

404 

Umbrellas . .  ...  -  - 

_ number.. 

37 

43 

48 

28 

A  11  other 

363 

717 

Total 

18, 074 

8, 057 

CHINESE  GOODS 

Books,  printed . . .  .  . . 

. piculs -. 

1 

39 

1 

44 

Rrass  warp 

8 

1 

33 

Ttnt.t.ons 

11 

Candles 

_ Diculs.- 

3 

57 

Cardamoms  .  _ 

13 

Cassia.  _  _  _____  .  _ _ 

3 

17 

1 

12 

China  roots _ _  ..  .  ...  ..  . . 

_ piculs.. 

6 

46 

3 

54 

China  warp  (excluding  pottery') 

5 

14 

543 

Hi  garottes  _  _  _ 

niculs 

2 

185 

Clothing 

83 

Cotton,  raw...  _  _ _  _ 

2 

45 

7 

251 

Cotton  manufactures,  total 

2, 077 

24,  784 

Cotton  goods,  all  kinds 

1 

365 

Cotton  yarn  . . 

piculs 

2, 076 

24, 128 

Cuttle-fish _  _  _ 

_ *.do _ 

1 

18 

1 

38 

Fans _ _ _ _ _ _ _ _ 

_ number.. 

1,299 

99 

3,  425 

49 

Furniture 

68 

Glass  and  glassware . . . 

28 

13 

Machinery . . . . 

80 

Medicines  ...  .  _ 

163 

297 

Opium  lamps,  etc _ _ _ _ 

_ number 

12 

26 

Pines,  tobacco  _  ...  .  . 

.do 

11 

7 

Pontoons  and  bridges  . .  . . . . . 

40 

Quicksilver  _  .  ... 

4 

18 

Seeds  . .  ... . . 

_ number.. 

1 

10 

1 

26 

Silk  Diece  eoods _ _  _  ..  _  __  __ 

181 

167 

Soap.. . . . . 

72 

Allother _ _  _ _ _ _ 

251 

1,332 

Total  ___  _ 

• 

2, 871 

28, 259 

Total  imDorts.  Chinese  and  foreign  _ 

20,  946 

36,  316 

The  five  leading  imports,  in  the  order  of  their  importance,  were, 
in  1903,  cotton  goods;  woolen  and  cotton  mixtures;  aniline  dyes; 
ginseng,  American  and  Japanese;  household  stoves.  In  1923  they 
were  cotton  goods;  kerosene;  copper  ingots  and  slabs;  woolen  and 
cotton  mixtures ;  aniline  dyes. 

The  most  striking  feature  in  the  import  trade  of  Chungking  dur¬ 
ing  the  past  20  years  has  been  the  phenomenal  increase  in  the  import 
of  Chinese  cotton  goods,  which  have  almost  displaced  foreign  cot¬ 
ton  goods.  In  1903  imports  of  foreign  cotton  goods  were  valued 
at  16,771,486  haikwan  taels  and  Chinese  cotton  goods  at  2,058,265 
In  1923  foreign  cotton  goods  had  decreased  to  2,685,700  taels  and 
Chinese  goods  had  increased  to  24,373,345.  The  imports  of  Chinese 
cotton  goods  consist  almost  entirely  of  cotton  yarn,  the  product 
of  factories  in  Shanghai  and  other  Chinese  cities. 

The  trade  in  cotton  piece  goods  is  still  in  the  hands  of  foreigners, 
but  has  declined  because  of  the  considerable  cotton-cloth  industry 
that  has  developed  in  the  Province. 

Kerosene  has  shown  a  remarkable  increase,  ranking  in  1923  as  the 
second  most  important  import.  The  oil  is  principally  American, 
with  comparatively  small  quantities  from  Sumatra.  A  great  de- 


636 


COMMERCIAL  HANDBOOK  OF  CHINA 


mand  has  been  created  in  Szechwan  for  oil,  and  its  import  should 
steadily  increase. 

The  importation  of  aniline  dyes  has  increased.  During  the  Euro¬ 
pean  war  German  dyes  were  cut  off,  but  during  the  past  few  years 
German  agents  in  Chungking  have  been  active  and  German  dye 
imports  are  steadily  increasing. 

The  following  lines  of  American  goods  might  be  introduced: 
Condensed  milk,  hosiery,  toilet  soap,  clocks  and  watches,  safety 
razors,  medicines,  lamps  and  lamp  ware,  enameled  ware,  and  soda 
ash.  It  should  always  be  remembered,  however,  that  cheapness  is 
usually  an  essential  qualification  in  this  market.  American  goods 
must  be  ready  to  meet  a  keen  competition  as  regards  both  price  and 
quality. 

In  1923  the  principal  imports  and  exports  at  Wanhsien  were  a$ 
follows : 


Items 


Quantity 


Value 


IMPORTS 

Chinese  cotton  goods . . . . . piculs! 

Kerosene: 

American _ _ _ _ _ American  gallons.. 

Sumatra.. _ _ _ _ _ _ _ .do _ 


56, 760 


Haikwan 

taels 

3, 338, 055 


789,  796 
10,000 


231, 490 


EXPORTS 


Hides,  buffalo  and  cow . . . . . . . . piculs.. 

Nutgalls. . . . . . . . . . ...do _ 

Oil,  wood.. _ _ _ _ _ ..do'.... 

Skins,  goat . . . . . . . . pieces.. 

Sugar,  brown.. . . . . . piculs.. 


8,884 
6,667 
244, 175 
288, 950 
8,249 


174,  743 
73,  733 
5,  518,  355 
353,  934 
58,  737 


/■ 


MONEY  AND  BANKING 

BANKS 

There  is  only  one  foreign  bank  in  Szechwan,  the  American- 
Oriental  Bank  of  Szechwan,  Chungking,  organized  in  1922.  This 
bank  handles  foreign  exchange,  but  the  Chinese  banks  do  not  gen- 
erallv  handle  such  business. 

Exchange  between  Chungking  and  Shanghai  is  a  factor  which 
must  be  carefully  considered  in  doing  business  with  Chungking. 
In  normal  times  it  costs  from  98  to  102  Chungking  taels  to  buy  a 
Shanghai  draft  for  100  taels,  but  during  the  year  1924  this  rate  went 
up  to  117  and  was  often  over  110.  These  abnormal  exchange  condi¬ 
tions  were  due  in  part  to  the  excess  of  imports  over  exports.  The 
comparatively  peaceful  conditions  prevailing  in  SzechwTan  during 
1924,  in  contrast  with  the  disturbances  of  the  previous  years,  proved 
a  great  stimulant  to  imports,  especially  cotton  yarn.  Another  con¬ 
tributing  factor  was  the  embargo  on  the  export  of  silver  from 
Chungking,  inaugurated  by  the  Chinese  authorities. 

LOCAL  CURRENCY 

The  currency  used  in  business  transactions  is  the  Szechwan  tael, 
which  was  established  as  the  uniform  tael  for  the  Province  in  1908. 
The  Szechwan  tael  is  commonly  known  as  the  Chiu-ch’i-p’ing,  which 
means  that  100  Szechwan  taels  are  equivalent  to  97  Kuping  taels, 


CHUNGKING  CONSULAR  DISTRICT  637 

the  latter  being  the  central  Government  tael.  All  accounts  of  busi¬ 
ness  houses  are  kept  in  terms  of  the  Szechwan  tael. 

The  only  paper  currency  generally  acceptable  on  the  local  market 
is  the  note,  in  $1  and  $10  denominations,  issued  by  the  American- 
Oriental  Bank  of  Szechwan. 

ADVERTISING 

Advertising  in  the  Chungking  district  must  be  conducted  in  the 
Chinese  language,  through  Chinese  newspapers,  posters,  handbills, 
calendars,  and  similar  mediums.  There  are  no  foreign  newspapers, 
and  advertising  placed  in  the  Hankow  and  Shanghai  foreign  news¬ 
papers  will  only  reach  the  limited  number  of  foreigners  in  the 
district  who  subscribe  to  such  journals. 

There  are  10  Chinese  newspapers  published  in  Chungking  and 
about  the  same  number  in  Chengtu.  The  following  are  among  the 
leading  newspapers  in  Chungking:  Shang  Wu  Jih  Pao,  circulation, 
2,300;  Hsin  Shu  Pao,  circulation,  1,000.  All  papers  have  seven 
issues  a  week.  The  average  annual  subscription  is  about  $3  United 
States  currency. 

Advertising  rates  vary,  according  to  the  size  of  the  type,  from  15 
to  45  cents  per  100  characters  or  words  per  day.  Advertisements  by 
the  week,  fortnight,  and  month  receive  a  discount  of  10  to  40  per  cent 
on  the  above  rates,  and  for  longer  periods  the  rates  are  subject  to 
special  arrangement.  Double  rates  are  usually  charged  for  outside- 
page  advertisements. 


TRADE  ORGANIZATIONS 

At  Chengtu  and  Chungking  there  are  general  chambers  of  com¬ 
merce  similar  in  character  to  those  in  other  parts  of  China. 

Every  trade  and  industry,  even  to  beggars  on  the  streets,  has  its 
guild.  The  power  of  the  guilds  is  very  great,  and  some  of  these 
organizations  exact  severe  penalties  for  the  infraction  of  their  regu¬ 
lations.  The  chamber  of  commerce  which  exists  in  nearly  every 
city  in  the  district  may  be  likened  to  a  large  central  guild,  with 
specific  trade  guilds  as  its  branches. 

There  is  only  one  foreign-trade  organization  in  the  district,  the 
British  Chamber  of  Commerce  at  Chungking,  with  a  membership 
of  about  30. 

TRAVEL  FACILITIES 

There  is  now  an  all-year  Yangtze  steamer  service  between  Ichang 
and  Chungking,  it  requiring  three  to  five  days  for  the  up  trip  and 
two  to  four  days  for  the  down  trip.  Except  on  the  Yangtze  River, 
traveling  in  the  interior  must  be  done  by  native  boat,  chair,  or  pony. 

There  are  no  hotels  in  Chungking  with  accommodations  for 
foreigners.  Tourists  usually  live  on  the  steamers,  and  those  who 
remain  for  a  longer  period  should  make  arrangements  with  business 
connections  or  with  one  of  the  local  foreign  missions,  which  are 
usually  able  to  accommodate  a  few  people. 

Spring  and  autumn  are  the  best  seasons  of  the  year  for  visiting 
Chungking. 


638 


COMMERCIAL  HANDBOOK  OF  CHINA 


LIVING  COSTS 

The  large  foreign  firms  in  Chungking  provide  living  quarters 
for  their  representatives.  A  newcomer  not  attached  to  one  of  these 
firms  would  probably  have  to  adopt  a  Chinese  house  to  his  needs  or 
build  one. 

Considering  all  conditions,  living  costs  for  a  man  and  wife  (in¬ 
cluding  rent,  food,  chair  bearers  or  boatman,  servants,  heat,  light, 
and  ice)  will  figure  up  roughly  about  $210  to  $280  United  States 
currency  per  month.  Two  children  would  probably  increase  this 
amount  by  10  to  20  per  cent.  A  single  man’s  expenses  would  be  from 
$150  to  $190  per  month. 

Recreational  facilities  at  Chungking  consist  of  club  privileges  and 
private  entertainment. 

There  is  one  school  for  foreign  children  in  Chungking,  covering  all 
grades  from  primary  to  high  school  entrance,  under  Canadian 
regulations  and  auspices.  There  is  also  a  Canadian  high  school  for 
foreign  children  at  Chengtu. 

Rent  for  office  space  in  Chungking  would  run  from  $55  to  $85 
(United  States)  per  month  for  four  to  six  rooms.  Rent  for  ware¬ 
house  space  varies  according  to  locations,  but  it  may  be  estimated 
from  $15  to  $55  per  one-sixth  of  an  acre. 

Rent  for  residential  purposes  in  Chungking  is  from  $35  to  $75 
(United  States)  per  month  for  four  to  six  persons,  and  in  Lung- 
menhao,  across  the  river,  from  $40  to  $80  per  month. 

The  fees  charged  by  the  Chinese  authorities  in  transference  of  land 
were  fixed  by  presidential  mandate  in  1914  at  9  per  cent  of  the  value 
of  the  land,  but  the  local  authorities  have  increased  these  fees,  in 
spite  of  protests,  until  they  now  amount  to  about  15  per  cent. 

TRADE  OF  TIBET 

Tibet,  except  the  Kokonor  region,  is  included  in  the  Chungking 
consular  district,  but  it  is  for  all  practical  purposes  an  unknown 
country. 

The  trade  between  Tibet  and  China  is  considerable,  Tatsienlu, 
in  western  Szechwan,  being  the  chief  center  of  this  trade.  The 
principal  exports  from  Tibet  that  pass  through  Tatsienlu  are  wool, 
skins  and  furs,  musk,  deerhorns,  medicinal  herbs,  gold,  and  borax. 
The  chief  imports  are  tea,  cotton  goods,  tobacco,  and  candles.  Tea 
is  by  far  the  most  important  import,  as  it  is  an  article  of  universal 
use  in  Tibet.  Tea  is  usually  imported  in  the  form  of  brick  tea,  which 
is  made  by  grinding  up  inferior  grades,  mixing  the  product  with 
rice  water,  and  then  compressing  it  into  solid  bricks.  These  bricks 
weigh  about  4 y2  pounds,  and  as  they  are  in  general  demand  they 
are  often  used  in  Tibet  as  money.  It  has  been  estimated  that  between 
11,000,000  and  13,000,000  pounds  of  tea  are  consumed  annually  in 
Tibet.  Some  of  the  articles  of  export  from  Chungking  are  products 
of  Tibet.  The  principal  route  between  China  and  Tibet  is  the  Cheng- 
tu-Tatsienlu-Ratang-Lhasa  road. 

The  chief  articles  of  export  from  Tibet  to  India  are  wool,  live 
animals,  salt,  musk,  and  precious  stones.  It  is  estimated  that  2,000 
tons  of  wool  and  30,000  to  40,000  live  animals  are  exported  annually. 


CHUNGKING  CONSULAR  DISTRICT 


639 


The  chief  imports  from  India  are  cotton  piece  goods,  metal  and  metal 
ware,  woolen  and  silk  piece  goods,  and  sugar.  These  goods  are 
imported  in  only  small  quantities. 

Near  the  Indian  border  there  are  three  trading  marts  which  have 
been  opened  by  British  treaties  and  through  which  foreign  trade  may 
be  carried  on.  These  are  Gartok,  in  western  Tibet,  and  Gyantse  and 
Yatung,  in  southern  Tibet.  The  trade  through  these  places  is 
inconsiderable. 


i 


I 


DAIREN  CONSULAR  DISTRICT 

By  Consul  Leo  B.  Sturgeon 

LOCATION  AND  AREA 

The  Dairen  consular  district,  which  covers  the  Kwantung  leased 
territory,  occupies  the  southern  tip  of  Liaotung  Peninsula,  and  has 
an  area  of  1,302  square  miles.  The  climate  is  dry  and  bracing, 
resembling  in  this  respect  Colorado  and  Wyoming.  The  land,  con¬ 
sisting  chiefly  of  rolling  hills  with  much  rock  substratum,  is  lacking 
in  fertility  in  many  places.  The  latitude  of  the  territory  corre¬ 
sponds  approximately  to  that  of  northern  Kansas  or  north-central 
Colorado.  The  annual  rainfall  is  30  inches.  The  average  minimum 
temperature  for  a  normal  year  is  — 15°  to  —16°  C.,  and  the  average 
“maximum  temperature  32°  to  33°  C. 

POPULATION 

The  population  of  the  district  totals  720,177,  according  to  latest 
available  official  statistics.  The  average  density  for  the  district  is 
estimated  at  553.13  to  the  square  mile.  Population  figures  based 
upon  nationality  show  86,261  Japanese,  632,741  Chinese,  731  Koreans, 
and  444  foreigners. 

Dairen  is  the  leading  city,  and  the  only  one  of  international 
importance  in  the  Kwantung  leased  territory.  It  is  located  on 
Dairen  Bay,  a  fine  and  well-equipped  harbor,  and  forms  the  main 
port  of  entry  for  this  territory  as  well  as  for  Manchuria.  The 
population  of  Dairen,  including  some  recent  incorporations,  is  now 
officially  estimated  at  186,519,  and  the  continued  expansion  of  its 
commerce  and  industries  give  prospects  of  a  steady  increase  in  the 
city’s  growth.  The  Japanese  number  72,359,  Chinese  113,251, 
Koreans  555,  and  foreigners  354. 

AGRICULTURE 

At  the  beginning  of  1923  the  Kwantung  government  estimated 
the  area  of  improved  farm  lands  in  the  leased  territory  at  approxi¬ 
mately  255,151  acres,  and  the  nulnber  of  farmers  engaged  in  agri¬ 
cultural  enterprises  on  these  lands  at  189,358,  of  which  303  were 
Japanese  and  the  remainder  Chinese.  The  principal  crops  culti¬ 
vated  were  varieties  of  soy  beans,  kaoliang,  millet,  wheat,  barley, 
peanuts,  and  rice. 

During  the  past  few  years,  experiments  for  the  improvement  of 
certain  agricultural  products,  of  methods  of  cultivation  and  fertili¬ 
zation,  have  been  carried  out  with  the  result  that  marked  advances 
have  been  made  in  each  of  these  phases  of  the  agricultural  industry. 
The  improvement  of  the  varieties  of  soy  beans  has  been  of  the 

640 


D AIKEN  CONSULAR  DISTRICT 


641 


greatest  economic  importance;  not  only  in  increased  production  of 
beans  (about  20  per  cent)  but  in  an  increase  of  about  10  per  cent 
in  their  oil  content. 

Experiments  in  fruit  growing  and  stock  farming  have  been 
carried  on  to  great  advantage,  but  as  yet  these  industries  are  unim¬ 
portant  economically,  though  their  future  development  is  considered 
promising.  The  territory  is  believed  to  be  admirably  adapted  to 
fruit  growing.  According  to  statistics  of  the  Kwantung  govern¬ 
ment,  approximately  2,200  acres  are  devoted  to  the  production  of 
grapes,  peaches,  apples,  pears,  and  other  fruits,  the  average  annual 
production  totaling  about  2,972,343  pounds. 

MINERALS  AND  MINING 

There  are  numerous  ore  and  mineral  deposits  found  in  this  terri¬ 
tory,  but  only  a  few  produce  in  commercial  quantities.  Two  mineral 
products — coal  and  placer  gold,  which  were  mined  to  some  extent  in 
1922 — do  not  appear  in  the  table  of  minerals  extracted  in  1923. 

MANUFACTURING  AND  INDUSTRIAL  DEVELOPMENT 

The  industrial  development  of  the  Kwantung  leased  territory,  to¬ 
gether  with  that  of  South  Manchuria,  continued  at  a  fair  rate  during 
1923.  As  yet,  however,  this  territory  has  but  one  manufacturing  in¬ 
dustry  of  major  importance ;  that  is  the  bean-milling  industry.  Since 
Dairen  is  its  center,  it  may  be  said  that  the  bean-milling  industry 
belongs  more  properly  to  the  leased  territory  than  to  any  other  sec¬ 
tion  of  Manchuria. 

During  the  year  the  number  of  bean  mills  in  Dairen  increased 
from  72  to  79,  and  the  production  capacity  for  bean  cake,  by  9,300 
tons.  Actual  production  increased  from  28,920,000  cakes  in  1922  to 
31,000,000  in  1923. 

In  spite  of  congested  conditions  in  the  bean-milling  industry,  new 
mills  are  being  established  from  time  to  time.  As  a  result  all  are 
forced  to  remain  idle  a  considerable  part  of  each  year.  The  busiest 
months  are  December,  January,  February,  and  April.  But  business 
done  over  so  short  a  period  hardly  suffices  to  meet  costs  and  afford 
a  profit,  consequently  a  number  of  failures  were  noted  in  1923. 

The  capital  invested  in  the  bean-milling  industry  in  the  district 
is  estimated  at  19,776,000  yen,  and  the  number  of  persons  employed 
varies  according  to  seasons.  There  are  now  about  81  mills  equipped 
for  crushing  operations,  and  all  but  9  of  these  are  under  Chinese 
management;  the  remainder  are  under  Japanese  or  Sino- Japanese 
control.  The  capacity  of  the  latter  is  37,500  cakes  a  day,  and  the 
former  251,000.  Forty-six  of  the  mills  use  hydraulic  presses  to  pro¬ 
duce  186,100  cakes,  and  35  mills  turn  out  102,600.  The  oil  pro¬ 
duction  varies  greatly,  according  to  the  quality  and  oil  content  of 
the  beans. 

There  is  a  bean  millers’  union  in  Dairen  in  which  98  per  cent  of 
the  owners  hold  memberships.  The  union  serves  as  an  instrument 
through  which  its  members  may  work  in  unison  in  bringing  about 
necessary  changes  in  the  bean-milling  industry.  Products  of  this 
industry  are  prominent  in  the  export  trade  of  Japan,  Europe, 

100020°— 26 - 42 


642 


COMMERCIAL  HANDBOOK  OF  CHINA 


America,  and  China.  Bean  cake  goes  to  America,  Japan,  and  China ; 
oil  largely  to  America  and  Europe. 

Brick,  cement,  glass,  sugar,  soap,  dyes,  soy,  and  starch  are  manu¬ 
factured,  on  a  relatively  small  scale,  in  the  Dairen  district. 

LABOR  CONDITIONS 

The  labor  employed  in  the  territory  is  practically  all  Chinese.  In 
the  artisan  classes,  and  in  some  capacities  in  factories  or  mills,  the 
Japanese  find  employment,  but  almost  never  attempt  to  compete  with 
the  Chinese  in  the  lower  positions.  The  largest  groups  of  workers 
are  employed  in  work  on  the  wharves  and  in  the  bean-milling 
industry. 

Living  conditions  of  the  coolies  employed  on  the  wharves  may 
be  taken  as  typical.  It  is  estimated  by  the  wharf  authorities  that 
60  to  70  per  cent  of  the  earnings  of  coolies  is  required  for  food, 
leaving  30  to  40  per  cent  for  clothing  and  shelter.  Under  these 
circumstances,  the  coolies  find  it  necessary  to  live  in  squalid,  poorly 
ventilated  lodgings.  There  is  little  difference  between  the  mode 
of  living  of  the  married  men  and  the  single  men,  except  that  the 
single  men  generally  take  their  meals  at  street  stalls  or  places  of  a 
similar  nature.  On  the  other  hand,  there  is  a  tendency  to  pay  some¬ 
what  higher  wages  to  married  men.  The  average  wage,  however, 
for  both  single  and  married  men  is  about  70  sen  per  day. 

TRANSPORTATION  AND  COMMUNICATION 

RAILWAYS 

Since  there  are  no  navigable  waterways  in  the  Kwantung  leased 
territory,  it  is  but  natural  that  railway  and  ocean  transportation 
plays  an  increasingly  important  part  in  its  commercial  development. 
The  South  Manchuria  Railway  system  serves  the  territory.  The 
railway  also  manages  the  local  port  (including  all  such  facilities  as 
warehouses  and  sundry  equipment),  as  well  as  the  local  street-car 
system.  Extensive  iron  and  coal  mining  operations  are  carried  on, 
and  an  important  iron  works  is  maintained. 

In  addition  to  industrial  and  commercial  undertakings,  the  rail¬ 
way  engages  in  a  number  of  enterprises  from  Port  Arthur  to  Chang¬ 
chun,  commonly  carried  on  by  municipalities.  Prominent  among 
these  are  the  establishment  and  management  of  schools,  hospitals, 
and  educational  or  research  societies,  social  clubs,  libraries,  and 
hotels.  In  a  word,  the  interests  of  the  railway  cover  a  field  as  wide 
as  commerce  and  industry  itself. 

The  rolling  stock  of  the  railway  at  the  end  of  the  fiscal  year  ended 
March  31,  1924,  comprised  377  locomotives,  391  passenger  cars,  and 
6,247  freight  cars.  Of  the  above  equipment,  11  locomotives,  18 
passenger  cars,  and  67  freight  cars  were  constructed  during  the  fiscal 
year  named. 

Freight  rates  on  the  South  Manchuria  Railway  are,  in  the  main, 
based  upon  classification  schedules  covering  the  usual  classes  of 
goods  carried.  Rules  governing  the  application  of  these  rates,  as 
well  as  schedules  of  the  classification  of  goods,  are  obtainable  in 
English  from  the  freight  traffic  department  of  the  railway.  The 
mileage  from  the  Dairen  wharves  to  the  principal  stations  along 


DAIREN  CONSULAR  DISTRICT 


643 


the  railway  line  is  as  follows :  Anshan,  192.8 ;  Liaoyang,  208.2 ;  Muk¬ 
den,  248.2;  Changchun  (northern  terminus),  437.6. 

Passenger  fares  are  calculated  according  to  class  of  passage  de¬ 
sired. 

ROADS 

Road  building  is  receiving  increased  attention  by  Government  and 
private  interests  alike.  The  most  important  highway  so  far  con¬ 
structed  is  the  recently  completed  motor  road  between  Dairen  and 
Port  Arthur,  the  seat  of  the  Kwantung  government,  about  30  miles 
distant.  There  are  also  several  short  roads  leading  to  near-by 
suburbs,  which  may  be  used  by  motor  vehicles.  These  are  being 
improved  steadily,  largely  because  of  the  greater  traffic  demands 
being  made  upon  them. 

Most  of  the  freight  moved  over  the  public  highways  in  this  terri¬ 
tory  is  carried  in  carts  drawm  by  horses  or  men,  motor  vehicles 
being  used  very  little  except  in  the  city  of  Dairen,  where  there  are 
approximately  200  passenger  and  commercial  cars  in  use. 

There  are  no  fees  or  tolls  collected  in  connection  with  the  use  of 
roads  in  this  territory  as  all  public  highways  are  maintained  at 
government  expense.  In  general,  existing  roads  (when  various 
minor  improvement  projects  have  been  completed)  are  regarded  as 
adequate  for  present  needs. 

TELEGRAPHS,  CABLES,  AND  WIRELESS  SERVICE 

These  facilities  are  all  operated  by  the  Japanese  Government. 
Messages  may  be  dispatched  from  Dairen  by  cable  or  wireless,  and 
connections  with  the  United  States  and  other  countries  are  consid¬ 
ered  adequate.  Rates  to  Shanghai,  the  principal  commercial  and 
trading  center  of  China,  average  about  33  sen  per  word  (equivalent 
to  $0,176  cents) ;  and  to  New  York  2.16  yen  ($0,826  cents).  Radio 
messages  to  New  York  may  also  be  sent  at  $0,666  per  word. 

There  are  but  two  commercial  wireless  stations  in  the  Kwantung 
leased  territory,  and  these  are  utilized  to  broadcast  only  paid  mes¬ 
sages.  There  has  been  no  development  of  radio  as  an  educational 
and  entertainment  medium,  although  appropriations  have  been  ap¬ 
proved  and  plans  are  being  formulated  for  the  establishment  of  a 
broadcasting  station  for  this  purpose.  The  plans  in  question  pro¬ 
vide  for  the  erection  of  a  radio  station  to  be  operated  under  the 
supervision  of  the  department  of  communications  of  the  Kwan¬ 
tung  government.  Announcement  has  been  made  by  this  depart¬ 
ment  that  permission  will  be  granted  to  some  local  firm  or  amalga¬ 
mation  of  firms  to  erect  a  broadcasting  station,  such  firm  or  organi¬ 
zation  to  be  granted  the  exclusive  right  to  market  radio  equipment 
in  the  Kwangtung  leased  territory,  in  return  for  the  initial  expenses 
it  wTill  incur.  An  effort  is  then  to  be  made  to  subordinate  fees 
which  wTill  be  charged  for  broadcasting  services,  and  to  have  the 
concern  intrusted  with  broadcasting  depend  upon  the  sale  of  radio 
equipment  as  its  chief  source  of  revenue. 

With  an  appropriation  available  for  the  establishment  of  a  radio 
bureau  for  the  control  of  broadcasting  and  receiving,  the  erection 
of  a  broadcasting  station  and  the  general  adoption  of  wireless  con¬ 
stitute  developments  that  are  expected  soon  to  materialize.  Already 
the  general  public  is  showing  much  interest  in  these  prospects. 


644 


COMMERCIAL  HANDBOOK  OE  CHINA 


TELEPHONES 

The  first  automatic  telephones  in  the  Japanese  Empire  were  in¬ 
stalled  in  April,  1923,  and  have  proven  highly  satisfactory.  The 
telephone  service  is  operated  by  the  Japanese  Government,  and  at 
the  end  of  March,  1923,  there  were  7,589  telephones  and  457  miles 
of  wire  employed.  Recent  statistics  show  976  subscribers  to  tele¬ 
phone  service  in  Dairen,  and  618  more  in  the  Manchuria  Railway 
zone.  The  subscription  rate  is  108  yen  per  year,  payable  in  quar¬ 
terly  installments. 

The  experiment  with  automatic  telephones  having  proved  very 
satisfactory,  extensions  are  being  made  to  the  service  as  the  demand 
arises.  The  equipment  used  is  of  a  modern  type,  and  is  contracted 
for  by  the  bureau  of  communications  of  the  Kwantung  leased 
territory. 

SHIPPING  AND  WAREHOUSING  FACILITIES 

PORT  ACCOMMODATIONS 

The  head  of  Dairen  (or  Talien)  Bay  forms  the  harbor  for  the 
city  of  Dairen.  The  harbor,  which  is  partially  natural,  is  well 
improved  and  equipped  with  modern  facilities.  There  is  a  break¬ 
water  2y2  miles  in  length,  with  entrances  for  steam  vessels,  sailing 
vessels,  and  small  harbor  craft.  An  area  of  33,744,000  square  feet 
is  available  for  use  inside  the  breakwater.  The  depth  of  water  at 
low  tide  is  30  feet  and  there  is  a  tide  range  of  8  feet. 

The  harbor  has  commodious  docking  accommodations,  and  more 
are  being  added  in  expectation  of  the  future  growth  of  Dairen  as 
a  port.  There  are  at  present  34  berthing  sections  each  400  feet  in 
length,  and  a  pier  1,132  feet  in  length  for  inflammable  goods.  For 
berthing  and  towing  purposes,  steam  launches,  ranging  from  11  to 
435  tons,  are  available.  In  the  harbor  steel  lighters  of  100  to  500 
tons’  capacity  are  also  utilized  to  move  cargo. 

Ample  facilities  exist  for  the  supplying  of  water  and  coal.  Water 
may  be  supplied  from  hydrants  at  berths,  or  from  water  boats  in  the 
harbor. 

Chinese  coolies  are  employed  in  the  transfer  of  cargo  from  the 
ship’s  tackle  to  port.  Arrangements  are  made  for  this  at  the  harbor 
office,  but  the  labor  is  supplied  by  a  firm  known  as  the  Fukusho  Co., 
sole  contractors  of  Chinese  coolie  labor  at  the  port.  An  average  of 
6,000  to  8,000  laborers  of  this  class  is  employed  daily,  the  per  capita 
working  capacity  being  estimated  at  about  5  tons. 

The  following  table  gives  the  number  of  vessels  and  the  amount 
of  tonnage  entered  and  cleared  at  this  port  during  the  past  two  years. 


Nationality 

1922 

1923 

Number 
of  vessels 

Tonnage 

Number 
of  vessels 

Tonnage 

American _ _  _  ..  ..  __  _ . . . 

88 

307 

1,  282 
60 

6 

3,  260 

359, 728 
854,  707 
938,  291 
260,  216 
37, 191 

5,  598, 940 

59 

162 

903 

32 

31 

1,958 

373, 466 
726,  988 
930,  352 
216, 016 
204,  716 
4, 853,  000 

British  .  _  _  __  _  _ _ _  __  .  . . 

Chinese.  .  ...  _  _ _ _ 

Dutch  _  _  _ 

German  . . .  . .  . . 

Japanese.  _ _ _ _ _ _  _ _ _ 

DAIREN  CONSULAR  DISTRICT 


645 


CARGO-HANDLING  FACILITIES 

Chinese  coolie  labor  is  the  chief  means  of  loading  and  unload¬ 
ing  cargo  from  ships,  but  on  the  water,  two  50-ton  and  five  5-ton 
floating  cranes  are  in  use.  A  number  of  1%,  3,  5,  15,  30,  and  70 
ton  cranes  are  utilized  ashore.  The  cargo-handling  capacity  aver¬ 
ages  about  30,000  tons  per  10-hour  day. 

The  following  shows  the  cargo-shifting  equipment  of  the  port, 
which  gives  a  shifting  capacity  of  abdut  20,000  tons  per  10-hour 
day. 


Total  length  of  shifting  sidings  (miles) _  37 

Locomotive  engines _  14 

Goods  cars  (33  tons  each) _ 250 

Motor  trucks  (4  tons  each) _ 6 

Electric  trucks  (2  tons  each) _  12 

Tractors _  2 

Trailers  (2  tons  each) _  18 


The  cost  of  transferring  cargo  from  ship’s  tackle  to  port  is  ap¬ 
proximately  0.55  yen  per  ton.  However,  some  of  the  steamship 
companies,  principally  Japanese,  secure  reductions  on  cargo-shifting 
rates  for  cargo  billed  through  to  the  interior. 

STORAGE  FACILITIES 

The  warehouse  and  storage  facilities,  which  are  located  chiefly 
in  the  wharf  compound,  consist  of  two-story  concrete,  wooden-frame, 
and  corrugated-iron  structures,  the  latter  being  merely  sheds.  Re¬ 
frigerator  storage  has  recently  been  provided  for  on  the  ground 
floor  of  a  newly  constructed  passenger  station,  and  heated  ware¬ 
houses  are  available  for  winter  storage.  The  total  area  available 
for  storage  is  5,680,860  square  feet.  Of  this  space,  warehouses  and 
goods  sheds  occupy  3,337,439  square  feet,  and  the  remainder  is  open 
storage.  The  total  maximum  storage  capacity  of  the  wharf  com¬ 
pound  is  800,000  tons.  Storage  charges  on  ordinary  goods  amount 
to  31/2  sen  a  day,  per  weight  or  measurement  ton,  depending  upon 
the  character  of  the  commodities  being  stored.  However,  if  stored 
goods  are  subsequently  reshipped  to  the  interior  by  the  South  Man¬ 
churia  Railway,  50  per  cent  reduction  will  be  made  on  storage 
charges. 

Exports  for  Dairen  should  be  very  securely  packed,  owing  to  the 
possibility  of  a  number  of  transshipments  and  the  prospect  of  rough 
handling.  The  many  difficulties  attending  the  settlement  of  claims 
for  damaged  cargo  serve  to  emphasize  the  importance  of  packing. 
Man-drawn  and  horse  carts,  and  electric  trucks  and  trailers  com¬ 
prise  the  principal  means  of  carrying  goods  from  landing  to  ware¬ 
houses,  as  well  as  to  dealers  in  the  city.  Certain  commodities  may 
be  kept  in  temporary  storage  for  seven  days,  then  placed  in  ware¬ 
houses. 

As  above  indicated,  there  are  adequate  facilities  for  open  storage 
in  the  wharf  compound,  but  cold  winters  and  warm  summers  some¬ 
what  minimize  their  usefulness.  The  existence  in  various  ware¬ 
houses  of  storage  facilities  adapted  to  both  warm  and  cold  weather 
largely  removes  climatic  conditions  from  the  problem  of  local 
storage. 


646 


COMMERCIAL  HANDBOOK  OF  CHINA 


Fig.  22. — Reinforced  concrete  warehouse  typical  of  treaty  ports  in  China,  showing  covered  runway  adaptable  for  coolie  carriers 


DAIREN  CONSULAR  DISTRICT 


647 


PUBLIC  WORKS  AND  UTILITIES 

ELECTRIC-LIGHT  PLANTS 

The  South  Manchuria  Railway  maintains  in  Dairen  an  electric 
plant  which  has  a  combined  light  and  power  load  of  16,000  kilowatts. 
During  the  fiscal  year  ended  1924,  12,527,555  kilowatt-hours  of 
electricity  and  11,505,477  horse  motive  power  were  supplied  in  the 
city  of  Dairen  for  light  and  power  purposes. 

The  equipment  employed  in  the  light  plant  in  Dairen  is  of  modern 
type,  the  majority  of  which  has  been  supplied  by  America,  Great 
Britain,  and  Sweden.  The  plant  is  financed  by  the  railway  in  the 
same  manner  as  its  other  enterprises.  Receipts  from  the  supply  of 
light  and  power  are  gradually  increasing.  At  the  end  of  the  fiscal 
year  1924,  there  were  26,572  subscribers,  and  receipts  had  amounted 
to  2,236,067  yen. 

Recent  extensions  to  electrical  equipment  of  the  city  of  Dairen 
comprise  additional  wiring,  and  the  addition  of  a  5,000-kilowatt 
Stal  turbine  engine  to  the  power  plant. 

WATERWORKS 

The  local  waterworks,  which  is  maintained  by  the  government 
of  the  territory,  is  situated  near  the  city  of  Dairen.  The  water  is 
considered  unusually  healthful  and  the  supply  is  adequate.  The 
daily  capacity  of  the  present  facilities  is  approximately  21,000  cubic 
meters. 

TRAMWAYS 

•/ 

There  is  only  one  electric  street-car  system  in  this  territory,  and 
that  is  maintained  for  the  city  of  Dairen  and  points  near  by.  The 
system  is  a  modern  one  operated  by  the  South  Manchuria  Railway 
Co.  and  extends  over  40  miles.  Its  equipment  comprises  85  pas¬ 
senger  cars,  10  freight  cars,  and  one  street  sprinkler. 

The  total  number  of  passengers  carried  during  1923  totaled  20,- 
730,877.  Considering  the  population  of  the  districts  served  by  the 
system  the  volume  of  passenger  traffic  is  small.  Accounting  for 
this  is  the  fact  that  an  extensive  system  of  horse-carriage  trans¬ 
portation  is  maintained  throughout  the  zones  of  the  electric  rail¬ 
way.  The  carriages  are  drawn  by  one  or  two  horses,  driven  by 
Chinese.  They  are  a  crude  means  of  conveyance,  but  as  they  are 
available  on  nearly  every  street  corner  and  charge  an  average  fare 
of  only  about  10  to  15  cents,  it  is  generally  believed  that  in  the  ag¬ 
gregate  the  earnings  of  the  horse-carriage  system  are  greater  than 
those  of  the  electric  lines. 

The  equipment  for  use  in  the  Dairen  electric  lines  has  heretofore 
been  purchased  from  a  variety  of  sources,  including  Japan,  Eng¬ 
land,  Germany,  Sweden,  and  America.  While  details  regarding 
particular  equipment  may  be  obtained  direct  from  the  purchasing 
department  of  the  South  Manchuria  Railway  Co.,  it  is  necessary  to 
sell  through  well-established  local  firms. 

Extensions  to  the  present  street-car  system  will  probably  not  be 
made  in  the  near  future.  The  most  noteworthy  recent  development 
has  been  a  change  in  traffic  regulations,  causing  street  cars  to  pass 


648 


COMMERCIAL  HANDBOOK  OF  CHINA 


on  the  left  instead  of  the  right-hand  side.  All  other  traffic  previously 
followed  this  plan. 

CONSERVANCY  AND  RECLAMATION  WORKS 

Comparatively  little  work  of  this  nature  is  being  carried  out  in 
this  territory,  the  principal  projects  constituting  the  improvement 
and  reclamation  work  in  the  Dairen  harbor.  Dredging  of  Dairen 
Bay  was  reported  about  75  per  cent  complete  in  the  last  report  of  the 
South  Manchuria  Railway  Co.,  and  the  work  of  filling  in  and  re¬ 
claiming  the  East  Jijiko  water  front  was  reported  as  advanced  to 
the  same  extent.  Reclamation  work  of  a  like  nature  at  Hsikangtzu 
was  estimated  as  approximately  26  per  cent  complete. 

Work  which  was  begun  in  1893  on  896  feet  of  new  wharfage  is  now 
well  advanced.  Additional  track  was  also  laid  to  facilitate  the 
handling  of  coal  for  export. 

No  important  reclamation  work  was  undertaken  at  Port  Arthur. 

EXPORT  AND  IMPORT  TRADE 

Dairen  is  the  only  commercial  port  in  the  Ivwantung  leased  terri¬ 
tory,  and  its  customs  returns  may  be  taken  to  represent  the  trade  of 
the  territory.  It  is  necessary,  however,  to  point  out  that  this  trade 
is  made  up  largely  of  shipments  from  and  those  intended  for  the 
hinterland  of  Manchuria.  This  remarkable  feature  of  the  trade  of 
Dairen  is  accounted  for  by  the  fact  that  its  importance  in  foreign 
trade,  both  import  and  export,  is  due  to  its  geographical  position  as 
the  principal  port  not  only  for  the  Kwantung  leased  territory,  but 
for  Manchuria  as  a  whole  and  for  points  beyond. 

The  tables  have  been  prepared  from  statistics  of  the  Chinese  Mari¬ 
time  Customs  at  Dairen,  in  order  to  indicate  the  volume  of  trade  to 
and  from  this  port  by  representative  years.  Figures  are  given  from 
the  standpoint  of  the  principal  commodities  involved,  and  with  ref¬ 
erence  to  destination  of  exports  and  origin  of  imports.  Lack  of 
customs  data  makes  it  impracticable  to  deal  with  the  various  destina¬ 
tions  or  origins  of  particular  commodities. 

The  following  shows  the  total  trade  of  the  port  for  1913,  1923,  and 
1924: 


Items 


IMPORTS 

Foreign  goods: 

From  foreign  countries  and  Hongkong. 

From  Chinese  ports _ _ _ 

Chinese  goods . . . . 


Total 


EXPORTS 

To  foreign  countries  and  Hongkong. 
To  Chinese  ports. . . 


1913 

1923 

1924 

Haikwan 

taels 

28,  740,  282 

3,  795,  674 

4,  514,  589 

Haikwan 

taels 

68,  416,  348 
10,  486,  262 
17,  085,  983 

Haikwan 

taels 

81, 173, 840 
18, 193,  965 

37,  050,  545 

95, 988,  593 

99,  367,  805 

29,  749,  041 

9,  298,  702 

111,451,223 
33,  954,  991 

141,  304,  757 

39, 047,  743 

145,  406,  214 

141,  304,  757 

Total 


DAIREN  CONSULAR  DISTRICT 


649 


EXPORTS 


The  following  shows  the  leading  articles  of  export  and  the  value 
of  this  trade  in  1913,  1923,  and  1924 : 


1913 

1923 

1924 

Exports 

Quantity 

Value  in 
haikwan 
taels 

Quantity 

Value  in 
haikwan 
taels 

Quantity 

Value  in 
haikwan 
taels 

Bean  cake . . 

Roan  meal 

.piculs.. 
_  do _ 

8,  459, 484 

16,  749,  778 

19,  258,  741 
451,  461 
12,  284,  378 

42,  369,  230 
316,  022 
36,  670,  959 

20,  444,  804 
469,  763 
13,  206,  897 
460,  686 

44, 978,  568 
331, 107 
39,  347,  805 

Beans . ... 

..do _ 

2,  478,  243 

6, 189,  023 
76,  304 

Bran..- . . 

..do..  . 

70,  645 

995,  007 

1,  691,  512 

902,  724 

Cement _ 

Cereals: 

..do _ 

262,  877 

262,  877 

89,  564 

89,  714 

525,  064 

525,  079 

Kaoliang _ 

..do _ 

399,  232 

598,  849 

3,  730,  748 

9,  326,  870 

1,  345,  743 

4,  037,  229 

Maize _  - 

..do _ 

127,  848 

233,  962 

1,  945,  073 

3,  980,  146 

532,  861 

1,  332, 132 

Millet _ 

.do _ 

724, 139 

1,  853,  793 

285,  591 

713,  977 

169,  488 

508,  464 

Cigarettes  _  . 

.  do _ 

659 

47,  579 

29,  363 

2, 178,  234 

2,  059,  470 

28,  416 

1,  990,  060 

Coal.  _ _  -  _ 

.  tons.. 

1,  003,  054 

4,  092,  460 

13,  052,  366 

2,  462,  153 

14,  768,  762 

Oil,  bean _ _ 

Pig  iron  . . 

.piculs.. 
..do.  . 

580,  712 

4, 169,  512 

1,  876,  230 

1,  338,  476 

15,  010,  960 
2,  676,  952 

1,  264,  225 

1,  506,  399 

1,  477,  748 

2,  729,  750 

13,  557,  591 
2,  955,  496 
1,  201,  090 

Salt . . - 

Seed: 

..do _ 

714, 102 

142,  820 

2,  873i  240 

Hemp . 

..do  ... 

252,  329 

481,  274 
248,  399 

237,  309 

783, 119 

487,  233 

1, 474,  578 

Per  ilia. . 

.  do.. 

76, 196 

174,  651 

817,  367 

202,  722 

1, 148,  583 
1,  355,  809 

Sesame . . 

Silk: 

Raw,  wild,  not 

..do _ 

filature 

33,  547 

240, 196 

297,  962 

1,  787,  772 

193,  687 

Raw,  wild,  filature 
Silk  cocoons,  wild _ 

piculs., 
do..  . 

8,  298 

1,  725,  984 

3,  230 
4, 866 
34,  765 

1,  304,  920 

3,  216,  426 
1,001,231 

1,368 

2,  553 
18,  529 

377,  568 
1,  243,  311 
333,  522 

.  do _ 

44,  045 

454,  524 

Note. — The  haikwan  tael  in  1913  was  equivalent  to  $0,742,  United  States;  in  1923,  to  $0.8231;  and  in  1924, 
to  $0.81. 

IMPORTS 


The  table  below  shows  the  leading  articles  of  import  and  the  value 
in  haikwan  taels  in  1913,  1923,  and  1924 : 


1913 

1923 

1924 

Imports 

Value  in 

Value  in 

Value  in 

Quantity 

haikwan 

Quantity 

haikwan 

Quantity 

haikwan 

taels 

taels 

taels 

Bags,  gunny,  new _ 

.pieces.. 

6,  735,  876 

1, 003, 645 

13, 442, 918 

2, 680, 810 

16,  256,  565 

3,  691, 033 

Cement . .  .. 

piculs.. 

268,  742 

231,  656 

541,  495 

738,  728 

142,  364 

155, 435 

Cereals:  Rice  and 

paddy 

piculs  . 

229,  886 

1, 149,  430 

156,  324 

893,  607 

85,  244 

523,  318 

Cigarettes . ...thousands.. 

195,  638 

388,  241 

1,  776,  816 

5,  307,  569 

1, 048,  522 

3, 072, 400 

Cotton  goods: 

Sheeting,  gray,  plain,  over 

11  pounds,  Japanese 

.pieces.. 

540, 919 

1, 898,  627 

64,  060 

347,  505 

22,  607 

89,  314 

Shirting,  gray,  plain,  over 

11  pounds. . 

.pieces.. 

48,  830 

152,  838 

233,  316 

1, 433,  502 

171,  087 

1,  071,  937 

Jeans,  Japanese. . 

...do _ 

47, 180 

154, 161 

209,  237 

916,  472 

106,  731 

488,  029 

Dyed  cottons,  twills. 

...do _ 

92,  580 

611,  308 

40,  917 

270,  886 

Japanese  cotton  cloth 

:  Imita- 

tion  native  cotton  cloth, 

gray  and  dyed _ 

.pieces  . 

55, 016,  397 

2,  750,  820 

314,  373 

540,  273 

303,  861 

514, 148 

Cotton  yarn,  gray 

J  8-P&" 

nese..  _ _ 

.pieces.. 

40, 698 

1,  014,  600 

35,  205 

1,  681,  233 

13,  369 

709,  510 

Electrical  materials: 

Cables, 

wire,  and  cord  . .  . . 

0) 

2,  005, 169 

660,  269 
4,  057,  269 

2,  225,  277 
8,  881, 319 

Flour,  wheat _ 

.piculs.. 

527,  676 

864, 654 

1, 949,  222 

Gasoline,  benzine,  naphtha, 

etc _ _ 

gallons.. 

0) 

(>) 

911,872 

782, 849 

993, 998 

547,  396 

Machinery  and  parts. 

517,  533 

2,  823, 975 

5, 450,  730 

1  Unavailable, 


650 


COMMERCIAL  HANDBOOK  OF  CHINA 


Imports 


Metals  and  minerals:  Iron  and 
mild  steel,  new: 

Bar _ piculs.. 

Rails . . do _ 

Iron,  galvanized  sheets. .do.... 
Oils: 

Kerosene,  American 

. . American  gallons.. 

Lubricating,  mineral 

_ _ gallons.. 

Sugar,  refined _ piculs.. 

Tobacco  leaf _ do _ 

Wax,  paraffin _ do _ 

Wines,  beer,  spirits,  etc.:  Sake 

in  bulk _ piculs.. 

Woolen  goods:  Coating  and 
suiting - - .yards.. 


1913 

1923 

1924 

Quantity 

Value  in 
haikwan 
taels 

Quantity 

Value  in 
haikwan 
taels 

Quantity 

Value  iu 
haikwan 
taels 

77,  815 
7,700 
42,  258 

238, 894 
23, 100 
262,  517 

222,  288 
215,  579 
56,  405 

892, 148 
898, 429 
517, 371 

422, 639 
556, 325 
82, 815 

« 

1, 428, 084 
1,  766, 680 
707, 231 

5, 894,  360 

665,  063 

6, 476,  696 

2, 101,  200 

9, 920,  652 

3,  239, 835 

453,  832 
49,  647 
14,  476 

124,  894 
276,  049 
447, 454 

1, 666,  690 
124, 131 
19,  868 
53,  389 

26,  050 

886,  849 

1, 140,  658 
796,  666 
520,  096 

664, 105 

1,  527,  030 
122,  701 
27,  596 
57, 424 

26,  464 

678,  237 
1,  029, 364 
976,  766 
711,245 

544, 188 

38, 190 

310,  868 

0) 

(>) 

351,  254 

826,  733 

330,  371 

725,  446 

1  Unavailable. 


RECENT  DEVELOPMENTS  IN  FOREIGN  TRADE 


Since  the  Russo-Japanese  War,  Japan  has  held  a  predominant  po¬ 
sition  in  the  foreign  trade  of  South  Manchuria,  and  it  is  therefore 
natural  that  the  greater  portion  of  the  trade  of  the  Kwantung  leased 
territory  is  in  the  hands  of  Japanese.  Even  before  the  establish¬ 
ment  of  its  new  political  boundaries,  Japan  was  the  foremost  cus¬ 
tomer  of  Manchuria. 

There  has  been  a  rapid  growth  in  the  foreign  trade  of  the  Kwan¬ 
tung  leased  territory  and  South  Manchuria  through  the  port  of 
Dairen,  owing  to  the  commercial  and  industrial  development  of  the 
territories  served,  and  both  imports  to  and  exports  from  this  terri¬ 
tory  have  registered  remarkable  gains.  Imports  from  and  exports 
to  the  United  States  during  1923  amounted  to  $12,173,236  and 
$3,390,109,  respectively. 

MONEY,  BANKING,  AND  CREDIT 

BANKS 


Banking  facilities  as  affecting  transactions  between  this  district 
and  the  United  States  are  believed  to  be  ample,  and  are  generally 
satisfactory  to  American  exporters  and  importers.  The  local  banks 
engaging  in  f oreign-exchange  business  are  branches,  two  of  J apanese 
banks  and  one  of  a  French  bank.  There  are,  however,  branches  or 
agencies  of  all  of  these  banks  maintained  in  America.  In  addition, 
an  agency  of  the  International  Banking  Corporation  is  in  operation 
in  Dairen.  The  only  complaint  heard  concerning  banking  facilities 
is  that  there  is  little  accommodation  afforded  to  the  Chinese.  The 
explanation  ventured  for  this  is  that  the  Chinese  of  this  territory 
are  not  yet  familiar  with  the  processes  involved  in  foreign  trade. 

The  following  table  sets  forth  pertinent  data  regarding  the  bank¬ 
ing  establishments  maintaining  offices  in  this  district; 


DAIREN  CONSULAR  DISTRICT 


651 


Instutition 

Nation¬ 

ality 

Head 

office 

Capital 

Yokohama  Specie  Bank_ 

Japanese.. 
...do..  _ 

Yokohama 
Tokyo _ 

Hongkong. 

New  York. 

Paris _ 

Paid  up  (fully),  100,000,000  yen. 

Subscribed,  80,000,000  yen;  paid  up,  50,000,000 
yen. 

Authorized,  £50,000,000;  paid  up,  £20,000,000. 

Capital  and  surplus,  $10,000,000. 

Paid  up  (fully),  55,000,000  rubles. 

Bank  of  Chosen  -  .  .  __ 

Hongkong  &  Shanghai  Bank¬ 
ing  Corporation. 
International  Banking  Cor¬ 
poration. 

Russo- Asiatic  Bank  _ 

British _ 

American . 

French _ 

LOCAL  CURRENCY  AND  EXCHANGE 

The  financing  of  imports  to  this  port  from  America  presents 
about  the  same  problem  as  it  does  to  ship  to  Japan  proper.  The 
local  currency  is  the  gold  yen  (par  value  $0.4985 ;  average  value  for 
1923,  $0.4866),  and  practically  all  of  the  importing  is  in  the  hands 
of  branches  of  firms  having  head  offices  in  Japan.  Consequently 
the  cost  of  imported  articles  is  met  by  means  of  exchange  transac¬ 
tions  in  gold  yen,  and  local  distribution  is  accomplished  in  the  same 
way.  There  are  exchange  problems  resulting  from  the  varying 
relative  values  of  Chinese  and  Japanese  currencies,  both  of  which 
are  employed  in  the  domestic  market,  but  the  solution  of  these  can 
be  made  only  by  the  local  importer  or  distributer. 

The  export  trade  is  most  seriously  affected  by  the  changing  values 
of  Japanese  and  Chinese  exchange.  The  reason  for  this  is  that  the 
raw  products  which,  in  some  form,  make  up  the  principal  exports 
of  this  territory  must  be  purchased  from  Chinese  dealers  in  their 
own  currencies.  Fluctuations  in  the  value  of  the  Japanese  yen,  such 
as  have  taken  place  in  recent  months,  make  it  very  difficult  for 
Japanese  exporting  firms  who  have  their  capital  in  yen  to  keep 
prices  low  enough  to  facilitate  trading.  The  difficulty  created  by 
this  situation  is  especially  noticeable  in  the  market  for  beans  and 
bean  products. 

QUOTATIONS  AND  CREDITS 

Quotations  are  made  both  f.  o.  b.  and  c.  i.  f.,  but  local  importers 
prefer  the  latter  method.  Local  dealers  request  credit  terms  for 
varying  periods  up  to  90  days,  but  the  wisdom  of  granting  credit — 
except  in  the  case  of  concerns  known  to  be  reliable — is  questioned. 
In  most  cases  this  credit  should  be  extended  by  local  banks,  which 
are  in  a  much  better  position  than  anyone  else  to  know  the  financial 
position  of  local  firms.  Credit  may  be  and  is  extended  by  means 
of  discounting  trade  acceptances. 

MERCHANDISING  METHODS 

Merchandising  methods  are  much  the  same  as  in  Japan.  Direct 
representation  should  be  undertaken  only  as  a  part  of  an  elaborate 
marketing  plan  which  would  have  for  its  purpose  the  gradual  de¬ 
velopment  of  a  sales  organization  covering  the  whole  of  Manchuria. 
Casually  the  spring  and  fall  seasons  are  periods  of  heaviest  buying. 
Dairen,  on  account  of  its  excellent  communications  by  land  and  sea, 
is  the  logical  assembling  and  distributing  point  for  both  the  Kwan- 
tung  leased  territory  and  other  Manchuria.  Buyers5  organizations 


652 


COMMERCIAL.  HANDBOOK  OF  CHINA 


are  not  of  any  importance,  excepting  the  Consumers’  Union  of  the 
South  Manchuria  Kailway,  which  supplies  household  requisites  to 
a  considerable  number  of  railway  employees. 

It  has  been  demonstrated  that  American  goods  can  be  sold  in 
Manchuria  in  competition  with  foreign  goods.  The  import  trade 
from  the  United  States  might,  however,  be  improved  if  American 
exporters  could  give  it  a  more  intensive  study  with  reference  to  ad¬ 
vertising  and  representation.  The  most  effective  representation  has 
been  found  to  consist  of  connections  with  local  establishments.  The 
field  is  not  sufficiently  large  to  encourage  direct  representation, 
although  a  traveling  representative,  when  in  the  Far  East,  might 
be  routed  through  this  territory  for  demonstration  purposes. 

As  Dairen  is  a  free  port,  its  trade  enjoys  comparative  freedom 
from  taxation.  Taxes  affecting  import  trade  are  usually  indirect 
and  are  assessed  upon  volume  of  business,  depending  upon  the  kind, 
rather  than  upon  particular  articles. 

ADVERTISING 

Advertising  is  becoming  a  more  important  factor  in  the  marketing 
of  goods  in  this  territory.  Newspapers  comprise  the  principal  me¬ 
dium,  but  billboards,  printed  circulars,  and  street-car  displays  are 
also  employed.  There  are  no  taxes  on  poster  advertising. 

TRADE  ORGANIZATIONS 

The  principal  trade-promotion  organization  in  this  district  is 
the  Dairen  Chamber  of  Commerce,  but  a  knowledge  of  the  Japanese 
language  is  necessary  in  order  to  take  advantage  of  the  facilities  it 
offers.  Therefore  it  is  the  practice  of  the  consulate  in  Dairen  to  se¬ 
cure  from  the  chamber  of  commerce  such  information  as  might  be  of 
interest  to  American  business  firms  and  place  it  at  their  disposal 
either  through  letters  and  reports  or  directly,  as  occasion  arises. 

TRAVEL  FACILITIES 

In  Dairen,  the  only  place  where  commercial  travelers  to  this  terri¬ 
tory  would  find  it  necessary  to  stop,  the  only  available  hotel  is  the 
one  under  the  management  of  the  South  Manchuria  Kailway.  It 
offers  comfortable,  modern  accommodations  on  both  the  European 
and  the  American  plan. 

Commercial  travelers  may  obtain  information  regarding  hotel 
accommodations,  rail  and  steamship  travel,  interpreters  and  guides, 
from  the  American  consulate  or  from  the  Yamato  Hotel  in  Dairen; 
or  from  the  Japan  Tourist  Bureau,  with  offices  in  Dairen  and  other 
important  centers  in  the  Orient. 

The  most  effective  method  of  making  contacts  with  Japanese  or 
Chinese  firms  is  to  secure  letters  of  introduction  to  well-established 
local  firms,  should  that  be  possible.  In  the  absence  of  such  letters, 
the  American  consulate  is  often  able  to  advise  commercial  travelers 
and  to  render  assistance  relative  to  the  making  of  contacts  with 
firms  of  good  character. 


DAIREN  CONSULAR  DISTRICT 


653 


PROPERTY  VALUES  AND  RENTS 

Property  values  and  rental  charges  are,  on  an  average,  compara¬ 
tively  reasonable  in  this  territory,  but  are,  of  course,  highest  in 
Dairen,  the  chief  city.  Recent  periods  of  business  depression  have 
tended  to  lower  land  values  as  well  as  rents.  The  somewhat  over¬ 
built  character  of  the  city  has  also  operated  to  keep  rent  rates 
moderately  low,  although  rates  for  convenient  locations  remain 
somewhat  high. 

Land  rights  are  usually  obtained  by  lease  rather  than  by  purchase, 
owing  to  the  fact  that  the  major  portion  of  the  usable  land  is  govern¬ 
ment-owned  and  not  for  sale. 

TAXES  AND  OTHER  ASSESSMENTS 

There  are  various  taxes  collected  in  this  territory,  but  foreigners 
are  as  a  rule  called  upon  to  pay  only  three  kinds.  These  are  (1) 
a  business  tax,  (2)  an  income  tax  on  juridicial  persons,  and  (3)  a 
family  tax.  General  business  taxes  may  be  considered  as  based 
upon  the  volume  of  sales  in  wholesale  and  retail  business,  with  A 
and  B  classifications  for  both  types  of  business,  depending  upon 
the  commodity  dealt  in.  Thus,  Class  A  wholesale  business  is  as¬ 
sessed  upon  volume  of  sales  at  the  rate  of  12  yen  for  10,000  yen; 
Class  B,  IT  yen  for  10,000  yen.  A  retail  business  is  assessed  33  yen 
per  10,000  yen  and  50  yen  per  10,000  yen  for  classes  within  A  and 
B,  respectively.  In  addition,  2  yen  is  collected  for  each  employee 
engaged  in  the  particular  business  in  question. 

Income  taxes  are  levied  on  juridical  persons  whose  head  offices 
are  in  the  Kwantung  leased  territory  and  with  respect  to  income 
on  property  or  business  in  the  Kwantung  leased  territory,  except 
those  whose  offices  are  in  Japan  proper  or  another  of  its  depend¬ 
encies.  Such  taxes  are  collected  on  profits  of  over  10  per  cent  of 
capital  employed  at  the  rate  of  4  per  cent;  over  20  per  cent  at  10 
per  cent ;  and  over  30  per  cent  at  20  per  cent.  Reserves  are  taxable 
also  at  varying  rates. 

Individuals  residing  within  Dairen  are  subject  to  what  is  called 
a  municipal  family  or  house  tax,  and  it  may  be  said  that  the  system 
in  practice  here  is  unlike  any  other  system  in  force  in  Japan  proper. 
The  amount  to  be  levied  is  first  decided  upon  with  reference  to  local 
requirements.  Then  juridical  persons  and  persons  forming  a  house¬ 
hold  are  divided  into  30  classes,  according  to  salaries  received  above 
600  yen  annually.  The  amount  of  tax  to  be  collected  from  any  in¬ 
dividual  is  then  determined  by  dividing  the  total  amount  to  be 
levied  by  the  sum  of  the  products  of  the  number  of  rate  payers  in 
each  class  and  the  rate  unit  for  that  class,  and  multiplying  the 
result  by  a  rate  specified  for  the  individual  in  question.  It  will  be 
noted  at  once  that  an  arbitrary  unit  rate,  based  upon  their  salary, 
is  fixed  for  each  class  of  individuals.  Thus,  an  individual  does  not 
compute  his  own  tax  according  to  a  certain  percentage  of  his  net 
income,  but  has  it  computed  for  him  by  means  of  a  system  designed 
to  assess  the  required  revenue  from  a  given  number  of  persons  hav¬ 
ing  a  certain  income,  at  the  same  time  distributing  the  taxes  among 
30  classes  of  individuals  grouped  according  to  salary. 


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COMMERCIAL  HANDBOOK  OF  CHINA 


LIVING  CONDITIONS 

There  are  no  boarding  establishments  in  Dairen  that  could  be 
recommended  to  commercial  travelers.  Since  the  Yamato  Hotel  fur¬ 
nishes  the  only  available  boarding  or  lodging  accommodations,  its 
rates  represent  the  approximate  cost  of  living  in  Dairen  for  com¬ 
mercial  travelers. 

The  entrance  fee  to  the  local  club  is  50  yen  and  dues  are  7  yen 
per  month.  Motor  hire  may  be  reckoned  on  a  basis  of  4.50  yen  per 
hour  or  1.50  yen  per  trip.  Aside  from  motion  pictures  and  oc¬ 
casional  concerts  by  local  or  visiting  talent,  there  are  no  noteworthy 
entertainment  facilities,  and  there  are  no  educational  facilities  for 
foreign  children.  Provision  has  been  made  for  baseball,  tennis,  and 
golf.  Membership  in  the  local  golf  club  requires  an  initial  expense 
of  125  yen  and  5  yen  per  month  thereafter. 

CHANGES  IN  TRADE  CONDITIONS  IN  RECENT  YEARS 

The  growth  of  the  bean  industry,  with  the  attending  rise  of  export 
trade  in  bean  products,  and  the  development  of  modern  port  facili¬ 
ties  and  land  communication  facilities  constitute  the  main  reasons 
for  Dairen’s  commanding  position  as  a  trade  center.  The  World 
War,  changes  in  the  character  of  shipping,  and  the  progress  of 
manufacturing  in  Japan  have  had  important  influences  on  the  trade. 
Between  1908  and  1918  Dairen  advanced  from  fifth  to  second  place 
among  the  ports  of  China,  according  to  customs  returns.  Gradual 
progress  was  registered  between  1913  and  1918.  There  followed 
three  years  of  marked  prosperity  and  then  a  depression  set  in  which 
is  still  felt  in  diminishing  degree.  However,  the  position  of  the  port 
has  been  maintained.  Exports  of  beans  and  bean  products  have 
become  increasingly  important,  often  approximating  50  per  cent  of 
the  trade.  The  character  of  imports  has  changed  to  meet  the  de¬ 
mands  of  the  industrial  and  social  progress  of  Manchuria.  The 
manufactures  of  Japan  strongly  predominate. 

The  influence  of  the  principal  nations  in  the  import  trade  of 
Dairen  has  been  a  big  factor  in  maintaining  a  diversity  in  both 
imports  and  exports.  A  remarkable  index  to  the  influence  of  various 
nations  in  Dairen’s  trade  is  found  in  the  character  of  the  shipping. 

Before  the  World  War  Japanese  shipping  was  paramount, 
followed  by  that  of  Great  Britain  and  Germany;  after  the  war 
Germany’s  position  was  assumed  by  America,  although,  with  regular 
freight  and  passenger  services  restored,  Germany  is  now  rapidly 
recovering. 

The  promise  for  the  future  of  Dairen  lies  in  the  fact  that  it  is 
not  only  a  remarkably  well-placed  terminal  point  for  all  oversea 
trade  destined  for  North  China,  but  that  it  is  the  logical  distributing 
center  for  all  Manchuria — a  territory  sufficiently  vast  to  give  oppor¬ 
tunity  for  far  greater  development  of  Dairen  as  its  leading  port 
and  entrepot. 


FOOCHOW  CONSULAR  DISTRICT 

By  Consul  Ernest  B.  Price 

LOCATION  AND  AREA 


The  Foochow  consular  district  comprises  the  northern  37  counties 
(hsiens)  of  the  Province  of  Fukien,  which  is  situated  on  the  south¬ 
ern  coast  of  China  about  midway  between  Shanghai  and  Hongkong. 
Lying  between  latitudes  25°  and  28°  N.,  the  district  corresponds 
in  latitude  with  Florida  from  the  city  of  Tampa  southward.  The 
area  of  Fukien  Province  is  46,332  square  miles,  and  that  of  the 
Foochow  district  may  be  roughly  approximated  at  30,000  square 
miles,  or  about  that  of  the  State  of  Maine. 

The  climate  is  semitropical,  the  customs  at  Foochow  having  re¬ 
corded  no  frost  during  the  past  10  years.  The  rainfall  is  heavy 
and  well  distributed,  generally  occurring  from  January  through 
September.  The  three  remaining  months  are  relatively  dry.  The 
average  rainfall  at  Foochow  from  1918  to  1923,  inclusive,  was  60.25 
inches.  The  average  minimum  temperature  was  34.5°  F.;  average 
maximum  temperature  97°. 


POPULATION 

The  Chinese  postal  estimates  of  1922  gave  the  total  population  of 
Fukien  Province  at  13,157,791,  or  284  per  square  mile.  The  popu¬ 
lation  of  Foochow  district  may  be  estimated  at  10,000,000,  or  about 
330  per  square  mile,  the  densest  population  of  Fukien  being  in  the 
Min  River  Valley  and  in  the  coast  regions  between  the  cities  of 
Foochow  and  Amoy. 

CITIES 

The  most  important  cities  of  the  district  are  shown  in  the  fol¬ 
lowing  table : 


Cities 

Esti¬ 

mated 

popula¬ 

tion 

Euro¬ 

peans 

and 

Ameri¬ 

cans 

Ameri¬ 

cans 

Firms 

Foreign 

Ameri¬ 

can 

Foochow  i . . . . .  . 

700, 000 

400 

250 

25 

10 

Santuao  1 . 

40,000 

10 

2 

1 

Hinghwa . . 

60,000 

50 

36 

Kienning. . 

45,000 

5 

2 

Yenping . 

35;  000 

39 

39 

1  Treaty  ports  where  foreigners  may  reside  for  the  purposes  of  trade. 


Foochow,  the  provincial  capital,  is  the  only  important  city,  from 
the  point  of  view  of  foreign  trade.  With  the  exception  of  a  small 

655 


656 


COMMERCIAL  HANDBOOK  OF  CHINA 


percentage  of  goods  that  cross  the  northwest  boundary  from  and  to 
the  Yangtze  Valley  by  way  of  Kiangsi  Province,  and  a  still  smaller 
percentage  of  direct  trade  between  the  city  of  Hinghwa  and  Shang¬ 
hai,  all  the  export  and  import  trade  of  the  district  passes  through 
Foochow.  Santuao  is  a  collection  center  for  teas,  which,  however, 
are  shipped  to  Foochow  for  export.  Yenping,  situated  at  the  junc¬ 
tion  of  the  most  important  tributaries  of  the  Min,  is  next  after 
Foochow  in  importance  as  an  assembling  and  distributing  point  for 
trade. 

AGRICULTURE 

Ninety  per  cent  of  the  population  of  the  Foochow  district  make 
their  livelihood  directly  or  indirectly  from  agriculture.  The  most 
important  products  are  rice,  tea,  and  fruits. 

RICE 

Although  only  about  10  per  cent  of  the  surface  area  of  the  district 
is  arable  land,  and  only  a  limited  proportion  of  that  is  suitable  for 
rice  culture,  the  growing  of  rice  engages  the  attention  and  provides 
the  livelihood  of  more  people  than  all  other  industries  combined. 
In  the  coastal  region  two  crops  are  grown,  the  first  planted  in  March 
and  harvested  in  July,  the  second,  planted  in  April  between  the  rows 
of  the  first  crop  and  harvested  in  November.  In  the  inland  districts 
but  one  crop  is  grown.  A  normal  average  yield  is  44  bushels  to  the 
acre.  The  total  estimated  annual  production  in  a  good  year  is 
66,000,000  bushels,  but  this  is  insufficient  to  meet  the  needs  of  the 
people,  and  there  is  an  average  importation  of  about  100,000  bushels 
annually. 

TEA 

Once  second  in  importance  to  rice,  tea  has  gone  to  third  place 
among  agricultural  products  and  among  exports,  owing  to  the  com¬ 
petition  of  cheaper  India  and  Java  teas.  There  are  two  general 
varieties,  black  and  green.  The  black  is  exported  abroad  and  the 
green  is  sent  to  other  parts  of  China,  There  are  three  crops,  the  first 
and  best  being  harvested  in  May  and  coming  to  market  about  June  1. 
The  total  annual  estimated  production  of  tea  of  all  grades  is 
28,000,000  pounds,  of  which  in  1923  approximately  15,500,000 
pounds  were  exported  abroad  and  to  other  parts  of  China.  Foochow 
teas  are  still  regarded  by  tea  men  as  the  finest  grown,  but  they  have 
become  comparatively  too  expensive. 

FRUITS 

Fruits  constitute  one  of  the  leading  classes  of  agricultural  prod¬ 
ucts  and  stand  fourth  in  importance  as  an  item  of  export.  Foremost 
of  the  fruits  are  oranges,  of  which  the  annual  average  production  is 
estimated  at  27,000,000  pounds.  Approximately  two-thirds  of  the 
crop  is  exported  to  other  parts  of  China.  Next  are  “  Chinese  olives,” 
a  fruit  akin  in  appearance,  though  not  in  species,  to  the  foreign  olive. 

The  estimated  annual  production  is  about  12,000,000  pounds,  50 
to  65  per  cent  of  which  is  exported  to  other  parts  of  China  either  in 
fresh,  dried,  or  pickled  form.  Other  interesting  fruits  are  lung- 
ngans — a  native  fruit  harvested  in  November,  with  an  estimated  an- 


FOOCHOW  CONSULAR  DISTRICT 


657 


nual  production  of  25,000,000  pounds — of  which  possibly  10  per  cent 
is  exported  in  dried  form;  litchis,  harvested  in  July,  with  an  annual 
production  estimated  at  20,000,000  pounds;  and  “plums,”  with  an 
annual  production  of  about  10,000,000  pounds. 

OTHER  PRODUCTS 

Other  products  are  grown  in  variety.  The  leading  ones  of  this 
lesser  group,  with  the  estimated  annual  production  of  each,  are 
shown  in  the  table  below : 


Products 

Average 
produc¬ 
tion  per 
acre 

Estimated 

annual 

production 

Disposition 

Bamboo  shoots _ 

. pounds.. 

20, 000, 000 

8,  000,  000 
7,  568,  000 

1,  500,  000 

2,  500,  000 
25,  000,  000 

1,  000,  000 

2,  000,  000 

1, 100,  000 
200,000 

Local  consumption  and 
export. 

Local  consumption. 

Do. 

Do. 

Do. 

Local  consumption  and 
export. 

Do. 

Sweet  potatoes _ 

Wheat... . .  . 

Sugar  cane _ 

Peanuts.. . . 

Tea  oil . _ 

_ bushels.. 

. .  do  ... 

. .pounds.. 

.  .  ..bushels.. 
..  ... pounds  . 

440 

30 

1,300 

30 

Wood  oil. . . 

. ...do..  . 

Peanut  oil . . . 

. do _ 

Do. 

Mushrooms. . 

. .do _ 

Do. 

Canmhor 

do 

Export. 

TIMBER  CUTTING 

Timber  may  be  divided  into  two  classes — fir  poles  and  pine  lumber. 
The  fir  forms  virtually  a  crop,  as  the  cuttings  are  replaced  by  plant¬ 
ings.  The  poles  are  shipped  to  all  parts  of  China  for  use  as  beams 
and  rafters  for  houses.  Pine  is  brought  down  the  river  in  log  rafts 
and  is  sawed  into  lumber  in  the  sawmills  in  Foochow.  It  is  a  direct 
competitor  with  Oregon  pine.  The  Foochow  product  is  inferior  in 
quality  but  cheaper. 

Both  the  fir  and  the  pine  being  almost  entirely  exported,  the  export 
figures  ma}r  be  taken  as  a  fair  basis  for  estimating  total  production. 
The  total  export  of  poles  in  1923  numbered  about  13,000,000,  sawed 
pine  lumber  amounted  to  40,000,000  square  feet,  besides  1,500,000 
boxes  made  locally  from  pine  lumber. 

MINERALS  AND  MINING 

The  extent  of  the  mineral  resources  of  the  district  is  rather  prob¬ 
lematical,  little  mining  or  even  prospecting  having  been  done.  In 
1917,  the  latest  year  for  which  reliable  figures  are  available,  the  fol¬ 
lowing  minerals,  in  the  order  of  their  importance,  were  being 
worked:  Coal  (anthracite  of  high  grade,  with  an  annual  production 
of  approximately  35,000  tons),  molybdenum  (51  per  cent  molyb¬ 
denum,  49  per  cent  sulphur),  talc  (annual  production,  250,000 
pounds),  porcelain  clay,  limestone,  iron,  lead,  silver,  gold,  copper, 
and  graphite. 

Of  the  minerals  named  only  gold,  molybdenum,  limestone,  kaolin, 
and  talc  were  being  produced  in  1922,  and  these  only  in  small  quan¬ 
tities.  The  chief  obstacles  to  the  development  of  the  mining  industry 
are  inadequate  mining  laws  and  lack  of  transportation  facilities. 

100020°— 26 - 43 


658 


COMMERCIAL  HANDBOOK  OF  CHINA 


MINES 

Mines  in  operation  or  being  prospected  under  regular  charter  in 
1923  were : 


Company 

Location  of  mine 

Nature  of  ore 

Output 
in  1923 

Capital 
(nominal 
equiva¬ 
lent  in 
United 
States 
dollars) 

Nationality 

Head  office 

Leesan  Coal  Mining  Co... 
Chien  Ming  Coal  Mining 
Co. 

Hua  Pao  Copper  Mining 
Co. 

Chienou  district _ 

_ do . . 

Nanping  district.. 

Anthracite.. 
Gold _ 

Copper . 

03 

o  05 

$120, 000 
50,000 

50, 000 

Chinese... 
...do. . 

...do. . 

Foochow. 

Do. 

Do. 

1  No  definite  figures  available,  but  production  was  small. 


In  addition  there  were  several  regularly  registered  Chinese  com¬ 
panies  no  longer  active,  and  a  great  number  of  small  unregistered 
mines,  particularly  coal  and  iron,  the  latter  turning  out  an  indefinite 
but  fairly  large  output  consumed  locally.  The  best  coal  in  the  dis¬ 
trict,  said  to  contain  but  3  per  cent  ash,  is  from  extensive  anthracite 
deposits  near  Shaowu. 

MANUFACTURING  AND  INDUSTRIAL  DEVELOPMENT 

* 

Next  to  agriculture  in  importance  to  the  economic  life  of  the  dis¬ 
trict  is  a  small  group  of  native  industries  including  paper  making, 
sawmilling,  and  the  manufacture  of  paper  umbrellas,  tin  foil,  and 
matches.  Next  comes  a  group  of  lesser  industries,  of  what  might  be 
termed  the  “  modern  type,”  including  a  leather  tannery  and  factory, 
a  factory  for  making  rubber  soles  for  shoes,  and  a  few  knitting  and 
weaving  mills.  Summarized,  the  industries  mentioned  stand  about 
as  follows : 


Industries 

Capacity 

Approxi¬ 

mate 

number  of 
employees 

Approxi¬ 

mate 

capital 

invested 

(Mex.) 

Estimated  output, 
1923 

Disposi¬ 
tion  of 
output 

Paper  making  _ 1 _ 

120,000  tons  _ 

60,000 

$1, 800, 000 

59,000  tons _ ... 

85  per  cent 

exported. 

Sawmilling . . 

8,700,000  logs . 

800 

870,  000 

36,000  square  feet 

All  ex- 

of  lumber;  1,500,- 

ported. 

000  boxes. 

Paper  umbrella  manu- 

3,000,000  pieces.  ...  .. 

2,000 

150,  000 

2,000,000  pieces _ 

75  per  cent 

facture. 

exported. 

Tin-foil  manufacture.  . 

450  tons. 

1,200 

240,  000 

210  tons _  _ 

70  per  cent 

exported. 

Matches.  . 

80,000  gross 

30 

120,  000 

40,000  gross. _ 

Local. 

Weaving  mills . 

1,000,000  pieces  . . 

2, 000 

200, 000 

500,000  pieces _ 

Consumed 

locally. 

Knitting  mills _ 

80,000  dozen  pairs 

250 

80,  000 

50,000  dozen  pairs 

Local. 

of  socks. 

of  socks. 

The  only  industry  whose  product  is  exported  outside  of  China  is 
the  paper-umbrella  industry.  About  1,000,000  umbrellas  are  ex¬ 
ported  abroad  annually.  The  export  in  the  other  industries  is  to 
other  parts  of  China  only. 


FOOCHOW  CONSULAR  DISTRICT 


659 


TRANSPORTATION  AND  COMMUNICATION 

WATERWAYS 

Waterways  are  the  most  important  means  of  transportation  in  the 
district,  there  being  no  railways,  and,  outside  of  the  city  of  Foochow, 
no  roads  capable  of  accommodating  vehicular  traffic  or  even  pack 
animals.  The  “lower  districts,”  from  Foochow  east  and  south  along 
the  coast  of  Amoy,  are  reached  by  small  steamers  and  junks.  The 
“upper  districts,”  from  Foochow  north  and  east  through  the  upper 
reaches  of  the  Min  River  and  its  tributaries,  are  reached  by  launches 
of  6-foot  maximum  draft  as  far  as  Shuikow,  and  from  there  by 
small  river  boats  only.  The  “northern  districts,”  from  Foochow 
north  along  the  coast  to  Chekiang,  are  traversable  by  small  coastwise 
steamers  and  junks. 


Fig.  23. — The  Bridge  of  Ten  Thousand  Ages  at  Foochow,  which  it  is  proposed 
to  replace  with  a  modern  steel  and  concrete  structure 

The  Min  River  from  Foochow  to  the  sea  is  navigable  for  vessels 
of  24-foot  maximum  draft  as  far  as  Pagoda  Anchorage,  20  miles 
from  the  sea  and  10  miles  from  Foochow.  Steamers  of  15-foot  draft 
and  under  come  all  the  way  to  Foochow.  Back  of  the  three  areas 
mentioned  above  is  a  hinterland  not  accessible  even  to  boats,  com¬ 
prising  about  40  per  cent  of  the  area  of  the  district,  where  all  trans¬ 
portation  is  accomplished  by  human  carriers. 


Means  of  transportation 

Average 
load  per 
unit 

Average 
mileage 
per  day 

Average 
cost  per 
ton-mile 
(United 
States) 

Maxi¬ 

mum 

haul 

(miles) 

Per  cent 
of  traffic 
carried 

Steamers,  junks,  and  launches  . _ _ 

. tons.. 

250 

70 

$0.04 

140 

20 

River  boats,  sail  or  hand  propelled.  ... 

..  ..  do _ 

20 

25 

.05 

200 

40 

Human  carriers . . . 

..  pounds.. 

100 

20 

.80 

75 

40 

660 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  above  figures  are  a  rough  estimate  only  and  are  to  be  dis¬ 
counted  by  additional  consideration  of  the  factor  of  serious  risk 
involved,  which  has  not  been  included  because  it  is  indeterminable. 
This  is  particularly  true  of  river  transportation.  It  is  estimated 
that  1  river  boat  in  10  is  either  partially  or  totally  wrecked  in  mak¬ 
ing  the  200-mile  trip  from  Shaowu  to  Foochow.  Cargo  thus  carried 
can  not  be  covered  bv  insurance. 

\j 

ROADS 

In  the  hinterland,  mountainous  and  almost  unknown  to  foreigners, 
the  only  roads  are  rough,  narrow,  stone  paths.  Fully  40  per  cent  of 
the  goods  transported  in  that  district  is  carried  over  these  paths  on 
the  backs  of  men — the  slowest,  most  expensive  transportation  in  the 
world. 

TELEGRAPHS,  CABLES,  AND  WIRELESS  SERVICE 

Foochow  is  connected  with  Hongkong,  Shanghai,  and  world  points 
by  the  eastern  extension,  Australasia  &  China  Telegraph  Co. 
(British),  which  has  a  relay  cable  station  at  the  mouth  of  the  Min 
Kiver,  connected  with  Foochow  by  a  land  line.  The  Chinese  Govern¬ 
ment  Telegraph  Association  lines  cover  the  district,  and  the  same  in¬ 
stitution  maintains  a  wireless  station  in  Foochow. 

Wireless  rates  are  $0.25  (Mex.)  per  word  to  points  within  the 
radius,  which  is  small.  Telegraph  and  cable  rates  are  the  same  as 
in  other  districts  of  China  for  all  interior  points  and  for  wTorld 
ports. 

TELEPHONES 

The  Fukien  Telephone  Co.  (Ltd.),  a  Chinese  company,  capital¬ 
ized  at  $45,000  (Mex.),  covers  the  city  of  Foochow  and  surrounding 
towns.  It  has  three  exchanges  with  752  subscribers;  switchboards 
are  manual,  metallic  circuit,  multiple  type,  12  in  number.  Kates  are 
$7  (Mex.)  per  month  for  original  phones  and  half  that  amount  for 
extension  phones.  The  company  plans  to  change  its  equipment  to 
the  better  system. 

POSTAL  FACILITIES 

Adequate  postal  facilities,  provided  by  the  Chinese  Postal  Admin¬ 
istration,  cover  the  district.  Foochow  has  about  two  mails  a  week 
from  Shanghai  and  three '  from  Hongkong.  Important  points 
throughout  the  district  have  frequent  mail  service. 

SHIPPING  AND  WAREHOUSING  FACILITIES 

Next  after  the  lack  of  railroads  and  other  means  of  rapid  trans¬ 
portation,  the  great  drawback  to  the  progress  of  the  district  is  the 
inadequacy  of  Foochow’s  harbor  facilities.  Only  vessels  of  15-foot 
draft  or  under  are  able  to  come  closer  to  the  city  than  Pagoda 
Anchorage,  10  miles  below.  While  the  anchorage  has  an  excellent 
harbor  capable  of  accommodating  30  steamers  at  a  time,  it,  too,  is 
handicapped  by  a  bar  at  the  mouth  of  the  Min  Kiver,  where  ocean 
steamers  must  wait  from  two  to  five  hours  for  the  tide,  both  in  enter¬ 
ing  and  in  clearing  port. 


FOOCHOW  CONSULAR  DISTRICT 


661 


CARGO-HANDLING  FACILITIES 

There  are  no  dock  accommodations  at  Pagoda.  Cargo  is  trans¬ 
ferred  by  ship’s  tackle  into  sail  and  hand-propelled  boats,  in  which 
it  is  sealed  by  the  customs  until  arrival  at  Foochow,  two  or  more 
days  later. 

Facilities  for  handling  cargo  at  Foochow  are  inadequate,  there 
being  no  bonded  warehouses,  cranes,  trucks,  or  other  facilities  for 
speedy  handling.  Cargo  boats  from  Pagoda  Anchorage  must  wait 
their  turn  for  unsealing  and  examination,  after  which  cargo  is  trans¬ 
ferred  to  docks  and  from  docks  to  warehouses  by  human  carriers. 
Altogether  it  may  take  a  week  from  the  fall  of  the  ship’s  anchor 
at  Pagoda  to  the  arrival  of  the  cargo  in  the  consignee’s  warehouse. 

Climatic  conditions  do  not  permit  storage  in  the  open.  Business 
houses  usually  maintain  their  own  warehouses,  and  space  is  difficult 
to  obtain.  Goods  should  be  packed  with  unusual  care  for  protec¬ 
tion  against  both  pilferage  and  climate.  Boxes  and  cases  should  be 
strapped.  Those  containing  goods  liable  to  deterioration  from 
dampness  should  be  lined  with  zinc  or  with  lead  foil. 

PUBLIC  WORKS  AND  UTILITIES 

ELECTRIC-LIGHT  PLANTS 

The  Foochow  Electric  Light  Co.  (Ltd.),  a  Chinese  company, 
operates  with  a  capital  of  $1,000,000  (Mex.).  It  is  equipped  with 
three  generators  of  American  manufacture  having  a  total  capacity 
of  2,500  kilowatts,  operated  by  a  2,500-horsepower  boiler  of  British 
manufacture,  and  a  3,300-horsepower  turbine  of  American  manufac¬ 
ture.  The  plant  supplies  alternating  current,  220  volts,  60  cycles,  on 
3-phase  power  terminals,  and  110  volts  on  light  terminals.  Rates 
are  $1  to  $2.50  flat  rate  per  point,  depending  on  the  candlepower; 
$0.28  per  kilowatt-hour  by  meter  for  lighting;  and  $0.15  per  kilo¬ 
watt-hour  for  power.  (Rates  as  here  given  are  in  terms  of  Mexi¬ 
can  dollars).  It  has  a  1,200-kilowatt  lighting  load  and  a  300-kilo- 
watt  power  load.  The  company  owns  and  operates  several  small 
industrial  plants  and  has  the  franchise  for  an  extensive  water¬ 
power  plant,  now  under  investigation. 

In  addition  to  the  above  company,  there  are  about  nine  small 
plants  in  the  larger  cities  of  the  district. 

CONSERVANCY  WORK 

In  1919  a  Min  River  conservancy  board  was  created  by  the  Chi¬ 
nese  Government — consisting  of  representatives  of  both  Chinese 
and  foreign  business  interests,  and  of  which  the  foreign  consular 
body  are  ex  officio  members — to  carry  out  a  project  for  the  deepen¬ 
ing  of  the  channel  of  the  Min  River  from  Pagoda  Anchorage  to 
Foochow  to  a  minimum  low- water  depth  of  10  to  12  feet,  to  enable 
steamers  up  to  15-foot  draft  to  come  up  to  Foochow.  The  basis 
of  the  plan  eventually  adopted  was  the  erection  of  a  system  of  train¬ 
ing  walls  to  enable  the  river  to  scour  its  own  channel.  The  cost 
was  to  be  met  by  a  special  surtax  on  shipping  and  goods,  and  the 
prospective  revenue  was  given  as  a  security  for  a  loan  from  the 


662 


COMMERCIAL.  HANDBOOK  OF  CHINA 


Chinese  Maritime  Customs  to  provide  operating  capital.  By  the 
end  of  1923  very  fair  progress  had  been  made,  but  it  was  decided, 
in  order  to  speed  up  the  work,  to  purchase  a  suction  dredger.  It  is 
anticipated  that  the  project  will  be  completed  in  the  near  future, 
but  work  will  necessarily  have  to  continue  for  some  years,  however,  to 
combat  the  natural  silting  of  the  river  and  keep  the  channel  clear. 
The  engineer  in  chief  is  an  American. 

EXPORT  AND  IMPORT  TRADE 

There  is  a  general  impression  that  the  foreign  trade  of  Foochow 
suffered  seriously  as  a  result  of  the  decline  of  the  tea  trade,  but 
comparative  figures  of  the  value  of  the  trade  of  the  port  show  that 
in  1903 — a  year  in  which  tea  to  the  amount  of  over  40,000,000  pounds 
(valued  roughly  at  6,000,000  haikwan  taels)  was  shipped  out — the 
total  value  of  the  trade  of  Foochow  was  equal  to  about  $10,700,000 
United  States  currency;  in  1913,  when  tea  exports  had  declined  to 
20,000,000  pounds,  valued  at  approximately  4,000,000  haikwan  taels, 
the  total  value  of  the  trade  was  equal  to  $16,900,000  United  States; 
and  in  1923,  -when  tea  exports  totaled  less  than  16,000,000  pounds, 
with  a  value  of  2,880,000  haikwan  taels,  the  value  of  the  total  trade 
was  equal  to  approximately  $31,500,000  United  States. 

It  is  worth  noting  that  the  export  trade  figures  alone  for  the  three 
index  years  increased  five  times,  while  the  import  figures  almost 
doubled.  In  short,  the  trade  had  merely  changed  from  a  situation 
in  which  a  single  export  commodity  practically  dominated  the  trade, 
to  one  in  which  there  was  a  healthy  distribution  among  a  number 
of  different  commodities,  both  export  and  import. 

The  port  of  Foochow  stands  fifteenth  among  the  47  customs  ports 
of  China  in  the  value  of  its  total  trade,  and  taken  with  its  tributary 
port  of  Santuao  it  stands  fourteenth.  In  the  following  table  the 
trade  of  Foochow  is  shown  for  1913,  1923,  and  1924,  in  terms  of 
United  States  gold : 


Items 

1913 

1923 

1924 

Exports  _ 

$7, 066,  443 
13,  480,  775 

$19,  268,  649 
15, 928, 474 

$16,  088,  629 
16,  239,  844 

Gross  imports _ 

Gross  value  of  trade.  _ 

20,  547,  218 
3,  629,  743 

35, 197, 123 
3,  712, 807 

32,  328, 473 
3,  253, 905 

Reexports  _ _ _ _ 

Net  value  of  trade _ _ 

16,  917,  475 

31,484,316 

29, 074,  568 

Note. — In  1913  1  haikwan  tael  was  equal  to  United  States  gold  $0,729;  in  1923,  to  $0.8231;  in  1924,  to 
$0.8097. 


EXPORTS 

The  principal  exports  of  the  district  in  order  of  their  importance 
are  timber  (in  the  form  of  fir  poles,  sawed  pine  timber,  and  prepared 
boxes),  tea,  paper,  mushrooms,  bamboo  shoots,  paper  umbrellas,  tin 
foil,  camphor,  oranges,  olives,  and  dried  litchis.  Among  Chinese 
ports,  Foochow  ranks  first  in  the  export  of  poles,  bamboo  shoots, 
olives,  and  mushrooms;  second  in  the  export  of  tin  foil,  oranges, 
paper,  pine  lumber,  and  paper  umbrellas ;  third  in  the  export  of  cam¬ 
phor  and  tea  (both  black  and  green) ;  and  fourth  in  the  export  of 
dried  litchis. 


FOOCHOW  CONSULAR  DISTRICT 


663 


Foochow  district  is  primarily  a  producer  of  raw  products  which 
find  their  principal  market  in  other  districts  of  China.  The  port  of 
Foochow,  however,  ranks  tenth  among  the  47  customs  ports  of  China 
in  the  value  of  its  original  exports,  and  eleventh  in  the  value  of  its 
exports  to  foreign  countries. 

It  is  noteworthy  that  whereas  in  1903  the  value  of  the  tea  exported 
from  the  port  of  Foochow  was  approximately  80  per  cent  of  the 
value  of  the  first  10  products,  it  represented  only  about  50  per  cent  of 
that  value  in  1913,  and  20  per  cent  in  1923.  On  the  other  hand, 
exports  of  the  other  nine  principal  products  increased  in  value  in 
every  case.  Timber  reached  first  place,  tea  held  second  place,  and 
paper  was  a  close  third.  The  total  value  of  these  first  10  products 
showed  in  1913  a  slight  increase  over  1903,  but  in  1923  they  nearly 
tripled  the  value  in  either  other  index  year.  The  principal  exports 
from  Foochow  in  1913,  1923,  and  1924  are  shown  below: 


Commodities 

1913 

1923 

1924 

Quantity 

Value  in 
haikwan 
taels  - 

Quantity 

Value  in 
haikwan 
taels 

Quantity 

Value  in 
haikwan 
taels 

Bamboo  shoots  - . 

_ pounds.. 

12,  527, 866 

599, 048 

8,  882,  533 

544, 187 

17, 495, 066 

1, 337, 750 

Camphor  ...  __ 

..  ...do  .. 

27,  600 

14,  700 

149,  200 

148, 883 

70,  733 

49,  066 

Litchis,  dried _ 

_ do _ 

58,  533 

12, 404 

345,  600 

70,  502 

153,  600 

35,  066 

Mushrooms _ 

..  .  ..do..  . 

387,  066 

179,  936 

496,  933 

548, 987 

605,  600 

552,  535 

Olives _ 

.  _ do _ 

5,  649,  733 

121,  566 

3,  932,  800 

108,  397 

7,  013,  200 

204,  396 

Oranges,  fresh... 

_ do _ 

13,  750,  400 

210,  005 

14,  964,  133 

161,  296 

17,  049,  466 

183,  216 

Paper _  _ 

. do _ 

13, 862,  400 

1,  360, 307 

18,  565,  733 

2,  057,  071 

29,  314, 133 

3,  340,  565 

Tea: 

Black  . 

_ do _ 

16, 828, 133 

3,  637,  295 

6,  046,  933 

1,  569,  503 

5, 906,  666 

1,  947,  958 

Green _ 

_ do.. 

647,  600 

91,650 

9,  474,  666 

1,  326,  392 

8,  057,  466 

1,  273,  620 

Brick. . . 

_ do _ 

2, 154,  533 

195,  856 

8,  000 

778 

Dust...  _ 

_ do _ 

'  938,  666 

53,  713 

110, 000 

4,  826 

65,  600 

1,840 

Timber: 

Boxes  ...  ... 

_  pieces.. 

894,  758 

) 

(  1,531,735 

0) 

1,  269,  617 

198, 910 

Planks _ 

.square  feet.. 

6, 179,  297 

}  2,  023,  935 

«6,  552,  369 

2, 127,  863 

40,  725, 169 

2,  327,  032 

Poles . 

_ pieces.. 

834,  758 

f 

[  3, 616,  571 

12,  622, 127 

9,  551,  258 

3, 614,  910 

Umbrellas,  paper 

. .do _ 

759,  256 

68,000 

1,  355, 379 

311,  737 

1, 382,  005 

497,  521 

1  Not  obtainable. 

Note— For  the  haikwan  tael,  equivalent  values  in  United  States  currency  are  as  follows:  In  1913, 
$0,729;  1923,  $0,823;  1924,  $0.8097. 

IMPORTS 

The  principal  imports  into  Foochow  in  the  order  of  their  im¬ 
portance  are  flour,  kerosene,  cotton  piece  goods  and  yarn,  sugar,  coal, 
leather,  slab  tin,  matches,  and  beans.  The  United  States  supplied 
nearly  50  per  cent  of  the  flour  direct  and  over  7  per  cent  by  trans¬ 
shipment  through  Hongkong.  Of  the  kerosene  the  United  States 
supplied  over  63  per  cent  direct,  and  a  portion  of  the  15  per  cent 
transshipped  through  Hongkong.  The  United  States  supplied  over 
17  per  cent  of  the  dried  fish  by  direct  shipment  and  probably  most 
of  the  35  per  cent  transshipped  through  Hongkong;  also  about  4 
per  cent  of  the  machinery  by  direct  shipment,  and  at  least  a  con¬ 
siderable  portion  of  the  60  per  cent  imported  through  Hongkong  and 
the  33  per  cent  imported  through  Shanghai. 

It  should  be  noted  that  the  Chinese  Maritime  Customs,  from  which 
source  statistics  of  trade  are  obtained,  credit  Hongkong  with  all 
goods  transshipped  at  that  port,  hence  it  is  impossible  always  to 
determine  the  country  of  origin  of  imported  goods.  The  leading 
articles  imported  in  1913,  1923,  and  1924  follow, 


664 


COMMERCIAL  HANDBOOK  OF  CHINA 


Commodities 


FOREIGN  GOODS 

Cotton  piece  goods: 
Cambrics,  lawns, 


Shirtings _ _ do... 

T  cloths _ do.. 

Velvets  and  velveteer 

_ _ yards. 

Cotton  yarn _ pounds. 

Cigarettes _ thousands . 

Coal _ _ tons. 

Flour _ barrels. 

Leather... . ..pounds. 

Matches _ _ gross. 

Metals: 

Iron  and  mild  steel,  .tons. 


Kerosene: 

American 


Sumatra . 
Sugar. . 


-tons.. 


CHINESE  GOODS 


Coal _ _ tons. 

Cotton  piece  goods: 

Drills . . pieces. 


Sheetings... . pieces. 


Matches _ _ gross. 


1913 

1923 

1924 

Value  in 

Value  in 

Value  in 

Quantity 

haikwan 

Quantity 

haikwan 

Quantity 

haikwan 

taels 

taels 

taels 

d 

26, 786 

34,163 

8, 610 

50, 789 

16,066 

89, 060 

17, 751 

86, 055 

2, 448 

24, 069 

2, 780 

28,  512 

21, 245 

99, 047 

22, 058 

294, 133 

17,885 

192, 480 

8,897 

28, 336 

8, 952 

58,  738 

7, 364 

51, 487 

_ 

9, 104 

37,  805 

54,  210 

341,  584 

40,  997 

300,500 

74,  252 

167,  463 

21, 859 

103,  991 

34, 075 

179, 051 

54,  024 

14, 110 

28, 058 

9,  950 

11,391 

5,  296 

4,  683, 866 

906,  517 

76,800 

30,  216 

21,600 

7,  381 

5,160 

15,  328 

7, 436 

32,  905 

9,536 

43,  867 

3, 779 

21, 162 

11,512 

111,750 

23, 002 

208, 071 

79, 482 

490,  716 

187, 120 

1,  335,  733 

175, 270 

1,  240,  520 

117, 333 

35, 193 

404,000 

137,  422 

313,  866 

109,818 

357, 858 

97, 337 

25, 183 

7,997 

4, 168 

2,  262 

1,550 

60,  446 

1,370 

96,665 

1,301 

169,  904 

_ 

661 

70,  617 

638 

88, 320 

587 

90,  528 

-- 

261 

197,  758 

257 

216,  949 

160 

147,  333 

f  3,138,017 

I 

f  2,  204,  480 

564, 170 

3,239,827 

511, 348 

<  577, 608 

}  1, 134, 139 

\  307, 079 

64,  645 

1.  4, 412 

J 

l  479, 281 

82, 159 

2,316 

218, 923 

3,  997 

799, 157 

7,380 

1, 051,  400 

262, 682 

0) 

403,  442 

0) 

446,909 

665,  620 

0) 

(0 

30,  236 

0) 

12, 038 

105,  212 

46, 156 

0) 

45,  580 

285,  450 

385,  200 

1,398;  133 

0) 

1,559;  333 

233;  257 

24, 320 

0) 

24, 836 

144,  864 

1,348,  933 

(') 

4,  445;  200 

0) 

133,  684 

C1) 

79,925 

0 

446, 909 

777, 126 

209, 187 

0) 

254,  667 

95, 378 

i  Not  available. 


The  following  table  of  estimated  percentages  illustrates  the 
distribution  of  the  import  trade  of  the  Foochow  district,  as  to 
points  of  origin : 


Articles 

From 

other 

Chinese 

ports 

From 

Japan 

From 

Great 

Britain 

From 

Hong¬ 

kong 

From 

United 

States 

Per  cent 

Per  cent 

Per  cent 

Per  cent 

Per  cent 

Beans.  _ _ _ _ _ 

99.  92 

0.  01 

0.07 

Cigarettes _ _ 

97.  40 

0.15 

2.45 

Coal  .  _ _ _ _ _ 

62.  15 

37. 81 

.04 

Cotton  piece  goods: 

Shirtings. _ _ _ _ _ _ _ 

60.  37 

39.  63 

Dril’s 

93.66 

6.  34 

Jeans _ 

98.  75 

1.  25 

T  cloths _  ..  ..  _ _ 

2.  32 

97.68 

Cambrics,  lawns,  and  muslins _ _ 

54.63 

45.  37 

Dyed  cotton,  italians _ 

12.  38 

87.  62 

Velvets  and  velveteens _ _ 

82.  95 

17.  05 

Sheetings  .  _ 

100.  00 

Nankeens  _ 

100.  00 

Cotton  yarn  _  _ 

98.  95 

1.  05 

Flour  .  ..  _ _ _ 

43.  33 

7.  73 

48.94 

Iron  and  mild  steel _ 

68.  06 

.01 

31.  73 

Kerosene  .  _ 

10.  77 

10.23 

15.24 

63.  76 

Lead,  pig.. _ _ 

54.  52 

45.  48 

Leather  _ 

15.  89 

.02 

84.  09 

Matches  .  _ _ 

99.  24 

.  55 

.21 

Sugar  _ 

6.  21 

.  20 

93.  59 

Tin,  slabs  or  pig  _ 

.02 

99.  98 

Fish,  dried  and  salt . . . 

27.  79 

19.73 

35.38 

17. 10 

Machinery _ _ _ 

33.64 

3.  47 

60.04 

2.  79 

FOOCHOW  CONSULAR  DISTRICT 


665 


MONEY,  BANKING,  AND  CREDIT 

BANKS 

The  following  banks  handle  foreign  exchange  transactions  in  the 
Foochow  district  : 


Organizations 

Nationality 

Head  office 

Capital  (paid  up) 

American-Oriental  Bank  of  Fukien . 

Bank  of  China  ._  .  _  _ 

American.  __ 
Chinese _ 

Foochow _  _ 

Peking  ...  _ 

$250,000  Mex. 

$60,000,000  Mex.  (authorized). 
60,000,000  yen. 

$20,000,000  Mex. 

Bank  of  Taiwan _ 

Hongkong  &  Shanghai  Banking  Cor¬ 
poration. 

Japanese _ 

British  ..  . 

Taipeh  (Formosa). 
Hongkong.  ..  . 

LOCAL  CURRENCY 

There  are  in  use  in  the  Foochow  district  no  less  than  9  distinct 
currencies,  5  actual  and  4  arbitrary. 

ACTUAL  CURRENCIES 

Subsidiary  coins  consist  of  copper  cash,  copper  cents,  10-cent  and  20-cent 
pieces,  the  actual  value  of  which  varies  with  the  value  of  the  metal  content. 

The  “  clean  ”  Mexican  or  silver  dollar,  includes  the  Chinese  Yuan  and 
“  dragon  ”  dollar,  the  Japanese  trade  yen,  the  Hongkong  silver  dollar,  etc. 
These  dollars  when  not  struck  with  a  die,  or  “  chopped,”  as  it  is  called,  are 
called  “  clean  ”  Mexican  dollars. 

The  “  chopped  ”  Mexican  or  silver  dollar ,  includes  all  silver  dollars  of 
recognized  standard  which  have  been  “  chopped  ”  or  struck  with  a  metal  die 
to  denote  genuineness.  These  are  dealt  in  by  weight  only. 

The  “big  dollar ”  or  “clean  dollar ”  paper  note  is  issued  as  the  equivalent 
of  a  “  clean  dollar.” 

The  “  tai  fu  ”  paper-dollar  note  is  issued  as  the  equivalent  of  1,000  copper 
cash. 

ARBITRARY  CURRENCIES 

The  “  cheque  dollar  ”  is  an  arbitrary  standard  adopted  by  foreign-exchange 
banks  to  represent  the  nominal  value  of  the  “  chopped  ”  Mexican  dollar  for 
banking  and  exchange  purposes.  As  the  actual  coins  vary  considerably  in 
weight  and  fineness,  the  banks  have  adopted  the  arbitrary  fineness  of  0.7416 
of  a  Kuping,  or  pure  silver,  tael  or  ounce,  for  their  banking  dollar. 

The  Shanghai  tael  is  an  arbitrary  standard  of  value  considered  as  545.25 
grains  of  silver  0.980  fine,  used  by  the  foreign  exchange  banks  of  Shanghai 
in  quoting  foreign  exchange,  and  hence  the  basis  of  most  interport  banking. 

The  Foochow  tael. — Theoretically  this  unit  is  equivalent  to  523.5  grains  of 
silver.  It  is  used  in  some  local  business  transactions. 

The  haikwan  or  customs  tael  represents  a  standard  of  583.3  grains  of  silver, 
pure,  used  by  the  Chinese  Maritime  Customs  in  collecting  customs  charges. 

It  may  be  said  as  a  rough  generalization  that  the  livelihood  of  the 
people  is  measured  in  terms  of  copper  cash,  and  hence  of  copper- 
cash  paper  notes,  that  is  the  “  tai  fu  ”  currency,  while  all  foreign 
business  and  interport  trade  is  measured  in  terms  of  pure-silver 
content,  and  hence  of  “  cheque  ”  dollars  and  Shanghai  taels.  The 
other  currencies  are  regarded  as  and  have  a  market  value  as  ratios 
to  these  two  bases,  with  the  exception  of  the  haikwan  tael,  which 
has  its  one  specific  use. 

CREDITS 

Purchases  abroad  are  usually  handled  by  confirmed  letter  of  credit 
cash  against  shipping  documents,  on  initial  orders.  Once  connec- 


666  COMMERCIAL  HANDBOOK  OF  CHINA 

tions  are  established,  credits  of  30  to  60  days  are  usually  granted. 
The  local  branches  of  foreign  banks  can  usually  give  credit  infor¬ 
mation  on  local  importers  and  exporters. 

It  is  highly  advisable  that  individuals  representing  themselves 
as  acting  on  behalf  of  a  principal  carry  with  them  or  have  filed  at 
the  consulate  their  powers  of  attorney.  While  a  consulate  accepts 
no  responsibility  for  firms  it  names  or  introduces,  it  should  be  in  a 
position  to  furnish  inquiries  with  suitable  bank  references,  and 
with  evidence  of  authority  to  act. 

MERCHANDISING  METHODS 

Until  recently  most  foreign  goods  which  found  their  way  into  the 
north  Fukien  market  were  imported  from  Shanghai  or  Hongkong 
by  local  merchants,  through  brokers  or  through  manufacturers7 
agents  in  these  two  centers.  There  is  an  increasing  tendency  to  form 
direct  connections  abroad,  particularly  with  America.  (The  con¬ 
sulate  will  be  glad  to  advise,  in  specific  instances,  which  of  these 
methods  is  to  be  recommended.)  The  local  import  and  export  house 
is  still  a  useful  and  sometimes  necessary  link  in  the  chain,  as  it 
simplifies  credit  arrangements  and  saves  the  expense  of  investigating 
suitable  advertising,  storage,  and  merchandising  methods.  Manu¬ 
facturers  contemplating  a  general  sales  campaign  in  China  would 
do  well,  in  any  case,  to  do  three  things:  (1)  To  obtain  from  each 
American  consulate  direct  information  as  to  the  local  situation  in 
the  particular  line  of  merchandise  and  advice  as  to  the  best  method 
to  adopt  to  introduce  the  line  in  the  particular  locality;  (2)  to  es¬ 
tablish  and  keep  strictly  to  distinctive  brands  or  marks  on  which  the 
name  and  nationality  of  the  producer  and  of  the  goods  is  clearly 
indicated  in  Chinese  as  well  as  English;  and  (3)  to  protect  both 
agents  and  consumer  by  definite  delimitation  of  powers  granted 
and  of  territory  to  be  covered,  filing  such  information  at  the  proper 
American  consular  office. 

ADVERTISING  * 

In  order  of  effectiveness  the  advertising  mediums  of  the  district 
may  be  given  as  (1)  introduction  through  the  Chinese  Chamber  of 
Commerce,  Foochow,  to  the  trade  guild  handling  the  line,  and  filing 
of  copies  of  the  trade-mark  and  other  brand  marks;  (2)  billboard 
and  handbill  posters  in  Chinese;  (3)  newspaper  advertising. 

TRADE  ORGANIZATIONS 

Either  through  the  Bureau  of  Foreign  and  Domestic  Commerce  in 
Washington,  or  from  the  American  consul  direct,  lists  of  firms  may 
be  obtained.  Besides  the  consulate,  specific  assistance  along  certain 
lines  can  frequently  be  obtained  from  the  Foochow  branch  of  the 
American  Association  of  China;  the  British  Chamber  of  Commerce, 
Foochow;  and  the  Chinese  General  Chamber  of  Commerce,  Foochow. 
These  organizations  are  frequently  helpful  in  establishing  contacts. 

TRAVEL  FACILITIES 

Foochow  can  be  reached  by  China  Merchants  Steam  Navigation 
Co.,  San  Pei  Steamship  Co.,  and  Osaka  Shosen  Kaisha  steamers 


FOOCHOW  CONSULAR  DISTRICT 


667 


from  Shanghai,  and  by  Douglas  Steamship  Co.  steamer  from  Hong¬ 
kong,  Swatow,  and  Amoy.  If  advised  in  advance  the  consulate  will 
gladly  assist  in  arranging  for  accommodations  and  for  letters  of  in¬ 
troduction,  interpreters,  and  other  essentials.  Representatives  of 
business  houses  should  carry  their  credentials  with  them. 

HOTELS 

There  is  no  regular  first-class  foreign  hotel  in  Foochow.  Com¬ 
fortable  accommodations  can  generally  be  obtained,  however,  with 
a  local  British  resident,  through  a  letter  of  introduction.  Rates 
charged  are  from  $9  (Mex.)  to  $12  per  day,  for  room  and  board. 
Arrangements  should  be  made  in  advance  from  Shanghai  or  Hong¬ 
kong  by  cable. 

PROPERTY  VALUES  AND  RENTS 

All  foreign  business  houses  are  located  on  Nantai  Island,  a  suburb 
of  Foochow  situated  just  across  the  river,  where  are  also  the  cus¬ 
toms  offices,  post  office,  and  telegraph  offices.  In  that  section  prop¬ 
erty  values  are  relatively  high,  and  suitable  business  and  residential 
locations  hard  to  buy,  or  even  to  rent.  A  suitable  property  combin¬ 
ing  office  and  residential  quarters  would  cost  about  $40,000  (Mex.). 
Rents  are  based  on  an  approximate  10  per  cent  return  on  the  value. 
It  is  impossible  to  give  figures  for  rent  of  office  or  warehouse  space, 
as  these  vary  greatly.  The  only  property  taxes  foreigners  pay  are 
a  transfer  tax  at  time  of  purchase,  and  a  voluntary  subscription 
toward  the  upkeep  of  roads,  sanitation,  and  lighting,  amounting  to 
about  the  equivalent  of  $20  (United  States)  a  year. 

LIVING  COSTS 

Living  costs  are  somewhat  less  in  Foochow  than  elsewhere  in 
China.  Where  board  and  room  can  be  found  on  a  monthly  basis, 
it  works  out  to  about  the  equivalent  of  $75  (United  States)  a  month 
per  person.  For  a  family  living  in  a  rented  house  the  cost  (in 
United  States  currency)  per  month  would  be  about  as  follows  for 
two  in  a  family :  Rent,  $50  to  $60 ;  food,  $40  to  $60 ;  servants,  $30  to 
$40;  clothes,  clubs,  fuel,  etc.,  $30  to  $60;  total,  $150  to  $220.  For 
four  in  a  family  these  expenses  would  range  approximately  as  fol¬ 
lows:  Rent,  $50  to  $60;  food,  $60  to  $100;  servants,  $40  to  $50; 
clothes,  clubs,  fuel,  etc.,  $60  to  $100;  total,  $210  to  $310. 

There  is  no  school  for  foreign  children  in  Foochow.  Mothers 
must  employ  private  governesses  or  teach  their  own  children.  There 
are  two  foreign  clubs,  the  Foochow  Club  and  the  Foochow  Recrea¬ 
tion  Club,  with  ample  facilities  for  sports  and  recreation. 

CHANGES  IN  TRADE  CONDITIONS  IN  RECENT  YEARS 

The  outstanding  changes  in  trade  conditions  in  the  Foochow 
district  in  the  10  years  1913  to  1923  are  the  decline  of  the  tea  trade 
and  its  replacement  by  other  industries  (principally  timber  and 
paper),  accompanied  by  a  doubling  in  the  total  value  of  the  trade; 
an  increased  importance  of  the  district  as  a  supplier  of  food  and 
other  raw  products  to  other  parts  of  China;  the  shifting  of  the 


668 


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control  of  trade  from  foreign  to  Chinese  hands;  the  growth  of 
modern-type  industries,  such  as  match  factories,  knitting  and  weav¬ 
ing  factories,  leather  tanneries,  rubber  factories,  and  soap  manu¬ 
factures,  and  a  pronounced  increase  in  the  value  and  number  of 
American  interests.  Whereas,  in  1913,  there  were  but  two  branches 
of  American  firms  in  Foochow  and  less  than  200  Americans  resident 
in  the  district,  in  1923  there  were  10  American  firms  with  either  head 
offices  or  branches  in  Foochow,  among  them  being  2  general  import 
and  export  houses,  a  bank,  2  insurance  companies,  and  5  firms  hand¬ 
ling  special  lines  of  import;  while  there  were  429  American  citizens 
resident  in  the  district.  The  great  growth  of  American  missionary 
enterprise  in  the  district  should  be  noted,  as  having  an  indirect 
though  effective  relation  to  the  promotion  of  American  trade  inter¬ 
ests.  American  goods  to  the  value  of  about  $2,000,000  (United 
States)  entered  the  district  in  1923,  as  against  less  than  $1,000,000 
in  1913. 


HARBIN  CONSULAR  DISTRICT 


By  Consul  G.  C.  Hanson 

LOCATION  AND  AREA 

The  Harbin  consular  district  includes  the  Province  of  Heilung¬ 
kiang  and  all  that  part  of  the  Province  of  Kirin  lying  north  of  a 
line  drawn  between  the  cities  of  Changchun  and  Kirin.  In  general 
it  lies  between  43°  and  54°  north  latitude,  or  approximately  in  the 
latitude  of  Minnesota,  the  Dakotas,  and  the  southern  part  of  the 
Canadian  Provinces  of  Manitoba,  Alberta,  and  Saskatchewan.  Its 
area,  including  that  of  Barga,  Mongolia,  is  390,000  square  miles; 
exclusive  of  Barga  it  approximates  220,000  square  miles.  The  aver¬ 
age  annual  rainfall  is  42  inches;  average  minimum  temperature, 
28.4°  F.;  average  maximum  temperature,  61°  F.  June  and  July  are 
the  rainy  months ;  it  is  generally  dry  during  the  rest  of  the  year. 

North  Manchuria  is  reputed  to  have  as  great  a  number  of  sunny 
days  in  the  year  as  any  other  section  of  the  world.  The  winters  are 
dry  and  exceedingly  cold,  with  comparatively  little  snow,  while  the 
growing  season  is  short  but  intense. 

POPULATION 

The  population  of  the  district,  according  to  the  Chinese  Maritime 
Customs,  is  in  the  neighborhood  of  6,000,000 ;  according  to  the  figures 
of  the  economic  bureau  of  the  Chinese  Eastern  Railway,  in  the  neigh¬ 
borhood  of  11,000,000.  Great  areas  of  Heilungkiang  Province 
average  scarcely  more  than  one  inhabitant  to  the  square  mile ;  Kirin 
Province  is  much  more  thickly  populated;  and  in  the  region  of 
Harbin  the  average  density  is  probably  300  per  square  mile. 

CITIES 

The  leading  cities  of  the  district  are  shown  in  the  following  table : 


Cities 

Population 

(estimated) 

Europeans 

Americans 

American 

business 

firms 

Harbin  1 . . . . . . 

150, 000 
200, 000 
40, 000 
15, 000 
40, 000 
30,000 

100,000 

100 

32 

Fuchiatien _  .  _ 

Tsitsihar _  _  .  . . 

Hailar  1 . . . . 

3,000 

1,500 

20,000 

Taheiho  !. _ _ _ _ _ 

4 

Manchouli  l__ . . . . . . . 

1  Treaty  port  where  foreigners  may  reside  for  trade  purposes. 


Harbin ,  on  the  Sungari  River  at  the  junction  of  the  Changchun 
branch  with  the  main  line  of  the  Chinese  Eastern  Railway,  is  the 
distributing  center  for  the  trade  of  North  Manchuria,  and  to  a 

669 


670 


COMMERCIAL  HANDBOOK  OF  CHINA 


great  extent,  under  normal  conditions,  for  eastern  Siberia.  It  is  the 
headquarters  of  the  Chinese  Eastern  Railway  and  the  seat  of  the 
government  of  the  railway  zone.  Harbin  is  a  Russian  city. 

Fuchiatien  is  adajacent  to  Harbin,  and  is  connected  with  it  by  a 
paved  road.  Its  administration  is  wholly  Chinese,  and  its  status 
as  a  treaty  port  is  not  clearly  defined.  It  is  the  Chinese  center  for 
wheat,  beans,  corn,  barley,  and  hemp  products  from  the  interior. 
These  products  are  brought  in  by  cart  and  by  river  boats. 

Tsitsihar  is  the  capital  of  Heilungkiang  Province.  It  is  a  Chinese 
city,  and  is  the  collection  point  for  farm  products  from  the  fertile 
Nonni  Valley. 

Hailar  is  in  reality  a  Mongolian  town.  It  is  a  center  for  the 
accumulation  of  wool,  hides,  raw  skins,  cattle,  sheep,  and  horses 
from  the  Mongolian  nomads.  Within  recent  years  it  has  become 
a  large  settlement  for  Cossack  refugees  from  Siberia,  who  have 
engaged  in  farming  and  cattle  breeding. 

Taheiho ,  opposite  Blagoveshchensk  in  Siberia,  is  a  seat  of  the 
Chinese  Maritime  Customs  and  the  principal  point  of  trade  between 
that  portion  of  Manchuria  and  the  Amur  district  of  Siberia. 

Manchouli  (Manchuria  Station)  is  important  mainly  as  being 
Manchuria’s  western  gateway  into  Siberia. 

AGRICULTURE 

The  leading  products  of  the  district  are  beans,  wheat,  Italian 
millet,  kaoliang,  corn,  and  barley.  Beans  and  wheat  are  the  only 
ones  which  enter  to  any  extent  into  the  export  statistics  of  North 
Manchuria,  the  other  products  being  largely  consumed  locally  for 
distillation  purposes,  as  articles  of  diet,  and  as  cattle  feed. 

STOCK  RAISING 

Stock  breeding  is  an  important  industry  in  North  Manchuria. 
In  1923  it  was  estimated  that  the  animals  in  the  district  numbered 
as  follows:  Large  horned  cattle,  636,000;  horses,  1,879,200;  pigs, 
2,198,000;  sheep,  1,808,200.  In  1923,  1,262  horses  were  exported. 
Meat  exports  are  becoming  increasingly  important,  approximately 
6,000  tons  having  been  shipped  abroad  in  1923. 

FORESTS 

Along  the  western  line  of  the  Chinese  Eastern  Railway  forests 
are  found  on  the  Khinghan  Mountains,  while  almost  the  entire  east¬ 
ern  line  traverses  wooded  country.  The  southern  branch  contributes 
only  a  small  proportion  of  the  timber  cut  in  North  Manchuria.  The 
principal  species  are  Korean  pine  (31  per  cent),  spruce  (26  per  cent), 
fir  (3  per  cent),  elm  (7  per  cent),  oak  (3  per  cent),  white  birch  (5 
per  cent).  Among  other  species  may  be  mentioned  Manchurian 
walnut,  velvet  tree,  ash,  maple,  and  aspen. 

During  the  first  six  months  of  1924  the  district  exported  approxi¬ 
mately  170,000  tons  of  timber  and  lumber. 

MINERALS  AND  MINING 

Coal  occurs  at  Chalainor,  on  the  Han  River  near  Mergen;  Puhai, 
on  the  southern  line  of  the  railway;  at  Machiaohe;  and  near  Kia- 


HARBIN  CONSULAR  DISTRICT 


671 


musze  Station,  on  the  southern  line  of  the  railway.  The  latter  de¬ 
posits  contain  coal  of  excellent  quality,  while  the  Chalainor  coal  is  a 
lignite  of  low  grade.  The  total  annual  production  of  coal  is  ap¬ 
proximately  300,000  tons.  Practically  all  of  the  coal  mined  is  con¬ 
sumed  by  the  Chinese  Eastern  Railway.  The  development  of  the 
Machiaohe  mines  is  planned,  but  lack  of  capital  is  an  obstacle  to  the 
development  of  mining  in  North  Manchuria. 

The  Chalainor  mines  are  located  at  Chalainor  Station,  a  distance 
of  18  miles  from  Manchuria  Station.  These  are  the  only  coal  de¬ 
posits  in  North  Manchuria  utilized  at  present  to  any  extent.  It  has 
been  estimated  that  the  total  reserve  supply  of  lignite  in  the  explored 
regions  is  approximately  19,000,000  to  20,000,000  tons.  From  1909 
to  1922  these  mines  were  exploited  as  a  concession  from  the  Chinese 
Eastern  Railway  Co.,  but  in  1922  the  railway  began  to  work  the  mines 
itself.  Until  1914  the  yearly  output  varied  between  96,000  and 
160,000  tons,  depending  upon  the  demand.  It  began  to  increase  in 
1915,  and  exceeded  290,000  tons  in  1920.  In  1923  the  output  was 
180,000  tons.  Approximately  70  per  cent  of  the  total  quantity  is 
consumed  by  the  Chinese  Eastern  Railway. 

Gold. — Gold  is  washed  on  the  Suifenho  near  Sansing  and  in  other 
places,  chiefly  on  the  tributaries  to  the  Amur,  where  not  less  than 
15,000  men  are  engaged  in  the  industry.  The  gold  washers,  usually 
with  the  commonest  tools,  remove  the  most  accessible  metal,  and  then 
go  elsewhere  to  do  the  same.  There  are  no  mines  of  any  importance. 

Soda. — In  the  western  part  of  North  Manchuria  soda  is  obtained 
by  the  evaporation  of  lake  water.  The  annual  production  is  about 
11,000  tons.  In  1923,  156,760  pounds  were  exported. 

Other  minerals. — No  attention  has  been  paid  to  the  production  of 
iron,  copper,  or  graphite.  Millstones  and  brimstone  are  obtained  in 
quarries  near  the  railway,  which  also  supply  building  materials  for 
the  railway  and  the  near-by  towns. 

MANUFACTURING 

The  leading  industries  of  the  Harbin  district  are  flour  milling,  the 
manufacture  of  bean  oil,  and  the  distilling  industry. 

Flour  milling. — This  industry  stands  first  in  importance.  The 
amount  of  capital  invested  is  equivalent  to  approximately  $10,000,- 
000  in  United  States  currency.  About  2,500  persons  are  employed 
by  the  industry.  The  output  is  estimated  at  150,000  tons.  Exports 
of  flour  in  1921  were  86,532  tons;  in  1922,  42,661  tons;  in  1923, 
56,332  tons. 

Bean-oil  industry. — The  manufacture  of  bean  oil  holds  second 
place.  There  are  in  operation  60  steam-power  plants  and  approxi¬ 
mately  1,000  small  native  mills.  No  estimate  is  possible  regarding 
the  number  of  employees.  The  estimated  output  is  300,000  tons  of 
cake  and  oil.  In  1922,  205,610  tons  of  cake  and  10,480  tons  of  oil 
were,  exported ;  in  1923,  296,210  tons  of  cake  and  8.920  tons  of  oil. 

Distilleries. — In  addition  to  distilleries  of  hanshin  (a  native 
product),  of  which  there  are  several  hundred,  consuming  an  aggre¬ 
gate  of  over  100,000  tons  of  grain  annually,  there  are  eight  modern 
spirit  distilleries.  The  total  amount  of  capital  invested  in  the  latter 
is  estimated  at  $2,500,000  to  $3,000,000.  The  aggregate  capacity  of 


672 


COMMERCIAL  HANDBOOK  OF  CHINA 


these  distilleries  is  up  to  9,500  gallons  daily,  or  above  2,600,000  gallons 
annually.  The  actual  output,  however,  is  believed  to  be  less  than 
800,000  gallons. 

All  the  above  branches  of  manufacturing  industry  were  created 
by  Russians,  following  the  construction  of  the  Chinese  Eastern  Rail¬ 
way.  They  have  passed  through  many  crises  and  still  suffer  from 
lack  of  cooperation  in  the  matter  of  acquiring  raw  materials,  the 
marketing  of  their  products,  and  insufficient  operating  capital. 

LABOR  CONDITIONS 

The  majority  of  laborers  in  the  manufacturing  enterprises  of 
North  Manchuria  are  Chinese,  while  Russians  are  employed  for  work 
requiring  responsibility  and  particular  skill.  In  Harbin  there  is 
always  a  sufficiency  of  labor  obtainable,  but  enterprises  along  the 
line  and  in  the  interior  often  must  contract  for  labor  in  the  south. 

The  average  pay  for  unskilled  labor  ranges  from  $4  to  $8  a  month, 
including  board  and  lodging,  and  from  $10  to  $15  a  month  without 
board  or  lodging.  Depending  upon  the  location  of  the  particular 
plant,  the  pay  of  a  miller  (usually  Russian)  runs  from  $62  to  $150 
a  month ;  for  a  machinist,  from  $30  to  $150 ;  for  an  oiler,  from  $8.50 
to  $15. 

Work  is  performed  in  double  shifts  of  laborers,  who  work  8  hours 
one  day  and  16  hours  the  next.  In  the  flour-milling  industry  there  is 
a  decided  shortage  of  skilled  workmen,  and  for  this  reason  employers 
carry  men  on  their  pay  rolls  even  at  periods  when  the  mill  is  closed 
down.  With  the  exception  of  workmen  employed  on  the  various 
branches  of  the  Chinese  Eastern  Railway,  employers  in  North  Man¬ 
churia  provide  no  compensation  for  their  men  in  case  of  sickness  or 
accident,  and  they  are  not  provided  quarters.  Strikes  are  very  rare. 

TRANSPORTATION  AND  COMMUNICATION 

WATERWAYS 

Sungari. — The  Sungari  River  rises  in  the  Chang-pai-shan  Moun¬ 
tains.  From  its  source  to  the  city  of  Kirin,  a  distance  of  330  miles, 
it  is  not  navigable.  Steam  navigation  is  possible  only  from  the  city 
of  Kirin.  From  Sanchiako,  the  point  where  it  joins  the  Nonni 
River,  the  Sungari  is  broad  and  flows  through  a  plains  country. 
From  Kirin  to  Harbin  the  river  is  navigable  only  for  ships  draw¬ 
ing  from  3  to  4  feet  of  water.  East  of  Harbin  it  is  navigable  for 
ships  drawing  from  5  to  6  feet  of  water,  but  in  dry  seasons  ships 
drawing  above  3  or  4  feet  have  difficulty  in  passing  the  Sansing 
shallows.  The  really  navigable  sections  of  the  Sungari  are  from 
Maincheng  to  Harbin  (200  miles)  and  from  Harbin  to  its  mouth 
(450  miles),  or  a  total  of  650  miles. 

Amur. — West  of  the  mouth  of  the  Ussuri  River  the  Amur  is  the 
boundary  line  between  China  and  Russia,  its  right  bank  being 
Chinese  territory  and  its  left  bank  Russian.  East  of  the  mouth  of 
the  Ussuri  River  the  Amur  flows  entirely  through  Russian  territory. 
The  Amur  is  one  of  the  great  rivers  of  the  world.  Ships  drawing 
12  feet  of  water  can  sail  up  to  Khabarovsk,  those  drawing  10  feet 
can  go  to  Blagoveshchensk,  while  those  drawing  from  4  to  5  feet 
may  go  to  the  mouth  of  the  Argun  River,  or  more  than  1,580  miles. 


HARBIN  CONSULAR  DISTRICT 


673 


Ussuri. — Ships  drawing  from  4  to  5  feet  of  water  may  navigate 
the  Ussuri  River  as  far  as  the  city  of  Hulan,  a  distance  of  230  miles 
from  its  mouth. 

Normi. — The  Nonni  River  has  its  source  in  the  Ilehuli  Mountains 
of  Heilungkiang  Province  and  flows  in  a  southeasterly  direction  into 
Kirin  Province,  where  it  empties  into  the  Sungari  River.  Only 
very  small  steamers  can  sail  up  this  river  to  Fularki,  about  20  miles 
from  Tsitsihar. 

Argun. — The  Argun,  one  of  the  upper  branches  of  the  Amur,  is 
an  international  waterway  between  China  and  Russia,  its  right  bank 
being  Chinese  and  its  left  bank  Russian  territory.  The  river  is 
not  navigable  except  for  Chinese  junks  when  water  conditions  are 
favorable. 

RAILWAYS 

The  Chinese  Eastern  Railway  has  a  mileage  of  1,078,  with  spurs 
to  timber  concessions  aggregating  286  miles  additional.  The 
average  freight  rates  per  ton-mile  range  from  3  to  13.9  cents  gold. 

The  Chinese  Eastern  Railway  is  the  principal  means  of  trans¬ 
portation  in  North  Manchuria.  It  traverses  the  entire  country  from 
east  to  west,  from  Manchuria  station  (Manchouli)  to  Pogranichnaia, 
and  connects  with  the  South  Manchuria  Railway  by  a  branch  south¬ 
ward  from  Harbin  to  Changchun.  It  connects  the  ports  of  the 
Pacific  Ocean,  through  its  trans-Siberian  connections,  with  the 
ports  of  the  Baltic  and  North  Seas.  The  enterprise  has  been  largely 
instrumental  in  colonizing  this  vast  territory  and  in  making  its 
resources  available  to  the  outside  world.  It  has  cemented  the  scat¬ 
tered  agricultural,  cattle-raising,  and  timber  regions  of  the  country 
into  one  unit.  Over  the  Chinese  Eastern  come  also  all  imported  goods. 
Its  importance,  however,  is  not  limited  to  its  role  of  a  carrier.  Ever 
since  its  construction  the  Chinese  Eastern  Railway  has  been  the 
dominant  civic  factor  in  the  district.  It  has  created  cities  and 
towns,  over  which  it  administered;  it  has  maintained  schools,  hos¬ 
pitals,  and,  until  recently,  churches.  It  has  been  a  pioneer  in  North 
Manchuria  in  many  branches  of  industry,  with  its  sawmills,  its 
plant  for  the  dry  distillation  of  wood,  its  parquet  factory,  and  its 
plant  for  the  hydraulic  press  packing  of  wool  and  skins.  The 
Chinese  Eastern  Railway  gives  employment  to  approximately  16,000 
persons,  who  represent  an  important  proportion  of  the  buying 
public. 

The  Tsitsihar  Light  Railway ,  the  only  other  railway  line  in  North 
Manchuria  which  carries  passengers  and  freight,  is  an  unimportant, 
antiquated,  narrow-gauge  line,  with  a  total  extent  of  17  miles,  con¬ 
necting  Tsitsihar  (the  capital  of  Heilungkiang  Province)  with  the 
station  of  the  same  name  on  the  Chinese  Eastern  Railway. 

ROADS 

There  are  no  roads  in  North  Manchuria,  but  overland  traffic  is 
carried  over  trails  which  existed  prior  to  the  construction  of  the 
Chinese  Eastern  Railway.  There  were  three  such  roads  from  the 
south.  The  oldest  ran  from  Mukden  to  Kirin,  at  which  point  it 
branched,  one  route  leading  to  the  city  of  Ninguta  and  the  other  to 

100020°— 26 - 14 


674  COMMERCIAL  HANDBOOK  OF  CHINA 

Potune.  At  Acheng,  an  old  Manchurian  town  25  miles  from  Har¬ 
bin,  a  branch  road  followed  the  right  bank  of  the  Sungari,  River 
through  Pinchow  to  Sansing,  and  on  to  Fuchin,  near  the  mouth  of 
the  Sungari.  Another  road  originating  at  the  lower  course  of  the 
Liaoho  followed  the  western  bank  of  this  stream  as  far  as  Fakumen, 
crossed  the  river  at  Chengchiatun,  and  entered  Potune  from  the 
south.  From  this  latter  point  a  direct  trail  led  to  Acheng,  and 
another  to  the  city  of  Tsitsihar.  From  Tsitsihar  the  road  continued 
along  the  left  bank  of  the  Nonni  River  to  Mergen,  wound  its  course 
over  the  Little  Khinghan  Mountains,  and  reached  the  Amur  River 
at  Aigun,  opposite  the  Siberian  town  of  Blagoveshchensk.  A  third 
trail  crossed  the  Great  Wall  at  Hsufenko,  followed  the  Khinghan 
foothills  through  Mongolian  territory,  crossed  the  Taoerho  at  a 
point  approximately  30  miles  west  of  the  city  of  Taonanfu,  and 
reached  Tsitsihar.  In  addition  to  these  meridianal  roads  there  are 
also  transversal  trails  connecting  towns  and  villages  in  the  district. 
These  are  all  dirt  roads,  the  surface  of  which  is  never  repaired; 
and  bridges  are  built  over  streams  in  but  few  places.  Traffic  is  there¬ 
fore  possible  only  when  the  winter  frosts  harden  the  swamps  and 
the  streams.  It  is  believed  that  during  the  winter  months,  from 
November  to  April,  approximately  1,000  miles  of  such  roads  may  be 
used  for  motor  traffic. 

TELEGRAPHS,  CABLES,  AND  WIRELESS  SERVICE 

The  Chinese  Telegraph  Administration  maintains  96  stations  in 
the  district.  The  rate,  in  Mexican  currency,  to  Shanghai  is  18  cents, 
and  to  New  York  $1.90. 

The  Great  Northern  Telegraph  Co.  operates  as  part  of  the  Chinese 
Telegraph  Administration  service,  with  one  station.  Rates  are  as 
above. 

The  Chinese  Eastern  Railway  has  contacts  within  the  railway 
zone  and  one  telegraph  station  at  every  railway  station. 

Telegrams  to  New  York  may  ordinarily  be  forwarded  by  any  of 
the  following  routes:  The  Great  Northern  Telegraph  Co.’s  transit 
route  via  Siberia-Europe  and  Atlantic  cables;  the  Eastern  Exten¬ 
sion  Telegraph  Co.’s  route  via  Hongkong-Suez  and  Atlantic  cables; 
the  Commercial  Pacific  Cable  Co.  via  Manila  and  San  Francisco. 

The  Kirin  provincial  government  maintains  contact  with  Muk¬ 
den  and  Dairen,  and  has  one  wireless  station  at  Harbin.  The 
Harbin  station  transmits  telegrams  to  and  from  wireless  stations  in 
Manchuria  only  and  works  with  the  station  in  Dairen.  It  also 
receives  news  telegrams  broadcast  from  foreign  stations. 

TELEPHONES 

An  automatic  telephone  system  was  installed  at  Harbin  in 
October,  1921.  It  represents  an  investment  of  approximately 
$600,000  (LTnited  States),  and  gives  an  annual  gross  revenue  equiva¬ 
lent  to  nearly  $200,000  in  United  States  currency.  On  July  1,  1924, 
it  served  2,087  subscribers  from  one  central  over  5,936  miles 
of  wire,  and  recorded  a  daily  average  of  35,196  conversations.  The 
system  is  adapted  to  serve  3,000  subscribers.  A  fee  of  $100  to  $125 
(United  States)  per  annum  is  charged.  This  system,  the  property 


HARBIN  CONSULAR  DISTRICT  675 

of  the  Chinese  Eastern  Kailway,  was  installed  by  an  American  firm 
and  gives  excellent  service. 

In  1922  the  Chinese  Eastern  Kailway  improved  its  interurban 
telephone  system  by  replacing  the  former  one-line  installation  by  a 
double-line  system.  This  enterprise  operates  a  total  of  five  separate 
interurban  telephone  lines — two  on  the  southern,  two  on  the  western, 
and  one  on  the  eastern  branch.  The  automatic  telephone  at  Harbin 
may  be  connected  with  these  interurban  lines. 

A  recent  project  includes  the  connection  of  Harbin  with  Vladi¬ 
vostok  by  telephone.  For  this  service  it  is  planned  to  utilize  iron 
wires  and  repeaters. 

POSTAL  FACILITIES 

In  an  administrative  sense  North  Manchuria  is  a  separate  postal 
district,  the  Kiwei  district,  which  was  withdrawn  from  Mukden 
control  in  1921.  The  district  has  a  total  of  238  postal  agencies  and 
118  offices,  with  head  office  at  Harbin.  It  has  15  town  box  offices, 
116  rural  box  offices,  45  rural  stations,  and  143  stamp-selling  agen¬ 
cies.  Mail  is  carried  on  the  Sungari  and  Amur  Rivers  between  April 
and  October  as  far  as  Taheiho,  a  distance  of  900  miles  from  Harliin, 
and  the  rest  of  the  year  overland  by  horses,  couriers,  and  motor 
trucks.  The  Chinese  Eastern  Railway  is  used  all  through  the  year. 
The  mail  service  is  excellent. 

SHIPPING  AND  WAREHOUSING  FACILITIES 

PORT  ACCOMMODATIONS 

Harbin  and  Fuchiatien  ancnorage  and  landings  are  abreast  of 
the  port  of  Harbin  and  the  adjoining  native  city  of  Fuchiatien. 
The  Sungari  River  is  not  affected  by  the  tides.  The  depth  of  water 
during  the  navigation  season  varies  from  3  to  6  feet,  and  the  maxi¬ 
mum  draft  of  a  Sungari  vessel  cioes  not  exceed  6  feet. 

The  major  portion  of  the  river  bank  is  stone  faced,  and  the 
vessels  moor  alongside.  The  Chinese  Eastern  Railway  Co.  has  a 
dock  excavated  inside  the  normal  line  of  the  river  bank,  situated 
immediately  above  the  boundary  between  Harbin  and  the  native 
city.  Railway  sidings  run  along  the  entire  Chinese  Eastern  Rail¬ 
way  berthing  places  at  both  river  bank  and  dock.  There  is  no  rail 
accommodation  in  connection  with  the  native  city  berthing  place. 
All  cargo  is  carried  by  coolies,  except  timber,  which  is  pulled  up 
by  hand. 

No  figures  are  available  relative  to  the  amount  of  tonnage  which 
enters  and  clears  the  port.  The  approximate  tonnage  of  steamers 
is  known,  but  that  of  barges  is  not,  and  the  latter  tonnage  exceeds 
that  of  steamers.  The  approximate  carrying  capacity  of  vessels 
which  navigated  the  Sungari  during  the  summer  of  1924  is  as 
follows:  Steamers,  14,400,000  pounds;  barges,  62,280,000  pounds. 

The  following  craft  were  prohibited  from  sailing:  Chinese  East¬ 
ern  Railways’  11  steamers  and  30  barges,  with  an  aggregate  carry¬ 
ing  capacity  of  43,200,000  pounds ;  4  steamers  and  12  barges  belong¬ 
ing  to  a  Russian  firm  and  having  an  aggregate  capacity  of  18,000,000 
pounds. 


676 


COMMERCIAL  HANDBOOK  OF  CHINA 


CARGO-HANDLING  FACILITIES 

There  are  no  cranes  for  handling  cargo  at  Harbin  and  Fuchiatien 
bund  and  railway  dock.  The  average  rate  of  discharge  of  cargo 
from  barge  to  railway  car  is  approximately  72,000  pounds  per  hour ; 
from  barge  to  cart,  83,000  pounds  per  hour;  from  barge  to  Chinese 
Eastern  Eailway  godown,  65,000  pounds;  fro*m  barge  to  railway 
platform,  126,000  pounds  per  hour. 

The  cost  of  transference  of  cargo  from  ship’s  tackle  to  port  for 
a  distance  not  exceeding  70  feet  from  barge  to  stowage  is  3  cents 
Mex.  per  bag  (approximately  190  pounds)  ;  for  distances  over  70 
feet  there  is  a  proportionate  increase  in  cost.  The  bulk  of  cargo 
handled  at  Harbin  is  timber  and  grain. 

WAREHOUSING  AND  STORAGE 

Warehouses  and  storage  sheds,  built  of  corrugated  iron  sheeting 
and  ample  for  present  requirements,  adjoin  the  landings.  They  are 
generally  used  for  the  storage  of  grain,  salt,  coal,  and  timber. 

The  storage  charge  for  ordinary  goods  is  15  cents  silver  per  pood 
of  36  pounds  for  the  first  15  days.  The  rate  for  tea  is  8  silver  cents 
per  pood  of  36  pounds  for  a  period  of  30  days. 

Timber  is  stored  in  the  usual  manner ;  grain  is  piled  up  in  pyramid 
fashion  and  covered  with  straw  matting.  As  the  climate  is  very 
dry  during  the  seasons  grain  is  stored  in  the  open,  this  simple 
method  does  not  adversely  affect  it. 

The  transfer  of  cargo  from  storage  to  dealer  is  effected  by  carts. 

The  Chinese  Eastern  Eailway  makes  a  bund  tax,  or  wharfage 
charge,  of  from  one-half  to  three-fourths  of  a  silver  cent  per  pood  of 
36  pounds,  according  to  where  the  vessel  is  berthed.  Steamers  are 
also  charged  a  berthing  fee  of  $3  Mex.  and  barges  $2  a  day  while 
alongside.  There  are  no  fees  for  anchorage  in  the  stream. 

PUBLIC  UTILITIES 

ELECTRIC-LIGHT  PLANTS 

North  Manchurian  Electric  Enterprise  Co.  (Japanese). — Located 
at  Harbin;  total  capacity,  600  kilowatts;  direct  current,  110  volts. 
The  plant  serves  approximately  3,000  subscribers,  who  pay  40  Jap¬ 
anese  sen  per  kilowatt-hour.  The  service  is  very  poor. 

/.  I.  CJmrin  &  Co.  (Eussian). — Newtown-Harbin;  total  capacity, 
130  kilowatts;  direct  current,  200-220  volts.  The  company  serves 
approximately  1,000  subscribers,  who  pay  35  Japanese  sen  per  kilo¬ 
watt-hour.  Service  is  good. 

The  Chinese  Eastern  Railway. — Harbin,  (a)  Eailway  depot:  2 
generators,  130  kilowatts,  220  volts,  (h)  Harbin  railway  work¬ 
shops:  4  alternators,  total  capacity  116  kilowatts,  25  cycles,  250  volts; 
110  volts  for  lighting.  ( c )  Old  Harbin:  2  generators,  direct  current, 
220  volts,  capacity  70  kilowatts. 

Number  of  subscribers  unknown.  Eates  vary  for  railway  em¬ 
ployees  and  for  private  subscribers  from  4  silver  cents  to  40  cents 
per  kilowatt-hour. 

The  United  Manchurian  Flour  Mills  (Eussian). — Pristan-Harbin. 
Five  dynamo  machines,  450  kilowatt,  direct  current,  220  volts;  steam 


HARBIN  CONSULAR  DISTRICT  677 

engines.  Subscribers  include  one-quarter  of  the  city;  charge,  40 
Japanese  sen  per  kilowatt-hour. 

Yueh  Ping  Electric  Go.  (Chinese). — Fuchiatien-Harbin.  Two  600- 
kilowatt  turbines;  alternating  current;  110  volts  for  lighting,  220 
volts  for  power ;  charges,  35  silver  cents  per  kilowatt  hour  for  light, 
17Y2  silver  cents  per  kilowatt  hour  for  power.  This  plant,  which  is 
2  years  old,  was  constructed  by  an  American  firm,  and  gives  excel¬ 
lent  service. 

In  addition  the  Chinese  Eastern  Railway  operates  electric-light 
plants  at  settlements  in  the  railway  zone.  Small  plants  are  also  in 
operation  in  various  Chinese  cities  in  the  district. 

MOTOR-BUS  SERVICE 

There  are  no  tramways  operating  in  the  district,  but  in  Harbin 
approximately  150  passenger  autobuses  are  doing  a  good  business. 
Passenger  automobiles  are  also  connecting  towns  in  the  interior, 
where  they  follow  the  ancient  trade  routes  during  the  season  of  the 
year  when  frosts  have  made  these  roads  passable  for  motor  carriages. 

EXPORT  AND  IMPORT  TRADE 

EXPORTS 

The  leading  exports  of  the  Harbin  district  are  shown  in  the  fol¬ 
lowing  table : 


Articles 

Average,  1911-1913 

Average,  1921-1923 

Quantity 

Value 

Quantity 

Value 

Beans . . . 

Piculs 

5,  287,  860 
239,  577 
41,  788 
590,  759 
1, 695,  980 

Haikwan  taels 
10, 728, 463 
280, 147 
348, 424 
105, 363 
4, 073, 711 

Piculs 

5, 239, 028 
2, 730, 486 
211,112 
1,891,599 
1,  748, 646 

Haikwan  taels 
13, 164, 115 
5, 763,  577 
1,990, 091 
937,  629 
4, 084,  379 

Bean  cake  . . 

Bean  oil  - . . . . . 

Skins  (furs) . . . . . 

Wheat . . . . 

Note. — The  average  value  of  the  haikwan  tael,  expressed  in  terms  of  United  States  currency,  is  as 
follows:  1911,  $0.65;  1912,  $0.  74;  1913,  $0.  73;  1921,  $0. 76;  1922,  $0. 83;  1923,  $0.  80. 


It  is  interesting  to  note  the  marked  increase  in  the  export  of  bean 
cakes,  bean  oil,  and  furs  during  the  period  from  1913  to  1923. 
In  the  case  of  bean  cakes  the  increase  is  due  to  greater  demand 
from  Japan,  and  in  the  case  of  bean  oil  is  due  to  increased  demand 
for  this  product  in  Europe.  Disturbed  conditions  in  Siberia  and 
Russia  caused  the  export  of  Siberian  furs  to  China.  Previously 
such  furs  were  exported  to  Europe.  It  is  impossible  to  estimate 
wThat  percentage  of  exports  goes  to  various  countries  abroad,  be¬ 
cause  the  Chinese  Maritime  Customs  do  not  keep  statistics  of  this 
sort  at  Harbin. 

IMPORTS 

Practically  no  imports  are  arriving  in  North  Manchuria  from 
Siberia.  Changchun  is  now  the  principal  port  of  entry  of  imports 
into  this  district,  and  the  Chinese  Maritime  Customs  keep  no  records 
of  such  imports.  The  principal  imports  of  North  Manchuria  are 


678 


COMMERCIAL  HANDBOOK  OF  CHINA 


petroleum  and  petroleum  products,  Fushun  coal,  piece  goods,  ma¬ 
chinery  of  all  kinds,  railway  supplies,  perfumery,  and  drugs.  Amer¬ 
ican  imports  consist  of  petroleum,  piece  goods,  machinery,  tools, 
canned  goods,  and  motor  cars.  In  recent  years  German  imports 
have  regained  a  strong  foothold  in  this  market.  Constant  efforts 
are  being  made  to  foster  the  importation  of  Russian  goods.  Since 
the  Chinese  authorities  assumed  control  in  1920  over  the  Chinese 
Eastern  Railway  Zone  there  has  been  a  marked  increase  in  internal 
taxes,  which  has  had  the  effect  of  hampering  American  and  other 
foreign  trade. 

MONEY,  BANKING,  AND  CREDIT 

BANKS 

The  following  are  the  leading  banks  of  the  district  which  handle 
foreign  exchange  and  bills : 


Banks 

Nationality 

Head  office 

Capital 

Branches  in  district 

International  Banking  Cor- 

American. .. 

New  York. . 

$10,000,000  (U.  S.) . 

Harbin. 

poration. 

Peking . 

Chinese-Amcrican  Bank  of 

Chinese _ 

$7,500,000  Mex . 

Do. 

Commerce. 

Hongkong  &  Shanghai 
Banking  Corporation. 

British. . 

Hongkong.. 

$20,000,000  Mex _ 

Do. 

Russo-Asiatic  Bank . 

Russian _ 

Paris _ 

45,000,000  rubles _ 

Harbin,  Hailar,  Chang¬ 
chun,  and  Man- 
chouli. 

Harbin,  Changchun. 

Yokohama  Specie  Bank 

Japanese _ 

Yokohama.. 

100,000,000  yen  _ 

(Ltd.). 

Bank  of  Chosen _  _ 

..  do _ _ 

Seoul. _ 

50,000,000  yen _ 

Harbin,  Changchun, 
Kirin. 

Numerous  branches 

Bank  of  China.  _ 

Chinese..  .. 

Peking _ 

$20,000,000  Mex.. . 

Bank  of  Communications,. 

. do _ 

_ do _ 

1 ,000,000  Kuping  taels . 

throughout  the  dis¬ 
trict. 

Do. 

Provincial  Bank  of  the 

_ do _ 

Mukden _ 

20,000,000  feng  piao„._ 

Do. 

Three  Eastern  Provinces. 

LOCAL  CURRENCY 

Business  is  transacted  locally  in  two  currencies — Japanese  yen 
and  Chinese  local  dollars. 

The  Japanese  yen  currency  consists  entirely  of  bank  notes  issued  by 
the  Bank  of  Chosen.  These  notes  read,  “  Payable  in  gold  coin  or  in 
Nippon  Ginko  (Bank  of  Japan)  notes,”  but  actually  they  are  re¬ 
deemable  only  in  the  Bank  of  Japan  notes;  and  in  order  to  obtain 
Bank  of  Japan  notes  in  any  quantity  it  is  necessary  to  present  the 
Bank  of  Chosen  notes  at  the  head  office  of  the  Bank  of  Chosen  at 
Seoul.  These  notes,  however,  pass  freely  as  a  medium  of  exchange, 
and  are  usually  quoted  at  practically  the  same  value  as  the  yen  in 
Japan.  In  no  case  up  to  the  present  time  has  the  difference  in 
value  exceeded  one-fourth  of  1  per  cent. 

The  Chinese  local  dollars  consist  of  bank  notes  issued  by  the  four 
principal  Chinese  banks.  These  notes  were  originally  redeemable 
in  actual  silver  dollars,  but  for  the  past  three  years  there  has  been 
an  embargo  on  the  export  of  silver  from  Harbin  except  with  special 
permission  of  the  Chinese  authorities,  and  since  April,  1924,  the 
Chinese  banks  have  refused  to  cash  their  bank  notes  with  silver 
dollars  for  any  amounts  in  excess  of  $10  per  person.  Under  these 


HARBIN  CONSULAR  DISTRICT 


679 


conditions,  of  course,  the  local  dollar  has  to  be  considered  as  prac¬ 
tically  a  paper  currency,  and  the  rate  of  exchange  against  the  local 
dollar  in  comparison  with  the  Shanghai  dollar  fluctuated  at  times 
during  the  last  three  or  four  months  of  1924  down  to  as  low  as  35 
per  cent  discount.  The  fact  that  it  is  not  freely  supported  by  silver 
renders  it  liable  to  daily  fluctuations  of  2  to  3  per  cent. 

Outside  of  Harbin  and  the  other  cities  along  the  Chinese  East¬ 
ern  Kailway  most  of  the  payments  for  Chinese  products  and  goods 
are  effected  in  what  is  known  as  “  tiao  ”  or  “  feng  piao.”  These  two 
currencies  are  entirely  on  a  paper  basis  and  unredeemable  at  any  fixed 
rate  in  silver  or  any  other  stable  currency.  It  is  said  that  the  amount 
of  feng  piao  issued  by  the  Government  bank  has  run  into  so  many 
millions  that  they  have  lost  account  of  the  amount  outstanding. 
The  farmers,  however,  accept  only  tiao  or  feng  piao  in  payment  for 
their  produce;  and  it  is  due  chiefly  to  the  demand  for  these  cur¬ 
rencies  for  use  in  paying  farmers  that  they  maintain  nominal 
values.  The  values,  of  course,  fluctuate  from  30  to  40  per  cent 
throughout  the  year,  on  account  of  political  conditions  and  the  need 
of  funds  by  the  authorities  in  control  of  the  issue.  The  tendency 
during  the  past  few  years  has  been  toward  a  gradual  decline  in  the 
value  of  the  two  currencies,  and  so  long  as  it  is  necessary  to  issue 
them  to  meet  military  and  other  expenses  their  value  is  likely  to  de¬ 
cline  further. 

While  it  is  impossible  to  estimate  the  amount  of  tiao  and  feng 
piao  outstanding,  the  amount  of  local  dollar  notes  outstanding  is 
said  to  be  somewhere  in  the  neighborhood  of  $15,000,000  to  $20,000,- 
000.  The  amount  of  silver  held  against  these  notes  is  estimated  to 
be  not  over  $3,000,000  to  $4,000,000. 

Kemittance  charges  to  Shanghai  at  the  beginning  of  1925  amounted 
to  about  8  per  cent,  but  these  charges  vary  considerably. 

CREDITS 

Owing  to  business  conditions  local  credits  are  difficult  to  obtain, 
and  in  the  case  of  loans  against  real  estate  and  property  the  interest 
rate  is  usually  18  per  cent  or  higher.  The  Japanese  banks  are  the 
only  institutions  which  are  making  advances  against  real  estate  to 
any  great  extent.  It  seems  to  have  been  their  policy  in  Harbin  to 
give  loans  freely  against  land  and  property,  and  it  is  reported  that 
one  Japanese  organization  has  loans  outstanding  to  the  extent  of 
over  7,000,000  yen  against  land  and  buildings. 

Loans  against  local  merchandise,  with  the  exception  of  export  and 
import  cargo,  are  also  very  difficult  to  obtain.  In  this  connection, 
facilities  are  freely  given  to  reputable  firms  by  the  foreign  banks 
at  rates  of  interest  which  are  as  low  as  those  prevailing  in  other 
ports  in  China. 

Method  of  effecting  export  credits. — Export  credits  are  given 
against  railway  waybills  covering  beans  and  other  produce  for  ex¬ 
port,  on  the  understanding  that  ocean  bills  of  lading  will  be  delivered 
in  a  few  weeks. 

Methods  of  effecting  import  credits. — Import  credits  are  arranged 
on  the  basis  of  a  cash  margin  varying  from  10  to  25  per  cent,  against 
which  a  banker’s  letter  of  credit  is  opened  up  in  favor  of  the  shipper 
abroad.  The  balance  of  the  amount  is  paid  either  upon  arrival  of 


680 


COMMERCIAL  HANDBOOK  OF  CHINA 


the  documents  or  at  a  certain  fixed  time  after  the  documents  have 
arrived. 

Transfers  of  funds  to  the  interior  Chinese  cities  and  towns  are 
usually  very  difficult  to  arrange,  and  are  accomplished  chiefly  by 
means  of  native  orders  issued  by  small  Chinese  private  banks  and 
large  firms.  These  orders  are  supposedly  payable  on  demand,  but  it 
is  usually  necessary  to  register  them  with  the  firm  and  wait  several 
days  before  payment  is  effected. 

General  suggestions  to  American  manufacturers  and  merchants 
regarding  credits. — American  manufacturers  and  merchants  engaged 
in  business  transactions  with  firms  in  China  should  rely  to  a  great 
extent  upon  the  advice  and  assistance  of  a  good  foreign  bank.  Nat¬ 
urally,  if  possible,  an  American  bank  should  be  chosen,  as  it  not 
only  can  render  the  same  service  as  other  foreign  banks,  but  it  may 
have  a  better  understanding  of  the  conditions  under  which  the  Amer¬ 
ican  merchant  or  manufacturer  desires  to  work. 

Firms  in  China  often  ask  to  have  goods  sent  on  consignment,  or 
sent  out  billed  for  collection  with  either  documents  against  accept¬ 
ance  or  documents  against  payment.  This  method  of  handling  bills 
is  satisfactory,  provided  that  the  firm  ordering  the  goods  is  re¬ 
sponsible  and  trustworthy;  but  there  are  firms  that  will  take  a 
chance  on  placing  such  orders  in  the  hope  that  a  certain  market  will 
improve,  or  at  least  will  not  fall.  If  it  should  happen  that  by  the 
time  the  goods  arrive  the  market  has  declined,  such  firms  may  refuse 
to  take  up  these  drafts  and  the  American  merchant  may  be  forced 
to  sell  his  goods  at  a  loss  of  20  to  50  per  cent. 

American  merchants  who  intrust  their  foreign  business  to  their 
local  bankers  should  make  inquiries  as  to  the  name  of  the  foreign 
bank  wdiich  will  handle  their  business  abroad.  Many  banks  in 
America  have  their  foreign  business  handled  by  foreign  banks  of 
various  nationalities,  and  in  some  cases  there  is  no  doubt  that  the 
services  of  these  foreign  banks  are  as  satisfactory  as  though  the  busi¬ 
ness  had  been  handled  by  an  American  bank  in  China. 

POWERS  OF  ATTORNEY 

The  nature  of  the  power  of  attorney  for  a  representative  of  an 
American  firm  visiting  North  Manchuria  is  important.  There  are 
various  knds  of  powers  of  attorney.  Some  cover  over  a  printed 
page,  and  confer  upon  the  bearer  many  powers  which  he  will  not 
have  the  slightest  occasion  to  use,  but  omit  other  powers  which 
should  be  clearly  specified.  One  phrase  in  particular  that  results 
in  many  misunderstandings  as  to  the  powers  conferred  by  the  instru¬ 
ments  reads  somewhat  as  follows :  u  *  *  *  and  in  general  to 

transact  whatever  other  business  that  may  be  necessary  on  behalf  of 
the  company.”  This  phrase  can  not  be  interpreted  to  mean  that  the 
holder  has  power  to  borrow,  to  sign  loan  forms,  or  to  sign  contracts 
which  obligate  the  company  to  certain  payments.  Therefore,  in  case 
American  companies  wish  their  agents  abroad  to  have  the  power 
to  sign  drafts,  checks,  and  contracts,  to  open  up  accounts,  and  to  bor¬ 
row  on  promissory  notes  or  through  bank  Overdrafts,  such  authority 
should  be  specifically  stated  in  the  power  of  attorney. 


HARBIN  CONSULAR  DISTRICT 


681 


ADVERTISING  AND  MERCHANDISING 

The  following  publications  constitute  the  leading  advertising  me¬ 
diums  of  the  district: 


Newspapers  and  periodicals 

Frequency  of  publica¬ 
tion 

Language 

Nationality  of 
owner 

Date 
of  es¬ 
tablish¬ 
ment 

Esti¬ 

mated 

circula¬ 

tion 

Russki  Golos  _ 

Morning  daily _ 

Russian  .. 

Russian _ 

1920 

1,000 

Novosti  Zhizni _ 

_ do.  I . . . 

...do _ 

_ do _ 

1907 

3;  000 

Zarya  . _ _ 

Morning  and  evening 

do.  .  . 

_ do _ ... 

/  1920 

3,000 

daily. 

\  1924 

3',  000 

Tribuna _ _ _ _ 

Morning  daily _ 

...do _ 

_ do _ 

1922 

2,  000 

Rupor  _ 

Evening  daily _ 

_ do.  . 

_ do  _  _ 

1921 

1,  500 

Molva _ 

Morning  daily  _ 

...do _ _ 

do _ _ _ 

1924 

'  500 

Pochta  _ 

Evening  daily _ 

...do _  . 

...  do.  _ 

1924 

300 

Sviet  .  __  _ 

Morning  daily.  _ _ 

...do  .  _ 

..  do.  .  _ 

1922 

1,000 

Kopeika . . . . 

...  do  .  _ 

.  .do..  . 

do  _ _ _ 

1923 

'  500 

Harbin  Daily  News.  .  .  _ 

..  do.  .  .  .  _ 

English. 

American  ..  _ 

1918 

500 

Harbin  Herald  _ 

Evening  daily _ 

do  .  . 

British..  _ _ 

1924 

100 

Commercial  Telegraph _ _ 

Weekly  _ 

Russian  . 

Russian _ 

1922 

500 

Ekonomicheski  Viestnik _ 

Monthly _ 

..  do _ _ 

Chinese  Eastern 

1921 

1,  500 

Railway. 

International 

Daily _ 

Chinese.  . 

Chinese _ _ 

1918 

3,  000 

Harbin  Dawning  _ _ 

_ do _ _ 

..  do  _ 

_ do. . 

1923 

2,000 

Sungari  Daily  News _ _ 

_ do _ 

..do.  _ 

_ do _ _  .  .. 

1924 

LOOO 

The  first  four  newspapers  mentioned  have  the  widest  distribution 
also  in  settlements  along  the  railway  line.  There  are  no  standard 
rates  for  advertising,  inasmuch  as  these  vary  and  are  always  subject 
to  bargaining.  The  average  on  a  monthly  contract  would  probably 
be  approximately  30  yen  for  a  space  3  by  3  inches.  Advertising 
in  North  Manchuria  is  employed  only  as  a  means  of  calling  the 
attention  of  the  buying  public  to  articles  in  stock,  particularly 
to  new  shipments  received.  Indiscriminate  distribution  of  cata¬ 
logues  and  pamphlets  in  languages  other  than  Russian  and  Chinese 
is  a  waste  of  effort  and  money. 

Harbin  is  the  commercial  distributing  center  of  North  Manchuria. 
In  this  city  are  located  the  banks  and  the  head  offices  of  all  the 
important  firms  doing  business  in  the  district.  It  is  the  point  to 
which  dealers  from  the  interior  come  to  replenish  their  stocks  at  the 
warehouses  of  foreign  as  well  as  of  Chinese  houses.  The  winter* 
months  are  the  busiest,  because  the  condition  of  the  roads  in  the 
interior  then  enables  merchants  to  make  use  of  them  and  the  farm¬ 
ing  population  has  more  leisure  and  more  money. 

Business  in  North  Manchuria  is  in  the  hands  of  many  nationals, 
and  competition  is  therefore  extremely  keen.  If  a  conservative  firm 
can  show  a  net  profit  of  15  per  cent  for  the  year,  with  the  investment 
turned  over  three  times,  it  is  considered  very  good.  Indent  business, 
which  ties  up  capital  for  a  long  period  of  time,  is  not  in  favor,  and 
preference  is  always  given  to  local  stocks.  One  reason  why  Russian 
and  Chinese  merchants  hesitate  to  order  direct  from  abroad  is  because 
foreign  exporters  do  not  care  to  guarantee  term  of  delivery,  while 
local  sales  contracts  often  carry  a  penalty  clause  covering  nonde¬ 
livery  on  time.  Foreign  manufacturers,  therefore,  with  branch  of¬ 
fices  here  which  carry  stocks,  usually  dominate  the  situation. 


682 


COMMERCIAL  HANDBOOK  OF  CHINA 


TRADE  ORGANIZATIONS 

The  leading  trade  organizations  of  the  Harbin  district  are  the 
American  Chamber  of  Commerce,  Harbin,  the  objects  of  which 
are  to  protect  and  extend  American  business  and  trade  interests,  but 
which  is  also  prepared  to  arbitrate  trade  disputes;  Harbin  Russian 
Chamber  of  Commerce  (Harbin  Exchange  Committee),  5  Kitaiskaia 
Street,  Harbin,  which  issues  weekly  trade  bulletins,  and  which  is 
connected  with  organizations  of  importers  and  of  exporters;  British 
Chamber  of  Commerce,  Harbin;  German  Chamber  of  Commerce, 
Russo-Asiatic  Bank  Building,  Harbin;  Chinese  Chambers  of  Com¬ 
merce  of  Harbin  and  Fuchiatien. 

TRAVEL  FACILITIES  AND  HOTELS 

Railway  travel  in  the  district  is  very  comfortable.  Interpreters 
are  obtainable  at  the  hotels  at  reasonable  rates.  The  English  lan¬ 
guage  is  useful  at  Harbin,  but  a  knowledge  of  Russian  is  almost 
indispensable. 

Living  at  hotels  in  Harbin  is  not  desirable  owing  to  high  prices 
and  the  lack  of  modern  conveniences.  There  is  only  one  hotel  in 
Harbin  where  accommodations  are  fairly  good.  Both  hotel  and 
boarding-house  accommodations  are  poor  judged  by  American  stand¬ 
ards. 

The  leading  hotels  are  the  Hotel  Moderne  and  the  Grand  Hotel. 
The  Hotel  Moderne  is  located  at  34  Kitalskai  Street,  Pristan-Harbin. 
It  contains  56  rooms  without  bath  and  39  with  bath.  It  is  operated 
on  the  European  plan  only.  The  owners  are  Russian.  The  cable 
address  is  “  Moderne  Harbin.”  The  Grand  Hotel,  at  42  Sungariski 
Prospect,  Newtown-Harbin,  has  49  rooms,  all  without  bath.  It  is 
operated  on  the  European  plan  only.  The  owners  are  Russian. 
The  cable  address  is  “Grandhotel  Harbin.” 

PROPERTY  VALUES  AND  RENTS 

Property  values  and  rents  in  Harbin  vary  with  the  location, 
whether  in  the  residential  section,  business  section,  or  in  the  suburbs. 
Office  space  in  the  business  section,  not  on  the  main  street,  may  be 
had  for  an  average  of  $0.25  (LTnited  States)  per  square  foot,  while 
the  price  on  the  main  street  would  be  approximately  twice  that 
amount.  Charges  for  warehouse  space  vary  from  $0.01  to  $0.03 
(United  States)  per  pood  (36  pounds)  a  day,  according  to  kind  of 
merchandise  and  the  period  during  which  stored.  Rent  for  residen¬ 
tial  purpose  varies  widely. 

Owing  to  the  peculiar  circumstances  existing  there,  American 
business  men  desirous  of  renting  or  purchasing  property  at  Harbin, 
should  consult  with  the  American  consulate  before  committing  them¬ 
selves  in  this  respect. 

Apartment  life  offers  the  only  fairly  comfortable  mode  of  living 
in  Harbin.  A  good,  seven-room  apartment  may  be  secured  for  ap¬ 
proximately  $125  (United  States)  a  month.  Electric  light  is  not 
expensive.  A  fairly  good  cook  is  paid  $25  Mex.  a  month ;  “  boys  ” 
are  paid  $18  to  $25  Mex.  a  month,  and  “  coolies  ”  $10  to  $15  Mex. 
Japanese  maidservants  receive  $20  to  $25  Mex.  a  month. 


HARBIN  CONSULAR  DISTRICT 


683 


TAXES  AND  OTHER  ASSESSMENTS 

Taxes  and  other  assessments  are  levied  by  the  Harbin  Municipal 
Council  and  by  the  local  Chinese  police  and  other  authorities.  As 
these  assessments  are  irregular  and  uncertain,  it  is  difficult  to  make 
any  comment  upon  the  kinds  or  amounts  of  such  levies. 

CHANGES  IN  HARBIN  TRADE  CONDITIONS  IN  RECENT  YEARS 

From  the  outbreak  of  the  war  to  the  end  of  1924  many  changes 
occurred  in  Harbin  trade  conditions.  The  declaration  of  war  caused 
local  merchants  to  realize  on  their  stocks,  prices  fell,  important 
enemy  firms  were  closed,  and  many  imports  stopped.  There  was  a 
general  upsetting  of  the  market.  There  followed  a  period  of  great 
commercial  activity,  Harbin  merchants  becoming  the  middlemen  to 
supply  all  Russia,  which  was  isolated  on  the  west  and  beset  by  military 
difficulties.  Trade  capital  greatly  multiplied  and  foreign  manu¬ 
factured  goods  were  imported  in  large  quantities.  The  revolution 
in  Russia  in  1917  checked  the  boom.  The  ruble  collapsed  and  foreign 
trade  fell  off.  Lack  of  rolling  stock,  which  had  been  withdrawn 
from  the  Chinese  Eastern  Railway  for  military  purposes  in  Siberia, 
led  to  a  condition  closely  akin  to  trade  paralysis.  Neither  exports 
nor  imports  could  be  moved  except  under  almost  insuperable  diffi¬ 
culties.  With  the  fall  of  the  Omsk  government  in  1919,  the  Siberian 
market  was  entirely  lost  to  Harbin,  and  in  1920  trade  was  at  a  very 
low  ebb  indeed. 

There  was  a  brief  trade  revival  in  the  spring  of  1921,  due  to  free 
expenditures  of  gold  in  the  hands  of  the  Bolsheviki ;  but  when 
private  trade  with  Siberia  was  suppressed  at  the  end  of  1921,  trade 
depression  returned.  Good  crops  and  large  exports  of  furs  in  1922 
caused  another  trade  expansion,  but  1,500  business  houses  failed  on 
account  of  speculations  and  the  shrinkage  of  credit.  Traffic  to 
Vladivostok  was  interrupted  during  the  Bolshevik  efforts  to  seize 
that  port.  The  wet  summer  of  1923  spoiled  local  production,  but 
bumper  crops  in  1924  served  to  partially  restore  prosperity. 

CURRENCY 

For  the  10-year  period  prior  to  the  war  Russian  rubles  had  been 
the  commercial  currency  of  the  Harbin  consular  district.  Paper 
money  called  “  tiao,”  issued  by  the  Chinese  banks  in  Kirin  and 
Heilungkiang  Provinces,  was  also  in  circulation  and  fluctuated  in 
value  in  terms  of  the  ruble.  The  depreciation  of  the  ruble  com¬ 
menced  with  the  beginning  of  the  war,  and  the  revolution  in  Russia 
hastened  its  downfall.  By  the  end  of  1920  the  ruble  had  become 
valueless  and  the  Chinese  dollar  and  the  Japanese  yen  had  taken 
its  place  as  the  mediums  of  exchange  in  the  railway  zone.  Attempts 
are  being  made  to  put  the  Soviet  chervonetz  on  the  local  market, 
but  the  Chinese  Eastern  Railway,  Chinese  Postal  Service,  Telegraph 
Administration,  and  Chinese  firms  and  shops  are  on  a  silver-dollar 
basis.  At  the  end  of  1924  Russian  and  Chinese  landlords  were 
fixing  rent  contracts  in  silver  dollars  rather  than  in  yen,  and  Russian 
shopkeepers  and  restaurants  were  generally  demanding  payment  in 


684  COMMERCIAL  HANDBOOK  OF  CHINA 

silver  dollars.  Thus  the  silver-dollar  note  is  gradually  replacing  the 
yen  note  in  North  Manchuria. 

CHINESE  EASTERN  RAILWAY 

Before  1914  the  polic}7  of  the  Chinese  Eastern  Railway  was  to 
develop  Vladivostok  both  for  import  and  for  export  trade  and  to 
discourage  local  industry.  There  was  only  a  small  exchange  of 
freight  with  Russia.  However,  the  export  of  local  product,  mostly 
beans,  was  increasing,  and  this  constituted  the  principal  freight 
of  the  railway.  The  result  of  this  policy  was  an  annual  railway 
deficit,  which  the  Russian  Government  made  up.  The  deficit  was 
$2,967,129  (United  States)  in  1913  and  $2,256,458  in  1914.  During 
the  World  War  the  Chinese  Eastern  Railway  became  the  vital  link 
in  the  Trans-Siberian  system,  which  connected  Russia  with  Vladivos¬ 
tok,  its  only  outlet  to  the  sea.  Much  attention  was  paid  to  the  trans¬ 
portation  of  military  freight  and  little  to  local  freight.  There  was  a 
great  increase  of  freight,  especially  war  material.  However,  local 
transportation  also  increased,  as  Harbin,  which  was  the  center  of 
activities,  prospered  and  needed  construction  material,  which  arrived 
as  freight.  In  1916  imports,  principally  from  the  south,  increased, 
while  exports  decreased.  Vladivostok  still  held  its  dominant  posi¬ 
tion,  but  was  not  so  strong  relatively  to  Dairen  as  formerly.  The 
railway  was  not  able  to  give  cars  to  its  local  clients  quickly,  so  cart 
traffic  increased. 

Transit  freight,  which  had  consisted  of  war  and  other  materials, 
ceased  and  export  cargo  increased  in  1919.  The  disturbances  in 
Russia,  the  effects  of  which  were  felt  in  North  Manchuria,  demoral¬ 
ized  the  technical  condition  of  the  railway,  discipline  became  lax, 
and  transportation  diminished  year  by  year,  the  climax  being 
reached  during  the  latter  part  of  1919.  The  Russian  Government 
refused  further  support,  and  the  railway  was  receiving  worthless 
paper  money.  The  unsettled  political  situation  at  Vladivostok 
forced  export  cargo  south.  Export  and  import  cargo  through  Vladi¬ 
vostok  diminished,  while  the  exchange  of  freight  with  the  South 
Manchuria  Railway  at  Changchun  increased.  In  1916  eastbound 
freight  was  double  that  moving  south,  while  in  1919  the  situation 
was  reversed. 

The  railway  carried  export  cargo,  principally  local  products,  over 
80  per  cent  of  which  was  shipped  south,  and  some  import  cargo, 
solely  from  the  south.  Cart  traffic  was  cutting  into  the  railway’s 
business,  and  the  end  of  1920  found  the  railway  in  a  bad  financial 
and  technical  situation. 

In  October,  1920,  the  Peking  Government  and  the  Russo- Asiatic 
Bank  came  to  an  agreement  in  regard  to  the  temporary  management 
of  the  railway,  and  a  new  board  of  directors  was  soon  after  selected. 
A  new  economic  bureau  started  to  study  the  resources  of  the  country 
and  found  that  many  products  were  not  being  transported  by  rail. 

An  agricultural  department  was  formed,  three  agricultural  ex¬ 
perimental  stations  were  opened  to  encourage  agriculture;  breeding 
of  dairy  cattle  was  introduced ;  a  veterinary  inspection  system  was 
installed ;  a  wool-washing  plant  was  erected  at  Hailar ;  lumbering  was 
developed  by  the  building  of  railway  sidings;  and  local  industries, 
such  as  coal  mining  and  the  raising  of  sugar  beets,  were  promoted. 


HARBIN  CONSULAR  DISTRICT 


685 


Commercial  agencies  were  established  in  1921  for  the  purpose  of 
attracting  freight.  Freight  rates  were  reduced  and  cart  traffic  fell 
off  considerably.  In  the  summer  of  1922  a  traffic  agreement  was 
entered  into  with  the  South  Manchuria  Kailway. 

Some  friction  arose  between  the  railway  and  the  local  Chinese 
authorities  in  1923  regarding  the  jurisdiction  over  lands  belonging  to 
the  railway.  An  agreement  was  reached  in  the  fall  of  1924,  and  a 
new  board  and  general  manager  were  appointed.  At  the  beginning 
of  1925,  when  bumper  crops  had  brought  increased  freight  to  the 
railway,  80  per  cent  of  the  export  cargo  was  moving  south  and  20 
per  cent  moving  east. 


KALGAN  CONSULAR  DISTRICT 


By  Vice  Consul  E.  F.  Stanton 

LOCATION  AND  AREA 

The  Kalgan  consular  district  includes  the  whole  of  Inner  and 
Outer  Mongolia ;  the  special  administrative  districts  of  Jehol,  Chahar, 
and  Suiyuan ;  that  portion  of  Chihli  Province  between  the  sections 
of  the  Great  Wall  which  lie  north  and  south  of  Kalgan;  and  also 
the  portion  of  Shansi  which  lies  north  of  the  southernmost  part  of 
the  Great  Wall.  Roughly,  the  district  extends  to  Siberia  on  the 
north  and  to  Manchuria  on  the  east,  lying  between  latitude  40° 
and  52°  N.  and  between  longitude  80°  to  120°  E.  Its  corresponding 
territory  in  North  America  would  extend  from  Oregon  to  Michigan, 
and  would  include  north  and  south,  the  State  of  Nebraska  as  well 
as  the  Canadian  Provinces  of  Alberta,  Sasketche,wan,  and  Ontario. 
The  area  of  the  Kalgan  district  is  thus  about  1,500,000  square  miles. 

Mongolia,  the  main  geographical  division  of  the  district,  con¬ 
sists  almost  entirely  of  an  immense  upland,  geographically  con¬ 
sidered  as  two  separate  regions — northwest  Mongolia  and  the  Gobi. 
Northwest  Mongolia  is  in  general  a  mountainous,  well- watered  re¬ 
gion.  of  which  one  section,  Urunghai,  is  a  forest  country.  Where 
the  forests  fail  there  are  meadows  covered  with  pasture. 

The  Gobi  region  is  divided  for  purposes  of  description  into  Outer 
Mongolia,  Gobi  proper,  and  Inner  Mongolia.  Outer  Mongolia 
comprises  the  country  between  the  Khanghai  Mountains  on  the  west 
and  the  Khingan  Range  on  the  east,  and  runs  from  the  Gobi  proper 
northward  to  the  Siberian  frontier.  Inner  Mongolia  extends  from 
Kansu  to  Manchuria,  and  from  the  Chinese  Provinces  of  Shensi  and 
Chihli  northwestward  to  the  Gobi.  The  Gobi  proper  covers  an  im¬ 
mense  stretch  of  territory,  much  of  which  lies  beyond  the  limits  of 
Mongolia.  It  is  true  desert — a  region  of  gravel,  sand,  and  rock 
split  up  irregularly  by  low,  broad-capped  ranges  and  detached  hills 
much  denuded  and  disintegrated.  The  altitude  varies  from  3,000 
feet  on  the  east  to  5,000  feet  on  the  south  and  west. 

The  Gobi  is  crossed  in  many  directions  by  caravan  routes  between 
China  and  Outer  Mongolia,  Sinkiang,  and  northwest  Mongolia ; 
but  there  appears  to  be  no  part  of  it  which  is  capable  of  permanent 
settlement.  There  are  no  rivers,  and  the  lakes  are  few,  small,  and 
for  the  most  part  brackish.  Water  is  lacking  everywhere,  except 
during  the  short  rainy  season. 

LAKES  AND  RIVERS 

The  principal  river  of  Outer  Mongolia  is  the  Selenga,  which  has 
many  tributaries,  the  chief  being  the  Orkhon.  The  basin  of  the 
Selenga  extends  from  Uliassutai  to  Urga.  Both  the  Selenga  and 

686 


KALGAN  CONSULAR  DISTRICT  687 

Orkhon  flow  northeastward  as  far  as  their  confluence  on  the  Siberian 
frontier,  and  the  Selenga  is  navigable  from  this  point  down  to  Lake 
Baikal,  a  distance  of  some  200  miles,  steamers  plying  during  part 
of  the  year  to  Selenginsk. 

The  valley  of  the  Kerulen  River  forms  a  great  national  highway 
across  Outer  Mongolia.  Along  a  considerable  portion  of  the  lower 
reaches  it  is  unfordable,  and  there  are  no  boats  except  at  the  ferries. 

In  the  trans-Khingan  portion  of  Inner  Mongolia  there  are  few 
rivers  of  an}^  importance,  but  of  the  many  lakes,  Dalai  Nor  is  the 
largest.  It  is  about  40  miles  around  and  lies  at  an  altitude  of  4,200 
feet.  It  is  generally  shallow  and  the  ice  on  the  lake  does  not  thaw 
until  the  end  of  April.  Its  waters  are  clear,  though  impregnated 
with  soda. 

In  southeastern  Mongolia,  streams  are  by  no  means  infrequent, 
and  grass  grows  more  or  less  abundantly ;  but  west  of  the  route  from 
Kalgan  to  Urga  there  is  a  great  dearth  of  water,  owing  to  the  small 
precipitation. 

In  its  curved  course  around  the  Ordos  Plateau  the  Yellow  River 
is  not  subject  to  inundations,  and  flows  between  low,  level  banks 
through  a  populous  and  well-cultivated  valley  20  to  40  miles  broad. 
It  is  unfordable  in  any  part,  is  much  used  by  large  boats,  and  could 
possibly  be  navigated  by  the  right  type  of  river  steamer.  The  rate 
of  the  current  is  nearly  3 y2  miles  an  hour,  and  the  voyage  from 
Paotow  upstream  to  Ningsiafu  usually  takes  20  to  25  days,  whereas 
from  8  to  10  days  is  the  usual  downstream  schedule. 

CLIMATE 

The  difference  in  mean  temperature  between  the  northern  and 
southern  confines  of  the  Kalgan  consular  district  is  marked,  the 
range  amounting  to  as  much  as  35°  F.  in  the  month  of  January,  and 
averaging  19°  F.  throughout  the  year.  From  October  to  April 
Mongolia  is  practically  the  center  of  the  high-pressure  area  prevail¬ 
ing  over  continental  Asia.  By  May  the  high-pressure  area  has 
moved  in  a  northerly  direction,  and  in  June,  July,  and  August  the 
barometer  in  Mongolia  stands  at  its  lowest.  At  Urga  the  mean 
annual  temperature  is  27°  F.  and  the  mean  for  January  is  — 16° 
F.  An  absolute  minimum  of  —45°  F.  has  been  reached  in  January 
and  a  maximum  of  101°  in  June.  The  average  rainfall  at  Urga, 
typical  of  northern  Mongolia  generally,  amounts  to  less  than  8 
inches,  79  per  cent  of  which  occurs  in  summer.  At  Kalgan  the  an¬ 
nual  precipitation  averages  from  10  to  15  inches,  the  average  maxi¬ 
mum  temperature  is  98°  F.  in  July,  and  the  average  minimum  6° 
in  January. 

POPULATION 

The  population  of  Mongolia  is  estimated  at  approximately 
2,500,000,  though  no  census  has  ever  been  taken.  The  population 
is  densest  in  the  north  and  west  along  the  Siberian  frontier,  and 
in  the  regions  lying  close  to  Manchuria  and  China  proper.  The 
average  density  of  the  whole  area,  however,  is  somewhat  less  than 
2  to  the  square  mile.  The  following  table  gives  the  estimated  area 
and  population  for  this  district : 


688 


COMMERCIAL  HANDBOOK  OF  CHINA 


Regions 

Estimated 
area  in 
square 
miles 

Estimated 

population 

Estimated 
population 
per  square 
mile 

Mongolia _ _ _ _ _ _ _ _ _ _ 

1, 370, 000 
60,  000 

2,  500, 000 
7,142,185 
2,  257,  961 

2 

Chihli  Province  north  of  the  Great  Wall..  ...  _ _ _ 

119 

Shansi  Province  north  of  the  Great  Wall .  . . . . 

30,  000 

75 

Total  for  district _ _ _ _ _ 

1,  460, 000 

11,900, 146 

8 

CITIES 

Kalgan ,  by  virtue  of  its  geographic  position  and  its  rail  con¬ 
nections,  is  the  gateway  to  the  vast  territory  of  Mongolia  and  the 
regions  of  Kansu  and  Sinkiang.  Fully  80  per  cent  of  the  furs, 
hides,  skins,  and  other  raw  products  of  Mongolia  pass  through 
Kalgan  on  their  way  to  China  and  abroad. 

Urga ,  the  capital  of  Mongolia,  is  approximately  700  miles  north 
of  Kalgan.  It  may  be  said  that  practically  the  whole  of  Mongolia 
is  commercially  tributary  to  this  city.  From  Urga  radiate  caravan 
routes  to  Kiakhta  on  the  north,  to  Uliassutai  and  Kobdo  in  the  far 
west,  and  to  Kalgan  in  the  south. 

Kweihwating ,  a  city  of  commercial  importance,  is  now  connected 
by  rail  with  Paotow  on  the  Yellow  River.  The  cities  of  Urga  and 
Ivweihwating,  which  might  be  termed  subsidiary  commercial  centers 
of  trade,  are  linked  up  with  Kalgan — by  rail  in  the  case  of  Kweihwat- 
ing,  and  by  motor  transport  or  camel  and  ox  caravans  in  the  case 
of  Urga. 

The  cities  of  Kalgan,  Dolonnor,  and  Chilifeng  were  opened  to 
foreign  trade  by  presidential  mandate  on  January  8,  1914.  None 
of  these  cities  contain  either  foreign  concessions  or  special  com¬ 
mercial  areas,  but  foreigners  may  lease  land  in  them  for  periods 
varying  from  80  to  50  years.  The  Chinese  authorities  have  in  con¬ 
templation  the  setting  aside  of  a  special  area  for  foreigners  in  Kal¬ 
gan,  but  as  these  plans  involve  certain  municipal  improvements, 
the  construction  of  good  roads,  and  effective  measures  to  prevent  the 
recurrence  of  floods,  the  lack  of  funds  has  thus  far  prevented  the 
plans  from  being  carried  out.  In  Kalgan  there  are  consular  repre¬ 
sentatives  of  the  United  States,  Japan,  and  Russia.  Russia  also 
maintains  a  consular  representative  in  Urga  and  is  understood  to  be 
contemplating  similar  appointments  to  other  points  in  Mongolia. 

The  following  table  summarizes  the  more  salient  facts  relating 
to  important  cities  in  this  district : 


Cities 

Esti¬ 

mated 

popula¬ 

tion 

Euro¬ 

peans 

Ameri¬ 

cans 

Ameri¬ 
can  firms 

Kalgan . . . . _ . 

75, 000 
50, 000 
65,000 
60,000 
35,000 
80,000 
40,000 

125 

15 

8 

Tatungfu  _ _ 

7 

1 

Kweihwating  . . . . . . . . 

8 

2 

Urga _  _ 

2,000 

0) 

0) 

0) 

3 

Chaoyangfu _ _ 

Chengtehfu _ _ _ _ _ 

Chihfeng..  _ ! _ 

1  Not  known. 


KALGAN  CONSULAR  DISTRICT 


689 


AGRICULTURE 

Of,  the  1,500,000  square  miles  comprising  the  Kalgan  district,  only 
a  small  fraction  is  devoted  to  agriculture.  Except  for  small,  isolated 
areas  in  Mongolia,  little  of  the  land  has  agricultural  possibilities. 
This  is  doubtless  due  in  part  to  the  scanty  rainfall  (about  8  inches) 
and  the  long,  extremely  rigorous  winters. 

The  agricultural  methods  and  tools  employed  are  primitive,  and 
the  rotation  of  crops  is  apparently  unknown.  In  Chahar,  Suiyuan, 
and  Jehol  the  principal  crops  are  wheat,  beans,  and  linseed.  Kaoli¬ 
ang  and  millet  are  also  raised  for  local  consumption,  the  stalks  being 
used  as  fodder.  Though  the  amount  of  wheat  produced  is  consider¬ 
able,  there  are  but  few  flour  mills  in  the  district  and  there  is  in  con¬ 
sequence  a  fairly  heavy  importation  of  flour,  largely  from  the  United 
States.  Soy  beans  comprise  the  bulk  of  the  bean  crop,  the  greater 
part  of  which  is  shipped  to  Tientsin  for  export.  Chahar  produces 
annually  over  2,500,000  bushels  of  linseed  out  of  a  total  for  the 
district  of  approximately  5,000,000  bushels.  More  than  80  per  cent 
of  this  crop  is  exported. 

The  table  below  summarizes  data  relative  to  the  more  important 
crops  raised  in  the  district : 


Products 

Planting  season 

Harvesting  season 

Esti¬ 
mated 
produc¬ 
tion  per 

acre 

Estimated 
annual  pro¬ 
duction 

Percent¬ 
age  con¬ 
sumed 
locally 

Wheat . . 

Apnl-May . . 

August-September _ 

_ do _ _ 

Bushels 

15 

Bushels 

36, 608,  783 
10, 459, 652 
5,  229,  826 

50 

Beans . . 

. do. . 

12 

30 

Linseed _ _ _ 

. do . . 

. do . 

15 

20 

LIVESTOCK 

The  Mongols  are  a  pastoral  people,  both  by  necessity  and  instinct, 
and  have  been  so  for  hundreds  of  years.  Their  wealth  is  measured 
in  terms  of  horses,  cattle,  and  sheep.  No  systematic  attempt  to 
secure  statistics  of  Mongolia’s  wealth  in  livestock  has  ever  been  at¬ 
tempted;  but  the  estimate  below  may  be  considered  a  fair  approxi¬ 
mation  : 


Horses -  1,  840,  000 

Camels _  365,  000 

Horned  cattle _  1,  725,  000 

Sheep  and  goats _  11,  500,  000 


Total _  15,430,000 


HORSES 

Horses  comprise  one  of  the  chief  forms  of  Mongolia’s  natural 
wealth.  The  Mongolian  horse  is  generally  bay  or  bay-brown  in 
color,  stands  from  50  to  59  inches  in  height,  has  a  big,  often  hook¬ 
nosed  head,  a  short  neck,  a  well-developed  chest,  and  strong  legs 
and  back.  Rigorous  climatic  conditions  have  brought  about  the 

100020°— 26 - 45 


690 


COMMERCIAL  HANDBOOK  OF  CHINA 


survival  of  the  fittest  and  produced  a  strong  and  enduring,  if  un¬ 
pretentious,  breed  of  horses  that  are  regarded  as  almost  indefatig¬ 
able.  The  price  of  an  average  Mongolian  horse  varies  from  $20  to 
$40  (Mex.).  Better  animals  bring  up  to  $60,  while  particularly 
mettlesome  amblers  or  race  horses  will  bring  from  $500  to  $1,000. 
While  the  Mongol  has  been  generally  averse  to  parting  with  his 
horses,  increasingly  high  prices  have  overcome  this  attitude  and  in 
the  past  few  years  an  average  of  70,000  horses  have  been  exported 
annually  to  China.  The  majority  are  used  for  agriculture  and 
general  transportation  purposes,  but  probably  several  thousand  are 
purchased  each  year  for  racing  and  riding. 

It  is  doubtful  whether  the  Mongolian  horse  could  be  exported  ad¬ 
vantageously  to  foreign  countries,  but  the  establishment  of  breeding 
farms  with  good  European  sires  would,  it  is  believed,  result  in  the 
development  of  a  new  type  which  would  find  a  ready  market  in 
foreign  countries. 

CAMELS 

Mongolian  camels  are  estimated  at  approximately  365,000  head. 
Estimating  each  camel  to  yield  an  average  of  about  6  pounds  of  wool, 
the  yearly  output  available  would  approximate  2,200,000  pounds. 
Of  this  amount  the  local  population  uses  approximately  400,000 
pounds,  leaving  an  exportable  balance  of  1,800,000  pounds. 

The  actual  export  of  camel  wool  from  this  district  for  1923 
amounted  to  just  short  of  2,000,000  pounds,  over  90  per  cent  of 
which  originated  in  Mongolia. 


CATTLE 

\ 

« 

The  number  of  horned  cattle  in  Mongolia  has  been  estimated  at 
1,725,000  head.  The  yearly  increase  approximates  572,000  head,  the 
yearly  loss  375,000  head,  leaving  an  approximate  net  yearly  increase 
of  175,000  head.  It  will  be  noted  that  the  yearly  loss  is  extremely 
heavy.  The  Mongols  make  no  attempt  to  protect  their  livestock 
from  the  rigors  of  climate,  but  herd  them  on  the  steppes  the  year 
round.  In  summer  they  pasture  the  animals  in  localities  having 
water,  and  in  winter  they  choose  places  having  comparatively  little 
snow,  to  enable  the  cattle  to  get  at  the  grass  underneath.  Every 
year  a  greater  part  of  the  newborn  perish,  while  the  older  cattle 
which  survive  diminish  in  weight  from  20  to  25  per  cent.  Thus 
neglected,  the  cattle  are  subject  to  many  diseases,  the  commonest  of 
which  are  rinderpest  and  epidemic  pneumonia.  Anthrax  occurs, 
but  not  to  a  ravaging  extent.  In  1910  Russian  veterinarians  first 
made  inoculations  against  rinderpest,  and  in  the  following  years 
special  expeditions  for  the  purpose  were  sent  from  Chita,  in  Siberia. 
The  Mongols  had  thousands  of  their  cattle  inoculated,  but  political 
disturbances  have  interfered  with  this  work  in  recent  years. 

Before  and  during  the  war,  Russia  was  the  chief  buyer  of  Mon¬ 
golian  cattle.  In  1916  Russia  bought  and  exported  175,000  head, 
in  1917,  100,000  head.  What  percentage  of  this  amount  went  to 
China  is  not  known,  but  over  a  period  of  several  years  the  entire 
increase  of  Mongolian  cattle  was  consumed  abroad.  There  were 
years  when,  in  order  to  satisfy  the  demand  of  the  Russian  and 
Chinese  markets,  even  the  reserve  stock  was  used. 


KALGAN  CONSULAR  DISTRICT 


691 


The  number  of  hides  available  yearly  for  export  is  estimated  as 
in  the  neighborhood  of  84,000.  Hides  are  exported  mainly  via 
Kalgan  and  Tientsin,  a  small  quantity  going  to  Japan  through 
Dairen.  Compared  with  pre-war  exports,  present  exports  show  a 
considerable  decrease.  Germany,  which  formerly  was  one  of  the 
chief  buyers,  has  again  entered  the  market.  Lately  America  and 
Europe  have  also  increased  their  purchases,  and  exports  to  Japan 
likewise  show  an  increase.  The  establishment  of  leather  factories 
in  Manchuria  and  in  the  Province  of  Chihli  has  resulted  in  bright¬ 
ening  the  Mongolian  market. 

SHEEP 

It  is  estimated  that  about  800,000  head  of  sheep  are  available 
annually  for  export.  Mongolian  mutton,  which  was  formerly  ex¬ 
ported  almost  exclusively  to  Russia,  has  in  more  recent  years  ap¬ 
peared  in  European  markets.  In  1918  a  British  company,  appre¬ 
ciating  the  high  quality  of  Mongolian  mutton,  began  the  export 
of  sheep  carcasses  to  London.  This  firm  has  established  a  slaugh¬ 
terhouse  at  Harbin  and  is  building  one  at  Hailar. 

The  establishment  at  Kalgan  of  refrigerating  plants  and  slaugh¬ 
terhouses  of  modern  type,  and  the  adaptation  of  railway  cars  for 
the  transportation  of  meat  to  Tientsin  and  Shanghai  would,  it  is 
believed,  prove  a  profitable  undertaking.  Great  numbers  of  sheep 
can  be  easily  drawn  from  Mongolia  and  western  China  to  Kalgan. 

It  is  estimated  that  15,960,000  pounds  of  wool,  500,000  sheep  and 
goatskins  and  700,000  lambskins  are  available  annually  for  export 
from  the  Mongolian  market.  The  Mongolian  Central  Cooperative 
Society,  a  commercial  organization  of  the  Mongolian  government, 
has  been  granted  a  monopoly  of  the  export  of  intestines.  In  1921 
approximately  60,000  pounds  of  salted  and  10,000  pounds  of  dry 
intestines  were  exported  from  Mongolia. 

MINERALS  AND  MINING 

The  variety  of  deposits  found  in  the  consular  district,  such  as 
coal,  iron,  gold,  silver,  copper,  lead,  asbestos,  and  graphite,  indicates 
that  Mongolia  and  those  sections  of  Chihli  and  Shansi  which  lie 
wdthin  this  district  are  potentially  rich  in  minerals.  The  funda¬ 
mental  element  required  for  the  development  of  these  resources  is 
adequate  transportation.  Mongolia  is  devoid  of  railways,  and  until 
Urga,  the  capital,  is  connected  by  rail  with  the  Peking-Suiyuan 
line,  or  a  trunk  line  is  constructed  into  Mongolia,  exploitation  of 
the  minerals  of  Mongolia  on  a  large  scale  is  hardly  possible. 

COAL 

The  Geological  Survey  of  China  has  made  extensive  studies  of 
the  mineral  resources  of  northern  Shansi  and  northwestern  Chihli. 
The  data  given  have  been  obtained  from  the  society’s  publications. 

North  Shansi. — The  Tatungfu  coal  field  in  northern  Shansi  ex¬ 
tends  southwest  of  the  city  of  Tatungfu  for  approximately  66 
miles.  Surveys  have  not  extended  beyond  this  point,  but  it  is  known 
that  the  coal  formation  reappears  some  30  miles  farther  south.  The 
width  of  the  formation,  running  southwest  from  Tatungfu,  is  about 
33  miles.  There  are  two  distinct  coal  series  in  the  formation.  The 


692 


COMMERCIAL  HANDBOOK  OF  CHINA 


lower  series,  Ferro-Carboniferous  in  age,  contains  three  coal  seams 
which  are  5  to  8  feet  thick  in  places,  but  which  are  reduced  to 
shale  in  others. 

It  has  been  estimated  that  approximately  354,000,000  tons  have 
been  extracted  by  old  native  mining  operations  and  that  there  re¬ 
mains  a  reserve  of  approximately  1,000,000,000  tons. 

Suiyuan. — As  far  as  is  known  the  coal  deposits  in  the  district  of 
Suiyuan  are  located  in  the  Ta  Ching  Shan  Mountains  north  of  the 
city  of  Kweihwating  and  north  of  Saratsi,  some  60  miles  west  of 
Kweihwating.  Bulletins  of  the  Geological  Survey  of  China  in¬ 
dicate  that  the  coal  in  the  Kweihwating  region  is  anthracite,  with 
the  reserve  approximating  100,000,000  tons,  while  the  coal  of  the 
Saratsi  area  is  bituminous,  with  estimated  reserves  amounting  to 
300,000,000  tons. 

Chahar. — This  district  is  not  known  to  contain  any  large  deposits 
of  coal,  but  from  a  list  of  mines  supplied  by  the  Chahar  Bureau 
of  Industries,  it  appears  that  three  “  hsien  ”  (districts)  to  the  north¬ 
east  and  northwest  of  Kalgan  contain  deposits  with,  according  to 
Geological  Survey  estimates,  10,000,000  tons  of  bituminous  coal. 

Jehol. — Fields  of  this  district  are  located  in  the  vicinity  of  Chih- 
feng  and  Chaoyang.  The  anthracite  reserves  have  been  estimated 
at  80,000,000  tons,  and  the  bituminous  at  850,000,000  tons.  The 
coal-mining  area  conceded  to  various  Chinese  companies  in  this 
district  by  the  Deparmtent  of  Mines  up  to  1921  amounted  to  ap¬ 
proximately  76  square  miles,  an  area  exceeded  by  but  few  Provinces 
in  China. 

Mongolia. — Information  relative  to  the  coal  resources  of  Mongolia 
is  extremely  meager.  Coal  fields  which  have  so  far  been  discovered 
lie  generally  to  the  west  and  the  east  of  Urga.  The  district  of 
Tushetu  Khan,  approximately  100  miles  west  of  Urga,  contains 
three  known  coal  beds,  and  it  is  reported  that  three  more  have  been 
discovered.  Another  coal  field  is  reported  in  the  district  of  Sain 
Nain  Khan,  approximately  350  miles  southwest  of  Urga.  The 
Ivobdo  district  also  contains  a  coal  field,  while  the  district  of  Tzagatu 
Khan,  some  300  miles  east  of  the  city  of  Kobdo,  is  said  to  contain 
two  coal  fields.  Both  bituminous  and  anthracite  are  said  to  exist 
in  these  fields. 

IRON 

Iron-ore  deposits  in  the  district  are  reputed  to  be  as  great  as 
those  of  coal.  From  the  data  obtainable  it  appears  that  the  portion 
of  Chihli  Province  which  lies  within  this  district  contains  one  of 
the  largest  iron-ore  fields  in  China. 

The  iron-ore  resources  of  Mongolia  are  reported  to  be  enormous. 
It  is  noteworthy  that  in  the  majority  of  instances  iron  ore  and  coal 
have  been  found  in  the  same  localities.  This  condition  might  prove 
a  factor  of  importance  in  the  development  of  industrial  life  in 
Mongolia.  Two  iron  deposits  have  been  reported  in  the  Tushetu 
district  west  of  Urga,  and  a  third  in  Tsetsen  Khan,  some  150  miles 
east  of  Urga.  A  fourth  is  said  to  be  located  in  Sain  Nain  Khan, 
and  a  fifth  near  the  Songuin  River  in  the  Kobdo  district. 

In  the  Hsuanhuafu  section  of  Chihli,  the  Lungkuan  district, 
northwest  of  the  Peking- Suiyuan  Railroad,  is  particularly  rich  in 
iron  ore.  The  geological  survey  places  the  ore  reserves  of  this  dis- 


KALGAN  CONSULAR  DISTRICT 


693 


trict  at  49,200,000  tons  and  the  iron  content  at  26,000,000  tons.  The 
reserves  of  the  Hsuanhuafu  district  proper  are  given  as  20,000,000 
tons,  containing  9,600,000  tons  of  iron,  while  the  H'uailai  district, 
45  miles  southwest  of  Hsuanhuafu,  contains  4,000,000  tons  of  ore 
with  iron  content  of  2,400,000  tons. 

The  only  known  iron-ore  deposit  in  the  district  of  Jehol  is  in 
Chaoyang,  figures  for  which  are  300,000  tons  of  ore  containing 
150,000  tons  of  iron. 

GOLD 

The  principal  gold  deposits  of  Mongolia  are  found  on  the  Kudara, 
Kuitun,  and  Iro  Rivers.  The  Russians  were  apparently  the  first  to 
realize  the  possibilities  of  gold  mining  in  Mongolia,  and  surveys 
of  various  sections  of  the  country  resulted  in  the  securing  of  con¬ 
cessions  and  the  active  exploitation  of  Mongolia’s  gold  resources. 
The  principal  deposits  in  the  territory  so  far  surveyed  are  easily 
accessible  through  Urga  on  the  south,  or  from  Verkhni-Udinsk  on 
the  Trans-Siberian  Railway,  and  from  Kiakhta  on  the  north.  Lack 
of  railroad  facilities,  however,  will  continue  to  act  as  a  deterrent  in 
the  exploits  of  these  deposits. 

The  most  important  section  of  the  gold  area  referred  to  is  the 
Iro  River  district.  One  placer  deposit  in  particular,  about  1  y2  miles 
long,  with  a  width  of  gravel  of  70  to  210  feet  and  an  average  depth 
of  10 y2  feet,  is  reported  to  have  yielded  as  much  as  $35  gold  per 
cubic  yard. 

COPPER 

Copper  also  has  been  found  in  different  parts  of  Mongolia,  five 
deposits  having  been  so  far  investigated  and  surveyed.  The  largest 
deposit  in  point  of  area  and  reserves  is  located  in  Sain  Nain  Khan, 
where  the  seam  is  reported  to  stretch  over  a  distance  of  35  kilo¬ 
meters  and  where  pieces  of  native  ore  weighing  up  to  36  pounds 
have  been  frequently  found.  While  detailed  information  is  not 
obtainable,  the  surveys  by  Russian  engineers  have  left  little  doubt 
that  Mongolia  is  sufficiently  rich  in  copper  to  repay  exploitation 
on  a  large  scale — ever  having  due  regard  for  the  transportation 
problem. 

OTHER  MINERALS 

Other  important  metals  known  to  exist  in  considerable  quantity 
in  this  consular  district  are  silver,  lead,  zinc,  graphite,  and  asbestos. 
It  has  been  stated  that  graphite  of  excellent  quality  exists  in  large 
quantities  in  Mongolia,  and  that  two  graphite  mountains  are  located 
on  the  Kos  Gol.  The  figures  below  summarize  the  approximate  an¬ 
nual  production  of  the  four  leading  minerals  found  in  the  consular 
district : 


Minerals  and  metals 

Approxi¬ 

mate 

annual 

produc¬ 

tion 

Approximate 

reserves 

Iron . do _ 

Gold . ..ounces.. 

Silver. . do _ 

203, 000 
0) 

50, 000 
17, 000 

2, 400, 000, 000 
38,  750, 000 
(0 

0) 

1  Not  known. 


694 


COMMERCIAL  HANDBOOK  OF  CHINA 


MINES 

COAL 

Chimingshan  Colliery. — Near  Hsiahuayuan  station  on  the  Peking- Suiyuan 
railway,  137  miles  from  Peking.  Head  office :  Peking-Suiyuan  Administration, 
Peking.  Capital:  $775,934  (Mex.)  of  which  $351,102  was  paid  by  the  Ministry 
of  Communications  and  the  rest  by  the  Peking-Suiyuan  Railroad.  Under  the 
administration  of  the  Peking-Suiyan  Railway.  Mining  area :  36.44  square  li. 

Peipaio  Coal  Mining  Co.  (Ltd.). — Head  offie :  38  Via  Marco  Polo,  Italian 
Concession,  Tietsin.  Location  of  mines :  Peipiao,  Chaoyang,  Jehol  district. 
Established  in  1921 ;  the  railway  company  inaugurated  mining  operations  in 
1918.  Capital :  $5,000,000  ( Mex. ) ,  two-fifths  subscribed  by  the  Peking-Mukden 
Railway  and  three-fifths  by  merchants.  It  is  planned  to  produce  2,000  tons 
per  day  of  bituminous  coal  in  two  years’  time. 

The  Peipaio  product  is  good  steam  coal,  suitable  for  locomotives  and  marine 
boilers,  and  has  the  reputation  of  being  the  best  coal  along  the  Peking-Mukden 
Railway. 

Tung  Pao  Mining  Co.  (Ltd.). — Office:  Tatungfu,  Shansi.  Location:  Pai 
Chia  Wan,  Kowchuan,  North  Shansi.  Established  in  May,  1921 ;  registered 
August,  1921.  Capital :  $3,000,000  ( Mex. )  subscribed  by  Shansi  merchants  in 
cooperation  with  Cantonese  merchants. 

The  mines  produce  two  kinds  of  coal — the  navy  or  smokeless  coal  on  top, 
and  first-class  steam  coal  for  locomotives  and  steamers  at  the  bottom  of  the 
coal-bearing  series.  The  company  put  down  10  shafts  and  for  a  while  had  as 
many  as  3,000  employees. 

Pao  Feng  Coal  Mining  Co.  (Ltd.). — Location:  Tatung,  Shansi.  Established 
February,  1913;  registered  July,  1913.  Capital:  $600,000  (Mex.). 

IRON 

Lungyen  Mining  Administration. — Head  office:  Huang  Shou  Yi  Hutung, 
Peking.  Established  in  March,  1919 ;  registered  December,  1919.  Capital . 
$5,000,000  (Mex.),  one  half  subscribed  by  the  Chinese  Government  and  the 
other  half  by  Chinese  capitalists. 


SILVER 

Jehol  Silver  Mines. — Location:  45  miles  northeast  of  Chengteh,  Jehol.  The 
mines  have  been  worked  by  the  natives  for  about  75  years.  Estimated  possible 
annual  output,  75,000  ounces.  The  Jehol  Mines  embrace  two  workings  5  miles 
apart — the  Ku  Shan  Tze  mine  and  the  Yen  Tung  Shan  mine.  Output  for  1916, 
17,000  ounces. 

MANUFACTURING 

This  consular  district  is  of  little  importance  industrially,  but  de¬ 
velopment  will  follow  the  construction  of  adequate  railroad  facilities. 
The  potential  mineral  wealth  of  the  district  affords  almost  unlimited 
possibilities  for  industrial  expansion. 

The  following  is  a  summary  of  data  relative  to  industries  in  the 
Kalgan  district : 


Industries 

Capacity 

Approxi¬ 
mate 
number 
of  em¬ 
ployees 

Mint  . 

500,000  coins  per 

500 

day. 

Flour  mills . 

2,500  bags  per  day. 

100 

Dairy  farming . 

50 

Soda  refineries. . . 

90 

Leather . .  ...  . . . 

28 

Motor-car  bodies _ 

60 

Approxi¬ 
mate 
capital 1 

Estimated  output 

Disposition 

$375,  000 

350,000  coins  per 
day. 

Chahar. 

410,000 

50,000  bags  per  an¬ 
num. 

Local  and  Peking. 

100,000 

Peking  and  Tien¬ 
tsin. 

60,000 

1,450,000  pounds 

Local  and  Tien- 

per  annum. 

tsin. 

20,000 

10,670  pieces  per 
annum. 

Local. 

20,000 

35  bodies  per  an¬ 
num. 

Do. 

1  All  given  in  terms  of  Mexican  currency  excepting  the  first  item,  which  is  United  States  dollars. 


KALGAN  CONSULAR  DISTRICT 


695 


The  local  construction  of  motor-car  bodies  is  an  industry  of  con¬ 
siderable  interest.  The  industry  has  sprung  up  as  the  result  of  the 
introduction  of  automobiles  on  the  Kalgan  to  Ufga  route,  and  while 
still  conducted  on  a  small  scale,  is  indicative  of  the  possibility  of 
developing  new  industries  in  this  district.  There  is  a  growing  de¬ 
mand  for  bodies  produced  locally,  now  that  their  durability  and 
soundness  of  construction  has  been  demonstrated.  Transportation 
companies  frequently  purchase  only  the  chassis  and  have  a  body 
made  to  order  locally.  These  bodies  cost  $125  (Mex.)  and  repre¬ 
sent  a  saving  of  $200  to  $250  (Mex.)  on  the  price  of  a  car  delivered 
in  Kalgan  complete  with  body. 

LABOR  CONDITIONS 

Industrialism  has  barely  made  its  appearance  in  the  Kalgan  dis¬ 
trict  and  there  is,  therefore,  very  little  of  what  might  be  termed 
organized  or  regulated  labor.  It  is  only  in  such  lines  of  industry 
as  mints,  flour  mills,  electric-light  plants,  telephone  companies,  and 
railroad  workshops,  that  wages  and  working  hours  have  been  at  all 
systematized. 

With  the  exception  of  a  union  of  the  employees  of  the  Peking- 
Suiyuan  Railroad,  there  are  no  organized  labor  unions  or  societies. 
This  union  is  affiliated  with  the  Union  of  Railway  Laborers  and 
was  organized  in  connection  with  a  strike  which  occurred  on  the 
Peking-Suiyuan  line  on  October  27,  1922. 

TRANSPORTATION  AND  COMMUNICATION 

With  the  exception  of  the  Yellow  River,  the  Kalgan  district  has 
no  great  natural  water  thoroughfares  such  as  are  found  in  central 
and  southern  China.  The  existing  alternative,  as  represented  by 
caravan  routes  winding  across  the  desert  and  mountain,  while  pic¬ 
turesque,  is  obviously  and  increasingly  inadequate  to  meet  the  grow¬ 
ing  industrial  activities.  The  most  imperative  need  of  this  region 
is  the  construction  of  additional  railway  lines  to  connect  with  the 
approximately  500  miles  of  railroad  which  now  serve  this  vast  terri¬ 
tory.  The  construction  of  a  main  railway  line  along  the  present 
Kalgan-Urga-Kiakhta  caravan  route  is  of  the  utmost  necessity  to 
the  economic  development  of  this  region.  The  Kalgan  consular  dis¬ 
trict  undoubtedly  presents  interesting  possibilities,  particularly  by 
virtue  of  its  mineral  and  livestock  wealth.  Facilities  for  transporta¬ 
tion  are,  however,  indispensable  to  the  inauguration  of  commercial 
and  industrial  prosperity. 

WATERWAYS 

The  only  navigable  waterway  is  that  section  of  the  Yellow  River 
between  Paotow  and  Ningsiafu,  a  distance  of  approximately  500 
miles.  Sailing  boats  and  rafts  constructed  of  some  20  or  30  goatskin 
bladders,  with  a  wooden  superstructure  are  used.  Attempts  were 
made  some  years  ago  to  use  steam  launches,  but  without  success. 
However,  it  is  believed  that  with  properly  constructed  shallow-draft 
launches  profitable  transportation  could  be  developed.  The  rafts 
and  boats  now  plying  the  river  carry  from  15  to  20  tons,  the  rates 
varying  from  gold  $20  to  $25  per  ton  for  the  voyage.  The  down- 


696 


COMMERCIAL  HANDBOOK  OF  CHINA 


stream  run  from  Ningsia  to  Paotow  occupies  from  8  to  10  days  and 
the  return  trip  10  to  20  days.  No  figures  relative  to  the  yearly 
volume  and  value  of  goods  transported  along  its  railway  are  avail¬ 
able,  but  it  is  estimated  that  Kansu  and  Sinkiang  export  yearly 
114,000,000  pounds  of  sheep  and  camel  wool,  6,000,000  pounds  of 
horsehair,  1,500,000  skins,  and  furs  to  the  value  of  $10,000,000 
(United  States  currency).  The  annual  imports  are  said  to  include 
500,000  chests  of  tea,  500,000  pounds  of  sugar,  and  manufactured 
goods  (hardware,  machinery,  cigarettes,  cotton  cloth,  and  miscella¬ 
neous  articles)  to  the  value  of  $2,000,000  (United  States). 

These  figures  are  not  given  as  actual  values  of  the  annual  imports 
and  exports,  but  merely  indicate  the  commercial  possibilities  of  the 
region  and  the  importance  of  the  river  as  a  means  of  transportation. 
The  following  table  summarizes  methods  of  transportation  in  the 
district : 


Mediums 

Average  load 

Average 
mileage 
per  day 

Average 
cost 
(U.  S. 
currency) 
per  ton- 
mile  1 

Railways  _ _ 

400  tons . . 

175 

$0.05 

.40 

Automobiles _ _ 

2,000  pounds _ _ 

140 

Camels _ _ _ 

260  pounds . . . . 

20 

.10 

Boats . . . . . . . 

35,000  pounds. .  . . 

30 

.05 

i  It  should  be  noted  that  the  figures  5  cents  per  ton-mile  on  the  railway  represents  the  average  on  second 
class  freight.  Cereals  by  the  Peking-Suiyuan  Railway  are  carried  at  the  rate  of  $0.03  a  ton-mile. 


RAILWAYS 

In  1905  construction  work  Tvas  started  on  the  Peking-Suiyuan 
Railway,  the  only  system  of  rail  communication  in  the  district.  It 
was  constructed  with  the  surplus  earnings  of  the  Peking-Mukden 
Railway  and  the  cost  was  approximately  $42,000,000.  It  is  one  of  the 
few  lines  in  China  built  entirely  with  Chinese  capital  and  by  Chinese 
engineers.  The  Peking-Ivalgan  section  of  the  line  was  open  to  traffic 
in  1909.  Through  passenger  and  freight  traffic  between  Peking  and 
Suiyuan  was  inaugurated  in  1915,  and  in  1923  the  extension  to 
Paotowchen  was  completed.  The  main  line  is  468  miles  in  length.  A 
branch  to  Mentowkow,  16y2  miles  in  length,  connects  Peking  with 
this  important  mining  district,  and  another  small  branch  runs  from 
Tatungfu  to  the  coal  mines  at  Kowcliuan.  The  Peking-Suiyuan 
Railway  runs  from  Fengtai  to  Suiyuan  via  Peking,  connecting  with 
the  Peking-Mukden  and  Peking-Hankow  systems  at  Fengtai.  It 
forms  the  natural  highway  over  which  millions  of  dollars’  worth  of 
wool,  tea,  hemp,  grain,  and  coal  are  annually  transported  to  Tientsin 
in  the  east,  Kansu  and  Sinkiang  in  the  west,  and  Mongolia  in  the 
north. 

There  are  no  railways  now  under  construction  in  the  district, 
but  several  have  been  projected.  In  addition  to  extending  the 
existing  line  from  Paotow  to  Ningsiafu  in  the  Province  of  Kansu, 
a  main  trunk  line  has  been  projected  from  Kalgan  to  Urga  and 
thence  to  Kaikhta,  a  total  distance  of  approximately  900  miles. 
Other  projected  lines  in  this  district  are  the  44  Chihli  Extra-Mural  ” 


KALGAN  CONSULAR  DISTRICT 


697 


railways:  Peking  to  Jehol,  130  miles;  Jehol  to  Chihfeng,  140  miles; 
Chinchow  to  Chihfeng,  190  miles;  Kalgan  to  Dolonnor,  190  miles; 
Dolonnor  to  Chihfeng,  130  miles;  Chihfeng  to  Taonanfu,  330  miles. 
The  total  approximate  length  of  these  lines  will  be  1,110  miles. 

It  is  proposed  to  construct  these  lines  from  the  surplus  earnings  of 
the  Peking-Mukden  and  Peking-Hankow  lines.  It  is  more  than 
probable,  should  their  construction  actually  be  undertaken,  that 
foreign  capital  will  have  to  be  employed. 

ROADS 

With  the  exception  of  one  automobile  road  between  Kweihwating 
and  Paotow,  a  distance  of  approximately  120  miles,  constructed 
by  the  Governor  of  Suiyuan,  there  are  no  roads  in  this  district  which 
have  been  actually  constructed  for  automobile  use.  However,  it 
should  be  noted  that  the  country  through  which  the  main  caravan 
routes  to  Mongolia  run  is  well  adapted  to  automobile  traffic.  The 
land  is  characterized  by  a  series  of  gently  rolling  steppes  with  long 
stretches  of  almost  perfectly  level  ground. 

There  are  three  main  trade  routes  in  the  district,  over  all  of 
which  it  is  possible  to  use  automobiles.  The  most  important  one  con¬ 
nects  Kalgan  with  Urga,  a  distance  of  approximately  750  miles. 
From  Urga  the  route  runs  north  to  Kiakhta  on  the  Siberian  border, 
a  distance  of  approximately  200  miles.  This  route  is  practicable  for 
automobile  traffic  over  its  entire  length.  The  Kalgan-Urga  section 
sprang  into  prominence  some  three  years  ago  with  the  successful 
introduction  of  automobiles  on  this  stretch,  and  the  increasing  de¬ 
mand  for  cars  on  this  run  during  the  last  two  years  has  been  remark¬ 
able.  At  present  there  are  200  cars  operating  between  Kalgan  and 
Urga,  approximately  75  per  cent  of  which  number  represents  cars 
engaged  in  a  general  passenger  and  transportation  business,  while 
the  remainder  consists  of  cars  owned  by  various  foreign  firms  and 
operated  in  connection  with  the  conduct  of  their  business  in  Mon¬ 
golia. 

The  second  main  route,  the  Kobdo-Uliassutai-Urga-Manchuoli 
caravan  route,  the  total  length  of  which  is  approximately  1,450  miles, 
practically  crosses  Mongolia  from  east  to  west.  This  is  one  of  the 
most  important  trade  arteries  of  Mongolia  and  connects  the  im¬ 
portant  administrative  and  economic  centers  of  the  country.  The 
road  is  fairly  well  adapted  to  automobile  traffic  and  is  used  by  cars 
to  some  extent.  The  utility  of  the  route  is  restricted,  however,  by 
the  fact  that  there  are  no  intermediate  supply  and  repair  stations 
between  the  cities  mentioned.  In  consequence  it  is  essential  for  a 
car  undertaking  any  section  of  this  trip  to  load  up  with  considerable 
supplies  of  oil,  gasoline,  and  other  necessaries.  This  dead  weight 
naturally  reduces  the  amount  of  cargo  and  therefore  renders  the 
operation  of  cars  somewhat  unprofitable. 

The  third  route,  the  Lanchowfu-Ningsiafu-Paotow  road,  links  up 
Kansu  and  Sinkiang  with  Paotow  on  the  Peking-Suiyuan  Railroad, 
and  is  approximately  650  miles  in  length.  The  road  between  Lan- 
chowfu  and  Ningsiafu  passes  through  somewhat  mountainous 
country  and  is  not  suitable  for  automobile  traffic.  From  Ningsiafu, 
however,  the  road  is  fairly  well  adapted  to  motor  traffic. 


698 


COMMERCIAL  HANDBOOK  OF  CHINA 


Of  the  shorter  but  fairly  important  roads,  mention  should  be 
made  of  the  road  approximately  88  miles  in  length  connecting  Kal- 
gan  with  Dolonnor  or  Lama  Miao.  From  15  to  20  cars  operate  on 
this  route  at  the  present  time. 

TAXES 

Certain  taxes  are  levied  to  maintain  some  of  the  roads  mentioned. 
The  authorities  of  Chahar  impose  a  tax  of  $25  on  private  cars,  or 
cars  not  engaged  in  a  general  passenger  and  transportation  business 
(in  which  category  all  foreign-owned  cars  are  included),  and  a  tax 
of  $50  on  all  Chinese-owned  cars,  the  activities  of  which  are  almost 
wholly  confined  to  the  transportation  of  passengers  and  cargo. 
These  charges  are  collected  every  time  a  car,  either  Chinese  or 
foreign,  leaves  Kalgan  for  Urga  or  Dolonnor.  Payment  is  ac¬ 
knowledged  by  the  issuance  of  a  pass  indicating  that  the  road  tax 
has  been  paid. 

These  charges  are  levied  for  the  upkeep  of  the  Kalgan-Urga 
road,  or,  rather,  the  Chinese  section  of  it,  from  Kalgan  to  Ude,  a 
small  telegraph  station  about  midway  between  Kalgan  and  Urga. 

TELEGRAPHS  AND  WIRELESS  SERVICE 

The  telegraph  system  in  the  strictly  Chinese  portions  of  the  dis¬ 
trict  is  operated  by  the  Chinese  Telegraph  Administration.  The 
rates  in  force,  exclusive  of  Mongolia,  are  (in  Mexican  currency)  9 
cents  a  word  to  stations  within  the  same  Province ;  18  cents  a  word  to 
stations  in  other  Provinces;  to  Shanghai,  18  cents;  to  New  York, 
$1.90;  and  to  San  Francisco,  via  the  Pacific,  $1.70  a  word. 

In  Mongolia  two  lines  are  in  operation,  constructed  by  the  former 
Imperial  Russian  Government,  under  agreements  concluded  with 
China  in  1913  and  1914.  The  first  line  from  Kobdo  to  Kosh-Agatch, 
in  the  Tomsk  district,  connects  western  Mongolia  with  Siberia  and 
Russia.  Kobdo  and  Urga  are  not  directly  connected,  but  telegrams 
from  one  point  to  the  other  are  transmitted  by  Tomsk,  Irkutsk,  and 
Kiakhta.  The  Mongolian  government,  however,  has  already  com¬ 
pleted  part  of  a  line  to  connect  Kobdo  with  Urga,  via  Uliassutai. 
The  second  line  constructed  by  the  Imperial  Russian  Government 
links  up  Uliassutai  with  Monda  on  the  Siberian  border.  These 
two  lines  were  handed  over  to  the  Soviet  Government  by  article  10 
of  the  treaty  concluded  between  the  present  Mongolian  Peoples’ 
Revolutionary  Government  and  the  Russian  Soviet  Government 
under  date  of  November  5,  1921. 

The  other  main  system  in  Mongolia  of  special  significance,  in  that 
it  links  up  China  directly  with  Europe,  is  the  Peking-Kiakhta  line, 
since  1908  under  the  control -of  the  Ministry  of  Communications. 
This  line  runs  via  Kalgan  and  Urga,  and  is  by  far  the  most  expedi¬ 
tious  in  China,  even  to  such  points  as  New  York  City  and  the 
Atlantic  seaboard.  It  was  partially  destroyed  during  the  political 
upheaval  in  Mongolia  in  February,  1921,  but  was  restored  in  1922 
through  the  efforts  of  the  Chinese  Telegraph  Administration.  The 
rate  to  all  European  countries  via  Kiakhta  is  $1.45  per  word;  to 
New  York  City,  $1.90;  to  San  Francisco,  $2.15. 

There  is  also  a  telegraph  line  running  from  Urga  400  miles  east¬ 
ward  to  Sain  Peissu,  which  was  partially  constructed  by  Baron 


KALGAN  CONSULAR  DISTRICT 


699 


Unigeren  and  later  completed  by  the  Mongolian  government.  This 
line,  it  is  understood,  will  be  eventually  extended  to  Manchouli  on 
the  Chinese  Eastern  Railway. 

Wireless  installation  located  in  Kalgan  is  controlled  by  the  Min¬ 
istry  of  Communications  and  has  a  normal  range  of  600  geographical 
miles  by  day  and  1,300  by  night,  with  antenna  power  of  5  kilowatts. 
It  may  be  used  for  ordinary  commercial  purposes  at  the  rate  of  9 
cents  per  word  for  foreign  messages  and  6  cents  per  word  for 
Chinese. 

Urga  has  one  of  the  most  powerful  wireless  stations  in  China. 
Originally  erected  for  the  Chinese  Government,  it  has  since  been 
taken  over  by  Mongolia.  At  present  this  station  is  operated  by  the 
Mongolian  government  for  strictly  administrative  purposes,  and  is 
very  heavily  guarded.  Its  normal  range  is  1,200  geographical  miles 
and  3,000  miles  by  night,  and  has  an  antenna  power  of  25  kilowatts. 
It  is  possible  for  the  station  to  establish  direct  contact  with  Moscow. 

There  is  a  small  wireless  installation  at  Kobdo,  which  is  under¬ 
stood  to  be  merely  a  small  receiving  and  transmitting  station. 

TELEPHONES 

The  following  table  summarizes  data  relative  to  telephones  in  this 
district : 


Location 

Operating  company 

Number 
of  sub¬ 
scribers 

Type 

* 

Equipment 

Kalgan  _  . . 

Kalgan  Telephone  Co . . . _ 

450 

Manual... 

Japanese. 

American. 

Do. 

Kweihwa  _.  _ _ 

Kweihua  Telephone  Co... . 

300 

..  ..do.  -. 

Tatung 

Tatung  Telephone  Co _ _ _ 

250 

. do. 

Do. 

Urga . _ . . 

Mongolian  Government  _ 

300 

. do _ 

Do. 

POSTAL  FACILITIES 

The  Chinese  Postal  Administration  maintains  regular  and  sys¬ 
tematic  service  throughout  the  strictly  Chinese  sections  of  the  dis¬ 
trict.  Postal,  parcel-post,  and  money-order  services  are  maintained 
at  an  admirable  standard  of  efficiency.  First-class  mail  from  New 
York  reaches  Kalgan  in  about  four  weeks.  The  Chinese  Postal 
Administration  maintained  postal  service  between  Kalgan  and 
Kiakhta,  via  Urga,  prior  to  the  political  upheaval  of  1921  in  Mon¬ 
golia;  but  with  the  inauguration  of  the  Mongolian  Peoples1  Revolu¬ 
tionary  Republic  the  Chinese  were  forced  to  leave,  and  the  postal 
service  maintained  by  the  Mongolian  government  so  far  has  been 
inadequate.  Biweekly  service  operates  between  Urga  and  Kiakhta 
at  10  cents  United  States  currency  per  letter.  Pony-express  service 
is  maintained  west  of  Urga  to  Sainchabi  and  Uliassutai,  and  east 
to  Sain  Peissu. 

There  is  no  official  mail  service  between  Kalgan  and  Urga.  Mail 
for  Urga  at  present  is  carried  by  either  Chinese  or  foreign  motor 
cars. 

A  somewhat  anomalous  state  of  affairs  exists  in  Mongolia  with 
respect  to  the  postal  situation.  The  agreement  concluded  between 
Soviet  Russia  and  Mongolia  on  November  5,  1921,  when  Russia 


700 


COMMERCIAL  HANDBOOK  OF  CHINA 


recognized  the  independence  of  Mongolia,  provided  for  a  special 
postal  and  telegraph  convention  with  a  view  to  Russian  participa¬ 
tion  in  the  establishment  of  postal  and  telegraphic  communication  in 
Mongolia.  On  the  other  hand,  the  Sino-Russian  agreement  of  May 
31,  1924,  specifically  states,  “  The  Government  of  the  Union  of  Soviet 
Socialist  Republics  recognizes  that  Outer  Mongolia  is  an  integral 
part  of  the  Republic  of  China,  and  respects  China’s  sovereignty 
therein.”  Such  being  the  case,  China  probably  would  not  readily 
admit  the  legality  of  agreements  concluded  by  the  Soviet  Govern¬ 
ment  with  an  independent  Mongolia  relative  to  the  establishment 
of  postal,  telegraphic,  or  other  communicative  routes  in  Chinese 
territory. 

WAREHOUSING  AND  STORAGE  FACILITIES 

There  are  no  firms  in  this  district  engaged  exclusively  in  a  storage 
or  general  shipping  business.  There  are  a  number,  however,  of  large 
grain  and  general  merchandise  dealers  who  have  constructed  corru¬ 
gated-iron  warehouses  for  the  storing  of  their  goods.  American  fur 
and  wool  merchants  make  use  of  these  warehouses  to  some  extent, 
the  charges  in  each  case  depending  upon  the  service.  Climatic  con¬ 
ditions  in  this  district  are  so  propitious,  however,  in  both  summer 
and  winter  that  grain,  wool,  and  skins  are  very  generally  stored 
in  the  open. 

PUBLIC  WORKS  AND  UTILITIES 

ELECTRIC-LIGHT  PLANTS 

All  the  more  important  cities  in  this  district  are  equipped  with 
electric-light  installations. 

The  North  China  Light  Co.  (Ltd.),  with  a  capitalization  of 
$350,000  Mex.,  operates  a  120-kilowatt  power  plant  in  Kalgan. 
Equipment  consists  of  three-phase  alternator,  2,200  volts ;  also  direct- 
current  and  reciprocating  generators;  and  one  Babcock  &  Wilcox 
boiler  with  heating  surface  of  873  square  feet.  The  plant  was  in¬ 
stalled  by  Mitsui  Bussan  Ivaisha.  The  company  proposes  to  install 
additional  equipment  capable  of  supplying  20,000  lamps. 

The  Tatung  Electric  Light  Co.  (Ltd.)  is  capitalized  at  $200,000 
Mex.  and  operates  a  200-kilowatt  plant  in  the  city  of  Tatungfu,  in 
Shansi. 

In  the  city  of  Kweihwating,  Suiyuan,  the  Kweisui  Electric  Light 
Co.  (Ltd.),  capitalized  at  $200,000  Mex.,  operates  a  100-kilowatt 
plant. 

Paotow,  the  present  terminal  of  the  Peking- Suiyuan  Railroad,  has 
an  electric-light  sj^stem  installed  by  the  Suiyuan-Paotowchen  Elec¬ 
tric  Light  Co.,  and  operates  a  70-kilowatt  plant  with  2,000  lamps. 

The  electric-light  plant  in  Urga,  Mongolia,  was  originally  in¬ 
stalled  by  Russians  in  the  early  part  of  1920.  It  is  understood  that 
the  present  Mongolian  government  is  contemplating  the  replace¬ 
ment  of  this  small  plant  with  a  new  installation,  the  equipment  of 
which,  it  is  said,  will  cost  approximately  $60,000  Mex.  The  ma¬ 
chinery  is  understood  to  be  of  German  make.  It  is  planned  to  con¬ 
nect  up  the  new  plant  with  a  surface  coal  mine,  some  15  miles  outside 
of  Urga,  by  a  light  railroad. 


KALGAN  CONSULAR  DISTRICT 


701 


EXPORT  AND  IMPORT  TRADE 

In  the  opinion  of  local  merchants  who  have  traded  in  Mongolia 
and  other  sections  of  the  consular  district  during  the  past  10  years, 
the  introduction  of  railway  traffic,  which  has  brought  in  foreign 
merchants  to  purchase  wools,  skins,  and  furs,  has  increased  the  ex¬ 
port  and  import  trade  of  this  district  at  least  50  per  cent.  Compara¬ 
tive  figures  are  not  available,  but  it  is  estimated  that  35  per  cent  of 
the  trade  increase  is  represented  in  exported  commodities — furs, 
skins,  and  wool.  While  the  growth  of  imported  foreign  goods  has 
not  equaled  that  of  exports,  there  has  been  a  steadily  increasing  de¬ 
mand  for  foreign-made  articles  of  all  sorts,  a  demand  which  will 
inevitably  expand  with  the  further  commercial  development  of 
Mongolia. 

EXPORTS 

Figures  below  represent  exports  of  the  10  most  important  com¬ 
modities  through  Kalgan  for  1923.  Figures  for  the  preceding  years 
are  not  available,  but  those  for  1923  will  give  a  fair  idea  of  this  dis¬ 
trict’s  exports,  in  both  value  and  volume. 


Article 

Quantity 

Value 

(Mexican 

currency) 

Animal  scraps  for  glue. . . . . . chin.. 

Camel  wool.  _ do _ 

Goatskins _ _ _ _ _  ...  ...  ..  pieces.. 

Lambskins _  _ _ _ _  .  .  . .do _ 

Linseed  _ _  _ _ _  ...  _ _  chin.. 

Live  horses.  _ _ _  _  .  . . . .head.. 

Live  sheep.. _  do _ 

Marmot  skins..  _  .  _  ..  pieces.. 

Rape _ ...chin.. 

Sheep  wool  _ do _ 

Squirrel  skins _ _ _ _ _ _ _ _ pieces. . 

Total.. _ _ _ _ 

5, 421, 118 
1, 459, 855 
19,  589,  811 
422,  358 
3,  408,  580 
26, 405 
352,  038 
2,  356,  663 
6,  297,  620 
18,  662,  523 
1,  512, 122 

271, 055 
109, 489 
26, 446,  244 
169,  943 
136,  343 
1, 056,  200 
2, 112,  228 
2, 191,  706 
251,  904 
802,  488 
2,  041,  364 

35,  588, 964 

It  is  not  possible  to  state  accurately  what  percentage  of  the  prod¬ 
ucts  originating  in  this  district  is  exported  to  other  points  in  China 
and  what  proportion  to  foreign  countries;  but  the  following  is  a 
rough  estimate : 


Article 

Percentage 
to  China 

Percentage 
to  foreign 
countries 

Camel  wool . . .  . . . . 

60 

40 

Goat  and  lamb  skins .  . . . . ...  .  . . . 

53 

47 

Linseed _  ..  . . .  . . 

20 

80 

Marmot  skins . . . . .  . . 

65 

35 

Rapeseed . . . . . . 

34 

66 

Sheep  wool  _ _ _ 

40 

60 

Squirrel  skins . . . . 

53 

47 

EXPORT  DUTIES 

Goods  originating  in  Outer  Mongolia  and  not  covered  by  transit 
pass  are  subject  to  a  6  per  cent  export  duty  levied  by  the  Mongolian 
government  on  the  basis  of  its  appraisal  of  market  values,  also  likin 


702 


COMMERCIAL  HANDBOOK  OF  CHINA 


charges  at  Kalgan  and  Chu  Yung  Kuan  on  the  Peking-Suiyuan 
Railroad,  and  2 y2  per  cent  native  customs  tax  at  Tientsin.  Com¬ 
modities  from  Inner  Mongolia  pay  likin  at  Dolonnor,  Kalgan,  Chu 
Yung  Kuan,  and  Tientsin.  Produce  originating  west  of  Fengchen 
on  the  Peking-Suiyuan  Railroad  pays  likin  at  Fengchen  and  the 
native  customs  at  Tientsin. 

Foreign  firms  that  ship  to  Tientsin  for  export  to  the  United  States 
or  other  foreign  countries  obtain  from  the  Chinese  Maritime  Customs 
in  Tientsin  transit  passes  which  exempt  their  goods  from  payment 
of  the  various  likin  charges  indicated  above.  The  foreign  exporter, 
therefore,  pays  merely  the  ordinary  customs  export  tax  at  Tientsin, 
except  in  the  case  of  goods  originating  in  Outer  Mongolia,  on  which 
he  is  obliged  to  pay  the  Mongolian  government’s  6  per  cent  export 
duty. 

IMPORTS 

Imports  of  foreign  goods  have  not  yet  reached  large  proportions 
in  quantity  or  value.  They  consist  mainly  of  flour,  sugar,  kerosene, 
hardware,  and  miscellaneous  toilet  and  fancy  articles.  The  list  be¬ 
low  is  for  1923 : 


Articles 

Quantity 

Value 

(Mexican 

currency) 

Automobiles . 

number.. 

5 

$12,  500 

Automobile  tires. 

_ do _ 

200 

12,000 

Blue  indigo . 

_ chin. 

495, 600 

148, 680 

Cloth _ 

...bolts.. 

594,  418 

8,  024,  643 

Flour _ _ 

_ chin.. 

2,  988,  580 

209,  200 

Gunny  bags . 

..pieces.. 

268,  647 

80,  594 

Hardware . . 

_ chin.. 

76,  400 

0) 

Hemp . 

_ do _ 

987,  660 

296,  298 

Articles 

Quantity 

Value 

(Mexican 

currency) 

Kerosene .  ..chin.. 

Matting. . . pieces  . 

Sugar _ ...  chin.. 

Tea...  _  do... 

1, 935, 600 
140,  790 
2, 943, 930 
14,  006, 476 
432,  046 

$232, 272 
98,  553 
441,  589 
9,  804,  533 
216, 023 

Wooden  bowls _  pieces.. 

Total _ _ 

19,  576,  885 

1  Not  known. 

Note. — 1  chin  equals  pounds;  1  bolt  equals  about  12  yards. 


Of  the  above  total  approximately  $1,000,000  represents  imported 
foreign  goods.  The  automobiles  imported  were  all  of  American 
manufacture.  Probably  80  per  cent  of  the  imported  flour  was  Amer¬ 
ican.  and  approximately  50  per  cent  of  the  imported  kerosene  origi¬ 
nated  in  the  United  States. 

In  view  of  the  fact  that  a  large  percentage  of  such  imports  as  tea, 
sugar,  flour,  and  cloth  eventually  find  their  way  into  Mongolia,  it 
may  be  of  interest  to  compare  the  actual  figures  for  1923  with  the 
estimated  import  capacity  of  Mongolia,  as  estimated  by  a  Russian 
economist. 


Articles 

Estimated 

capacity 

Imported  in 
1923 

Cloth 

. . .yards.. 

14,  700,  000 

7, 133, 016 

Flour _ _ 

Sugar... . 

Tea.... . 

_  pounds. . 

. do _ 

. do _ 

612,  000,  000 
460,000 
30,  400, 000 

3,  984,  773 
3,  984,  773 
18,  675,  301 

Imported  foreign  goods  are  subject  to  a  5  per  cent  ad  valorem 
tax  at  the  maritime  port  of  entry,  and  a  further  2%  per  cent  tax, 


KALGAN  CONSULAR  DISTRICT 


703 


upon  the  payment  of  which  goods  may  be  carried  into  the  interior 
without  additional  charges.  An  American  exporter  can,  therefore, 
land  his  cargo  in  Kalgan,  Kweihwa,  or  Paotow  upon  the  payment  of 
a  total  tariff  charge  of  7 y2  per  cent.  Goods  sent  to  Mongolia  are 
subject,  in  addition,  to  customs  duties  levied  by  the  Mongolian 
government — 6  per  cent  on  ordinary  goods,  12  per  cent  on  tobacco, 
and  30  per  cent  on  luxuries. 

American  exporters  entering  this  market  usually  grant  agencies  to 
a  general  export  and  import  house  in  Tientsin.  Such  Tientsin  firms 
have  generally  made  careful  surveys  of  the  North  China  markets 
and  are  in  a  position  to  judge  the  marketing  possibilities  of  any 
particular  commodity. 

MONEY,  BANKING,  AND  CREDIT 

BANKS 

There  are  no  foreign  banks  and  only  two  important  Chinese  bank¬ 
ing  institutions  in  this  entire  area.  They  are  the  Bank  of  China  and 
the  Bank  of  Communications,  with  branches  in  all  the  more  import¬ 
ant  cities  in  this  district  with  the  exception  of  Mongolia.  Their 
revenues  are  almost  entirely  derived  from  short-term  loans  to  mer¬ 
chants  or  exchange  shops  and  from  the  remitting  of  funds  from  cities 
in  this  district  to  Shanghai,  Peking,  Tientsin,  and  Hankow.  Loans 
are  generally  made  on  the  basis  of  from  9  per  cent  to  14  per  cent 
per  annum.  The  remittance  rate  between  Kalgan  and  Shanghai  is 
usually  about  1  per  cent,  and  slightly  less  to  Tientsin.  At  present 
there  is  no  reliable  banking  institution  in  Mongolia.  As  a  conse¬ 
quence  the  majority  of  firms,  both  foreign  and  Chinese,  make  their 
own  arrangements  for  the  remittance  of  funds.  Silver  dollars  are 
generally  remitted  by  motor  car  from  Kalgan  and  Urga,  the  rates 
varying  from  4  per  cent  to  20  per  cent,  depending  on  their  scarcity 
or  abundance. 

LOCAL  CURRENCY 

The  local  currency  situation  presents  the  anomalies  and  peculiari¬ 
ties  to  be  found  in  other  sections  of  China.  Chinese  silver  dollars 
and  bank  notes  were  formerly  extremely  popular  in  Mongolia,  but 
in  1921,  with  the  inauguration  of  the  Mongolian  People’s  Revolu¬ 
tionary  Government,  the  two  Chinese  banks  operating  branch  offices 
in  Urga  were  forced  to  close  up.  There  has  been  a  marked  decline 
in  the  volume  of  Chinese  bank  notes  in  circulation  in  Urga,  but  the 
silver  dollar  continues  to  be  popular  and  forms  practically  the  only 
currency  accepted  in  Mongolia  at  present.  The  attempts  of  the 
Mongolian  government  to  issue  and  introduce  its  own  paper  currency 
have  not  so  far  met  with  success. 

CREDITS 

In  view  of  the  fact  that  local  Chinese  banks  are  not  prepared  to 
handle  foreign  drafts,  letters  of  credit,  etc.,  foreign  firms  do  banking 
of  this  nature  through  the  foreign  banks  in  Tientsin.  The  great 
majority  of  foreign  firms,  such  as  fur  merchants  and  general  im¬ 
porters  and  exporters,  are  merely  small  branch  houses,  with  head 
offices  located  in  Tientsin.  This  is  particularly  true  of  the  fur  firms 


704 


COMMERCIAL  HANDBOOK  OF  CHINA 


doing  business  in  Kalgan  and  Mongolia.  The  foreigners  sent  into 
this  district  are  fur  experts,  and  as  such  deal  directly  with  the  fur 
market. 

The  comprador  system  is  not  much  in  evidence  in  the  Kalgan 
district.  Most  firms  rely  on  a  well-trained  native  staff,  which  es¬ 
tablishes  the  contacts  and  secures  the  business  that  formerely  con¬ 
stituted  an  integral  part  of  the  functions  of  the  comprador. 

ADVERTISING 

The  only  advertising  mediums  employed  in  the  district,  and  per¬ 
haps  the  only  advertising  forms  that  could  be  effectively  used,  are 
billboards,  posters,  pictures,  and  calendars.  The  use  of  these  is  wide¬ 
spread.  There  is  no  tax  on  advertising,  but  the  placing  of  posters 
on  public  buildings  is  prohibited.  Cigarette  companies  have  insti¬ 
tuted  most  of  the  advertising  used,  general  merchandise  being  rarely 
advertised.  The  use  of  the  Chinese  language  is  indispensable. 
Strikingly  colored,  lively  pictures,  also  catchwords  and  well-known 
phrases,  should  be  used  as  much  as  possible. 

TRADE  ORGANIZATIONS 

The  principal  Chinese  chambers  of  commerce  in  the  district  are 
those  located  in  the  following  cities:  Kalgan,  Tatungfu,  Kweihwat- 
ing,  and  Urga.  These  organizations  represent  the  business  inter¬ 
ests  of  Chinese  merchants,  and  take  up  questions  of  commercial 
policy,  as  the  need  arises,  with  the  local  officials.  In  some  instances 
such  organizations  possess  considerable  commercial  and  political 
influence,  but  as  a  rule  they  do  not  attempt  to  exercise  their  in¬ 
fluence. 

TRAVEL  FACILITIES 

Railway  travel  in  the  district  is  confined  to  the  Peking-Suiyuan 
line.  The  express  trains  have  both  dining  and  sleeping  car  accom¬ 
modations,  and  the  trip  from  Peking  occupies  about  6%  hours. 

Travel  to  Urga  is  by  motor  car,  arrangements  for  which  can  be 
made  with  Chinese  transportation  companies  or  with  an  American 
firm.  The  trip  averages  from  41/2  to  5  days  each  way,  and  single 
fare  varies  from  $30  to  $35  gold.  The  baggage  allowance  is  approx¬ 
imately  40  pounds. 

Travelers  are  advised  to  call  at  the  consulate,  where  everything 
possible  will  be  done  to  help  them  establish  business  contacts  and  to  • 
obtain  all  pertinent  information  available. 

HOTELS 

There  are  two  hotels  in  Kalgan  under  foreign  management.  One, 
under  American  management,  is  opposite  the  American  consulate 
and  a  short  walk  from  the  railway  station.  The  other,  largely  pat¬ 
ronized  by  fur  merchants  in  winter,  is  under  Russian  management, 
and  its  cuisine  is  largely  Russian.  Accommodations  for  travelers  in 
the  other  cities  of  the  district,  except  Urga,  are  limited  to  Chinese 
inns,  which  are  fairly  clean  and  comfortable.  There  are  no  hotels 


KALGAN  CONSULAR  DISTRICT 


705 


in  Urga,  but  two  Russian  boarding  houses  accommodate  travelers. 
All  are  operated  on  the  American  plan. 

PROPERTY  VALUES  AND  RENTS 

The  section  of  Kalgan  in  which  the  foreign  community  chiefly 
resides  lies  upon  high  ground,  and  is  thus  not  in  danger  by  floods 
from  the  river,  which  divides  Kalgan  into  two  sections.  This  factor 
and  the  proposal  of  the  local  authorities  to  continue  the  development 
of  the  district  by  the  construction  of  roads  and  bridges  have  caused 
land  values  in  this  section  to  increase  from  $130  to  $500  (United 
States)  per  acre.  The  offices  and  residences  of  the  principal  for¬ 
eign  firms  are  for  the  most  part  located  in  the  higher  section,  while 
the  fur  firms  are  located  on  the  other  side  of  the  river,  close  to  the 
fur  and  wool  markets  outside  the  city  gates.  Land  values  in  the  old 
Chinese  town  average  approximately  $150  (United  States)  per  acre. 

Most  of  the  larger  foreign  firms  have  acquired  land  on  long-term 
leases  and  have  constructed  their  own  quarters.  Others  rent  Chinese 
compounds  containing  10  or  15  small  rooms,  permitting  residential 
and  office  quarters  to  be  together.  A  monthly  rental  for  such  quar¬ 
ters  varies  from  $25  to  $60  (United  States).  The  tendency  is  to¬ 
ward  increasing  rental  values. 

In  Urga  combined  business  and  residential  quarters  could  formerly 
be  obtained  for  approximately  $50  (LTnited  States)  per  month.  The 
present  regulations  of  the  Mongolian  Peoples’  Revolutionary  Gov¬ 
ernment  are  not  such  as  to  encourage  the  location  of  foreign  firms 
in  Urga. 

LIVING  CONDITIONS 

In  such  cities  as  Tatungfu,  Kweihwating,  and  Urga,  living  costs 
are  considerably  less  than  in  Kalgan,  but  few  foreign  firms  maintain 
foreign  representatives  in  such  cities,  though  they  make  frequent 
trips  to  these  points. 

There  are  no  clubs  or  institutions  for  recreation  in  the  district. 
The  considerable  amount  of  private  entertaining  done  by  the  foreign 
residents  comprises  practically  the  whole  social  life  of  the  port. 
Automobiles  may  be  hired  in  Kalgan  at  $5  (Mex.)  per  hour,  but  on 
account  of  the  poor  roads  they  are  seldom  used  in  the  city  itself. 
The  usual  conveyance  is  the  ricksha  at  20  to  25  cents  per  hour. 

100020°—  26 - 46 


NANKING  CONSULAR  DISTRICT 


By  Consul  John  K.  Da-vis 


LOCATION  AND  AREA 

The  Nanking  consular  district  comprises  Anhwei  Province,  Kiang- 
su  Province  north  of  the  Yangtze  River,  and  the  districts  of  Nanking 
and  Chinkiang  south  of  the  river.  The  latitude  of  the  district  corre¬ 
sponds  with  that  of  South  Carolina,  Georgia,  and  eastern  Alabama, 
and  its  area  is  approximately  90,000  square  miles.  The  average 
annual  rainfall  in  the  district  is  48  inches;  average  maximum  tem¬ 
perature  102°  F. ;  average  minimum  temperature  13°  F.  The  rainy 
season  is  July,  August,  and  part  of  September,  also  February,  March, 
and  April.  The  dry  season  extends  from  the  middle  of  September 
to  the  middle  of  January. 


POPULATION 

Estimates  by  the  Chinese  Postal  Administration  give  the  popula¬ 
tion  of  the  district  as  48,067,529;  average  density  for  the  consular 
district,  618  per  square  mile;  Anhwei  Province  362;  Kiangsu  Prov¬ 
ince  875  per  square  mile. 

CITIES 

The  population  of  the  principal  cities  in  the  district  is  given  in 
the  following  table: 


City  and  Province 

Population 

(estimated) 

Europeans 

Americans 

Nanking,  Kiangsu1.-. . . . 

400,  000 

97 

419 

Chinkiang,  Kiangsu 1  _ _ _ 

102,  500 

74 

Wuhu,  Anhwei1. . . . . . 

126;  800 

28 

78 

Pengpu,  Anhwei 1 . . . . 

70,  000 

3 

2 

Nantungchow,  Kiangsu.. - - - - - 

150,  000 

5 

17 

Yangchow,  Kiangsu . . . . . . . 

250,  000 

7 

35 

American 

business 

firms 


5 

3 

2 

2 


1  Treaty  port  or  voluntarily  opened  commercial  port  in  which  foreigners  may  reside  for  trade  purposes. 


Nanking ,  the  ancient  capital  of  China  and  the  present  capital  of 
Kiangsu  Province,  lies  on  the  south  bank  of  the  Yangtze  River,  210 
miles  from  its  mouth.  The  treaty  with  France  in  1858  stipulated 
that  Nanking  should  be  an  open  port,  but  it  was  not  formally 
opened  until  1899.  In  conjunction  with  Pukow  on  the  opposite 
bank  of  the  river,  Nanking  is  destined  to  become  one  of  China’s 
foremost  commercial  and  transportation  centers. 

Chinkiang ,  situated  60  miles  below  Nanking  at  the  confluence  of 
the  Grand  Canal  and  the  Yangtze  River,  is  on  the  Shanghai-Nan- 
king  Railway.  It  was  opened  to  foreign  trade  in  1861  and  before 

706 


NANKING  CONSULAR  DISTRICT 


707 


completion  of  the  Tientsin-Pukow  Railway  was  an  important  dis¬ 
tributing  point.  The  shift  of  trade  to  Nanking  has  decreased  the 
importance  of  Chinkiang,  although  it  is  still  the  distributing  point 
for  the  Grand  Canal  area  in  north  Kiangsu.  Foreign  business 
houses  are  restricted  to  the  British  concession,  which  is  situated  on 
the  river  front  outside  the  city  wall. 

Yang  chow ,  15  miles  north  of  Chinkiang  on  the  Grand  Canal,  has 
many  wealthy  residents  but  is  of  little  importance  commercially. 

Nantungchow ,  in  Kiangsu  Province,  on  the  north  bank  of  the 
Yangtze  River,  approximately  130  miles  from  Nanking  and  100 
miles  from  Shanghai,  claims  to  be  the  model  city  of  China.  Indus¬ 
trially  it  is  the  most  important  town  in  the  district. 

Wuhu,  in  Anhwei  Province,  is  situated  on  the  south  bank  of  the 
Yangtze  River,  60  miles  above  Nanking.  It  was  opened  as  a  treaty 
port  in  1877.  Foreign  business  houses  are  located  in  the  foreign  set¬ 
tlement,  which  is  under  the  control  of  the  local  Chinese  authorities. 
Wuhu  is  the  most  important  rice  exporting  center  in  China. 

Pengpw  is  located  in  Anhwei  Province  on  the  Tientsin-Pukow 
Railway  where  it  crosses  the  Hwai  River.  Voluntarily  opened  to 
trade  by  China  in  1924,  it  is  an  important  distributing  center  for 
the  territory  served  by  the  Hwai  River  and  its  tributaries. 

AGRICULTURE 

The  principal  agricultural  products  of  the  district,  in  the  order  of 
their  importance,  are  shown  in  the  following  table : 


Products 

Planting  season 

Harvesting  season 

Average  pro¬ 
duction  per 
acre 

Estimated 
annual  pro¬ 
duction 

Rice _ _ 

April  to  May  15 _ 

September  to  Oct.  15 _ 

June  and  September _ 

August,  September,  and 
October. 

October  and  June _ 

1  ton _ 

Tons 

8, 197, 167 
i  66,  663,  876 
166,  667 

620,000 

Wheat  (2  crops) _ 

October  and  June _ 

12  bushels _ 

Cotton _ -1 . 

Beans  and  peas  (2  crops) 
Peanuts _ _ 

April  . .. 

March  and  June . . 

14,500  pounds . 

14.11  bushels.. 

May  to  June  15 _ 

October  ...  _ _ _ 

Sesamum . . 

Kaoliang _ 

April _ _ _ _ 

_ do . . 

August  and  September.. 
September  . . 

800  pounds _ 

5,600  pounds. . 
900  pounds.... 

12,  000 
600,000 
240,000 

Corn _ _ 

. do . 

June . . . . 

Bushels. 


Rice. — The  staple  food  of  the  Chinese  living  in  Central  and  South 
China  is  rice,  and  the  principal  centers  of  production  are  found  in 
the  Yangtze  Valley.  There  are  only  four  Provinces  producing  a 
surplus  sufficient  for  export,  and  the  most  important  of  these  is 
Anhwei,  which  is  situated  in  the  Nanking  consular  district.  The 
main  center  of  assembly  for  export  is  Wuhu,  the  greatest  rice¬ 
exporting  port  in  China. 

Wheat. — Throughout  the  Nanking  consular  district,  wheat  is  an 
important  crop,  second  only  to  rice,  and  is  harvested  twice  a  year. 
A  large  quantity  of  wheat  flour  is  consumed  annually  in  this  dis¬ 
trict.  The  bulk  of  the  wheat  harvested  is  prepared  by  local  mills. 

Beans. — In  the  district  many  varieties  of  beans  are  grown,  in¬ 
cluding  several  soy  types.  The  local  consumption  is  large.  Beans 


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COMMERCIAL  HANDBOOK  OF  CHINA 


are  used  as  a  human  food,  as  feed  for  animals,  and  for  making  bean 
oil,  bean  paste,  bean  curd,  and  “  soy.”  The  residue  after  the  oil 
has  been  pressed  out  is  made  into  cakes,  which  are  used  extensively 
for  fertilizer,  both  locally  and  in  South  China*.  The  oil  from  the 
soy  bean  is  used  for  the  manufacture  of  soap,  in  cooking,  in  paints, 
for  lubricating,  and  as  an  illuminant. 

Cotton. — Iviangsu  is  one  of  the  two  largest  cotton-producing 
Provinces  in  China,  which  is  the  third  largest  producer  of  raw 
cotton  in  the  world.  The  University  of  Nanking  and  the  National 
Southeastern  University,  both  located  in  Nanking,  have  done  excel¬ 
lent  work  in  the  acclimatization  of  American  seed  cotton  and  in 
developing  native  varieties  by  selection.  As  it  has  been  found  that 
American  cotton  deteriorates  quickly  if  the  seed  is  distributed  direct 
to  the  farmers,  the  practice  is  to  acclimatize  the  seeds  at  an  experi¬ 
ment  station  before  distribution.  The  University  of  Nanking  has 


Fig.  24. — The  ordinary  family  gristmill  of  the  country  people  of  China 

accomplished  remarkable  results  with  its  specially  developed  seed, 
and  has  trained  many  Chinese  who  now  assist  in  teaching  the  farm¬ 
ers  of  the  district  modern  methods  of  cultivation.  Although  much 
locally  produced  cotton  is  exported  to  Japan,  the  bulk  is  used  in 
the  mills  of  Nantungchow  and  Shanghai. 

Peanuts. — Kiangsu  is  one  of  the  chief  peanut-producing  Prov¬ 
inces  in  China.  Domestic  consumption  is  considerable  and  the  large 
surplus  is  exported  principally  to  South  China.  The  value  of  these 
exports  varies  from  $2,000,000  to  $4,000,000,  United  States  currency, 
annually,  but  no  direct  shipments  are  made  from  this  district  to 
foreign  countries. 

Sesamum  seed ,  although  principally  produced  in  the  lower  Yellow 
River  Basin,  is  also  grown  in  this  district.  For  centuries  the  Chi¬ 
nese  farmers  produced  the  seed  principally  for  its  oil,  which  is  used 
as  an  illuminant,  and  prior  to  1894  the  product  was  raised  for  local 


NANKING  CONSULAR  DISTRICT 


709 


consumption  only.  In  that  year,  however,  there  commenced  a  for¬ 
eign  trade  which  in  recent  years  has  grown  to  large  proportions. 
The  prosperity  resulting  from  the  development  of  sesamum  culti¬ 
vation  was  unquestionably  due  in  part  to  the  release  of  suitable  land 
by  the  suppression  of  poppy  growing.  None  of  the  sesamum  pro¬ 
duced  in  this  district  is  shipped  direct  to  foreign  countries,  but  is 
purchased  by  large  exporters  in  Shanghai,  Hankow,  and  Tientsin. 

Kaoliang  (kafir  corn  or  sorghum). — Kaoliang  is  extensively  grown 
in  the  northern  portion  of  this  district  and  furnishes  the  poorer 
classes  with  many  useful  products.  Its  consumption  is  exclusively 
domestic.  Practically  no  portion  of  the  plant  is  wasted.  The  grain 
is  used  as  a  food  (in  the  form  of  porridge  and  as  flour)  and  in 
making  a  powerful  alcoholic  drink.  The  stalks  are  employed  in 
making  fences,  bridges,  in  house  building,  and  as  a  fuel.  Before 
the  grain  is  fully  ripe  the  green  leaves  are  gathered  and  stored  for 
cattle  fodder  in  the  winter,  and  after  the  crop  is  harvested  the  roots 
are  dug  up  for  fuel. 

Corn  (maize)  is  grown  throughout  the  district  in  the  hilly  sec¬ 
tions.  Its  consumption  is  entirely  domestic.  Spirits  are  made  from 
the  grain,  which  is  also  used  as  a  human  food  and  for  animal  feed. 
The  roots,  stalks,  and  cobs  are  used  as  fuel. 

MINERALS  AND  MINING 

Iron,  coal,  copper,  sulphur,  and  phosphate  are  mined  in  this  dis¬ 
trict,  but  only  the  first  two  named  are  worthy  of  mention.  There 
are  considerable  deposits  of  both  iron  and  coal,  but  those  of  coal 
are  not  extensive  and  the  product  is  of  inferior  quality.  There  are 
considerable  deposits  of  iron  ore  both  in  Anhwei  and  in  Kiangsu. 
The  largest  is  the  Fenghwang  deposit  near  the  city  of  Nanking, 
which  is  estimated  by  British  engineers  to  contain  some  30,000,000 
tons  of  good  grade  iron  ore.  This  deposit  is  undeveloped. 

In  this  district  the  mining  industry  is  in  its  infancy.  The  methods 
in  general  use  are  primitive  in  the  extreme  but  once  modern  processes 
are  adopted  the  deposits  of  iron  and  coal  should  create  large  in¬ 
dustries.  Foreign  capital  is  not  welcome  and  native  capital  is  not 
yet  freely  invested  in  mining  enterprises. 

In  the  following  table  is  shown  the  annual  production,  extent  of 
resources,  and  export  of  iron  and  coal  in  1924. 


Minerals 

Nature  of  ore 

Annual 

production 

Extent  of 
resources 

Exports  in 
1924 

Iron . . . . 

Good . 

Tons 

400,  000 
20, 000 
300,000 

Tons 

i  85, 000, 000 
70, 000,  000 
225,  000,  000 

Tons 

521, 634 

Coal . . . . . . 

f  Anthracite . . 

\Bituminous _ 

55,  561 

1  Ore. 


IRON 

Although  there  are  large  iron  deposits,  the  production  of  ore  is 
very  limited.  This  condition  is  occasioned  by  the  limited  demand 
for  pig  iron  for  domestic  consumption  and  the  lack  of  suitable  coal 


710 


COMMERCIAL  HANDBOOK  OF  CHINA 


available  for  coke  production.  The  local  coal  does  not  possess  the 
right  qualities  and  the  cost  of  transportation  from  the  nearest  avail¬ 
able  supply,  in  Shantung,  is  prohibitive.  The  output  of  the  mines 
depends,  therefore,  directly  upon  the  iron  and  steel  industry  in 
Japan,  to  which  country  practically  the  entire  ore  output  of  the 
mines  is  exported. 

It  is  probable  that  until  steel  mills  are  established  in  this  part 
of  China  capable  of  absorbing  large  quantities  of  pig  iron,  the 
development  of  the  existing  iron  fields,  dependent  as  it  is  upon  the 
iron  and  steel  industry  in  Japan,  will  be  very  slow. 

At  present  all  mining  is  by  the  open-cut  method  except  in  the 
case  of  very  unimportant  sedimentary  deposits,  which  supply  only 
native  furnaces  where  smelting  is  accomplished  by  means  of 
charcoal. 

The  Yu  Fan  Iron  Mines  are  the  most  important  operated  in  the 
district.  Although  operated  by  Chinese,  they  are  seemingly  con¬ 
trolled  by  Japanese  and  are  stated  in  the  China  Year  Book  to  have 
a  contract  with  the  Japanese  Government  for  the  annual  delivery 
of  300,000  tons  of  ore.  A  light  railway  carries  the  ore  from  the 
mines  to  the  Yangtze  River,  a  distance  of  4  or  5  miles.  All  equip¬ 
ment  is  Japanese,  and  the  entire  output  is  exported  to  Japan,  where 
it  is  smelted.  In  high-water  seasons  shipments  are  made  direct,  but 
during  low-water  periods  transshipment  at  Wuhu  is  necessary. 

The  Pao  Using  Mines ,  owned  and  operated  by  Chinese,  are  under 
contract  with  a  Japanese  firm  to  supply  iron  ore  up  to  a  maximum 
of  50,000  tons  annually.  It  is  claimed  that  there  is  much  iron  that 
can  be  easily  worked,  and  which  is  said  to  contain  from  62  to  67 
per  cent  of  pure  metal,  with  an  estimated  iron-ore  reserve  for  the 
district  of  11,000,000  tons,  containing  5,000,000  tons  of  iron. 

A  railway  from  the  mines  to  the  Yangtze  River,  a  distance  of  3 
miles,  is  contemplated,  but  at  present  the  ore  is  conveyed  by  boats 
to  Tsaishihchih,  a  town  on  the  Yangtze  River  6  miles  below  Taiping. 

The  Yi  Hwa  Iron  Mining  Co.  was  developed  quite  extensively  by 
Japanese,  who  established  rail  connections  with  the  Yangtze  River 
and  employed  modern  appliances.  The  vein  of  ore,  however,  did 
not  turn  out  to  be  as  promising  as  was  expected,  and  the  venture  is 
reported  to  be  more  or  less  a  failure. 

Other  iron  mines  in  this  district  are  unimportant,  and  the  present 
demand  for  ore  is  not  sufficient  to  warrant  any  extension  of  oper¬ 
ations. 

COAL 

Throughout  the  Provinces  of  Anhwei  and  Kiangsu  there  are 
numerous  small  coal  mines,  but  with  the  exception  of  the  Chiawang 
mine  near  the  Shantung  border,  the  coal-bearing  areas  are  small, 
widely  distributed,  and  generally  contain  coal  which  is  friable,  dusty, 
and  high  in  ash  and  sulphur.  At  present  the  coal  mined  is  of  little 
industrial  importance,  but  it  is  possible  that  some  method  may  be 
worked  out  whereby,  through  careful  mining  and  suitable  washing, 
part  of  the  sulphur  and  ash  can  be  eliminated  from  the  coking  coal, 
thus  making  it  suitable  for  the  blast  furnace.  Should  this  occur, 
the  future  possibilities  for  development  of  both  coal  and  iron 
would  be  greatly  increased. 


NANKING  CONSULAR  DISTRICT 


711 


Practically  all  coal  in  this  district  is  mined  very  near  the  surface 
and  without  the  use  of  power  equipment.  There  are  only  two  ex¬ 
ceptions  to  this  statement. 

Chiawang  Coal  Mining  Co .,  Tungshanhsien ,  Kiangsu. — The  coal 
obtained  from  the  Chiawang  Mine  is  bituminous  and,  although  it 
contains  a  considerable  percentage  of  sulphur,  is  the  best  mined. 
It  comes  from  the  most  important  coal  field  in  this  district.  The 
mines  are  approximately  17  miles  northeast  of  Hsuchowfu  near  the 
Shantung  border,  and  are  connected  with  the  Tientsin-Pukow  line 
at  Liuchuan,  a  distance  of  9  miles,  by  a  light  railway.  The  shafts 
are  sunk  70  feet,  reaching  four  seams  of  coal,  2  to  9  feet  thick.  The 
dip  of  the  seams  worked  is  only  about  10°,  and  it  is  not  yet  known 
whether  there  is  more  coal  below  that  depth.  The  field  extends 
over  10  miles  from  east  to  west  and  5  miles  from  north  to  south. 
On  this  basis  the  probable  reserve  is  estimated  at  144,200,000  tons. 

Semimodern  mining  methods  are  employed,  under  Chinese  or¬ 
ganization  and  control,  with  a  daily  production  of  500  tons. 

Pu  Yi  Coal  Mining  Co .,  Liehshan ,  Anhwei. — Coal-mining  opera¬ 
tions  have  been  conducted  at  Liehshan,  “Wolf  Mountain”  for  about 
1,000  years.  The  present  company  was  established  in  1915,  ob¬ 
taining  possession  of  properties  that  had  been  unsuccessfully  worked 
by  two  preceding  companies.  The  field  is  approximately  25  miles 
northwest  of  Liehshan  and  about  15  miles  northeast  of  Fulichi,  a 
railway  station  on  the  Tientsin-Pukow  line.  The  company  reports 
an  annual  net  profit  of  approximately  $300,000  (Chinese  currency) 
for  1919,  1920,  1921,  and  1922,  with  a  daily  output  of  700  tons  of 
anthracite,  and  100  tons  of  bituminous  coal.  The  mines  are  active, 
and  semimodern  methods  are  employed. 

MANUFACTURING  AND  INDUSTRIAL  DEVELOPMENT 

Handicraft  industries  still  predominate  in  the  Nanking  consular 
district,  but  each  year  witnesses  an  expansion  of  those  industries 
carried  on  under  modern  methods,  and  an  increase  in  the  number 
of  modern  plants  operated.  Cotton  and  flour  milling  are  the  prin¬ 
cipal  industries  conducted  along  modern  lines,  and  recently  a  new 
cement  plant  was  put  into’  operation.  The  products  of  the  industries 
in  this  consular  district,  with  the  exception  of  processed  eggs,  are 
consumed  by  the  China  market  exclusively. 

The  manufacturing  industries  in  this  consular  district  are,  cotton 
yarn,  with  an  annual  capacity  of  114,000  bales,  and  an  estimated  out¬ 
put  of  80,000  bales;  cotton  cloth,  annual  capacity,  220,000  pieces, 
estimated  output,  180,000  pieces;  sheetings,  annual  capacity,  180,000 
bales,  estimated  output,  130,000  bales.  These  three  industries  give 
employment  to  10,000  persons  and  have  an  approximate  capital  of 
$7,500,000.  The  flour  industry  has  a  daily  capacity  and  output  of 
21,100  bags,  has  1,000  employees,  and  the  approximate  capital  is 
$3,000,000.  Egg  processing  employs  10,000  persons,  and  has  an  esti¬ 
mated  annual  output  valued  at  $3,000,000.  The  cement  industry  has 
a  daily  capacity  and  output  of  500  barrels,  employs  100  persons,  and 
has  an  estimated  capital  of  $600,000.  The  match  factories  have  an 
annual  capacity  and  output  of  300,000  gross,  employ  900  persons, 
and  the  approximate  capital  in  the  industry  is  $900,000. 


712 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  handicraft  industries  furnish  such  products  as  silk  piece 
goods,  brocades,  velvets,  gold  tapestry,  cotton  cloth,  hand  carvings, 
brass  ware,  vegetable  oils,  and  tallow  (both  vegetable  and  animal). 

LABOR  CONDITIONS 

to 

The  wages  of  male  employees  in  rice  mills  for  a  12-hour  day,  are 
from  $12  to  $24  per  month ;  flour  mills,  male  employees,  6-hour  day, 
from  $12  to  $20  per  month;  egg  processing,  male  and  female  em¬ 
ployees,  10-hour  day,  30  cents  per  day;  weaving,  male  and  female 
employees,  9-hour  day,  40  cents  per  day;  knitting,  male  and  female 
employees,  9-hour  day,  60  cents  per  day. 

With  the  steady  upward  tendency  in  the  cost  of  living,  there  is  a 
corresponding  steady  increase  in  the  cost  of  labor  which  will  doubt¬ 
less  continue  for  several  decades.  The  modernization  of  industries, 
while  resulting  in  higher  cash  wages,  is  resulting  in  the  lowering  of 
the  standards  of  living  and  health  of  the  laboring  class,  since  it  is 
taking  the  workmen  away  from  their  homes  in  villages  and  towns 
and  is  massing  them  in  congested  and  unsanitary  tenement  districts 
in  the  cities. 

There  is  very  little  child  labor  in  the  modern  industrial  plants 
because  the  industries  found  here  are  not  those  in  which  child  labor 
can  be  used  to  advantage.  Strikes  are  of  rare  occurrence  and  of 
small  importance,  and  there  are  no  labor  organizations  worthy  of 
the  name. 

Labor,  while  seemingly  cheap,  is  much  less  efficient  than  in  the 
*  United  States.  Longer  hours  are  observed,  but  the  production  per 
capita  is  relatively  smaller. 

TRANSPORTATION  AND  COMMUNICATION 

WATERWAYS 

The  district  is  well  supplied  with  waterways.  The  Yangtze  River, 
which  flows  through  it  for  the  last  450  miles  of  its  course,  is  the 
center  of  a  network  of  navigable  rivers,  canals,  and  lakes,  possessing 
a  total  estimated  length  of  2,000  miles.  This  system  of  natural  and 
artificial  waterways  furnishes  the  principal  means  of  transport  and 
communication.  On  the  Yangtze  River  four  regular  lines  of  river 
steamers  are  operating,  as  well  as  many  coast  and  ocean  steamers, 
while  numerous  small  steamers,  launches,  and  junks  ply  the  lesser 
waterways.  The  greater  part  of  the  passenger  and  freight  traffic 
in  this  district  is  conveyed  on  this  system  of  lakes  and  streams. 

Passenger  fares,  in  Chinese  currency,  on  the  Yangtze  River  steam¬ 
ers,  from  Yanking  to  the  principal  ports  on  the  Yangtze  River,  are 
shown  in  the  following  table : 


Nanking  to — 

Fare 

Distance 

Nanking  to — 

Fare 

Distance 

Shanghai _ _ 

$18 

Miles 

215 

Chinkiang  __ . . 

$9 

Miles 

65 

Hankow . . . 

35 

370 

Wuhu . . . 

9 

50 

NANKING  CONSULAR  DISTRICT 


713 


Freight  rates  on  these  steamers  vary  according  to  the  class  of  mer¬ 
chandise,  but  the  following  rates  (from  Nanking)  per  ton,  in  Chi¬ 
nese  currency,  will  serve  to  give  an  idea  of  their  general  nature: 
Nanking  to  Shanghai,  $5.70;  to  Hankow,  $7.50;  to  Chinkiang,  $3.75; 
to  Wuhu,  $3.75. 

Ordinary  junk  freight,  exclusive  of  loading  and  unloading 
charges,  is  approximately  $0,014  per  ton  per  mile. 

On  the  Yangtze  River,  when  shipped  between  treaty  ports,  goods 
are  liable  to  the  duties  of  the  Chinese  Maritime  Customs.  On  the 
interior  waterways  merchandise  is  liable  to  inland  transit  dues,  or 
likin  taxes,  which  average  2 y2  per  cent  ad  valorem.  In  addition 
to  the  likin  taxes  there  are  often  many  other  special  levies,  such  as 
destination  taxes  and  similar  tolls.  Goods  of  foreign  manufacture 
shipped  in  bulk  may  avoid  likin  taxes  by  taking  out  transit  passes 
after  the  payment  of  transit-pass  dues,  which  amount  to  one-half 
of  the  amount  of  the  original  import  duty. 

RAILWAYS 

The  followings  railways  are  operated  in  this  consular  district 
(with  mileage  in  district  as  indicated)  :  Shanghai-Nanking  Rail¬ 
way,  head  office  in  Shanghai,  45  miles;  Tientsin-Pukow  Railway, 
head  office  in  Tientsin,  375  miles;  Lung-Hai  Railway,  head  office  in 
Peking,  250  miles. 

In  conjunction  with  the  excellent  system  of  waterways  already 
described,  the  two  trunk  railways  which  terminate  at  Pukow  and 
Nanking  make  these  together  one  of  the  most  important  assembly 
and  distribution  centers  in  all  China.  The  Tientsin-Pukow  Railway 
brings  down  a  large  volume  of  beans  and  cereals,  which  are  either 
loaded  onto  vessels  at  Nanking  or  ferried  across  the  Yangtze  and 
sent  to  Shanghai  by  the  Shanghai-Nanking  Railway.  The  Lung- 
Hai  Railway,  which  crosses  the  Tientsin-Pukow  line  at  Hsuchowfu, 
will  be,  when  completed,  the  longest  east-and-west  railway  line  in 
China  and  will  supply  an  important  agricultural  section.  There  are 
no  other  lines  of  railway  under  construction. 

ROADS 

Road  construction  in  the  Nanking  consular  district  has  in  reality 
but  just  commenced.  There  are  at  present  only  three  long  roads  or 
systems  of  roads  constructed — one  surrounding  the  city  of  Nantung- 
chow,  which  was  built  by  enterprising  Chinese  industrialists ;  one  in 
northern  Anhwei,  which  was  made  by  famine  refugee  labor  with 
relief  funds ;  and  the  third  in  northeastern  Kiangsu,  which  was  con¬ 
structed  by  an  enterprising  military  administrator.  There  are  no 
macadamized  or  concrete  country  roads  in  this  district,  the  roads 
which  have  been  built  being  entirely  of  dirt.  In  the  majority  of 
cases  roads  are  not  kept  up  after  being  built,  the  native  carts  and 
wheelbarrows,  with  tires  for  too  narrow,  tend  to  cut  roads  to  pieces 
in  very  short  periods.  In  northern  Kiangsu  and  Anhwei  there  are 
roads  which  are  passible  for  light  motor  vehicles,  but  the  absence  of 
bridges  and  the  rapid  deterioration  of  the  cars  caused  by  the  rough 
character  of  the  highways  prevent  rapid  development  of  motor 


714 


COMMERCIAL  HANDBOOK  OF  CHINA 


transport.  The  main  hope  for  road  construction  in  the  immediate 
future  is  that  semiprivate  companies  desirous  of  operating  motor 
transport  lines  between  important  points  will  build  their  own  roads. 

The  following  table  gives  a  summary  of  the  methods  of  transpor¬ 
tation  : 


Medium 

• 

Average  load 

Average 
mileage 
per  day 

Average 
cost  per 
ton-mile 

Maximum 

haul 

Miles 

Railways . . . . __ 

35  tons . 

350 

$0,023 

233 

Steamboats _ _ _ _ _ 

2,000  tons.. . 

300 

.013 

450 

Junks . . 

50  tons.. . . 

10 

.015 

450 

Carts  _ _ _ _ 

2,666  pounds. 

20 

.  12 

200 

Pack  animals _ 

200  pounds _ 

30 

.33 

200 

Wheelbarrows . . . . 

266  pounds _ 

20 

.30 

100 

Coolie  carriers. . . . . 

133  pounds.. . 

30 

.40 

100 

Fig.  25. — To  aid  in  famine  relief  a  thousand  miles  of  roads  were  built  in  China 
with  funds  contributed  by  the  American  Red  Cross 


The  figures  given  for  the  maximum  haul  for  junks,  carts,  pack 
animals,  wheelbarrows,  and  coolie  carriers  are  mere  approximations. 
Goods  can  be  conveyed  almost  the  entire  width  of  this  district  by 
any  of  these  means,  and  even  a  greater  distance  if  necessary.  The 
cost  per  ton-mile  for  all  carriers  but  railways  and  river  steamers 
varies  greatly  according  to  the  season  of  the  year,  the  depth  of  the 
water  in  the  streams,  and  the  nature  of  the  country  and  roads  tra¬ 
versed.  Accordingly,  the  statements  in  the  foregoing  table  should 
be  regarded  as  reliable  approximations  only. 

The  average  transportation  costs  on  cereals  in  this  consular  dis¬ 
trict  works  out  as  follows  in  silver-dollar  currency  per  short  ton 
per  mile :  Railways,  $0.023 ;  steamers,  $0.013 ;  carts,  $0.12, 


NANKING  CONSULAR  DISTRICT 


715 


TELEGRAPHS,  CABLES,  AND  WIRELESS  SERVICE 

The  Chinese  Telegraph  Administration  operates  82  stations  in 
this  district  and  handles  messages  to  any  part  of  the  civilized  world. 
Cable  messages  are  forwarded  by  the  administration  through  the 
cable  company’s  offices  in  Shanghai  with  whom  they  have  agree¬ 
ments.  The  rate  to  New  York  is  $1.95  (Mex.)  per  word. 

There  are  no  commercial  or  military  wireless  stations  in  this  dis¬ 
trict,  and  the  importation  of  radio  receiving  and  transmitting  ap¬ 
paratus  is  forbidden. 

TELEPHONES 

The  Nanking  Telephone  Co.,  in  the  city  of  Nanking,  is  the  largest 
telephone  company  in  the  district.  It  is  furnished  with  American 
equipment.  It  has  1,495  subscribers,  and  the  rates  are  $6  (Mex.) 
per  month.  There  are  other  smaller  companies  located  in  various 
cities  in  the  district. 

POSTAL  FACILITIES 

The  Chinese  postal  service  is  conducted  along  modern  lines  under 
the  supervision  of  foreigners.  Its  ramifications  extend  to  every  vil¬ 
lage  of  importance,  and  its  activities  include  the  transmission  of 
registered,  special  delivery,  and  insured  mail  matter;  domestic  and 
foreign  parcel-post  and  money-order  services;  and  a  postal  savings 
bank. 

An  exchange  of  correspondence  between  New  York  and  Nanking 
can  be  effected  in  slightly  over  three  months,  and  letters  are  often 
received  from  New  York  in  25  days. 

SHIPPING  AND  WAREHOUSING  FACILITIES 

f 

HARBOR  FACILITIES 

Each  of  the  three  Yangtze  River  ports  of  this  consular  district 
open  to  foreign  trade  possesses  a  large  harbor  which  furnishes  ade¬ 
quate  anchorage.*  Vessels  may  enter  freely  night  or  day,  and  the 
regulations  only  require  that  they  anchor  out  of  the  fairway. 

The  companies  operating  regular  services  have  branch  agencies 
at  Nanking,  Chinkiang,  and  Wuhu,  and  have  “  hulks  ”  or  floating 
wharves,  which  are  connected  with  the  shore  by  pontoons  and  which 
furnish  a  combination  dock,  office,  and  warehouse. 

Nanking  is  the  terminus  of  the  Shanghai-Nanking  Railway;  and 
Pukow,  directly  across  the  river,  is  the  terminus  of  the  Tientsin- 
Pukow  Railway.  There  are  no  public  docks  on  the  Nanking  side 
of  the  river,  but  the  Tientsin-Pukow  Railway  maintains  nine  pon¬ 
toons,  each  200  feet  long,  and  one  wharf  300  feet  in  length.  At  all 
berths  there  is  good  water,  ranging  from  50  to  60  feet  in  depth 
during  summer  months  and  never  less  than  26  feet  even  in  winter. 

The  Tientsin-Pukow  Administration  has  installed  on  pontoon  No. 
5  a  hand  crane  capable  of  lifting  25  tons.  With  this  exception  all 
cargo  in  the  Nanking  consular  district  is  handled  by  hand.  The 
majority  of  ships  calling  at  Nanking  supply  their  own  stevedores, 
but  it  is  required  that  all  goods  moving  between  the  pontoons, 
warehouses,  and  trains  be  handled  by  coolies  employed  by  the  rail¬ 
way  company. 


716 


COMMERCIAL  HANDBOOK  OF  CHINA 


In  the  following  table  is  shown  the  number  and  tonnage  of  ves¬ 
sels  entered  and  cleared  through  the  Maritime  Customs  at  Nanking 
during  1924: 


Ocean  steamers 

River  steamers 

Other  vessels 

Total 

Flag 

Num¬ 

ber 

Tons 

Num¬ 

ber 

Tons 

Num¬ 

ber 

Tons 

Num¬ 

ber 

Tons 

American _ _ _ 

10 

47, 124 
185,  518 
26,  072 
62,  736 

82 

27,  742 
4,  200, 486 

92 

74,  866 
4,  394,  222 
2,  956, 192 
63,  726 
13,  072 
2,  226,  890 
32, 372 
4,280 

British _ _ _ 

112 

2,286 
1,  626 

2 

120 

8,218 
41, 478 

2,518 
2, 166 
16 

Chinese _ 

22 

2,  888,  642 
990 

518 

French _ _ 

14 

Italian _ 

182 

13, 072 
36,  650 

182 

Japanese _ 

38 

55,  658 

1, 150 

6 

2, 134,  582 
5,914 

456 

1,644 

28 

Norwegian . . . . __ 

22 

26,  458 
4,280 

Swedish _ 

2 

2 

Total _ 

220 

407,  846 

5, 152 

9,  258, 356 

1,  276 

99,  418 

6,648 

9,  765,  620 

The  following  table  shows  the  number  and  tonnage  of  vessels 
entered  and  cleared  through  the  Maritime  Customs  at  Chinkiang 
during  1924: 


Ocean  steamers 

River  steamers 

Other  vessels 

Total 

Flag 

Num¬ 

ber 

Tons 

Num¬ 

ber 

Tons 

Num¬ 

ber 

Tons 

Num¬ 

ber 

Tons 

American _ 

16 

62, 870 
51, 198 
210,  870 

131 

37, 909 

28 

542 

175 

101, 321 
3,  700,  814 
3,  220,  248 
4 

British _ 

18 

2, 044 
1,622 

3,  644,  631 

2, 937,  208 

73 

4, 985 
72, 170 

4 

2, 135 
2,343 

2 

Chinese _  _ 

194 

527 

French _ 

2 

Italian _  _ 

25 

690 

25 

690 

Japanese _ 

62 

79.  382 

1,  142 

2,  091,  210 

30 

2,074 

1,234 

124 

2,  172,  666 
122,  626 

Norwegian _ 

124 

122,  626 

Total . . 

414 

526,  946 

4,939 

8,  710,  958 

685 

80, 465 

6,038 

9,  318,  369 

The  following  table  shows  the  number  and  tonnage  of  vessels 
entered  and  cleared  through  the  Maritime  Customs  at  Wuhu  dur¬ 
ing  1924: 


Ocean  steamers 

River  steamers 

Other  vessels 

Total 

Flag 

Num¬ 

ber 

Tons 

Num¬ 

ber 

Tons 

Num¬ 

ber 

Tons 

Num¬ 

ber 

Tons 

American.  . . . . . 

8 

39, 716 
148,  715 
42,  266 
530,  179 
75,  338 

52 

23, 188 
4, 117, 134 
2, 911,  886 
2,  262,  798 

11 

169 

71 

63, 073 
4,  278,  393 
3,  002,  766 
2,  893,  089 
75,  338 

British _ _ _ 

111 

2,320 

76 

12,544 
48,  614 
100, 112 

2,  507 
1,977 
1,858 
60 

Chinese _ _ 

39 

1,622 

316 

Japanese  _ 

300 

1, 150 

408 

Norwegian.  _ 

60 

Total _ 

518 

836,214 

5, 144 

9,  315,  006 

811 

161,  439 

6,  473 

10,  312,  659 

Goods  brought  into  the  Nanking-Pukow  port  are  distributed  to  in¬ 
terior  points  by  the  two  railway  lines,  as  well  as  by  small  steamers, 
launches,  and  junks  plying  the  inland  waterways.  Those  imported 
at  Wuhu  and  Chinkiang  are  distributed  principally  by  small  steam¬ 
ers,  launches,  and  junks. 


NANKING  CONSULAR  DISTRICT 


717 


Owing  to  the  probability  of  numerous  transshipments,  rough  han¬ 
dling,  and  danger  from  pilferage,  careful  packing  in  strong,  compact 
containers  is  essential  for  shipments  to  this  district.  Marking  should 
be  distinct  and  preferably  should  be  placed  on  the  top,  one  side,  and 
one  end  of  each  package. 

WAREHOUSE  AND  STORAGE  FACILITIES 

Nanking  and  Pukow  each  has  a  warehouse  of  wood  construction 
with  metal  roof,  having  storage  space  for  3,600  and  8,000  tons,  re¬ 
spectively.  The  rates  in  Nanking  are  $0.05  and  at  Pukow  $0,015  per 
ton  per  day. 

In  general  it  may  be  stated  that  at  all  ports  in  this  consular  dis¬ 
trict  nothing  is  ever  left  outside  a  locked  door  unless  guarded  by 
responsible  employees  of  the  owner  or  of  a  transportation  company. 

The  climatic  conditions  of  this  section  of  China  render  it  impera¬ 
tive  that  perishable  goods  be  shipped  in  air-tight,  water-tight  con¬ 
tainers. 

At  Nanking  goods  are  transported  in  handcarts  from  warehouses 
to  dealers;  in  Chinkiang  and  Wuhu  they  are  moved  by  wheelbar¬ 
rows,  and  by  coolies  employing  carrying  poles. 

PUBLIC  WORKS  AND  UTILITIES 

ELECTRIC-LIGHT  PLANTS 

The  principal  electric-light  plants  in  this  district  (all  under  Chi¬ 
nese  ownership),  with  their  capacity  and  rates  are  shown  in  the  fol¬ 
lowing  table : 


Rates 

Location 

Capacity 
of  plant 

Per  kilo¬ 
watt- 
hour 

Per  50- 
candle- 
power 
lamp  per 
month 

Anking  .  . . . 

Kilowatts 

386 

$0.  24 

$3.84 
3.  00 

Chinkiang  _ _ _ 

380 

Liyang  .  _ 

160 

2.  90 

Luho  _ 

40 

2.  70 

Nanking  _ _ _ _ 

680 

.  24 

2.  70 

Hsiakwan  .  _  .  _ 

1,000 

125 

.24 

2.  70 

N  antungchow _ _ _ 

2.  60 

Shiherhwei _  ... 

60 

2.  80 

Tatung.  _ _ _ 

75 

.20 

Tsingikiang _ _ _  . 

150 

Wuhu . _ . . 

530 

.22 

2.  80 

Yangchow _ _ _ _ 

146 

3.00 

Equipment 


British  and  German. 

British. 

Do. 

German. 

American,  German,  and  British. 
American. 

Do. 

Do. 

American  and  German. 

French. 


Considerable  extension  in  electric  lighting  plants  would  have 
occurred  during  the  past  few  years  had  it  not  been  for  the  general 
political  unrest  which  has  frightened  capital.  When  more  stable 
conditions  are  established  it  is  probable  that  several  existing  plants 
will  be  enlarged  and  several  new  ones  built. 

WATERWORKS 

The  Chinkiang  Municipal  Waterworks,  in  the  British  concession 
in  Chinkiang,  has  a  capacity  of  12,000  gallons  per  hour.  It  is 


718 


COMMERCIAL  HANDBOOK  OF  CHINA 


equipped  with  two  filters,  a  chlorine  plant,  and  a  steam  pumping 
system.  Water  from  the  Yangtze  River  is  used.  The  rates  per 
1,000  gallons  are  50  cents  for  domestic  use  and  25  cents  for  indus¬ 
trial  use. 

Plans  have  been  made  for  waterworks  in  the  city  of  Nanking, 
but  haAre  been  indefinitely  postponed  owing  to  the  disturbed  political 
situation.  An  American  firm  has  completed  a  preliminary  survey 
and  may  eventually  obtain  the  contract  when  more  stable  conditions 
are  established. 

TRAMWAYS 

There  are  no  tramways  in  this  consular  district.  In  Nanking, 
however,  there  is  a  city  steam  railway  from  the  suburb  of  Hsiakwan, 
a  distance  of  approximately  8  miles.  This  railway  connects  with 
the  Shanghai-Nanking  Railway  in  Hsiakwan.  It  may  in  time  be  . 
electrified  and  extended  into  a  tramway  system. 

CONSERVANCY  AND  RECLAMATION  WORKS 

The  most  important  conservancy  project  in  this  consular  district 
is  the  draining  into  the  sea  of  the  Hwai  River  system  of  water¬ 
ways.  If  successfully  accomplished  this  would  prevent  the  recur¬ 
rence  of  the  disastrous  floods  which  periodically  reduce  to  famine 
the  most  productive  sections  of  northern  Kiangsu  and  northern 
Anhwei.  It  would  also  reclaim  many  acres  of  fertile  soil  which  are 
now  covered  by  a  series  of  small  lakes.  Plans  have  been  completed 
for  a  survey  under  the  auspices  of  the  Hwai  Valley  Conservancy 
Board,  organized  in  1922.  The  total  cost  of  the  undertaking  has 
been  estimated  at  between  $5,000,000  and  $6,000,000  United  States 
currency. 

EXPORT  AND  IMPORT  TRADE 

The  tables  in  this  section  cover  only  goods  which  arrive  or  de¬ 
part  on  steamers,  and  which  pass  through  the  Chinese  Maritime 
Customs.  Reliable  estimates  indicate  that  the  rail-borne  trade  is 
practically  as  large  as  the  water-borne.  This  rail-borne  trade  con¬ 
sists  of  goods  brought  to  or  sent  from  Nanking  by  the  Shanghai- 
Nanking  Railway  and  which,  being  passed  through  the  customs  at 
Shanghai,  are  consequently  included  in  the  returns  for  that  port. 

The  values  (United  States  currency)  of  imports  and  exports 
through  the  principal  ports  in  this  district  are  shown  in  the  following 
table : 


Port 

Exports 

Imports 

1913 

1923 

1924 

1913 

1923 

1924 

Nanking _ 

$4,  357,  661 

6,  780,  322 

7,  394,  250 

$14, 958, 647 
1,  595,  004 
9,  408, 385 

$14,  523,  929 
4,  665,  738 
14,  523,  929 

$4,  828, 165 
6,  967.  760 
5,  578,  222 

$11, 105,  704 
9,  999,  791 
8, 095, 336 

$10, 447,  339 
10,  728,  037 
7,  768,  578 

Chinkiang . . . 

Wuhu . 

Total . 

18,  532,  233 

25,  962,  036 

33,  713,  596 

17,  374, 147 

29,  200, 831 

28, 943, 954 

EXPORTS 

The  quantity  and  value  (United  States  currency)  of  exports  pass¬ 
ing  through  the  Chinese  Maritime  Customs  at  Nanking,  Wuhu,  and 


NANKING  CONSULAR  DISTRICT  719 


Chinkiang,  excluding  exports  by  rail,  are  shown  in  the  following 
table : 


Articles 

1913 

1923 

1924 

Quantity 

Value 

Quantity 

Value 

Quantity 

Value 

Beans . tons.. 

29,  764 

$702,  418 

14,  728 

$515,  589 

31,914 

$1,411,028 

Cereals. . . . do _ 

171,  254 

5,  378,  075 

77,  664 

3,  283,  443 

217,  737 

10,  794,  449 

Eggs  and  egg  products: 

Albumen,  yolk  and  frozen 

. . . tons.. 

996 

I 

f  12, 524 

I 

\  6, 530 

2,  256,  417 

Fresh  and  preserved 

}  299, 591 

)■  2, 814,  886 

. . thousands.. 

12, 940 

1 

[  110, 514 

1 

{  102, 109 

948,  446 

Seeds: 

Rape  . tons.. 

Sesame  .  _ do _ 

4,  540 
21, 822 

)  2,  244, 996 

/  11, 249 

\  192 

}  487, 811 

|  10,284 

564,  346 

Silk  and  silk  piece  goods.do _ 

'  635 

2,  075,  095 

676 

4, 379, 103 

261  Vi 

2,  256, 840 

The  increase  in  the  exports  of  egg  products  has  been  brought  about 
by  the  erection  at  Nanking  of  a  large  British  plant  in  which  such 
products  are  prepared,  and  by  the  enlargement  of  this  plant  in  the 
past  decade.  The  fluctuations  in  the  exports  of  rape  and  sesame 
seed  have  been  caused  by  the  varying  demands  in  foreign  countries. 

There  have  been  no  important  changes  in  the  routing  of  exports 
during  the  past  20  years  beyond  the  tendency  to  forward  increas¬ 
ingly  large  quantities  of  agricultural  produce  to  Shanghai  by  rail 
instead  of  by  river  steamers.  With  the  exception  of  egg  products 
and  iron  ore,  there  are  virtually  no  exports  of  importance  which  are 
sent  direct  from  this  district  to  foreign  countries.  Such  of  the 
products  as  are  eventually  sent  abroad  are  first  shipped  to  Shang¬ 
hai,  and  therefore  appear  under  the  export  figures  of  that  port. 

IMPORTS 


The  quantity  and  value  (United  States  currency)  of  the  principal 
imports  into  this  district  are  shown  in  the  following  table: 


Articles 

1913 

1923 

1924 

Quantity 

Value 

Quantity 

Value 

Quantity 

Value 

C  igarettes. . thousands. . 

Cotton _ pieces.. 

612, 921 

$847,  384 
5,  012,  439 

1,  521,  515 

1,  593,  428 
2, 934,  999 

1, 359, 402 

$2,  323, 124 
5,  467,  404 
1,  057,  973 

4,  657,  751 
3,  726,  687 

1,  231, 406 
1, 045,  779 
52,  833 

26,  573,  557 
54,  326 

$2,  607,  243 
5, 986,  715 
2,  012,  499 

4,  882,  273 

5,  230,  957 

Metals  and  minerals. .T.tons.. 
Oil,  kerosene 

.  _ American  gallons 

Sugar... . tons.. 

16, 964,  360 
52,  673 

30,  022, 858 
47,  678 

The  principal  changes  of  importance  have  been  increases  in  im¬ 
ports  of  cigarette  and  kerosene.  Owing  to  the  efforts  of  the  large 
foreign  and  Chinese  cigarette  companies,  the  past  20  years  have 
witnessed  a  tremendous  increase  in  the  use  of  cigarettes  by  the 
Chinese  of  all  classes.  The  larger  imports  of  kerosene  have  been 
brought  about  by  expansions  that  have  occurred  in  the  American 
and  British  organizations  marketing  this  commodity,  the  entry  of 
new  companies  into  the  market,  and  the  increased  consumption  re¬ 
sulting  from  the  abandonment  of  vegetable  oils  as  illuminants  by  the 
Chinese  rural  population. 


720 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  most  remarkable  change  in  the  sources  of  cigarettes  has  been 
a  decrease  in  imports  from  Great  Britain  from  40  per  cent  of  the 
total  in  1903,  and  45  per  cent  in  1913  to  only  3  per  cent  in  1923 ;  and 
an  increase  in  imports  from  the  United  States  from  5  per  cent  of  the 
total  in  1903  and  3  per  cent  in  1913  to  40  per  cent  in  1923. 

The  sources  of  the  foreign  manufactured  cotton  goods  imported 
have  remained  practically  unchanged  for  the  past  20  years,  although 
there  has  been  a  large  increase  in  the  percentage  of  domestic  cotton 
goods  manufactured  in  modern  plants. 

The  metals  and  minerals  imported  in  1923  came  from  practically 
the  same  sources  as  in  1903  and  in  1913.  The  estimated  percentage 
from  the  United  States,  however,  has  increased  from  50  to  70  per 
cent,  and  that  from  Great  Britain  from  25  per  cent  in  1903  and  20 
per  cent  in  1913  to  30  per  cent  in  1923. 

Imports  of  kerosene  have  come  increasingly  from  the  United 
States.  Imports  of  American  kerosene  constituted  50  per  cent  in 
1903  and  1913  but-  in  1923  had  risen  to  85  per  cent.  Those  from  the 
Dutch  Indies,  which  were  10  per  cent  in  1903  and  5  per  cent  in  1913, 
had  practically  vanished  in  1923.  Those  from  the  Straits  Settle¬ 
ments  and  Singapore,  which  amounted  to  20  per  cent  in  1903  and 
15  per  cent  in  1913,  had  also  almost  disappeared  in  1923.  Imports 
from  Hongkong  fell  from  15  per  cent  in  both  1903  and  1913  to  12 
per  cent  in  1923. 

Owing  to  the  inability  of  the  average  Chinese  merchant  to  cor¬ 
respond  in  any  language  save  his  own,  and  to  the  absence  of  Ameri¬ 
can  or  European  general  import  firms,  the  best  means  by  which 
American  manufacturers  can  sell  their  products  here  is  through 
agencies  established  in  Shanghai.  For  firms  whose  volume  of  sales 
will  probably  warrant  the  expense,  the  establishment  in  the  more 
important  ports  in  this  district  of  branches  equipped  to  handle  their 
own  marketing  will  be  found  the  best  method.  If  the  conduct  of 
an  export  business  through  these  same  branches  can  be  arranged,  the 
chances  of  success  will  be  greatly  increased. 

MONEY  AND  BANKING 

BANKING  FACILITIES 

There  are  in  the  Nanking  consular  district  no  foreign  banks,  and 
no  Chinese  banks  which  handle  transactions  with  foreign  countries. 
Neither  do  they  supply  credit  information,  nor  handle  financial  in¬ 
vestments  in  the  American  sense. 

The  proximity  of  Nanking  to  Shanghai  and  the  excellent  com¬ 
munications  between  them  makes  Shanghai  the  logical  import  and 
export  center  for  the  Nanking  district.  Credits  and  financial  proj¬ 
ects  generally  are,  therefore,  arranged  through  Shanghai  banks. 

LOCAL  CURRENCY 

The  unit  of  price  in  all  domestic  and  retail  business  throughout 
the  district  is  the  Yuan  dollar.  The  Yuan  dollar  and  the  Mexican 
dollar  both  circulate  freely  and  without  discount  in  favor  of  either, 
but  the  former  is  rapidly  taking  the  leading  place. 


NANKING  CONSULAR  DISTRICT 


721 


ADVERTISING 

Local  merchants  do  practically  no  advertising.  The  advertising 
campaigns  of  foreign  firms  are  supervised  and  paid  for  by  the 
marketing  organizations  of  the  manufacturers.  The  majority  of 
advertisements  observed  are  put  out  by  American,  European,  and 
Japanese  firms.  In  order  of  volume,  the  advertisements  deal  with 
cigarettes,  cosmetics  and  toilet  requisites,  patent  medicines,  kero¬ 
sene,  and  paraffin  candles. 

Local  newspapers  are  of  comparatively  slight  importance  for 
advertising  purposes.  The  best  means  of  reaching  the  district 
through  newspapers  would  be  through  two  Chinese  newspapers 
(Sin  Wan  Pao  and  Shun  Pao)  published  daily  in  Shanghai,  but 
which  enjoy  a  wide  circulation  in  the  Nanking  district.  The  most 
effective  form  of  advertising  has  been  found  in  the  use  of  posters  and 
painted  signboards. 

In  Kiangsu  Province  there  is  a  tax  on  poster  advertising  which 
varies  according  to  the  size  and  nature  of  the  posters  or  signs  used. 
Signboards  are  taxed  0.06  tael  (equivalent  to  approximately  8% 
cents  Chinese  currency)  per  square  foot  per  month;  while  posters 
affixed  to  walls  are  taxed  0.05  tael  (7  cents  Chinese  currency)  per 
square  foot  per  month. 

TRAVEL  FACILITIES  AND  HOTELS 

There  are  only  two  modern  hotels  in  this  consular  district,  both 
located  in  Nanking  and  under  British  management.  The  Bridge 
House  Hotel  has  30  rooms,  and  rates  are  $7  and  up  per  day  for  a 
double  room  and  $4  and  up  per  day  for  a  single  room,  American 
plan.  The  Yangtze  Hotel  has  30  rooms,  and  the  rates  are  $4  and 
up  per  day,  American  plan,  and  $2.50  and  up  per  day,  European 
plan.  It  is  advisable  to  make  reservations  at  either  hotel  in  advance, 
for  they  are  often  crowded  to  capacity. 

Railway  and  steamship  travel  is  convenient  and  comfortable  if 
care  is  taken  to  travel  only  by  express  trains  and  by  first-class 
steamers.  Sleeping  cars  and  dining  accommodations  are  found  on 
both  the  Shanghai-Nanking  and  the  Tientsin-Pukow  railways.  The 
commercial  traveler  should  always  have  his  passport  as  proof  of 
nationality  and  should  have  credentials  that  will  establish  his  con¬ 
nection  with  the  firm  or  persons  represented.  A  power  of  attorney 
clearly  setting  forth  the  exact  extent  of  his  authority  should  also 
be  carried. 

No  language  other  than  English  is  necessary  for  traveling  by  the 
regular  steamship  and  railway  lines,  but  on  any  trip  into  the  interior 
of  the  district — that  is,  away  from  the  three  treaty  ports — an  inter¬ 
preter  will  be  necessary;  and  bedding,  food,  and  the  usual  staff  of 
servants  should  be  taken.  It  is  always  advisable  to  call  beforehand 
at  the  American  consulate  having  jurisdiction  over  the  territory 
to  be  traveled. 

TRADE  ORGANIZATIONS 

There  are  no  trade  organizations  in  this  consular  district  that  will 
be  of  any  assistance  to  the  commercial  traveler.  Each  city  has  a 

100020°— 26 - 47 


722 


COMMERCIAL  HANDBOOK  OF  CHINA 


chamber  of  commerce,  but  they  make  no  endeavor  to  cultivate 
foreign  trade. 

PROPERTY  VALUES  AND  RENTS 

Land  in  Nanking,  with  the  exception  of  the  suburb  of  Hsiakwan, 
is  only  slightly  more  expensive  than  in  other  cities  of  commercial 
importance,  so  that  the  following  table  will  serve  to  give  a  fairly 
general  idea  of  values  in  this  district.  Hsiakwan  is  the  most  im¬ 
portant  wholesale  and  shipping  section  of  Nanking,  the  Drum 
Tower  area  is  an  educational  and  residential  section,  while  the 
Futzemiao  is  a  retail  business  and  amusement  district. 


Location 

Purchase 
price 
per  unit 

Rent  of 
office 
space 

Rent  for 
ware¬ 
house 
space 

Rent  for 
residence 
purposes 

Nanking: 

Hsiakwan  suburb _ _ _ _ 

_ per  100 square  feet.. 

$25 

$12 

$12 

$12 

Drum  Tower  section  . . . 

_ do _ 

20 

8 

8 

10 

Futzemiao  section _ 

_ _ do _ 

15 

5 

10 

10 

As  compared  with  the  United  States  or  with  European  countries, 
taxation  in  this  district  is  very  light.  With  the  exception  of  the 
land  transfer  tax  and  likin  dues,  the  taxes  vary  greatly  in  the  dif¬ 
ferent  “  hsien  ”  or  counties,  so  that  it  is  impossible  to  give  any  state-  * 
ment  of  rates  which  will  hold  true  even  for  one  Province.  Taxes 
on  land,  with  the  exception  of  the  land  transfer  tax,  are  remarkably 
low  and  vary  in  each  hsien.  As  a  rule,  such  taxes  are  levied  only 
on  cultivated  land  and  consequently  do  not  apply  in  cities  and 
towns  where  land  taxation  takes  the  form  of  taxes  on  places  of 
business  as  such,  both  as  a  direct  “  shop  tax  ”  and  as  license  dues. 
Buildings  not  used  as  places  of  business  usually  escape  all  taxation. 
In  the  case  of  particular  crops  special  taxes  are  levied,  sometimes 
based  upon  the  area  under  production  and  sometimes  upon  the 
estimated  yield. 

With  the  exception  of  missionary  societies,  Americans  may  not 
acquire  real  property  save  in  ports  opened  either  by  treaty  or 
voluntarily  by  the  Chinese  Government.  In  such  open  ports  leases 
in  perpetuity  may  be  obtained  with  the  exception  of  the  newly 
opened  port  of  Pengpu,  in  which  leases  are  limited  to  terms  of  30 
years.  Warehouses  and  similar  buildings  may,  however,  be  leased 
at  points  other  than  open  ports,  although  difficulties  are  often  en¬ 
countered  which  vary  in  different  localities. 

LIVING  COSTS 

There  are  in  the  Nanking  consular  district  no  furnished  apart¬ 
ments  or  rooms  for  rent  and  no  boarding  houses.  Although  a  single 
man  or  woman  can  often  obtain  accommodations  in  a  mess  or 
private  residence  after  becoming  known  to  the  people  of  the  port, 
such  accommodations  are  not  generally  available. 

The  rent  charged  for  an  unfurnished  house  of  6  to  8  rooms  is 
from  $125  to  $150  and  for  one  of  8  to  10  rooms  between  $160  and 


NANKING  CONSULAR  DISTRICT 


723 


$240  per  month.  This  is  the  rent  actually  paid  by  American  and 
European  residents  in  this  consular  district,  but  the  number  of 
houses  is  so  small  that  in  the  majority  of  cases  the  buildings  are 
rented  prior  to  their  erection.  All  foreign  firms  maintaining  repre¬ 
sentatives  in  this  consular  district  furnish  them  with  residential 
quarters,  and  all  firms  that  have  been  established  for  any  length 
of  time  own  the  property  in  which  their  employees  reside. 

In  such  ports  as  Nanking,  Chinkiang,  and  Wuhu  the  foreign 
communities  are  small  and  must  of  necessity  find  amusement  among 
themselves.  There  is  considerable  entertaining,  and  there  are  com¬ 
fortable  clubs,  also  golf  courses  and  tennis  courts. 

Nanking  is  a  city  of  magnificent  distances,  and  the  use  of  a  motor 
car  is  essential  to  the  transaction  of  business  along  modern  lines. 
Practically  all  firms  represented  in  the  city  maintain  a  motor  vehicle 
for  the  use  of  their  representative.  Motor  cars  may  be  hired  at  $4  an 
hour. 

In  Nanking  there  is  an  American  school  for  American  and 
European  children.  This  school  is  supported  by  the  residents. 

CHANGES  IN  TRADE  CONDITIONS  IN  RECENT  YEARS 

The  most  significant  changes  in  Nanking  trade  conditions  during 
recent  years  have  been  railway  connections  which  have  made  Nan¬ 
king  and  its  subport  of  Pukow  the  logical  assembly  and  distribution 
point  for  this  section  of  China ;  the  gradual  but  steady  change  in  the 
standards  of  living  of  the  Chinese  population,  which  has  resulted 
in  increased  importation  of  modern  machinery  and  commodities; 
the  tendency  to  produce  locally  modern  manufactured  products  here¬ 
tofore  imported. 

The  completion  of  two  trunk  lines  of  railway,  the  Shanghai-Nan- 
king  in  1909  and  the  Tientsin-Pukow  in  1912,  has  radically  changed 
transportation  and  trade  conditions.  Goods  formerly  shipped  be¬ 
tween  Shanghai,  Chinkiang,  and  Nanking  by  river  steamer  now 
go  over  the  Shanghai-Nanking  Railway,  and  a  large  volume  of  native 
produce  from  Anhwei,  Kiangsu,  Honan,  and  Shantung  has  been 
diverted  to  Pukow  by  the  Tientsin-Pukow  Railway.  The  comple¬ 
tion  of  these  lines  and  the  construction  of  the  eastern  extension  of 
the  Lung-Hai  Railway  has  resulted  in  large  imports  of  locomotives, 
rolling  stock,  machinery,  and  general  railway  supplies. 

The  erection  of  a  number  of  new  electric-light  plants,  and  the  en¬ 
largement  of  those  already  existing,  has  caused  a  considerable  growth 
in  the  import  of  electrical  supplies,  while  the  completion  of  a  number 
of  flour  mills  in  this  district  and  the  development  of  cotton  mills 
in  Shanghai  and  elsewhere  has  resulted  in  an  increase  in  the  con¬ 
sumption  of  domestic  products  and  a  corresponding  decrease  or 
lack  of  increase  in  imports  of  foreign  flour  and  cotton  goods. 


SWATOW  CONSULAR  DISTRICT 


By  Vice  Consul  Gordon  L.  Burke 

LOCATION,  AREA,  AND  CLIMATE 

The  Swatow  consular  district  has  an  area  of  17,000  square  miles 
and  comprises  that  part  of  Kwangtung  Province  in  southeastern 
China  lying  east  of  meridian  115°  E.  and  between  parallels  22°  40' 
and  25°  N.  Its  latitude  thus  corresponds  with  that  of  central  Mexico. 

The  climate  is  subtropical,  with  an  average  temperature  of  70°  F.; 
the  average  minimum  temperature  is  64°  F.  and  the  average  maxi¬ 
mum  76°.  The  annual  average  rainfall  is  about  74  inches.  The 
rainy  season  extends  from  February  to  July;  the  remainder  of  the 
year  is  dry. 

POPULATION 

The  estimated  population  is  about  8,000,000,  Avith  an  average 
density  for  the  district  of,  roughly,  470  to  the  square  mile.  With 
the  exception  of  six  principal  cities,  the  population  is  mainly  rural. 

CITIES 

The  leading  cities  of  the  district  are  shown  in  the  following  table. 
There  are  eight  American  business  firms  in  Swatow,  but  none  in  any 
of  the  other  cities  listed  in  the  table. 


Cities 

Popula¬ 
tion  (esti¬ 
mated) 

Euro-) 

peans 

Ameri¬ 

cans 

Cities 

Popula¬ 
tion  (esti¬ 
mated) 

Euro¬ 

peans 

Ameri¬ 

cans 

Swatow 1  _ 

100,000 

300,000 

250,000 

250 

55 

Chenghai  . . . __ 

100,  000 
60,  000 
60, 000 

Chaochowfu. .  _ _ 

10 

13 

Kityang _ _ _ 

10 

Chaoyang _ _ _ 

3 

Kaying. . . . 

10 

9 

6 

1  Swatow  is  the  only  port  of  the  district  open  to  foreign  trade. 


AGRICULTURE 

The  three  leading  crops  of  the  Swatow  district  are  rice,  sugar, 
and  oranges.  Two  crops  of  rice  are  produced  during  the  year.  The 
first  crop  is  planted  in  April  and  harvested  in  June  and  July;  the 
second  is  planted  in  July  and  harvested  in  November  and  December. 
Production  ranges  from  20  to  70  piculs  per  acre.  The  entire  crop 
is  consumed  locally  and  is  not  sufficient  to  supply  the  demand.  Swa¬ 
tow  oranges  are  known  all  over  China  for  their  excellence,  and  the 
sugar  produced  in  the  district  is  preferred  by  the  Chinese  on  account 
of  its  flavor.  The  greater  part  of  the  sugar  and  oranges  produced 
is  exported.  Other  crops  grown  in  the  district  are  sweet  potatoes, 
peanuts,  jute,  vegetables,  and  tobacco. 

724 


SWATOW  CONSULAR  DISTRICT 


725 


MINERALS  AND  MINING 

Coal,  iron,  lead,  tin,  wolfram,  and  bismuth  are  the  principal  min¬ 
erals  found.  There  are  no  mines  such  as  are  familiar  to  the  western 
mind,  but  small  amounts  of  the  various  minerals  named  are  mined  by 
primitive  native  methods.  The  slump  in  prices  of  steel-hardening 
alloys  after  the  war  brought  to  almost  complete  standstill  the  investi¬ 
gation  and  production  of  minerals  in  the  Swatow  district. 

Coal  occurs  in  the  Kayingchow  region.  The  product  is  anthra¬ 
cite,  between  75  and  83  per  cent  carbon.  It  is  generally  mixed  with 
Hongay  anthracite  for  use  in  native  industries,  such  as  burning  lime 
and  distilling  samshu. 

Iron  is  found  in  the  Kayingchow  region  and  is  generally  made 
into  cooking  pans.  In  1923,  $147,969  worth  of  these  pans  were 
exported. 

Lead  occurs  in  the  Mei,  Chengping,  and  Fungshun  districts.  The 
production  is  used  locally. 

Tin  is  produced  in  small  amount  in  Kityang  for  the  manufacture 
of  tin  foil  for  native  consumption. 

Wolfram  and  bismuth  occur  in  several  places,  but  especially  in 
the  Kityang  region.  These  minerals  were  exported  in  large  quan¬ 
tities  during  the  war,  but  exports  have  fallen  off  greatly  in  more 
recent  years. 

MANUFACTURING  AND  INDUSTRIAL  DEVELOPMENT 

There  is  little  manufacturing  in  the  Swatow  consular  district. 
There  are  two  match  factories  in  operation — the  Chao  Shan  Yao 
Hua  Match  Co.,  and  the  Ming  Sing  Majtch  Co.  The  Chao  Shan  Yao 
Hua  Match  Co.  has  an  estimated  capital  of  about  $50,000  gold.  It 
employs  250  workmen,  and  has  an  approximate  output  of  20  cases 
per  day.  The  Ming  Sing  Match  Co.  is  capitalized  at  about  $25,000 
gold.  This  company  employs  150  workmen  and  has  an  output  of  15 
cases  per  day.  The  products  of  these  two  factories  are  consumed 
locally  and  in  the  surrounding  districts. 

There  are  a  few  small  canning  factories,  whose  products  are  ex¬ 
ported  mainly  to  the  South  Seas.  Native  industries  comprise  the 
manufacture  of  sugar,  chinaware,  grass  cloth,  joss  paper,  ramie 
thread  and  yarn,  tinfoil,  and  bamboo  ware;  the  drying  and  pre¬ 
serving  of  fruits;  and  the  expressing  and  exporting  of  oil  from 
imported  peanuts.  The  making  of  drawn  work,  laces,  embroideries, 
nankeens,  native  fancy  cloth,  and  the  canning  of  fruits  have 
reached  considerable  proportions  in  recent  years. 

Foreign  industries  are  few,  the  principal  ones  being  a  small  ice 
plant  and  a  soda-water  plant  operated  by  British  interests.  There 
appears  to  be  little  immediate  opportunity  for  foreign  industries  in 
this  district. 

LABOR  CONDITIONS 

Labor  conditions  generally  were  very  good  in  1923.  Wages  were 
increased  proportionately  to  meet  increases  in  the  cost  of  living,  and 
there  were  few  strikes.  Female  labor  is  employed  by  the  match  and 
canning  factories.  The  working  day  varies  from  8  to  10  hours,  and 
the  woman  worker’s  daily  wage  from  25  to  45  cents  silver. 


726 


COMMERCIAL  HANDBOOK  OF  CHINA 


TRANSPORTATION  AND  COMMUNICATION 

WATERWAYS 

The  section  of  the  Han  River  from  Chaochowfu  to  Samhopa,  a 
distance  of  about  70  miles,  is  navigable  for  motor  launches.  The 
Yung  River  is  navigable  for  steam  launches  from  Swatow  to  Kit- 
yang,  about  36  miles,  and  navigation  is  extended  in  summer  to 
Meeou,  20  miles  beyond.  Motor  launches  also  run  from  Kweisu  via 
Chaoyang,  a  distance  of  about  40  miles.  In  addition  to  the  inland 
launch  traffic  there  are  large  seagoing  launches  which  connect  Swa¬ 
tow  with  Ungkung  to  the  north  and  Swabue  to  the  south. 

In  accordance  with  the  several  treaties,  foreign  goods  shipped 
into  the  interior  under  transit  passes  are  free  from  likin  and  other 
dues. 

RAILWAYS 

In  the  district  there  are  two  minor  railways  with  head  offices  at 
Swatow.  These  are  the  Ohaochow  &  Swatow  Railway  (26  miles)  and 
the  Swatow-Changlin  Light  Railway  (10  miles).  Little  freight  is 
transported  by  these  two  lines,  freight  generally  being  moved  by 
water. 

ROADS 

The  only  modern  roads  are  in  the  cities  of  Swatow  and  Chao¬ 
chowfu,  and  these  are  but  8  miles  in  length.  There  is  an  ever-grow¬ 
ing  movement  for  widening  the  streets  of  the  cities,  but  no  sugges¬ 
tions  for  developing  country  roads.  There  is  practically  no  auto¬ 
mobile  traffic. 


TELEGRAPHS,  CABLES,  AND  WIRELESS  SERVICE 

Swatow  has  no  cable  connections  with  other  ports.  The  Chinese 
Telegraph  Administration  operates  land  wires,  but  owing  to  politi¬ 
cal  disturbances  recent  communication  has  been  uncertain.  Tele¬ 
grams  for  Shanghai  are  usually  mailed  to  Hongkong  and  cabled 
from  there. 

Military  authorities  operate  the  only  wireless  station,  through 
which  communication  can  occasionally  be  had  with  Hongkong,  Foo¬ 
chow,  Waichow,  and  with  ships  at  sea. 

TELEPHONES 

There  are  two  interurban  telephone  lines  in  the  district,  the  prin¬ 
cipal  one  connecting  Swatow  with  Chaoyang  and  Kityang,  a  distance 
of  about  116  miles.  Three  other  short  lines,  two  of  them  privately 
owned,  are  also  operated.  The  Swatow  Telephone  Co.  (Chinese) 
claims  400  subscribers,  operates  the  manual  magneto  system,  and 
charges  $5  to  $6  Mex.  per  month  per  instrument.  The  company 
is  capitalized  at  $120,000  Mex.  Its  equipment  is  chiefly  Japanese, 
but  some  of  the  telephones  are  American  and  Swedish. 

POSTAL  FACILITIES 

The  Chinese  Postal  Service  covers  the  district.  Parcel-post  pack¬ 
ages  for  the  United  States  are  accepted  and  money  orders  issued 


SWATOW  CONSULAR  DISTRICT 


727 


payable  in  America.  Mail  is  routed  via  Shanghai  or  Hongkong,  and 
requires  about  30  days  between  Swatow  and  New  York. 

SHIPPING  AND  WAREHOUSING  FACILITIES 

The  principal  firms  in  Swatow  maintain  their  own  wharves  and 
pontoons  for  transferring  cargo.  Many  ships,  however,  anchor  in 
midstream  and  transfer  cargo  from  lighters.  The  depth  of  water  at 
mean  low  tide  is  4  to  7  fathoms. 

Following  is  a  table  of  the  shipping  movements  at  SwatoAv  for 
1923,  exclusive  of  innumerable  local  boats : 


Classes  and  flags 

Entered  and  cleared 

V essels 

Tonnage 

Ocean  steamers: 

American _ _ 

22 
2, 460 
61 
18 
670 
78 
222 

2 

18 

88,  486 
3,  301, 304 

149,  589 
24,  432 
760,  986 

89,  642 
206, 169 

1,522 
31,  050 

British . 

Dutch . . . 

French _  ..... 

Japanese _ ... 

Norwegian . 

Chinese . .  .. 

Chilean  _ _ _  _ 

Danish . . 

Classes  and  flags 

Entered  and  cleared 

Vessels 

Tonnage 

Ocean  steamers — Contd. 
Russian _  . 

6 

2, 678 

German.  _ 

4 

4,  580 

Portuguese _ 

2 

224 

Total.. . . 

3,563 

4,  660,  662 

Launches _ _  _  .  ... 

26,  202 

360,  735 

Junks _ _ 

107, 976 

2, 125, 452 

The  three  principal  shipping  companies  control  a  storage  capacity 
of  upwards  of  60,000  tons.  Their  warehouses,  however,  are  designed 
for  their  own  cargo,  though  their  trade  practices  include  free  storage 
for  varying  periods.  All  southern  trade  is  on  ex-ship  delivery  terms, 
and  in  such  cases  Chinese  consignees  generally  store  in  their  own  or 
public  native  godowns.  Cargo  is  carried  by  coolies  from  landing  to 
godowns. 

PUBLIC  WORKS  AND  UTILITIES 

ELECTRIC-LIGHT  PLANTS 

The  five  electric-light  plants  in  the  district  may  be  summarized  as 
follows : 

Swatow-Kaiming  Electric  Light  Co. — Location,  Swatow ;  Chinese  owned ; 
kilowatt  lighting  load,  1,700  to  1,800  amperes,  night;  rate,  25  cents  Mex.  per 
unit,  less  5  per  cent  for  over  100  units ;  plant  operated  by  steam  engine ;  equip¬ 
ment,  German  and  British. 

Chaochow-Chongming  Electric  Co. — Location,  Chaowchowfu  ;  Chinese  owned  ; 
rate,  $2  Mex.  monthly  per  lamp  of  25  candlepower ;  operated  by  steam  en¬ 
gine  ;  equipment,  American  and  British. 

Chaoyang  Electric  Light  Co. — Location,  Chaoyang ;  Chinese  owned ;  equip¬ 
ment,  German,  and  consisting  of  one  Banz  motor,  one  75-kilowatt  dynamo  (al¬ 
ternating  current). 

Kwang  Yao  Electric  Light  Co. — Location,  Kayingchow ;  Chinese  owned;  rate, 
$2  Mex.  per  lamp ;  capacity  60  K.V.A. ;  equipment,  American. 

Hingning  Hsing  Kuang  Electric  Light  Co. — Location,  Hingning;  Chinese 
owned ;  rate,  $2  Mex.  per  lamp ;  capacity,  40  K.V.A. ;  equipment,  American. 

WATERWORKS 

The  Swatow  Waterworks  Co.  (Ltd.)  has  a  service  reservoir  of 
800,000  gallons,  and  a  pumping  station  near  Ampow.  Its  equipment 
is  British.  Rates  are  3  cents  Mex.  per  10  gallons. 


728 


COMMERCIAL  HANDBOOK  OF  CHINA 


OTHER  PUBLIC  WORKS 

There  are  no  tramways  in  the  district  and  no  conservancy  works 
except  those  bound  up  in  the  Han  River  Conservancy  Bureau  and 
the  Swatow  Bund  Construction  Bureau,  neither  of  which  is  active. 

EXPORT  AND  IMPORT  TRADE 

The  following  tables  show  Swatow’s  foreign  trade  for  the  years 
1903,  1913,  and  1923.  Values  are  in  United  States  dollars. 


1903 

1913 

1923 

Imports  of  foreign  goods: 

From  foreign  countries _ _ _ 

$8,  781,  829 
269,  576 

$14,  681,  075 
361,  521 

$23,  231,  795 
2,  339,  750 

From  Chinese  ports  _ 

Total  foreign  imports. . . . . 

9,  051,  405 

15,  042,  596 

25,  571,  545 

Reexports  of  foreign  goods: 

To  foreign  countries  _ _ _ 

30, 845 

6,  468 

132, 110 
89,  751 

200,  350 
157,  646 

To  Chinese  ports _ _ _ 

Total  reexports _  .  _ _ _ _ 

37,  313 

221,  861 

357,  996 

Net  total  foreign  imports . .  . . . . . . 

9,  014,  092 

14,  820,  735 

25,  213,  549 

Imports  of  Chinese  products . . . .  . 

11,755,  201 

14,  140,  390 

25,  666,  748 

Reexports  of  Chinese  products: 

To  foreign  countries  _  _ _ _ _ 

334, 138 
32, 116 

912,  892 
71,  379 

1,  645,  282 
60,  903 

To  Chinese  ports _ _ _  ..  ..  . . . 

Total  Chinese  reexports. . .  .  .  ..  ...  _ 

366,  254 

984,  271 

1,  706, 185 

Net  total  Chinese  imports.  _ _ _ _ _ _ _ 

11,388,  947 

13, 156, 119 

23,  960,  563 

Exports  of  Chinese  products  of  local  origin: 

To  foreign  countries.  _ _ _ _ _ 

2,  977,  308 

4,  646,  678 

5, 133,  002 

4,  376,  927 

8,  594,  329 
7,  754,  961 

To  Chinese  ports _ _ _ _ _ _ 

Total  exports  of  local  origin. _  _  _ _ _ 

7, 623,  986 

9,  509,  929 

16,  349,  290 

Gross  value  of  the  trade  of  the  port _ _ _ 

28,  430,  592 

38,  692,  915 

67,  587,  583 

Net  value  of  the  trade  of  the  port  .  .  _ 

28,  027, 025 

37, 486,  783 

65,  523,  402 

Note. — In  1903  the  haikwan  tael  equaled  $0.64  in  United  States  currency;  in  1913,  $0.73;  and  in  1923,  $0.80. 


Trade  of  Swatow  by  Articles 


1903 

1913 

1923 

Principal  articles 

Quantity 

Value 

Quantity 

Value  1 

Quantity 

Value 

EXPORTS 

Bags  of  all  kinds _ number.. 

Bamboo  and  bamboo  ware 

2,  398,  597 

$61, 370 

867, 907 

$41, 510 

1, 963, 089 

$133, 658 

.....  . value.. . 

38,863 

140, 144 

157, 344 

Chinaware  (not  pottery  and 

earthenware).  . .  tons.. 

1, 876 

88, 863 

4,541 

9,541 

835,  819 

Cloth: 

Native,  fancy  ..number.. 

156,  660 

290,  436 

Nankeens.. _ pounds.. 

1,  218, 400 

372, 278 

337,200 

93, 617 

1,  853, 466 

578,  282 

Clothing,  Chinese,  and  boots 

and  shoes...  _ value 

78,  413 
28, 996 

106,  659 

141, 150 

Cuttlefish.  _  _  ..tons.. 

177 

193 

155,  011 

Drawnwork  on  grass  cloth 

_ _  _ value 

680,  302 

Eggs,  fresh  and  preserved 

_ _ _ ..number.. 

35,  537, 139 

166,  520 

28,  558,  370 

172,  565 

44,  886,  000 

359,  677 

1  Values  for  imports  of  native  goods  (except  medicines)  in  1913  are  not  available. 


SWATOW  CONSULAR  DISTRICT 


729 


Trade  of  Swatow  by  Articles — Continued 


Principal  articles 


exports — continued 

Fishing  nets . pounds.. 

Flour,  potato _ tons.. 

Fruits,  dried  and  preserved 

. ..tons.. 

Garlic. . do _ 

Grass  cloth . .pounds.. 

Iron  pans . ...tons.. 

Joss  sticks. . do _ 

Laces . . value. 


1903 


Quantity 


Oil,  peanut..  _ 

_ tons.. 

Oranges,  fresh _ _ 

_ do _ 

Paper: 

Joss _ 

_ do _ 

Other _ 

_ do _ 

Persimmons,  dried.. 

_ do... 

Samshu... . 

_ do _ 

Samshu,  medicated. 

_ do _ 

Sugar: 

Brown _ 

_ do  .. 

White _ 

_ do _ 

Thread  and  yarn 

ramie 

.pounds.. 

Tinfoil _  _ 

.*  .tons.. 

Tobacco,  prepared.. 

_ do _ 

Turnips,  dried  and 

salted 

_ tons.. 

Umbrella,  paper _ 

number. . 

Vegetables,  fresh,  dried,  and 

salted . . . 

_ tons.. 

IMPORTS  OF  NATIVE  GOODS 

Beans: 

Black . . 

_ tons.. 

Green _ 

_ do _ 

White . . 

_ do _ 

Yellow. . . 

..  .do _ 

Bean  cake . 

_ do _ 

Cigarettes _ 

_ do _ 

Coal . 

_ do _ 

Cotton  goods: 

Drills.... . 

number.. 

Sheetings. . 

_ do _ 

Y  arns  _ 

.pounds.. 

Cotton,  raw  . 

_ tons.. 

Dates,  black  and  rec 

_ do _ 

Fibers: 

Hemp. . 

_ do _ 

Ramie 

do _ 

Fish,  dried  and  salted.. do _ 

Flour,  wheat _ 

_ do _ 

Fungus _ _ _ pounds. . 

Peanuts . . tons.. 

Peanut,  kernels _ do _ 

Horns,  deer,  young _ pairs.. 

Lily  flowers,  dried _ tons.. 

Matches _ gross.  . 

Medicines _ value. . 

Oil,  peanut . tons.. 

Rice  and  paddy _ do _ 

Samshu . . do _ 

Seeds,  melon.. . do _ 

Tea,  green.. . .pounds.. 

Tobacco,  leaf  and  stalk. tons.. 
Vermicelli  and  macaroni 
. ...j _ tons.. 

IMPORTS  OF  FOREIGN  GOODS 


Bags  of  all  kinds _ number.. 

Bicho  do  mar _ pounds.. 

Cereals,  rice  and  paddy. tons.. 

C  igarettes . number . . 

Clothing,  hats,  etc.  (not  in¬ 
cluding  hosiery,  etc.)  .value.. 
Coal . tons.. 


198, 000 
3, 650 

318 
2, 896 
644,933 
884 
1,713 


578 

7,246 

3, 646 
5,  246 
1,410 
635 
638 

39,  389 
28,068 


124 

1,850 


133, 116 
12, 927 


3,  735 
7,089 

48, 865 

169,  346 

”  2,  250 


6,  835 
400 
,  285 
874 

4,  546 

""585 


300,  533 
6,  678 


542 

485 


522 
131,  993 
2,266 
407 
764,  533 
846 

1,905 


87,  669 
352, 800 
357 


62,  343 


Value 


$34,  593 
82, 938 

3,  560 
27,  766 
343,  610 
29,  689 
104, 147 


55,  311 
136,  842 

491, 156 
485,  499 
67,  699 
37,  327 
47, 306 

1,  455,  679 
1,  568,  788 


81, 166 
490, 971 


8,280 
106, 121 


102,  797 
196,  655 

1, 320, 008 

3,  221, 402 


7,  200 


17,  277 
38 

50, 175 
37,  297 

472, 181 

”31, "663 


44,832 
190,  308 


17,  450 
45,  448 


59,  224 
50,  629 
3,  719, 162 
143,  590 
22,  625 
80,  655 
46,  067 

117,  293 


2,  897 
37,  080 
10,  214 

3,800 

3,  618 
194,  873 


1913 


Quantity 


4, 425 

4, 755 
2,957 
852, 933 
1,221 
1,  512 


1,272 
13,  000 

3,738 

7,225 

974 

905 


28,  956 
8, 827 

1,  549,  200 
186 
2,086 


173,  733 
16, 699 


48,  320 
203, 921 


14,  980 
6,667 
819 


4, 193 
”’817 
"7, ’214' 


}  1,465,194 
51,”  545 


Value 


$293, 180 
”668,"  269" 
”’99’  340" 
”176,840 


1,  458,  536 
676,  606 


210, 880 


49, 687 
4,207 

2,000 

1,464 

2, 128 

. 

2,  424,  530 

64,305 

364,  266 

64,837 

6,  663 

231,  424 

9,  791,  000 

18, 169 

305,  493 
287,  896 

65, 175 

1923 


Quantity 


516,  533 
4, 788 

6,  743 
6,  010 
1, 080,  533 
1,  528 
1,361 


{ 


3,  577 
9,084 

6,  767 
78, 929 
1,500 
1,177 
1,284 

43,  733 
5, 138 

1,  595,  866 
199 
2,  071 

4,  512 
667, 671 

12, 858 


4, 423 
8,088 
4, 905 
37,  792 
215, 170 
447 
48,841 

20, 322 
25,  506 
15, 147,  600 
599 
1,230 

1,041 
3,634 
1,454 
5,  508 
269,  733 


13, 876 
1,  300 
435 
1, 169,  212 


1, 143 
34,  366 
3,  791 
740 

1, 396,  533 
1,742 

2,343 


3, 178,  405 
386,000 
188,  701 
54,  392,  000 


51, 166 


Value 


$171, 789 
201, 078 

651,  346 
109,  612 
787,  529 
101, 158 
122,  794 
261, 198 
665,  297 
545,  044 

1,  623,  952 
1,382,  393 

95,  738 

96,  032 
117,  694 

2,  361,  574 
456,  248 

282,  502 
223,  203 
795,  238 

119,  305 
106,  827 

139,  442 


206,  990 
436,  759 
182, 481 

1,  723,  290 
8, 908,  021 

364,  582 
390,  728 

80, 029 
99,  941 

2,  555,  024 
244,  210 
134,  805 

187,  332 
843,  370 
109,  663 
383,  361 
161,  840 


1, 100, 164 
106, 460 
93, 874 
298,  574 
409, 120 
171,  490 
1,  649,  552 
386,  642 
93,  274 
185, 467 
174, 936 

393, 624 


114,  538 
84,  315 
9,  567, 960 
97,  206 

191,314 
275,  020 


730 


COMMERCIAL  HANDBOOK  OF  CHINA 


Trade  of  Swatow  by  Articles — Continued 


Principal  articles 


IMPORTS  OF  FOREIGN  GOODS— 

continued 

Cotton  goods: 

Shirtings — 

Gray,  plain  .number. . 

White,  plain _ do _ 

Plain  cotton  prints  .do _ 

Dyed  cottons,  plain,  col¬ 
ored — 

Italians _ number. . 

Venetians _ do _ 

Poplins... . .do _ 

Lastings _ do _ 

Dyed  cottons,  figured, 

poplins . .  number . . 

Y  arns . . pounds. . 

Thread  on  spools... gross.. 
Dyes,  colors,  and  paints: 

Aniline _ value.. 

Indigo,  artificial _ tons.. 

Dyes  and  colors,  un¬ 
classed _ _ tons.. 

Fish  and  fishery  products 

. ...tons.. 

Flour . 1 . do _ 

Ginseng. . pounds.. 

Leather _ do _ 

Linen  goods  and  mixtures 

. . yards.. 

Machinery  and  parts.. value.. 

Manures _ tons.. 

Medicines _ _ value. . 

Metals  and  minerals: 

Tin  in  slabs... . tons.. 

Tinned  plates _ do _ 

Milk,  condensed,  in  tins 

_ _ dozens.. 

Oil,  kerosene. . ..gallons.. 

Paper . . tons.. 

Soda . . . .do _ 

Spirits  of  wine _ gallons.. 

Sugar: 

White . .tons.. 

Refined. . . do _ 

U  mbrellas _ number.. 

Wax,  paraffin _ tons.. 

Wool  and  cotton  unions: 

Coatings  and  suitings 

- yards.. 

Wool  and  cotton  unions, 

unclassed _ yards. . 

Woolen  goods,  coatings  and 
suitings . . . .  yards. . 


1903 


Quantity 


114, 496 
257, 850 


2,462 


562 


19,  299, 866 
19, 658 


11 
4, 101 
43,  300 
155, 333 

607 

116 


710 

589 

10, 132 
4,  725, 930 
259 
364 
991 

709 
1,078 
10,  991 
42 


Value 


$224,  536 
681,  702 


11,  338 


2, 180 


1,  954, 496 
27, 124 

18,  378 


5,  347 

676 
164, 102 
65, 465 
19, 094 

113 

3,  645 

2,  220 

102,  925 

338,  319 
35, 195 

11,046 
420,  780 
26,  458 
10, 393 
499 

34, 376 
69,  034 

4,  998 
4,083 


1913 


Quantity 


102, 424 
174,  447 


43, 897 


20,  841,  466 
48, 124 


482 

1,114 

4, 710 

16,  566 

17,  275 
446, 933 

12,090 

496 


750 

809 

27,  921 
5,  956,  950 
1,019 
1,  220 


5,237 
3,  605 
126,  407 


55, 119 


Value 


$228, 916 
528, 161 


132, 832 


2, 900,  737 
64,239 

50,  377 
190,  215 

86, 934 

592, 459 
761, 873 
37, 027 
107, 131 

2,  559 
19,  811 
12, 117 
195,  325 

371,  000 
60,  751 

35, 897 
673, 129 
92,  011 
43,  022 


336, 077 
240,  825 
55,  680 


18, 855 


1923 


Quantity 


76, 496 
70, 484 
25,  078 


22, 910 
15, 992 
11,526 
44,726 

14, 149 
1,  274,  533 
291,  326 


222 

1, 103 

7,985 
16,  531 
20,  955 
770,  666 

213,  008 

'"’2, "992‘ 


1,039 

2,  688 

2  254 
5,  575, 013 
1,436 
1,671 
305, 160 

5,118 
3,  536 
161,  453 
921 


157, 335 
138,  291 
129,  867 


Value 


$347,  275 
422,  809 
94,  792 


175,  399 
168, 126 
119,  916 
338,464 

166,  746 
477,  955 
364, 384 

166,  687 
146,  614 

117,  298 

1,111,234 
992,  291 
175,  396 
212,  754 

130,  067 
92, 663 
202,  629 
214,  322 

835,  088 
387,  561 

103,  893 
1,  323, 158 
178, 185 
94,  731 
141,  728 

644, 801 
455,  502 
102,  876 
99,  075 


138,  722 
127,  091 
196,  464 


3  Tons. 


MONEY,  BANKING,  AND  CREDIT 

BANKING  FACILITIES 

The  following  banks,  through  their  Swatow  offices,  handle  foreign 
exchange  and  bills:  Bank  of  China,  Neclerlandsch  Indische  Hand- 
elsbank,  and  Bank  of  Taiwan. 

The  average  annual  rate  of  interest  paid  by  the  above  banks  is 
o1/}  per  cent  on  fixed  deposits  and  2  per  cent  on  current  accounts. 

LOCAL  CURRENCY 

The  various  local  currencies,  fictitious  and  actually  existent,  are  the 
Swatow  tael,  the  local  (tek  peng  or  T-mace)  dollar,  the  “  dragon 


SWATOW  CONSULAR  DISTRICT 


731 


dollar,  the  “.727”  dollar,  subsidary  silver  coins,  coppers,  and  cash. 
The  haikwan  or  customs  tael  does  not  constitute  a  business  currency. 

A  point  of  interest  in  the  local  currency  situation  is  the  Swatow 
tael  and  tek  peng  or  7-mace  dollar.  The  tek  peng  dollar  does  not 
fluctuate,  700  taels  always  being  the  equivalent  of  $1,000  of  this 
currency. 

Although  the  Swatow  tael  may  be  termed  a  fictitious  currency,  it 
is  the  money  of  account  of  the  native  banks  and  the  larger  shops, 
and  serves  as  the  basis  of  computation  of  local  rates  of  exchange, 
which  are  all  quoted  in  terms  of  this  unit  by  the  native  banks.  How¬ 
ever,  it  is  customary  for  the  foreign  banks  to  quote  foreign  curren¬ 
cies  directly  in  terms  of  silver  dollars  or  the  “.700  ”  dollar  if  desired. 

The  tek  peng  or  “.700”  dollar  currency  is  represented  only  by 
paper  issues  of  the  local  banks,  and  its  use  is  confined  to  Swatow 
and  Chaochowfu.  This  dollar  is  the  chief  currency  of  native  busi¬ 
ness,  although  actual  payments  may  be  made  in  silver  dollars  at  the 
rate  of  the  day.  The  custom  of  the  local  banks  is  to  make  daily 
note  settlements — that  is,  at  the  close  of  business  each  bank  ex¬ 
changes  the  notes  of  other  banks  for  its  own.  Overdrafts  are  com¬ 
mon,  and  rates  of  interest  vary  from  10  to  30  per  cent  per  annum 
throughout  the  year. 

The  only  foreign  bank  which  issues  silver-dollar  notes  is  the  Bank 
of  Taiwan,  but  this  bank  note  is  not  popularly  received.  It  never 
reaches  the  interior,  and  in  Swatow  it  is  current  only  among  foreign 
banks  and  Government  institutions. 

CREDITS 

In  exporting  goods  to  the  United  States  the  American  importers 
usually  provide  letters  of  credit,  and  the  shippers  are  instructed  to 
draw  either  at  sight  or  at  so  many  days  (30  to  90),  according  to  the 
terms  of  the  letter. 

In  importing  from  the  United  States  the  American  exporter  in¬ 
variably  demands  a  letter  of  credit,  which  could  be  procured  locally 
or  in  Hongkong.  The  usual  amount  of  deposit  required  by  the  banks 
for  such  a  document  is  25  per  cent  of  the  amount  of  the  letter,  but 
well-known  merchants  may  procure  such  documents  with  a  deposit  of 
10  per  cent.  Chinese  merchants  prefer  long  credits,  and  often  90 
days  are  stipulated.  Importing  from  Europe  is  simpler.  The  local 
importer  only  sends  an  order  with  a  request  to  draw  on  him  at  30, 
60,  or  90  days,  through  a  designated  (or  any)  bank,  without  a  letter 
of  credit  or  authority  to  draw.  Of  course,  in  such  cases  the  Euro¬ 
pean  exporter  must  first  be  satisfied  as  to  the  standing  of  the  local 
firm,  which  can  be  ascertained  by  referring  to  the  exporter’s  local 
bank. 

ADVERTISING 

Newspaper  circulation  in  this  district  is  very  limited,  few  such 
publications  reaching  the  farmer  class.  Newspaper  advertisements 
come  to  the  attention  of  only  the  educated,  and  therefore  should  be 
supplemented  by  some  other  form  of  advertising.  The  handbill  is 
the  quickest  and  surest  way  to  advertise  among  all  classes.  Poster 
advertising  (on  which  there  is  no  tax)  is  also  advantageous.  Trade 
catalogues  are  of  little  use,  as  they  appeal  only  to  the  educated  few. 


J 

732  COMMERCIAL  HANDBOOK  OF  CHINA 

TRADE  ORGANIZATIONS 

The  British  Chamber  of  Commerce  is  the  only  foreign  chamber  of 
commerce  in  Swatow.  There  is  a  Chinese  Chamber  of  Commerce 
and  there  are  about  20  guilds. 

TRAVEL  FACILITIES  AND  HOTELS 

The  best  time  to  visit  Swatow  is  from  November  to  February, 
when  the  weather  is  delightful.  The  other  months  are  warm.  Swa¬ 
tow  is  most  easily  and  comfortably  reached  from  Hongkong,  though 
there  are  occasional  direct  steamers  from  Shanghai. 

The  leading  hotels  of  the  district  are  the  Astor  House  and  the 
Oriental  Hotel,  both  in  Swatow,  the  former  under  Chinese  owner¬ 
ship  and  the  latter  British. 

PROPERTY  VALUES,  RENTS,  AND  TAXES 

For  property  in  the  business  section  of  Swatow  the  cost  per  chang* 
(100  square  feet)  ranges  from  $500  to  $1,000  Mex.,  and  in  the  resi¬ 
dential  section  from  $100  to  $200  Mex.  per  chang.  Office  space  is 
limited,  and  the  average  rates  of  rent  range  from  $35  Mex.  per 
month  for  two  rooms  to  $125  for  five  rooms.  Rent  for  warehouse 
space  averages  $5  Mex.  a  month  or  $50  a  year  per  chang  of  floor 
space.  Rent  for  residential  purposes  averages  $100  to  $150  Mex. 
per  month. 

Swatow  is  the  only  treaty  port  in  this  consular  district.  There 
are  no  foreign  concessions  in  Swatow,  the  city  being  under  the  con¬ 
trol  of  Chinese  officials.  There  is  no  limitation  to  the  area  in  which 
foreigners  may  reside.  Foreigners  may  acquire  property  in  the 
usual  manner  by  leasing  it  in  perpetuity. 

Foreigners  pay  no  taxes  in  Swatow.  The  only  public  activity  of 
this  class  of  residents  is  manifested  in  the  formation  of  committees 
employed  in  collecting  and  expending  funds  for  the  construction  and 
maintenance  of  roads  and  pathways  in  the  neighborhood  of  dwell¬ 
ings  where  foreigners  live. 


LIVING  COSTS 

The  approximate  cost  of  living  per  month,  which  includes  board 
and  lodging,  club  dues,  laundry,  transportations,  and  incidentals,  is 
for  a  single  person  approximately  $225  Mex.,  and  for  a  married 
couple  $325. 

The  chief  recreations  are  tennis,  swimming,  and  boating.  There 
are  no  educational  facilities  for  American  children,  most  of  whom 
in  this  district  attend  the  American  school  in  Shanghai, 


TSINAN  CONSULAR  DISTRICT 


By  Vice  Consul  H.  L.  Milbourne 

LOCATION  AND  AREA 

The  Tsinan  consular  district  includes  all  of  Shantung  Province 
except  the  former  leased  territory  of  Kiaochow  and  that  portion 
of  the  Shantung  Peninsula  forming  the  consular  district  of  Chefoo. 
Roughly,  it  lies  between  35°  and  38°  north  latitude — corresponding 
to  the  latitude  of  North  Carolina  and  southern  Virginia — and  be¬ 
tween  115°  and  120°  east  longitude.  The  area  of  Shantung  is  given 
as  55,984  square  miles,  and  the  94  “  hsien,”  or  counties,  comprising 
the  Tsinan  consular  district  have  an  area  of  approximately  46,000 
square  miles.  The  area  of  the  Province,  therefore,  corresponds  to 
that  of  Iowa,  and  the  area  of  the  consular  district  is  about  equiva¬ 
lent  to  that  of  Pennsylvania. 

Central  and  southeastern  Shantung  is  mountainous  and  rugged. 
The  western  part  is  flat  and  low,  and,  being  cut  by  numerous  streams 
leading  to  the  Yellow  River,  is  subject  to  floods.  The  central  part 
of  the  northern  section  is  a  barren  plain,  also  subject  to  inundation. 

CLIMATE 

Shantung  shares  the  general  climatic  conditions  of  North  China, 
the  winters  being  long,  cold,  and  dry,  the  summers  short  and  hot. 
Temperature  ranges  from  zero  to  100°  F.  The  rainy  season  is  in 
July  and  August. 

The  Province  is  subject  to  prolonged  droughts  and  at  times  to 
sudden  and  disastrous  floods.  During  the  abnormal  rainfall  in  the 
summer  of  1921,  following  a  drought  of  several  years’  duration,  the 
Yellow  River  broke  its  northern  dike  near  Litsing  and  flooded 
1,800  square  miles  of  land,  rendering  more  than  a  quarter  of  a 
million  people  homeless. 

POPULATION 

In  1920  the  population  of  Shantung  was  30,803,245  (Chinese  Post 
Office  estimate) ,  or  550  to  the  square  mile.  Of  China’s  19  Provinces, 
Shantung  ranks  sixth  in  population  and  third  in  density  of  popula¬ 
tion.  The  population  of  the  Tsinan  consular  district  is  estimated 
at  26,000,000.  Foreign  residents  in  the  district  include  about  470 
Americans,  160  British,  70  Germans,  and  2,800  Japanese.  Of  the 
American  residents,  about  90  per  cent  are  missionaries,  representing 
14  different  missionary  societies. 


733 


734 


COMMERCIAL  HANDBOOK  OF  CHINA 


CITIES 

* 

The  most  important  cities  of  the  district  are  shown  below.  There 
are  four  American  business  firms  in  Tsinan,  but  none  in  any  of  the 
other  cities  listed. 


Cities 

Population 

(estimated) 

Europeans 

Americana 

Tsinan  1 _ _ -  _ 

283,  000 
97,  000 
90,  000 
73,  000 
55,  000 
42,  500 

160 

130 

Weihsien . . ..  . . 

29 

Taianfu  _ _ _  _ 

12 

45 

Tsining _ _ _ 

6 

28 

Teh  chow . . . . . . . . . . 

2 

19 

Chowtsun . . . . . . . . .  . 

23 

1  Treaty  port  where  foreigners  may  reside  for  trade  purposes. 


Tsinan ,  the  provincial  capital,  is  advantageously  situated  at  the 
junction  of  two  railways.  Its  commercial  importance  has  increased 
rapidly  during  the  last  10  or  15  years,  its  growth  being  stimulated 
by  the  construction  of  the  Kiaochow-Tsinan  Railway,  opened  in  1904, 
connecting  the  city  with  the  port  of  Tsingtao,  followed  by  the  con¬ 
struction  of  the  Tientsin-Pukow  Railway,  opened  in  1912,  affording 
connections  with  the  two  ports  which  give  the  railway  its  name. 
The  earlier  growth  of  Tsinan  was  due  to  its  favorable  central  posi¬ 
tion  within  a  few  miles  of  the  Yellow  River,  to  its  water  communica¬ 
tion  with  the  Grand  Canal  and  the  Gulf  of  Chihli,  and  to  the  various 
important  agricultural  producing  centers  in  its  immediate  vicinity. 
Tsinan  was  voluntarily  opened  to  foreign  residence  and  trade  by 
imperial  decree  of  1904.  The  city  consists  of  the  old  Chinese  walled 
city  and  the  new  district  outside  the  Avails,  usually  referred  to  as 
“  The  Settlement.”  Both  the  native  city  and  the  commercial-port 
area  are  under  Chinese  administration  and  police  control.  The 
American,  British,  German,  and  Japanese  Governments  maintain 
consular  establishments  at  Tsinan. 

Weihsien ,  the  second  largest  city  in  the  district,  is  situated  on  the 
Kiaochow-Tsinan  Railway  about  midway  between  Tsinan  and  Tsing¬ 
tao.  A  motor  road  connects  Weihsien  with  Chefoo.  Plans  for  a 
railway  between  these  two  cities  have  been  under  consideration  for 
a  number  of  years,  but  for  various  reasons  they  have  not  progressed 
beyond  the  point  of  discussion.  Weihsien  Avas  declared  open  to 
foreign  trade  and  residence  by  imperial  decree  of  1904,  but  as  a 
commercial-port  area  has  never  been  delineated  it  is  not  considered 
as  actually  so  opened.  Salt,  tobacco,  embroidery,  lacquer  ware,  tin¬ 
ware,  hair  nets,  and  bristles  constitute  the  bulk  of  the  trade.  Weih¬ 
sien  was  the  site  of  the  first  American  mission  in  Shantung,  opened 
in  1861. 

Talon  is  situated  on  the  Tientsin-PukoAv  Railway,  about  45  miles 
south  of  Tsinan.  It  is  the  center  of  an  important  peanut  and  fruit¬ 
growing  district,  but  Taian  is  principally  noted,  however,  for  its 
proximity  to  Taishan,  the  most  famous  of  the  five  sacred  mountains 
of  China. 

T sining  is  the  terminus  of  a  20-mile  branch  line  of  the  Tientsin- 
Pukow  Railway  running  southwest  from  Yenchowfu.  It  is  also  situ¬ 
ated  on  the  Grand  Canal.  Tsining  is  an  important  collecting  and 


TSINAN  CONSULAR  DISTRICT  735 

shipping  point  for  cotton,  wheat,  and  cattle.  The  industries  of  the 
city  include  a  flour  mill  and  three  egg-products  factories. 

Tehchom ,  about  60  miles  north  of  Tsinan,  is  also  situated  on  both 
the  Tientsin- Pukow  Railway  and  the  Grand  Canal.  It  is  the  site  of 
one  of  the  Chinese  Government  arsenals  and  is  a  shipping  point  for 
cotton,  bean  oil,  and  other  agricultural  products. 

C howtsunls  on  the  Kiaochow-Tsinan  Railway,  about  50  miles  east 
of  Tsinan.  Its  excellent  climatic  conditions  for  the  growth  of  mul¬ 
berry  trees  make  it  an  important  silk-producing  center.  Chowtsun 
was  also  opened  by  imperial  decree  of  1904,  but,  like  Weihsien,  has 
never  been  actually  opened  to  foreign  trade. 

AGRICULTURE  AND  LIVESTOCK 

The  population  of  Shantung,  in  common  with  that  of  China  as  a 
whole,  is  almost  entirely  dependent  upon  agriculture  for  a  liveli¬ 
hood.  The  soil  in  most  parts  of  the  Province  is  far  from  poor,  and 
its  products  are  surprisingly  varied.  Wheat,  kaoliang  (kafir  corn), 
millet,  and  beans  are  the  staple  crops  in  the  lowland  districts  east  of 
Tsinan. 


Agricultural  products  (in  order  of 
importance) 

Planting  season 

Harvesting  season 

Average 
produc¬ 
tion  per 
acre 

Estimated 
annual  pro¬ 
duction 

Wheat _ bushels. . 

September  . 

May _ 

16 

480 

36 

N34 

1,600 

1,200 

16 

47,  000,  000 
135,  000,  000 
34,  000,  000 
30,  000,  000 
£60,  000,  000 
40,  000,  000 
10,  000,  000 

Cotton _ _ _ pounds.. 

May.. . . 

September _ _ 

Millet _ bush  els. . 

_ do _ _ 

. do.  _  .. 

Kaoliang _ _ do _ 

Peanuts  _ pounds.. 

Tobacco  .  _  .  ..  do.  . 

. do . . 

. do . 

_ .do _ 

. do _ 

_ do _ _ 

_ do . . 

Beans  ...  _  ....  bushels.. 

June _ 

October _ 

Note. — Weights  of  the  various  bushels  are  as  follows:  Wheat,  60  pounds;  millet,  48  pounds;  kaoliang,  48 
pounds;  beans,  60  pounds. 


GRAINS 


Nearly  one-half  of  the  land  in  this  section  is  sown  in  wheat  in 
the  autumn.  In  the  spring  kaoliang  and  millet  are  planted  in  about 
equal  proportions  on  the  remaining  half  of  the  land  cultivated. 
The  wheat  is  harvested  toward  the  latter  part  of  May,  and  beans 
are  planted  in  its  place.  Kaoliang  and  millet  are  cut  in  September 
and  wheat  is  again  sown,  while  the  land  from  which  the  bean  crop 
is  harvested  in  October  is  allowed  to  lie  fallow  until  the  follow¬ 
ing  spring.  About  one-tenth  of  the  land  is  reserved  for  vegetables 
and  other  crops. 

COTTON 

Cotton  is  grown  extensively  in  western  Shantung  in  the  Yellow 
River  and  Grand  Canal  basins.  In  recent  years  American  cotton 
has  been  successfully  introduced  and  cultivated  throughout  this 
section.  The  greater  part  of  Shantung’s  cotton  crop  is  sent  to 
Tsinan,  sold  to  Japanese  buyers,  and  shipped  over  the  Kiaochow- 
Tsinan  Railway  to  Tsingtao  for  export  to  Japan.  The  manufacture 
of  wadded  garments — a  household  industry  carried  on  by  women — 
consumes  a  large  share  of  the  annual  production.  A  considerable 
quantity  is  also  used  by  the  Loo  Feng  Cotton  Spinning  &  Weaving 


736 


COMMERCIAL  HANDBOOK  OF  CHINA 


Co.,  which  operates  a  mill  with  16,000  spindles  at  Tsinan,  and  by 
the  cotton  mills  at  Tsingtao. 

PEANUTS 

Peanuts  are  grown  wherever  sandy  soil  obtains ;  the  principal 
producing  districts  are  Taian  and  Laiwu,  in  central  Shantung.  The 
estimated  normal  crop  of  peanuts  in  the  Province  is  250,000  tons, 
more  than  half  of  which  is  for  export,  either  shelled,  unshelled, 
or  in  the  form  of  oil.  Most  of  the  oil  is  extracted  by  native  meth¬ 
ods,  although  there  are  two  oil  mills  at  Tsinan  and  others  at 
Tsingtao.  Shantung  peanuts  are  larger  and  contain  more  oil  than 
those  grown  in  other  Provinces  of  China. 

TOBACCO 

Tobacco  is  an  important  crop  in  the  Ankiu,  Weihsien,  Changlo, 
and  Changi  districts.  A  low  and  uncertain  grade  of  tobacco  had 
been  grown  in  Shangtung  for  many  years,  but  it  Avas  not  until  1914 
that  experiments  were  made  with  a  view  to  producing  a  type  of 
tobacco  which  could  be  used  in  the  manufacture  of  high-grade  cigar¬ 
ettes.  In  that  year  a  foreign  tobacco  company  conducted  extensive 
inATestigations  in  the  Weihsien  district  and  found  that  both  soil  and 
climate  were  suitable  for  the  growth  of  Virginia  and  North  Carolina 
leaf.  Large  quantities  of  selected  American  seed  were  imported  and 
distributed  free  of  charge  to  the  farmers,  who  agreed  to  plant  it 
on  the  understanding  that  the  foreign  company  would  purchase 
the  entire  crop  at  a  fair  price.  Thus  a  real  tobacco  market  has  been 
created,  and  a  high-grade  tobacco  stock  has  been  firmly  established. 
There  being  no  tobacco  factories  in  Shantung,  the  entire  tobacco 
crop  is  shipped  to  the  manufacturing  centers  of  Shanghai,  Tientsin, 
and  Mukden  \7ia  Tsingtao. 

BEANS 

Beans  are  groAvn  generally  throughout  the  Pro\rince.  Roughly, 
50,000  tons  are  distributed  through  Tsinan  annually,  the  greater 
part  of  which  is  shipped  to  Tsingtao  over  the  Kiaochow-Tsinan 
RailAA  ay.  Practically  the  entire  bean  crop  is  consumed  within  the 
ProATince,  a  part  being  used  in  the  manufacture  of  oil  by  nath7e 
methods. 

OTHER  CROPS 

Other  important  crops  are  maize,  grown  in  the  northwestern  and 
southern  parts  of  Shantung;  sweet  potatoes,  grown  almost  e\Tery- 
where  throughout  the  Province;  and  walnuts,  groAvn  principally  in 
the  Tsingchow  and  Taian  districts.  The  maize  and  sweet-potato 
crops  are  consumed  locally,  while  the  bulk  of  the  walnut  crop  finds 
its  way  to  Tientsin  and  Shanghai.  Crops  of  lesser  importance  in¬ 
clude  hemp,  rice,  buckwheat,  ginger,  and  sesame.  Many  A7arieties  of 
fruit  are  grown,  including  apples,  pears,  peaches,  persimmons,  apri¬ 
cots,  plums,  cherries,  and  grapes.  Truck  gardening  is  an  important 
occupation  throughout  the  Province.  Melons,  strawberries,  cabbage, 
garlic,  and  a  wide  variety  of  vegetables  are  extensh7ely  grown. 

Mulberry  trees  and  scrub  oak  are  grown  in  the  eastern  part  of 
the  Province  for  sericulture  purposes. 


TSINAN  CONSULAR  DISTRICT 


737 


/  STOCK  RAISING 

Cattle  are  raised  everywhere,  but  the  individual  herds  are  small. 
The  number  is  roughly  put  at  1,000,000  head,  of  which  from  10,000 
to  20,000  are  exported  and  about  100,000  head  butchered  within  the 
Province  each  year.  Conditions  for  raising  cattle  vary  greatly  in 
different  sections. 

Summer  pasturage  in  the  mountains  is  good,  but  there  is  not  suf¬ 
ficient  provender  or  winter  shelter  for  large  herds.  In  some  dis¬ 
tricts,  notably  Tsaohsien,  Tsaochow,  and  Tingtao,  cattle  are  plenti¬ 
ful  and  cheap,  and  their  number  could  be  increased,  while  in  other 
districts,  such  as  Weihsien,  Changlo,  and  Changi,  lack  of  pasturage 
confines  this  undustry  to  the  raising  of  work  animals  only.  During 
periods  of  crop  failures  and  high  prices  cattle  are  sold  indiscrimi¬ 
nately. 

Sheep,  goats,  and  swine  are  raised  in  considerable  numbers. 

AGRICULTURAL  METHODS 

While  his  agricultural  implements  are  of  very  primitive  type,  the 
Shantung  farmer  possesses  a  good  knowledge  of  the  most  important 
principles  of  his  occupation.  The  use  of  fertilizers,  the  necessity  of 
following  a  rotation  of  crops,  and  the  usefulness  of  leguminous 
crops  in  enriching  the  soil  are  understood  in  a  general  way.  Every 
particle  of  arable  land  is  under  cultivation,  while  in  the  mountain¬ 
ous  districts  the  hillsides  have  been  terraced  in  order  to  extend  the 
cultivable  area. 

MINERALS  AND  MINING 

Coal  and  iron  are  the  most  important  minerals  found  in  Shantung. 
The. principal  coal  fields  are  at  Tsaochwang,  in  the  Yihsien  district; 
at  Fangtze,  on  the  Kiaochow-Tsinan  Railway,  about  midway  be¬ 
tween  Tsinan  and  Tsingtao ;  and  at  Tzeclrwan,  on  a  branch  line  of  „ 
the  Kiaochow-Tsinan  Railway  which  connects  with  the  main  line 
at  Changtien,  60  miles  east  of  Tsinan.  The  Yihsien  coal  field  is  con¬ 
sidered  the  best  in  Shantung.  There  are  a  number  of  small  mines  in 
the  immediate  vicinity  of  Poshan,  south  of  Tzechwan,  which  have 
been  worked  by  native  methods  for  several  hundred  years.  Other 
coal  mines  in  the  district  are  at  Ningyang,  on  the  Tientsin-Pukow 
Railway,  and  at  Changkiu,  north  of  the  Kiaochow-Tsinan  Railway 
between  Tsinan  and  Chowtsun. 

Iron  ore  of  high  grade  is  found  near  Chinglingclien,  on  the  Kiao¬ 
chow-Tsinan  Railway,  about  75  miles  east  of  Tsinan. 

Resources  and  production  (in  tons  of  2,240  pounds)  of  coal  and 
iron  are  shown  in  the  following  table : 


Minerals 

Nature 

Annual  pro¬ 
duction 

Extent  of 
resources 

Export  in 
1923 

Coal . . . 

/Bituminous  .  . . . . . 

Tons 

1, 800, 000 

Tons 

655, 000, 000 
30, 000, 000 
100,  000,  000 

Tons 
i  245, 000 

\Anthracite .  _ _ 

Iron  ore _  _ _  _ 

65  per  cent  iron  ... . 

80,000 

15,000 

1  Export  from  Tsingtao  only. 


100020°— 26 - 48 


738 


COMMERCIAL  HANDBOOK  OF  CHINA 


Gold  has  been  discovered  at  numerous  places  in  the  northern  part 
of  the  Province.  The  richest  deposits  are  at  Chaoyuan,  Chiutien 
(near  Pingtu),  Chihhusan  (near  Ninghai),  Hsiayutsen,  and  Kwei- 
shan.  The  mine  at  Chaoyuan  is  the  only  one  in  actual  operation,  and 
is  said  to  be  the  only  one  that  can  be  profitably  worked.  No  accurate 
information  is  available  as  to  its  output. 

Copper  and  lead  deposits  have  been  discovered,  but  no  mining 
operations  have  ever  been  undertaken. 

MINING 

The  principal  recent  development  in  connection  with  the  mining 
industry  in  Shantung  was  the  transfer  in  1923  of  the  coal  mines  at 
Fangtze  and  Tzechwan  and  the  iron  mine  at  Chinglingchen  from 
Japanese  to  Chinese  ownership.  In  1898  Germany  wras  given  the 
right  to  develop  the  mines  along  the  then  proposed  railway  between 
Tsinan  and  Tsingtao.  The  Japanese  took  possession  of  the  mines 
in  1914,  and  later,  by  virtue  of  the  treaty  of  Versailles,  the  German 
rights  were  acquired  by  Japan.  In  1922  a  Sino- Japanese  agreement 
was  concluded  to  transfer  the  mines  at  Fangtze,  Tzechwan,  and 
Chinglingchen  to  a  company  to  be  formed  under  a  special  charter 
of  the  Chinese  Government,  in  which  the  amount  of  Japanese  capital 
should  not  exceed  that  of  Chinese  capital.  The  Sino- Japanese  com¬ 
pany,  the  formation  of  which  was  provided  for  as  above,  was  organ¬ 
ized  in  April,  1923,  under  the  name  of  the  Lu  Ta  Mining  Co.,  with 
its  head  office  at  Tientsin.  The  capital  of  the  company  is  said  to 
consist  of  200,000  shares  of  $50 1  each,  of  which  the  sum  of  $2,500,000 
is  reported  to  have  been  subscribed.  The  Lu  Ta  Co.  formally  took 
possession  of  the  mines  in  August,  1923,  and  transferred  its  head 
office  to  Tsingtao. 


Mines 

Location 

Nature  of 
product 

Output, 

1923 

Capital 
paid  up 

Nationality  of 
company 

Head  office 

Chung  Hsing . . 

Lu  Ta  Mines _ 

Poshan  Mines _ 

Tsaochwang.  . 

Fangtze _ 

Poshan  _ 

Bituminous... 

_ do _ 

_ do...  _ 

Tons 
730, 000 
650, 000 
280,  000 
30,  000 
30,  000 

1  3,  500, 000 

2  $2,  500,  000 

Chinese _ 

Sino-Japanese. 
Chinese _ 

Tientsin. 

Tsingtao. 

Poshan. 

Ningyang. 

Changkiu. 

Huafeng . . 

Ningyang  _ 

_ do..  _ _ 

_ do _ _ 

Tienyuan  _. . . 

Changkiu _ 

_ do _ 

_ do _  . 

Chinglingchen.  _ 

Chinglingchen 

Iron.  .  _ 

Cl 

1  Taels. 

2  Local  currency,  of  which  $1  equals  about  $0.50  United  States. 

3  Operated  by  the  Lu  Ta  Mining  Co. 


Chung  Using  mine. — The  Chung  Hsing  Coal  Mining  Co.  was 
established  in  1880  with  a  capital  of  $20,000.  In  1898  German 
capital  was  admitted,  but  was  bought  out  in  1908.  The  capital  has 
now  been  increased  to  3,500,000  taels.  The  mining  area  controlled  by 
this  company  is  122  square  miles  in  extent  and  has  an  estimated 
coal  deposit  of  200,000,000  tons.2  The  present  output  of  the  mine  is 
about  700,000  tons  annually.  The  company  operates  eight  shafts, 
all  of  which  are  equipped  with  modern  mining  machinery  of  Ger¬ 
man  make.  A  new  shaft,  1,000  feet  deep,  was  sunk  in  1922.  About 


1  Throughout  this  chapter,  unless  otherwise  stated,  dollars  refer  to  local  currency,  in 
which  $1  equals  about  $0.50'  United  States. 

2  The  long  ton  is  used  in  the  material  in  this  chapter  having  reference  to  minerals. 


TSINAN  CONSULAR  DISTRICT 


739 


5,000  laborers  are  employed.  The  company  operates  a  railroad  27 
miles  long,  between  Tsaochwang  and  Taierhchwang,  affording  con¬ 
nections  with  the  Grand  Canal.  The  Tientsin-Pukow  Pailway  has 
constructed  a  branch  line  from  Lincheng  to  Tsaochwang,  a  distance  of 
about  20  miles,  and  has  contracted  for  60,000  tons  of  coal  annually. 
Some  60,000  tons  are  coked  annually  at  the  mines.  The  rest  of  the 
output  is  shipped  to  Pukow  and  other  points  along  the  Tsien-Pukow 
line. 

Fatngtze  mines. — The  original  Fangtze  coal  mine  was  worked  by 
the  Germans  from  1902  to  1914.  When  the  mine  was  taken  over  by 
the  Japanese  in  1914  new  veins  were  traced  near  the  old  mine  and 
operations  were  started  in  1917.  The  machinery  of  the  original 
German  mine  has  been  dismantled  and  set  up  at  Tzechwan,  only 
the  briquet  factory  being  left  intact.  The  equipment  of  this  mine, 
as  well  as  of  the  briquet  factory,  was  of  German  make.  The  F angtze 
north  and  central  mines  are  not  yet  producing,  while  the  south  mine 
has  only  a  nominal  output.  The  equipment  of  the  Fangtze  east  and 
west  mines,  the  only  two  now  in  operation,  is  of  German  and  Jap¬ 
anese  manufacture.  The  present  output  is  about  150,000  tons  a  year. 
When  working  at  full  capacity  about  800  laborers  are  employed. 
The  output  of  the  Fangtze  mines  is  shipped  over  the  Kiaochow- 
Tsinan  Railway  to  Tsingtao  and  other  distributing  points. 

Tzechwan  mine. — This  mine,  formerly  called  Hungshan,  covers  an 
area  of  about  6  square  miles  and  has  an  estimated  deposit  of  about 
70,000,000  tons.  There  are  12  seams,  the  first  lying  at  a  depth  of 
100  meters  and  the  last  at  a  depth  of  270  meters.  The  total  thickness 
of  the  seams  is  about  6  meters. 

Mining  operations  at  the  Tzechwan  mine  were  started  by  the  Ger¬ 
mans  in  1904.  There  are  three  shafts — one  sunk  in  1904,  another  in 
1910,  and  the  third,  originally  intended  for  ventilating  purposes,  in 
1913.  The  mine  is  equipped  with  a  complete  electric  light  and  power 
plant  consisting  of  two  alternating  sets  of  German  manufacture  and 
one  Parson’s  turboalternating  set.  Other  equipment  includes  com¬ 
plete  air  compression,  ventilator,  and  coal-washing  plants,  coal  sepa¬ 
rator  and  conveyors,  machine  shop  and  foundry,  hoisting  engines, 
boilers,  and  pumping  equipment — all  of  German  make.  About 
4,000  Chinese  miners  are  employed,  working  in  8-hour  shifts, 
and  receiving  about  40  cents  a  day.  The  output  of  the  Tzechwan 
mine  is  transported  over  the  Kiaochow-Tsinan  Railway  to  Tsingtao 
and  other  distributing  points  along  the  line.  The  present  annual 
output  is  about  500,000  tons. 

Poshan  coal  mines. — This  group  of  mines  is  now  being  wrnrked  by 
some  40  Chinese  and  Japanese  firms  and  individuals,  applying  both 
native  and  foreign  methods.  The  fields  cover  an  area  of  about  100 
square  miles.  The  deposit  is  estimated  at  170,000,000  tons.  The 
total  annual  output  is  about  300,000  tons.  From  150,000  to  200,000 
tons  of  coke  a  year  are  being  made  at'  Poshan,  about  half  of  wdfich 
find  its  outlet  over  the  railway. 

Other  coal-  mines. — The  coal  mines  at  Ningyang  and  Changkiu 
are  relatively  unimportant. 

Chinglingchen  iron  mine. — The  Chinglingchen  iron  mine  covers 
an  area  of  about  120  square  miles  and  is  estimated  to  contain  100,- 
000,000  tons  of  ore.  The  thickness  of  the  vein  is  15  to  17  meters. 


740 


COMMERCIAL  HANDBOOK  OF  CHINA 


The  quality  of  the  ore  varies  materially,  but  the  average  runs  high. 
An  analysis  of  an  average  sample,  made  by  a  German  chemist, 
showed  65  per  cent  iron,  23  per  cent  manganese,  3  per  cent  phos¬ 
phorous,  and  8  per  cent  sulphur.  The  Germans  were  preparing  to 
work  this  mine  when  the  European  war  broke  out  in  1914,  and 
Japanese  operation  of  the  mine  dates  from  1916.  During  the 
Japanese  operation  of  the  mine  the  output  varied  according  to  the 
requirements  of  the  Japanese  Government.  In  1919  it  was  179,000 
tons;  in  1920,  128,000  tons;  in  1921,  88,000  tons;  and  in  1922,  only 
26,000  tons.  There  was  no  production  during  1923.  When  pro¬ 
ducing  its  maximum,  about  1,200  coolies  are  employed  in  the  mine. 
There  is  no  need  at  present  for  hoisting  machinery  at  Chinglingchen. 

The  ore-filled  cars  are  operated  by  gravity  from  the  adits,  and  the 
empties  are  hauled  back  by  mules.  The  only  equipment  at  the  mine 
consists  of  an  old  boiler  plant  and  small  blacksmith  and  repair  shops. 

MANUFACTURING  AND  INDUSTRIAL  DEVELOPMENT 

With  the  proximity  of  fuel  and  raw  materials  at  Tsinan,  consider¬ 
able  industrial  development  is  beginning.  Practically  all  of  the  in¬ 
dustries,  of  which  flour  milling  takes  the  lead,  are  owned  and  oper¬ 
ated  by  Chinese.  Other  industrial  enterprises  include  a  cotton 
spinning  and  weaving  mill;  a  beet-sugar  mill  and  alcohol  factory; 
hair-net,  carpet,  and  egg-products  factories;  vegetable-oil  mills; 
paper  factory,  match  factories,  needle  factory,  tanneries,  fertilizer 
factory,  bone  mill,  hat  factories,  cement  works,  brick  and  tile  factory, 
and  silk  filature;  the  Tientsin-Pukow  Railway  shops  and  a  number 
of  small  machine  shops;  besides  the  usual  native  handicraft  indus¬ 
tries. 

The  establishment  of  flour  mills  of  modern  type  has  been  a  de¬ 
velopment  of  the  last  few  years.  There  are  at  present  10  such 
mills  at  Tsinan,  1  at  Tsining,  and  1  at  Tungping,  all  equipped  with 
American  milling  machinery  and  all  but  one  owned  and  operated 
by  Chinese.  The  capacity  of  the  12  mills  in  the  district  is  about 
thirty-eight  thousand  50-pound  bags  daily. 

The  plaiting  of  braid  from  wheat  straw,  a  cottage  industry,  has 
grown  to  considerable  proportions  and  is  a  large  source  of  revenue  to 
the  population  of  north  central  Shantung.  The  main  producing  cen¬ 
ters  are  Shaho,  Laichow,  Pingtu,  Chengi,  Showkwang,  and  Yangsin. 

The  manufacture  of  hair  nets  from  human  hair  was  begun  about 
15  years  ago  and  reached  vast  proportions  in  1921.  Since  then  the 
industry  has  been  on  the  decline.  This  is  a  home  industry.  Hair¬ 
net  dealers  in  the  treaty  ports  supply  the  hair  to  the  interior  villages, 
where  the  nets  are  made  by  hand,  collected,  and  returned  for  exami¬ 
nation  and  repair  before  being  packed  for  export. 

The  manufacture  of  bobbin  lace  by  hand  is  also  an  important  home 
industry. 

•  *  •ITT 

Sericulture,  although  carried  on  in  a  crude  way,  is  probably  one 
of  the  most  valuable  industries  in  the  Province.  In  the  central  and 
southern  part  of  the  Province  mulberry  trees  are  grown  from  slips 
imported  from  Kiangsu  and  Chekiang  Provinces.  The  quality  of  the 
mulberry  leaves,  however,  is  inferior,  and  only  a  small  quantity  of 
white  silk  is  produced,  the  bulk  of  the  product  being  yellow.  In 
comparison  with  the  chief  silk-producing  Provinces  in  China  the 


TSINAN  CONSULAR  DISTRICT 


741 


output  is  small.  The  annual  production  of  raw  silk  in  Shantung 
is  said  to  be  about  400,000  piculs,  most  of  which  is  hand  reeled.  The 
principal  producing  centers  are  Tsingtao,  Linchu,  Changshan,  Laiwu, 
Sintai,  Mengyin,  and  Jihchao. 

Although  the  silk  industry  in  Shantung  centers  around  Chefoo, 
there  are  two  native  filatures  at  Chowtsun,  a  Government  filature 
equipped  with  machinery  of  modern  type  at  Tsingtao,  and  a  small 
native  filature  at  Tsinan.  The  principal  market  for  silk  goods  is  at 
Chowtsun,  followed  by  Chefoo  and  Ninghai  (in  the  Chefoo  consular 
district),  Weihsien,  Tsingtao,  and  Tsinan.  The  total  annual  silk- 
goods  production  of  the  Province  is  about  530,000  pieces,  of  which 
about  half  is  plain  silk  called  “  chou  ”  and  about  a  quarter  is  pongee. 

The  manufacture  of  egg  products  is  another  industry  started 
within  the  last  10  or  15  years.  There  are  now  3  egg-product  factories 
at  Tsinan,  3  at  Tsining,  and  1  at  Yenchow. 

The  manufacture  of  bricks,  tiles,  and  pottery  is  important  in  many 
parts  of  the  Province  where  suitable  clay  is  available.  Poshan,  on  a 
branch  line  of  the  Kiaochow-Tsinan  Railway,  has  been  celebrated 
for  centuries  for  its  glassworks. 

LABOR  CONDITIONS 

Labor  is  relatively  cheap  in  China.  This  is  particularly  true  in 
Shantung  with  its  population  of  550  to  the  square  mile.  Wages  for 
common  male  labor  average  about  $8;  female,  $6;  and  child  labor, 
about  $5  a  month.  The  average  for  carpenters,  blacksmiths,  masons, 
stone  workers,  painters,  and  shoemakers’  and  tailors’  apprentices  is 
about  $15  a  month.  Owing  to  the  surplus  of  labor  in  the  Province, 
thousands  of  farm  laborers  emigrate  annually  to  Manchuria.  For 
the  same  reason,  labor  strikes  are  unknown  in  Shantung. 

TRANSPORTATION  AND  COMMUNICATION 

WATERWAYS 

There  are  three  principal  waterways  in  the  district,  but  they  are 
suited  only  to  junk  traffic.  The  Yellow  River  crosses  the  northern 
part  of  the  Province,  from  west  to  northeast,  emptying  into  the  Gulf 
of  Chihli.  Paralleling  the  Yellow  River  to  the  south  is  the  Siao- 
tsing  Ho,  which  connects  Tsinan  with  the  Gulf  of  Chihli  at  Yang- 
kiokow.  The  Grand  Canal  is  the  third  of  the  principal  waterways. 
It  enters  Shantung  at  Taierhchwang,  on  the  southern  border,  and 
runs  northwest,  leaving  the  Province  north  of  Tehchow. 

RAILWAYS 

The  Tientsin-Pukow  Railway  (head  office,  Tientsin)  connects 
Tsinan  with  Tientsin  (221  miles  north)  and  with  Pukow  (408  miles 
south,  opposite  Nanking)  where  connection  is  had  with  Shanghai. 
The  Kiaochow-Tsinan  Railway  (head  office,  Tsingtao)  connects 
Tsinan  with  Tsingtao,  245  miles  east. 

The  Tientsin-Pukow  Railway  operates  260  miles  of  line  in  the 
district,  and  the  Kiaochow-Tsinan  Railway  operates  245  miles. 


742 


COMMERCIAL  HANDBOOK  OF  CHINA 


Branches  of  the  Tsinan-Pukow  Bailway  in  Shantung  are  as  fol¬ 
lows:  Lokow  to  Hwangtaichiao,  4.85  'miles;  Yenchow  to  Tsining, 

20.1  miles;  and  Lincheng  to  Tsaochwang,  19.55  miles.  Branches  of 
the  Kiaochow-Tsinan  Bailway  are  as  follows :  Changtien  to  Poshan, 

24.2  miles;  Tzechwan  to  Tzechwan  colliery,  4  miles;  and  Chinling- 
chen  to  Tienshan,  4.3  miles. 

Statistics  of  the  two  railways  show  that  454,000  tons  of  goods 
were  shipped  into  Tsinan  and  446,000  tons  shipped  out  during  1923. 
The  principal  items  of  import  were  coal,  wheat,  peanuts,  kaoliang, 
cotton,  lumber,  millet,  coke,  kerosene,  and  sugar.  The  principal  ex¬ 
ports  were  flour,  peanuts,  cattle,  coal,  bran,  cotton,  kaoliang,  beans, 
lumber,  and  eggs.  Of  the  exports,  coal,  peanuts,  cotton,  eggs,  and 
cattle  are  the  only  items  which  enter  to  a  great  extent  into  foreign 
export  trade. 

On  the  Tientsin-Pukow  Bailway  freight  rates  per  ton  per  English 
mile  are  as  follows:  First  class,  $0.0956;  second  class,  $0.0797;  third 
class,  $0.0611;  fourth  class,  $0.0398.  Passenger  fares  per  English 
mile  are:  First  class,  $0.06;  second  class,  $0.04;  third  class,  $0.02. 

On  the  Kiaochow-Tsinan  Bailway  freight  rates  per  ton  per 
English  mile  are  as  follows:  First  class,  $0.0229  (preferential  rates 
to  Tsingtao)  ;  second  class,  $0.0196;  third  class,  $0.0164.  Passenger 
fares  per  English  mile  are:  First  class,  $0.0558;  second  class,  $0.0282; 
third  class,  $0.0156. 

There  are  no  railway  lines  under  construction  in  Shantung  at  the 
present  time,  but  there  are  three  projects  under  consideration:  (1) 
To  connect  Tsinan,  the  junction  of  the  Kiaochow-Tsinan  and  Tien¬ 
tsin-Pukow  Bail  ways,  with  Shunteh  (Chihli  Province),  a  point  on 
the  Peking-Hankow  Bailway;  (2)  to  connect  Kaomi,  a  point  on  the 
Kiaochow-Tsinan  Kailway  near  Tsingtao,  with  Hsuchow  (Kiangsu 
Province),  a  point  on  the  Tientsin-Pukow  line  and  the  junction  of 
the  latter  line  with  the  proposed  railway  from  Lanchowfu  (Kansu 
Province),  to  the  sea  at  Haichow,  the  new  port  to  be  constructed  on 
the  coast  north  of  Shanghai;  (3)  to  connect  Weihsien,  on  the 
Kiaochow-Tsinan  Bailway,  with  Chefoo  on  the  coast. 


ROADS 

The  leading  roads  of  the  district  are  listed  in  the  following  table. 
In  addition  there  are  337  miles  of  roads  in  the  district  which  are 
adaptable  to  motor  transportation  and  182  miles  which  were  con¬ 
structed  for  motor  transportation  but  which  are  not  so  used. 


Roads 


W  eihsien- C  hefoo _ 

Y  ucheng-Hsiawa _ 

Tsining-Tsaochow _ 

Tehchow-Lintsing _ 

Tsining-Shanhsien _ 

Yucheng-Tungchang— 

Chowtsun-Tsingcheng 


Mileage 

con¬ 

structed 

for 

motor 

transpor¬ 

tation 

Esti¬ 
mated 
number 
of  motor 
cars  in 
opera¬ 
tion 

227 

35 

90 

4 

77 

5 

57 

2 

3 

47 

10 

37 

4 

Pas¬ 

senger 

rates 


Cents  per 
mile 


^  00  00  OO  OO  OO  OO 


TSINAN  CONSULAR  DISTRICT 


743 


In  addition  to  the  above  there  are  337  miles  of  roads  in  the  dis¬ 
trict  which  are  adaptable  to  motor  transportation,  and  182  miles 
which  were  constructed  for  motor  transportation  but  are  not  so  used. 

The  Weihsien-Chefoo  motor-car  service,  the  most  important  of  its 
kind  in  Shantung,  was  started  in  September,  1922.  Although  only 
a  dirt  road,  the  roadbed  is  kept  in  very  good  condition  except  dur¬ 
ing  the  rainy  season.  The  cars  leave  Weihsien  and  Chefoo  daily, 
making  the  run  in  either  direction  in  10  to  12  hours.  From  Weihsien 
the  line  runs  through  Shalio,  Laichow,  Lungkow,  Hwanghsien, 
Tengchow,  and  on  to  Chefoo.  The  road  is  leased  and  operated  by 
a  Chinese  company.  Most  of  the  cars  are  secondhand  machines 
which  have  been  equipped  with  special  bodies  to  adapt  them  to 
passenger  transportation.  At  present  no  provision  has  been  made 
for  the  transportation  of  freight  over  any  of  the  motor-car  roads 
in  the  district. 

In  all,  there  are  about  1,100  miles  of  roads  in  Shantung  either 
constructed  for  or  adaptable  to  motor  transportation.  Early  in 
1920  a  proposal  was  made  to  build  some  1,600  miles  of  motor  roads 
connecting  all  the  important  cities  in  the  Province;  but  owing  to 
the  state  of  the  provincial  treasury  nothing  was  done  toward  carry¬ 
ing  out  the  project  until  the  autumn  of  1920,  when  the  Chinese 
Government  undertook,  with  funds  derived  from  famine  surtaxes 
on  railway  fares  and  freight  rates,  the  construction  of  the  highway 
from  Weihsien  to  Chefoo.  The  highway  follows  the  route  of  the 
proposed  Weihsien-Chefoo  Railway  and  was  built  in  a  manner  to 
form  the  roadbed  for  such  railway.  According  to  the  Government’s 
report,  $670,000  was  expended  in  building  the  road,  and  3,700  famine 
laborers  were  given  employment. 

As  a  famine  relief  measure  the  American  Red  Cross  Society, 
in  1920  and  1921,  constructed  with  famine  labor  approximately  400 
miles  of  dirt  roads  in  the  western  and  northern  sections  of  the 
Province,  through  the  heart  of  the  famine  area.  The  Red  Cross 
spent  more  than  $750,000,  United  States  currency,  in  the  project, 
employing  26,700  laborers  and  supporting  over  150,000  people  dur¬ 
ing  the  winter  of  1920.  The  highway  stretches  from  Tehchow,  in 
the  north,  to  Lintsing,  Kwantao,  Tungchang,  and  a  point  on  the 
Yellow  River,  in  the  south,  and  again,  from  Tungchang  through 
Kaotang  to  Yucheng,  on  the  Tientsin-Pukow  Railway,  and  from 
Yucheng  through  Linyi  to  Wuting,  whence  one  branch  runs  south 
to  Tsinghochen,  on  the  Yellow  River,  and  another  northeast  to 
Chengtzekow,  where  the  junk  traffic  between  Manchuria  and  Shan¬ 
tung  reaches  the  northern  section  of  the  Province.  The  highways 
were  turned  over  to  the  provincial  government  in  June,  1921. 

The  construction  of  these  highways  has  given  impetus  to  the 
introduction  of  motor  cars,  especially  for  passenger  transport,  and 
has  led  to  further  interest  in  roads  in  other  parts  of  the  Province. 
As  a  means  of  protecting  the  roads,  the  Red  Cross  also  introduced 
a  type  of  wide-Avheeled  cart  to  replace  the  narrow-wheeled  Chinese 
cart. 

SUMMARY  OF  TRANSPORTATION 

The  following  is  a  summary  of  the  transportation  by  the  methods 
in  common  use  in  this  district : 


744 


COMMERCIAL  HANDBOOK  OF  CHINA 


Mediums 

Average  load 

Average 
mileage 
per  day 

Average 
cost  per 
ton-mile 

Maximum 

haul 

Railways.-  _ _ 

15-30  ton  cars _  _ _ 

250 

3 10-50 
25 
25 
20 

/  i  $0.  06905 
\  2 . 01963 

.025 
■  .10 
.25 
.17 

Miles 

j-  260 

200 

100 

50 

100 

Junks  _ 

28  tons. _ 

Carts _  _ 

1  ton  _ _ 

Pack  animals _ _ 

400  pounds _ 

Wheelbarrows _  ...  ...  . . 

640  pounds _ 

1  Tientsin-Pukow  Railway. 

2  Kiaochow-Tsinan  Railway,  preferential  rate  to  Tsingtao. 

3  The  first  figure  refers  to  rate  upstream,  the  second  to  rate  downstream. 


TELEGRAPHS,  CABLES,  AND  WIRELESS  SERVICE 

t 

There  is  but  one  telegraph  company  in  the  consular  district — the 
Chinese  Telegraph  Administration,  which  operates  77  stations  in 
the  Province.  Rates  to  Shanghai  are  $0.18;  to  New  York,  $1.95. 
The  actual  distance  of  the  overland  routes  in  the  Province  totals 
about  3,500  miles.  There  are  no  submarine-cable  stations  in  the 
consular  district.  The  wireless  station  at  Tsinan,  constructed  by  the 
Japanese,  has  not  been  in  operation  since  it  was  handed  over  to  the 
Chinese  in  1922. 

TELEPHONES 

The  Tsinan  Telephone  Co.  has  recently  installed  new  telephones 
and  the  service  is  now  quite  satisfactory.  Subscribers  number  2,652; 
annual  rates  are  $84.  The  automatic  type  of  instrument  is  in  use. 
Equipment  is  of  German  make.  No  further  improvements  or  ex¬ 
tensions  are  planned  for  the  present. 

POSTAL  FACILITIES 

Postal  establishments  in  Shantung  include  1  head  office,  2  first- 
class  offices,  116  second-class  offices,  and  29  third-class  offices.  During 
1923,  382,200  parcels,  valued  at  more  than  $14,000,000,  were  posted. 
Hair  nets  represent  the  major  part  of  the  value  of  the  parcels  posted 
at  Tsinan.  Other  articles  of  export  by  parcel  post,  in  the  order 
of  their  importance,  are  silk,  cloth,  furs,  ironware,  and  brass  ware. 
In  1923  money  orders  to  the  value  of  more  than  $6,000,000  were 
issued  and  nearly  $13,000,000  wTorth  cashed.  A  large  part  of  the 
value  of  the  money  orders  cashed  represents  remittances  from  Shan¬ 
tung  laborers  in  Manchuria  to  dependents  in  Shantung.  Arrange¬ 
ments  have  been  entered  into  for  the  carriage  of  mails  over  several 
of  the  motor  roads  in  the  district. 

PUBLIC  WORKS  AND  UTILITIES 

ELECTRIC-LIGltT  PLANTS 

The  Tsinan  Electricity  Works  was  established  in  1906.  Its  equip¬ 
ment  then  consisted  of  two  semiportable  engines  with  belt-driven 
alternators,  a  secondhand  German  plant  formerly  used  at  Tsingtao. 
In  1910  new  machinery  was  purchased  and  a  new  building  erected. 
The  plant  is  now  equipped  with  2  turboalternators  of  500  and  1,000 
kilowatts,  respectively,  2  high-speed  vertical  engines  coupled  direct 
to  2  Siemens  alternators,  and  5  Babcock  &  Wilcox  boilers  having  a 


TSINAN  CONSULAR  DISTRICT 


745 


combined  heating  surface  of  12,710  square  feet.  The  number  of 
lamps  actually  connected  is  about  40,000.  The  capital  of  the  com¬ 
pany  is  $700,000.  Ijp 

The  Tsaohsien  Electric  Light  Co.  is  planning  an  extension,  but  it 
is  not  at  all  certain  that  the  plan  will  be  carried  through.  No  other 
extensions  are  planned. 

The  following  are  the  electric-light  plants  located  in  the  district. 
All  are  under  Chinese  ownership.  The  power  load  of  the  Tsinan 
plant  is  200  kilowatts. 


Location 


Tsinan.  ... 

Tsining... 

Tenghsien 

Poshan _ 

Weihsien.. 


Lighting 

load 

Rates 

Location 

Lighting 

load 

Rates 

Kilowatts 

Cents 

Kilowatts 

Cents 

900 

/  1 35 

Chowtsun . . 

60 

35 

\ i *  3  4-15 

Fangtze.  .  _ _ _  . 

60 

0) 

3  170 

35 

Tungchang.. _ _ 

37^ 

(4) 

3  113 

35 

Taian . . .  . . . 

25-40 

(4) 

3  100 
60 

35 

35 

Tsaohsien . . . . 

25 

(4) 

i  Light.  3  Power.  3  Kilovolt-amperes.  4  Flat  rate. 


WATERWORKS  AND  TRAMWAYS 

Projects  for  both  waterworks  and  tramways  at  Tsinan  have  been 
under  discussion  for  a  number  of  years,  but  financial  and  political 
considerations  have  delayed  their  progress.  Both  projects  require 
considerable  capital  outlay,  which  has  not  been  forthcoming.  No 
conservancy  or  reclamation  projects  are  under  consideration  in  the 
district  at  the  present  time. 

EXPORT  AND  IMPORT  TRADE 

Tsinan,  though  open  to  foreign  trade,  is  an  interior  city  and  main¬ 
tains  no  customs  establishment  compiling  statistics  of  trade.  The 
consular  district  has  no  seaports.  It  is  not  possible,  therefore,  to 
give  statistics  of  trade  which  might  be  of  interest  and  value  in 
indicating  the  trade  possibilities  of  the  district. 


EXPORTS 

The  Tsinan  district  is  the  center  of  production  of  numerous 
Chinese  products  prominent  in  the  export  trade  of  the  country,  in¬ 
cluding  peanuts,  peanut  oil,  hair  nets,  straw  braid,  egg  products, 
cotton,  carpets,  hides  and  skins,  wool,  silk  and  silk  goods,  and  wal¬ 
nuts,  but  these  products  go  out  of  the  district  through  Tsingtao  and 
Chefoo,  the  two  treaty  ports  of  the  Province,  and  through  Shanghai 
and  Tientsin,  the  principal  export  centers  of  North  China,  with 
both  of  which  the  district  has  easy  means  of  communication. 

With  the  exception  of  the  export  of  hair  nets  and  of  carpets,  there 
is  practically  no  direct  export  trade  between  the  district  and  the 
United  States.  The  original  hair-net  district  of  China  is  Chefoo, 
and  bv  far  the  largest  share  of  the  business  is  still  handled  at  that 
port,  but  in  recent  years  Tsinan  has  become  an  active  competitor. 
In  1919,  only  55,087  gross  of  nets  were  shipped  direct  from  Tsinan 
to  the  United  States;  in  1920  the  direct  shipments  totaled  131,660 


746 


COMMERCIAL  HANDBOOK  OF  CHINA 


gross,  while  in  1921  they  reached  the  high  point  of  512,317  gross. 
Since  then,  owing  to  the  decreased  demand  in  the  American  market, 
the  direct  shipments  have  been  reduced  by  about  half. 

The  direct  shipment  of  carpets  from  Tsinan  to  the  United  States 
has  shown  a  steady  increase.  In  1920  direct  shipments  totaled  only 
66  square  yards,  as  compared  with  484  square  yards  in  1921,  3,676 
square  yards  in  1922,  and  7,610  square  yards  in  1923.  Many  of  the 
carpets  exported  from  Tsingtao  are  manufactured  at  Tsinan. 
Carpets  are  also  shipped  from  Tsinan  to  Shanghai  for  export. 

Peanuts  are  the  leading  agricultural  export  staple  of  the  Province, 
Shantung  being  the  largest  producer  of  peanuts  in  China.  Large 
quantities  of  peanuts,  shelled  and  unshelled,  and  of  peanut  oil  are 
exported  to  the  United  States  from  Tsingtao. 

The  following  table  shows  the  exports  declared  at  Tsinan  for  ship¬ 
ment  to  the  United  States  during  the  calendar  years  1922  and  1923. 
Values  are  in  United  States  dollars. 


Articles 

1922 

1923 

Quantity 

Value 

Quantity 

Value 

Soybeans . . . . . pounds.. 

4,000 

10,000 

$106 

457 

Peanuts,  shelled . . . . . .do _ 

Embroideries _  ..  .  . . 

24,000 

$1, 446 
84 
444 
54, 977 
617,  725 

Human  hair . . . . . . ..pounds.. 

571 

7,610 

306,668 

Carpets . . . . square  yards.. 

Hair  nets . . . . . . . . gross.. 

Works  of  art _ J _ _ _ 

3, 676 
350,  831 

25, 678 
935,  309 
68 

1, 146 

Household  effects _ _ _ _ _ _ 

117 

Total  value . . . . . 

962,  764 

674,  793 

IMPORTS 

For  imports  of  foreign  goods  the  district  depends  upon  Shanghai, 
Tientsin,  and  Tsingtao.  The  Japanese  trade  of  the  district,  both 
import  and  export,  is  almost  entirely  through  the  port  of  Tsingtao, 
but  other  foreign  imports  are  drawn  largely  from  Shanghai  and 
Tientsin. 

Petroleum  products — principally  kerosene,  but  including  gasoline, 
lubricating  oil,  grease,  candles,  and  wax — hold  first  place  among 
American  imports  into  the  district.  Industrial  machinery  and 
equipment,  however,  hold  the  greatest  opportunities  for  future 
American  trade.  The  possibilities  of  the  district  for  industrial 
development  are  great,  but  so  far  progress  has  been  slow.  A  con¬ 
siderable  part  of  the  electric  light  and  power  equipment  in  the 
district  is  of  American  manufacture;  all  flour-milling  machinery 
is  American;  some  mining  machinery  and  supplies  have  come  from 
the  United  States;  and  the  more  modern  egg-products  factories 
are  equipped  largely  with  American  machinery.  The  beet-sugar 
factory  at  Tsinan  is  also  partly  equipped  with  machinery  of  Amer¬ 
ican  make. 

Any  extensive  scheme  involving  the  control  of  the  Yellow  River, 
the  restoration  of  the  Grand  Canal,  and  the  diversion  of  water  for 
irrigation  purposes  would  offer  opportunities  for  American  ma¬ 
chinery  and  equipment.  With  the  development  of  the  mineral  re¬ 
sources  of  the  district,  mining  machinery  and  equipment  should 


TSINAN  CONSULAR  DISTRICT  747 

find  a  market.  Machine  tools  should  also  show  an  increasing  de¬ 
mand. 

Both  the  Tientsin-Pukow  and  Kiaochow-Tsinan  Railways  have 
in  recent  years  made  purchases  of  American  locomotives  and  rail¬ 
way  equipment.  Some  possibility  of  introducing  light  railway 
equipment  in  connection  with  mining  development  may  also  present 
itself. 

Iron  and  steel  products  for  construction  and  other  work,  as  well 
as  a  great  variety  of  American  hardware,  find  a  small  but  steadily 
growing  market.  Cigarettes  manufactured  in  the  United  States 
and  by  foreign  firms  in  China  are  sold  extensively.  Recently,  a 
20  per  cent  sales  tax  on  cigars  and  cigarettes  has  been  imposed 
by  the  provincial  authorities.  Electrical  supplies  and  fixtures  bid 
fair  to  continue  a  satisfactory  item  of  American  imports. 

American  drugs  and  pharmaceutical  supplies  are  finding  an  in¬ 
creased  demand,  and  there  is  every  reason  to  believe  that  this  busi¬ 
ness  will  increase.  Soap  finds  a  good  market  in  the  district. 

American  lumber  finds  a  market  in  the  Tsinan  district,  along 
with  Korean  and  other  timber  from  the  Far  East.  Paints  and  oils  of 
American  manufacture  hold  first  place  among  foreign  imports  of  a 
similar  nature,  but  the  low  cost  of  Chinese  paints  has  prevented 
any  extensive  sale  of  American  paints  to  Chinese.  For  foreign 
use  and  for  industrial  purposes  there  is  a  good  demand,  and  it  is 
believed  that  the  market  will  gradually  expand.  American  roofing 
materials  find  a  limited  but  growing  market. 

Better  roads  in  the  district  are  resulting  in  the  gradual  introduc¬ 
tion  of  motor  vehicles,  principally  of  American  manufacture.  There 
is  also  a  good  market  for  bicycles  and  for  bicycle  and  ricksha  tires. 

Among  miscellaneous  items  that  may  be  mentioned  are  sewing 
machines,  cheaper  grades  of  watches  and  clocks,  optical  goods, 
toilet  articles,  typewriters  and  office  supplies,  and  canned  goods  and 
provisions. 

MONEY,  BANKING,  AND  CREDIT 

BANKS 

The  Yokohama  Specie  Bank  (Ltd.)  and  the  Chinese- American 
Bank  of  Commerce  (headquarters  at  Peking),  are  the  only  two 
banks  in  the  district  which  offer  facilities  for  foreign  exchange. 

LOCAL  CURRENCY 

Formerly  the  standard  monetary  unit  in  ordinary  business  trans¬ 
actions  at  Tsinan  was  the  “tiao,”  or  small-coin  dollar.  The  silver 
dollar,  however,  has  gradually  replaced  the  tiao,  and  prices  for 
staple  goods  and  most  other  commodities  are  now  quoted  in  silver 
dollars.  The  increasing  demand  for  payment  in  silver  is  mainly 
responsible  for  the  recent  depreciation  of  copper  coins.  At  present 
$1  silver  exchanges  for  about  260  coppers.  Coppers,  however,  re¬ 
main  the  popular  currency  among  the  masses  of  the  people  in  the 
Province.  With  the  depreciation  of  copper  currency,  there  are  now 
large  issues  of  copper  notes  by  many  cash  shops. 

As  Shantung  requires  a  large  amount  of  money  in  the  autumn 
to  finance  the  movement  of  crops,  the  local  dollar  is  at  a  premium 
at  that  season  of  the  year.  Except  for  extraordinary  market  con- 


748 


COMMERCIAL  HANDBOOK  OF  CHINA 


ditions,  remittance  charges  to  Shanghai  range  from  three-fourths 
of  1  j)er  cent  to  1  per  cent  at  its  height  the  average  rate  being  from 
one-fourth  to  one-half  of  1  per  cent. 

CREDITS 

Until  recently,  because  of  the  lack  of  facilities  for  foreign  com¬ 
mercial  credit  and  the  lack  of  a  large  volume  of  direct  trade  with 
foreign  countries,  practically  all  of  Tsinan’s  foreign  trade  was 
financed  through  Shanghai,  Tientsin,  and  Tsingtao.  Export  and 
import  credits  were  generally  opened  with  banks  at  these  centers. 
Facilities  for  financing  export  and  import  trade  direct  with  foreign 
countries,  however,  are  now  available  through  the  two  banks  named 
above. 

In  opening  a  letter  of  credit  it  is  suggested  that  the  credit  be 
opened  with  a  bank  at  Tsinan,  or  that  it  be  made  without  reference 
to  a  particular  bank,  so  that  the  beneficiary  may  negotiate  it  on  the 
spot,  thereby  avoiding  the  necessity  of  transferring  funds  from 
other  centers  and  the  possible  inconveniences  incident  to  exchange. 

ADVERTISING  AND  MERCHANDISING 

ADVERTISING 

Newspaper  advertising  in  Chinese  is  employed  to  some  extent, 
but  the  principal  methods  used  are  posters,  street  processions,  and 
the  distribution  of  samples.  None  of  the  newspapers  have  a  large 
circulation  and  none  are  of  such  a  character  as  to  be  important 
advertising  mediums  for  American  products. 

A  local  tax  of  20  cents  a  square  foot  per  annum  has  been  imposed 
on  outdoor  posters  and  billboards,  as  a  result  of  which  most  of  the 
foreign  firms  at  Tsinan  have  discontinued  this  form  of  advertising. 

MERCHANDISING  METHODS 

The  day  is  past  when  American  firms  can  expect  to  establish  them¬ 
selves  at  one  or  two  of  the  principal  commercial  centers  of  China 
and  distribute  their  goods  throughout  the  country  on  a  large  scale 
in  competition  with  foreign  products.  American  firms  must  es¬ 
tablish  branches  and  agencies  in  the  lesser  distributing  centers. 
There  are  at  Tsinan  to-day  offices  or  responsible  agencies  of  but  five 
of  the  larger  American  trading  organizations  in  China.  Of  these, 
one  is  an  oil  company;  two  are  tobacco  companies;  one  is  an  importer 
and  exporter  of  general  merchandise,  but  mainly  an  importer  of  in¬ 
dustrial  machinery  and  electrical  supplies;  and  one  is  a  sewing- 
machine  company.  Owing  to  the  lack  of  American  representation 
in  general  lines,  native  firms  carrying  American  goods  usually  ob¬ 
tain  their  supplies  as  required  from  their  head  offices  in  Shanghai 
or  Tientsin.  There  are  a  few  Chinese  firms  at  Tsinan  which  are  pre¬ 
pared  to  establish  direct  connections  with  importers  and  exporters 
in  foreign  countries.  Chinese  buyers  generally  prefer  to  purchase 
their  supplies  of  foreign  goods  through  foreign  firms  established 
in  the  country. 

TRADE  ORGANIZATIONS 

There  are  two  Chinese  chambers  of  commerce  at  Tsinan,  the  cham¬ 
ber  of  commerce  of  the  Settlement  and  the  general  chamber  of  com- 


TSINAN  CONSULAR  DISTRICT 


749 


merce  of  Tsinan,  but  neither  organization  offers  any  special  facili¬ 
ties  for  assisting  or  promoting  American  trade  with  the  district. 

PROPERTY  VALUES  AND  RENTS 

Property  values  and  rents  in  Tsinan  are  comparatively  high.  The 
purchase  price  for  land  in  the  commercial  settlement  ranges  between 
$900  and  $5,000  per  mow  (one-sixth  of  an  acre),  according  to  loca¬ 
tion.  In  the  matter  of  rents,  landlords  usually  figure  a  return  of 
from  8  to  9  per  cent  on  the  investment.  Most  foreign  firms  own 
combined  offices  and  residences  and  also  own  their  warehouses. 
No  apartments,  furnished  or  unfurnished,  are  available.  Very  few 
houses  are  for  rent  and  those  offered  are  semi  foreign  houses,  most 
of  which  are  not  suitable  for  occupancy  by  a  business  man  of 
standing. 

TAXES  AND  OTHER  ASSESSMENTS 

In  addition  to  the  retail  or  lease  tax  of  $36  and  $24,  which  is 
assessed  according  to  the  location  of  the  property,  there  is  also  a 
land  tax  of  $2  per  mow  per  annum.  Land  in  the  commercial  settle¬ 
ment  of  Tsinan  is  held  under  a  30-year  lease,  with  option  for  renewal 
for  an  additional  period  of  30  years. 

LIVING  COSTS 

There  are  no  boarding  houses  in  the  city  and  no  private  families 
who  take  in  boarders.  As  already  stated,  suitable  residential  quar¬ 
ters  are  seldom  available.  Estimated  necessary  living  expenses  for 
a  single  person  range  from  $3,000  to  $3,750.  For  a  married  couple 
such  expenses  would  approximate  $6,000,  and  for  a  couple  with  two 
children,  $7,500. 

In  making  an  estimate  of  the  necessary  living  expenses  at  Tsinan, 
the  cost  of  entertaining,  cost  of  summer  vacations,  club  dues,  local 
transportation  charges,  and  the  cost  of  educational  and  recreational 
facilities  must  all  be  taken  into  consideration.  Few  of  the  foreign 
residents  of  Tsinan  own  motor  cars.  The  usual  means  of  local  trans¬ 
portation  is  by  ricksha.  Motor  cars  may  be  hired  for  $3  an  hour; 
the  cost  of  a  ricksha  with  one  coolie  is  $18  a  month.  The  initiation 
fee  of  the  Tsinanfu  Club  is  $50,  with  monthly  subscription  of  $10 
and  additional  fees  for  tennis  and  golf.  There  is  a  foreign  school 
at  Tsinan  offering  instruction  along  modern  American  lines  for  chil¬ 
dren  in  the  kindergarten  and  primary  grades.  The  school  fees  are 
$90  and  $120  a  year,  respectively. 

CHANGES  IN  TRADE  CONDITIONS  DURING  RECENT  YEARS 

In  the  matter  of  industrial  development  the  most  striking  changes 
are  the  establishment  of  flour  mills  of  modern  type,  the  development 
and  decline  of  the  hair-net  industry,  and  the  more  recent  growth  of 
the  carpet  industry. 

Being  advantageously  situated  in  the  heart  of  a  great  agricultural 
producing  district,  at  the  junction  of  two  railways,  and  near  the 
Yellow  River  and  the  Grand  Canal,  the  importance  of  Tsinan  as  a 
distributing  center  for  a  large  part  of  Shangtung  is  being  recognized 
and  the  city  is  undergoing  a  gradual  healthy  growth. 


TSINGTAO  CONSULAR  DISTRICT 

By  Consul  Walter  A.  Adams 


LOCATION  AND  AREA 

The  Tsingtao  consular  district  comprises  the  territory  of  Kiao- 
chow,  formerly  leased  to  Germany  but  now  administered  by  Japan. 
Its  area  is  approximately  342  square  miles,  and  its  latitude  is  be¬ 
tween  35°  54'  and  36°  IT'  N.,  corresponding  to  that  Nashville,  Tenn. 

The  climate  is  dry  and  equable.  The  average  minimum  tempera¬ 
ture  is  between  25°  and  35°  F.,  and  the  average  maximum  tempera¬ 
ture  between  75°  and  85°  F.  Upon  rare  occasions  the  temperature 
rises  to  95°  in  summer,  and  falls  to  zero  in  winter. 

The  average  annual  rainfall  is  18.47  inches,  the  month  of  August 
averaging  by  far  the  wettest. 

POPULATION 

The  Japanese  census  of  1922  gives  the  population  of  the  Tsingtao 
consular  district  as  243,781.  The  population  of  the  city  of  Tsingtao 
and  its  suburbs  was  estimated  at  about  117,000.  The  average  den¬ 
sity  of  population  throughout  the  district  is  calculated  at  712.81 
per  square  mile. 

CITIES 

Tsingtao  is  the  only  city  of  importance  in  the  district.  It  is 
unusual  in  the  following  respects  as  compared  with  other  ports  of 
purely  Chinese  growth : 

1.  It  is  only  about  25  years  old,  and  consequently  has  not  devel¬ 
oped  any  of  the  native  crafts,  such  as  the  production  of  lacquer 
or  the  art  of  carving,  for  which  many  Chinese  cities  are  noted. 

2.  It  has  a  complete  system  of  modern  public  works,  including 
sewerage,  drainage,  abundant  roadways,  and  an  efficiently  operated 
set  of  railway-equipped  piers  for  shipping. 

3.  There  are  no  foreign  “  concessions  ”  or  “  settlements  ”  in  Tsing¬ 
tao.  The  homes,  offices,  and  factories  of  Chinese  and  foreigners 
alike  are  scattered  throughout  the  length  and  breadth  of  the  city. 

4.  Practically  all  buildings  are  of  foreign  architecture  and  are 
equipped  with  modern  plumbing.  The  city  is  thoroughly  sanitary 
and  is  popular  as  a  health  and  vacation  resort.  It  has  a  splendid 
bathing  beach  situated  immediately  in  front  of  a  modern  hotel, 
open  in  summer  from  the  15th  of  June  to  the  15th  of  September. 
Among  the  outdoor  sports  are  golfing,  swimming,  motoring,  riding, 
tennis,  picnicking,  and  hiking.  The  mountain  and  sea  vistas,  un¬ 
folded  with  unwearying  variety  to  the  motorist,  rider,  and  hiker,  are 
unsurpassed  in  the  Far  East. 

750 


TSINGTAO  CONSULAR  DISTRICT 


751 


The  coastal  territory  commercially  tributary  to  Tsingtao  lies 
as  far  south  as  Haichow,  in  Kiangsu,  and  as  far  north  as  Siatsun, 
on  the  Shantung  Promontory.  The  Kiaochow  Bay  ports,  as  well  as 
all  the  territory  inland  along  the  Kiaochow-Tsinan  Railway,  includ¬ 
ing  Tsinan,  are  naturally  tributary  to  Tsingtao.  It  is  roughly  esti¬ 
mated  that  the  population  of  the  territory  commercially  tributary 
to  Tsingtao  is  between  10,000,000  and  15,000,000. 

AGRICULTURE  1 


The  agricultural  products  of  the  Kiachow  territory  are  as  follows : 


Products  in 
order  of  im¬ 
portance 

Planting  season 

Harvesting  season 

Average 
produc¬ 
tion  per 
acre 

Esti¬ 

mated 

annual 

produc¬ 

tion 

Disposition 

Sweet  potatoes... 
Peanuts  _ 

Apr.  20-30 . 

May  1-10.  . 

Oct.  20-30 _ 

. . do  . . 

Piculs 

91 

39 

8 

7 

10 

6 

Piculs 
771, 480 
413, 000 

27,  722 
23,  651 
13,  923 
2,826 

Consumed  locally. 

Used  as  food  and  oil; 

surplus  exported. 
Consumed  locally. 

Do. 

Do. 

Do. 

Wheat _ 

Millet. . . 

Soy  beans _ 

Kaoliang . . 

Sept.  25-0ct.  10... 

Apr.  20-May  5 _ 

June  20-30 _ _ 

Apr.  10-20 . 

June  15-30 . . 

Aug.  25-Sept.  5 _ 

Sept.  20-Oct.  5 _ 

Aug.  20-30 . 

Agriculture  as  an  industry  is  relatively  unimportant,  but  the 
experimental  work  of  the  Bureau  of  Agriculture  and  Forestry  of  the 
Kiaochow  administration  is  extremely  important  in  the  future  wel¬ 
fare  of  Shantung.  The  Kiaochow  Bureau  of  Agriculture  and 
Forestry  conducts  its  experiments  in  two  sections — plant  production 
and  animal  production — chiefly  at  Litsun,  where  it  has  a  well- 
equipped  station  occupying  about  60  acres  of  land.  Special  at¬ 
tention  is  paid  to  experiments  with  a  view  to  improving  the  varieties 
of  fruits  suitable  to  local  conditions  and  of  such  industrial  plants  as 
cotton,  sugar  beets,  peanuts,  tobacco,  and  hemp.  Improvement  of 
native  domestic  animals  by  the  introduction  of  foreign  breeds  (such 
as  Holstein  cattle,  Berkshire  hogs,  and  merino  sheep)  and  the 
improving  of  breeds  of  poultry  constitute  a  special  feature  of  the 
bureau’s  work. 

The  bureau  also  publishes  and  circulates  bulletins  dealing  with 
more  advanced  agricultural  methods,  distributes  selected  seeds  to 
farmers,  and  sends  experts  into  the  country  districts  to  help  them  in 
their  difficulties  with  insect  and  fungous  pests.  It  encourages  the 
idea  of  scientific  culture  by  holding  agricultural  fairs  and  giving 
prizes  to  farmers  who  grow  the  best  crops.  At  the  fair  held  in 
November,  1924,  more  than  870  farmers  of  the  Ivaiochow  territory 
participated,  and  102  prizes  were  awarded  by  the  bureau. 

FORESTRY  ' 

A  stranger  in  Tsingtao  is  frequently  surprised  by  the  thick  green 
covering  of  trees  over  the  hills  and  mountains  of  the  district,  against 


1  The  writer  is  indebted  to  Mr.  D.  Y.  Lin,  Chief  of  the  Bureau  of  Agriculture  and 
Forestry,  for  the  statistics  and  material  in  this  chapter  under  the  headings  “Agriculture” 
and  “  Forestry.” 


752 


COMMERCIAL  HANDBOOK  OF  CHINA 


the  background  of  bare  and  deforested  China  beyond.  The  work 
of  reforestation  was  begun  by  the  Germans  early  in  their  occupation. 
They  spent  1,526,000  gold  marks  on  forestry  work  in  the  Kiaochow 
territory.  They  reforested  3,300  acres  of  land  in  and  around 
Tsingtao,  distributed  millions  of  seedlings  for  compulsory  private 
planting,  created  parks  and  demonstration  orchards,  set  aside  per¬ 
manent  forest  preserves,  and  established  strict  forest  preservation 
laws  which  are  still  enforced  by  a  trained  organization  of  foreign 
police. 

The  Japanese  continued  the  German  reforestation  program.  At 
a  cost  of  about  $320,000  Yuan  they  reforested  the  Laoshan  area  and 
drafted  a  comprehensive  10-year  program  for  the  reforestation  of 
the  watersheds  along  the  Hai  Pei,  Litsun,  and  Pai  Sha  Rivers,  upon 
which  Tsingtao  depends  for  its  water  supply. 

During  the  two  years  of  Chinese  administration,  beginning  with 
December  10,  1922,  the  German  and  Japanese  forestry  enterprises 
have  been  maintained  and  developed.  Under  Chinese  management 
the  Bureau  of  Agriculture  and  Forestry  has  planted  the  remaining 
bare  areas  of  the  reservations,  raised  more  than  5,300,000  seedlings 
in  the  different  nurseries,  distributed  over  250,000  seedlings  for 
private  planting,  repaired  48,480  square  meters  of  forest  roads, 
created  five  parks,  and  planted  7,068  trees  along  roadsides  for  shade 
and  aesthetic  purposes.  One  interesting  feature  of  the  forestry  work 
of  the  Kiaochow  administration  is  a  rural  school  established  and 
maintained  by  the  administration  in  Laoshan  for  the  benefit  of  the 
children  of  the  farmers.  The  farmers  send  their  children  to  school 
free  of  any  money  charge,  but  pay  for  the  school  work  by  giving  up 
a  specified  amount  of  their  time  to  the  protection  of  the  forests.  The 
success  of  this  unique  arrangement  in  forest  management  indicates 
that  it  might  be  introduced  to  good  advantage  in  other  parts  of 
China. 

The  area  under  forest  in  the  Kiaochow  territory  is  40,000  acres, 
of  which  all  excepting  about  6,220  acres  is  privately  owned.  Among 
the  more  important  trees  are  pine,  robina  (commonly  known  as 
acacia),  oak,  white  cedar,  juniper,  zelkova,  celtis,  ash,  poplar,  alnus, 
sterculia,  elm,  catalpa,  sophora,  and  paulownia. 

MANUFACTURING  AND  INDUSTRIAL  DEVELOPMENT 

The  most  important  industrial  enterprises  in  the  district  are  7 
cotton  mills  (6  Japanese  and  1  Chinese)  ;  7  neanut-oil  settling  plants, 
all  Japanese;  4  match  factories,  all  Japanese;  3  egg-preserving 
plants  (2  Japanese  and  1  German)  ;  2  peanut-oil  extraction  mills, 
both  Japanese;  2  bone-meal  factories,  both  Japanese;  2  flour  mills 
(1  Chinese  and  1  Japanese) ;  2  refrigerating  plants,  both  Japanese; 
2  Japanese  mineral-water  plants;  1  slaughterhouse  and  1  electric- 
light  plant,  under  Sino- Japanese  control;  2  straw-braid  plants,  both 
German;  1  cigarette  factory,  British;  and  1  each  of  the  following 
industries:  Sawmill,  soap  factory,  tannery,  pottery,  cement  plant, 
brewery,  and  silk  filature,  all  Japanese. 

The  following  is  a  brief  summary  of  data  pertaining  to  some  of  the 
main  industries  of  the  district,  so  far  as  such  data  can  be  ascertained : 


TSINGTAO  CONSULAR  DISTRICT 


753 


Industries 

Capacity 

Approxi¬ 
mate 
number 
of  em¬ 
ployees 

Approxi¬ 

mate 

capital 1  in 
industry 

Estimated  output 

Disposition 

Cotton  spinning..  .. 

20,000  bales  per 

18,  650 

$41,  500, 000 

18,200  bales  per 

90  per  cent  con- 

month. 

month. 

sumed  in  Shan- 

tung  house- 

holds. 

Salt  production _ 

180,000  tons  per 

8,  000 

10,  000,  000 

180,000  tons  per 

Chinese  Govern- 

annum. 

annum. 

ment  monopoly. 

Peanut-oil  extraction 

3,500  tons  of  oil  per 

3, 300 

(2) 

28,000  tons  of 

Exported  to  Amer- 

and  refining,  and 

month;  peanut 

peanut  oil  per 

ica,  Europe,  and 

peanut  grading. 

grading,  9,000 

annum. 

Japan. 

tons  per  month. 

Silk  filature . . 

1,100  bales  per  an- 

1, 500 

2,  500,  000 

1,000  bales  per  an- 

Exported  to  Amer- 

num. 

num. 

ica  and  France 

through  Japan 

and  Shanghai. 

Refrigerating  plants. 

184,000  cubic  feet.. 

100 

2,  600,  000 

Variable...  _ 

Exported  to  Japan. 

Match  factories 

1,650  tons  per 

770 

1,  500,  000 

Capacity _ 

Consumed  in 

month. 

Shantung. 

Brewery.  . 

100,000  cases  of  beer 

160 

500,  000 

_ do. . . 

Consumed  in  Tien- 

per  annum. 

tsin,  Darien,  and 

Tsingtao. 

Slaughtering 

1,000  animals  a  day 

233 

400,  000 

Variable _ 

Consumed  in 

Japan  and  Tsing- 

. 

tao. 

Ssufang  railway 

1,400 

shops. 

Egg  sorting  and 

800,000  cases  per 

600 

Capacity  .  _ 

Exported  to  Japan. 

packing 

annum. 

Manufacturing 

Products  valued  at 

600 

Value  ordinarily 

Do. 

wooden  soles  for 

$400,000  Yuan 

about  $100,000 

Japanese  shoes. 

per  month. 

Yuan  per  month. 

1  Yuan  dollars.  2  $1,000,000  Yuan  in  peanut-oil  extraction;  peanut  grading  unascertained. 


The  British  Cigarette  Co.  is  now  erecting  in  Tsingtao  a  modern 
cigarette  factory  and  printing  plant.  When  complete  these  enter¬ 
prises  will  represent  an  investment  of  some  $2,500,000  Yuan  and  will 
give  employment  to  about  3,000  persons. 

It  is  estimated  that,  including  investments  represented  by  all  the 
small  machine  shops  and  similar  establishments,  the  capital  devoted 
to  industrial  enterprises  in  the  commercial  port  of  Kiaochow  Bay 
totals  well  over  $100,000,000  Yuan.  Much  of  this  development  has 
occurred  since  the  autumn  of  1914.  At  that  time  there  was  not  a 
single  spindle  in  operation.  There  are  now  in  the  commercial  port 
seven  cotton  mills,  with  a  total  of  274,800  spindles,  operating  24 
hours  a  day.  New  cotton  mills  and  extensive  additions  to  the  exist¬ 
ing  mills  are  being  planned. 

Other  local  industrial  enterprises  are  also  exhibiting  a  healthy 
tendency  toAvard  expansion.  Tsingtao  bids  fair  to  become,  within 
a  comparatively  short  time,  one  of  the  greatest  manufacturing  and 
industrial  centers  in  China. 

Tsingtao  depends  for  its  water  supply  upon  a  system  of  wells, 
which  are  now  supplying  their  full  capacity  of  11,000  cubic  meters 
of  water  daily  to  the  port.  At  certain  seasons  of  the  year  there  are 
indications  of  water  shortage,  and  with  the  city’s  rapid  industrial 
expansion  the  water  supply  will  shortly  become  inadequate.  The 
sinking  of  another  group  of  wells,  removed  from  the  locations  of 
the  present  groups,  and  a  careful  continuance  of  the  Japanese  plans 
for  reforestation  are  imperative  if  the  port’s  water  requirements 
during  the  next  10  or  15  years  are  to  be  assured. 

100020°— 26 - 49 


754  COMMERCIAL  HANDBOOK  OF  CHINA 

Article  XXIII  of  the  treaty  for  the  settlement  of  outstanding 
questions  relative  to  Shantung  contains  the  following  provision : 

The  Government  of  the  Chinese  Republic,  on  its  part,  declares  that  the  entire 
area  of  the  former  German  leased  territory  of  Kiaochow  will  be  opened  to 
foreign  trade,  and  that  foreign  nationals  will  be  permitted  freely  to  reside 
and  to  carry  on  commerce,  industry,  and  other  lawful  pursuits  within  such 
area. 

Under  this  provision  foreigners  are  free  to  construct  factories  and 
to  reside  and  carry  on  their  business  anywhere  within  the  entire  and 
well-defined  area  of  the  former  German  leased  territorv  of  Kiao- 

t j 

chow. 

A  noteworthy  fact  in  connection  with  Tsingtao’s  rapid  industrial 
development  since  1914  is  that  most  of  the  factories  here  are  merely 
branches  of  much  larger  manufacturing  enterprises  with  head  offices 
in  Japan  and  elsewhere. 

So  far  as  can  be  ascertained  there  are  no  definite  organizations 
among  the  laborers  of  the  commercial  port,  and  very  little  difficulty 
in  the  way  of  strikes  has  thus  far  been  experienced  in  the  industrial 
life  of  the  port. 

There  are  no  restrictions  in  the  matter  of  employment  of  child 
labor.  Children  are  employed  to  some  extent  in  the  textile  industry 
of  the  port.  The  minimum  age  of  employees  is  about  10  or  11 
years. 

It  is  practically  impossible  to  obtain  any  accurate  and  compre¬ 
hensive  statistics  concerning  labor  turnover  in  this  district.  One 
cotton  mill  states  that  in  keeping  the  number  of  its  employees  up 
to  3,500  it  must  take  on  from  200  to  250  new  employees  each  month. 
Another  mill  states  that  two  years  ago  the  average  length  of  an  em¬ 
ployee's  stay  was  six  months,  but  that  now,  because  of  increased 
pay  for  continuous  service,  the  average  length  of  employment  is 
one  year.  All  of  the  cotton  mills  complain  that  during  the  past 
three  years  the  wages  of  textile  employees  have  almost  doubled. 
They  attribute  the  increase  from  20  cents  to  35  cents  per  day  to 
competition  for  labor  among  the  different  mills. 

MINERALS  AND  MINING 

There  are  no  mines  in  the  Tsingtao  consular  district,  but  Tsingtao 
is  the  administrative  center  for  the  principal  coal  mines  of  Shan¬ 
tung.  (See  chapter  on  the  Tsinan  consular  district.) 

TRANSPORTATION  AND  COMMUNICATION 

WATERWAYS 

The  only  navigable  waterway  in  the  Tsingtao  consular  district  is 
Kiaochow  Bay,  upon  which  the  harbor  of  Tsingtao  is  situated.  This 
will  be  discussed  under  the  section  of  this  chapter  devoted  to 
shipping. 

RAILWAYS 

The  only  railway  in  the  Tsingtao  consular  district  is  the  Kiaochow- 
Tsinan  Railway,  extending  256  miles,  exclusive  of  branches,  be¬ 
tween  Tsingtao  and  Tsinan,  where  it  connects  with  the  Tientsin- 
Pukow  Railway.  Only  17  miles  of  the  line  lies  within  the  Tsingtao 
consular  district.  The  head  office  is  in  Tsingtao. 


TSINGTAO  CONSULAR  DISTRICT 


755 


The  Kiaochow-Tsinan  Kailway  has  been  under  the  control  of  the 
Chinese  Government  only  since  January  1,  1923,  and  does  not  use 
the  freight  classification  promulgated  by  the  Ministry  of  Communi¬ 
cations  in  Peking  for  the  use  of  Chinese  Government  railways.  The 
Kiaochow-Tsinan  Kailway  is  considering  the  adoption  of  that  classi¬ 
fication,  but  it  is  understood  that  local  customs  and  traffic  conditions 
offer  some  obstacle  to  such  a  course.  The  freight  classification  and 
rates  now  in  force  are  as  follows : 

SMALL  SHIPMENTS 

Small  shipments  are  transported  by  “  express  ”  at  the  rate  of  $0.01 
Yuan  per  kilometer  for  each  100  kilos.  The  rate  per  kilometer  is 
the  same,  regardless  of  the  distance  which  an  “  express  ”  shipment 
goes.  Small  shipments  are  transported  as  ordinary  freight  at  so 
much  per  100  kilos,  rates  varying  according  to  the  distance  of  the 
haul. 

LARGE  SHIPMENTS 

Commodities  are  divided  into  two  general  classifications — ■“  cheap 
goods  ”  and  “  ordinary  goods.”  Under  the  classification  of  “  cheap 
goods  ”  fall  commodities  of  relatively  large  bulk  or  weight  per 
dollar  of  value,  such  as  sand,  rock  ballast,  and  limestone.  Under 
the  classification  of  “  ordinary  goods  ”  fall  the  general  commodities 
of  commerce. 

Ordinary  goods  are  subdivided  into  first,  second,  and  third  grades, 
according  to  quantit}^  Shipments  of  1  to  5  metric  tons  are  “  first 
grade,”  shipments  of  5  to  10  tons  “  second  grade,”  and  shipments  of 
10  to  15  tons  (carload)  “third  grade.”  Each  of  these  grades  has  its 
own  schedule  of  rates. 

An  export  rebate  of  50  per  cent  of  the  freight  on  coal,  coke,  and 
wheat  bran  is  paid  to  shippers  upon  presentation  to  the  railway  of 
customs  export  certificates. 

GOODS  TAX 

During  the  periods  of  both  the  German  and  the  Japanese  manage¬ 
ment  of  the  Kiaochow-Tsinan  Kailway  the  Chinese  authorities  made 
repeated  but  unsuccessful  efforts  to  establish  tax  stations  along  the 
railway  for  the  purpose  of  taxing  goods  moving  over  it.  Until  after 
its  transfer  to  China,  goods  moving  over  the  railway  were  tax  free. 
Goods  moving  over  the  Tienstin-Pukow  Railway  between  Tsinan 
and  Tientsin  and  between  Tsinan  and  Pukow  were  and  still  are  sub¬ 
ject  to  a  transit  tax.  A  glance  at  a  railway  map  of  this  section  of 
China  will  indicate  that  the  taxation  of  goods  moving  over  the 
Tsinan-Pukow  line  and  the  nontaxation  of  goods  moving  over  the 
Kiaochow-Tsinan  line  gave  Tsingtao  a  distinct  advantage  over 
Tientsin  (other  things  being  equal)  as  an  entrepot  for  goods  moving 
to  and  from  Tsinan  and  the  territory  tributary  thereto.  Under  the 
German  and  Japanese  administrations  the  growth  of  Tsingtao  was 
also  fostered  by  means  of  preferential  freight  rates  and  special  con¬ 
cessions  to  enterprises  calculated  to  promote  trade  and  industrial 
development. 

The  tax-free  era  for  goods  moving  over  the  Kiaochow-Tsinan 
Railway  ended  on  September  21,  1924,  when,  over  the  vigorous  and 


756 


COMMERCIAL  HANDBOOK  OF  CHINA 


sustained  protests  of  Chinese  and  foreign  merchants,  the  Shantung 
authorities  imposed  a  “  goods  tax  ”  upon  shipments  moving  over 
the  line.  The  tax  divides  all  commodities  into  two  general  classes — 
lightly  taxed  goods  and  heavily  taxed  goods,  and  is  a  surcharge 
of  varying  percentages  of  the  railway  freight  charges.  The  fol¬ 
lowing  are  the  leading  commodities  coming  under  each  group  and 
the  rate  of  taxation : 


Per  cent  of 
freight  charges 


Lightly  taxed  goods : 

Coal _  1 

Foshan  pottery _  1 

Stone  and  implements _  1 

Clay  sand _  1 

Brick  and  tiles,  native _  1 

Lime _  1 

Bed  clay  and  alum _  1 

Grain,  inland  transportation _ 3 

Vegetables  and  melons _  3 

Hardware  and  ironmongery _  5 

Matting,  reed _  5 


Per  cent  of 
freight  charges 


Lightly  taxed  goods — Continued. 

Bamboo  ware  and  wooden  posts-  0 

Poshan  glassware _  6 

Cotton  cloth,  native _  8 

Timber _ 10 

Goods  not  otherwise  specified-  20 
Heavily  taxed  goods : 

Livestock _  40 

Leaf  tobacco  (kiln-dried) _  40 

Cotton,  raw,  for  export _  40 

Eggs _  40 

Grains,  for  export _  40 


The  goods  most  heavily  taxed  are  those  entering  into  the  export 
and  foreign  trade  of  Tsingtao.  Peanuts,  peanut  oil,  and  petroleum 
products  are  taxed  under  the  classification  “  goods  not  otherwise 
specified.” 

The  tonnage  of  the  principal  commodities  hauled  by  the  Kiaochow- 
Tsinan  Railway  in  1923  was: 


Metric  tons 


Coal _ _  1,070,000 

Peanuts : 

Shelled _  6,  075 

Unshelled _  GO,  6G3 

Coke _  48,  010 

Wood  of  all  kinds _  4G,  203 

Cotton  yarn _  43,  020 

Kaoliang _ 40,  776 

Petroleum _  39,  489 

Cotton,  raw _  39,  381 

Beans _  33,  205 


Metric  tons 


Bran  (chaff  or  husks) _  29,611 

Hardware _  29,  006 

Wheat _  27,  987 

Lime -  22,  981 

Cows _  16,  512 

Eggs _  15,  899 

Tobacco  leaf  and  cigarettes.  15,  357 

Peanut  oil _  15,  300 

Flour _  14,  281 

Sugar _  13,  534 

Earthenware  or  pottery _  13,  524 


ROADS 

In  the  commercial  port  of  Kiaochow  there  are  189  miles  of  roads 
constructed  for  motor  transportation.  There  are  estimated  to  be 
250  motor  cars  in  operation,  and  the  passenger  rates  are  $4  per 
hour.  The  character  of  surfacing  and  the  average  width  of  com¬ 
mercial  port  roads  are  shown  in  the  following  table: 


Surface 

Length 

Average 

width 

Macadamized _ _ _ _ _ _ _ _ _ 

Miles 
144.  00 

1.  34 
16.  33 
28.00 

Feet 

33.  66 
17.  50 
28.  48 
16.  36 

Stone,  square  cut  _ _ _ _ _ 

Metaled  asphalt  . . . . . . . . . . . 

Dirt _ ;.... _ _ _ _ _ _ _ 

Total  length  . . . . . . . . . . 

189.  67 

TSINGTAO  CONSULAR  DISTRICT 


757 


There  are  5.26  miles  of  concrete  sidewalk  in  the  commercial  port 
and  64.25  miles  of  stone  flagging  embedded  in  the  roads  for  the  iron- 
rimmed  wheels  of  Chinese  carts  and  wheelbarrows  to  run  upon  so  as 
to  prevent  undue  wear  on  the  ordinary  road  surfacing. 

About  25  miles  of  the  above  roadway  extend  from  Tsingtao  into 
the  Lao  Mountains.  The  remainder  of  the  mileage  is  in  and  immedi¬ 
ately  about  the  city.  There  are  two  bus  lines  running  on  schedule 
between  Tsingtao  and  Tsangkow,  a  distance  of  about  10  miles.  The 
motor-bus  fare  for  the  full  distance  is  $0.50  Yuan. 

TELEGRAPHS,  CABLES,  AND  WIRELESS  SERVICE 

The  Chinese  Telegraph  Administration  operates  three  stations  in 
the  district — one  in  Tsingtao,  one  in  Ssufang,  and  one  in  Tsangkow. 
The  telegraph  lines  of  Tsingtao  extend  to  Tsinan  and  Chefoo.  The 
only  cable  connection  from  Tsingtao  is  with  Sasebo,  Japan.  The 
Tsingtao  end  of  the  cable  is  operated  by  the  Ministry  of  Communica¬ 
tions.  The  Tsingtao  wireless  station  is  also  operated  by  the  Ministry 
of  Communications.  Its  call  letters  are  XRT.  The  wave  lengths 
used  are  600  and  800  meters.  Its  radius  by  day  is  300  to  500  miles 
and  by  night  about  1,500  miles.  This  station  communicates  only 
with  other  wireless  stations  under  the  control  of  the  Chinese  Min¬ 
istry  of  Communications  and  with  ships  at  sea.  It  accepts  commer¬ 
cial  messages,  at  the  usual  telegraph  rates,  for  points  with  which 
it  is  authorized  to  communicate.  It  is  not,  however,  ordinarily  used 
by  the  public  for  transmitting  land  messages  except  when  the  tele¬ 
graph  lines  can  not  be  used. 

The  telegraph  rate  from  Tsingtao  to  New  York  is  fixed  quarterly 
by  the  Chinese  Ministry  of  Communications. 

TELEPHONES 

The  government  of  the  commercial  port  of  Kiachow  Bay  operates 
a  telephone  system  in  Tsingtao.  There  are  2,100  subscribers.  Equip¬ 
ment  is  of  Japanese  and  German  make.  There  are  four  central 
offices  with  switchboards  and  operatives.  These  offices  are  located 
at  Tsingtao,  Tsangkow,  Ssufang,  and  Litsun,  the  three  last  being 
suburbs  of  Tsingtao. 

The  installation  of  a  telephone  costs  from  $100  to  $300  Yuan  for 
the  drop.  In  addition  there  is  a  special  installation  fee  of  $25  Yuan. 
For  a  wall  telephone  the  quarterly  fee  is  $25  Yuan;  for  a  desk  phone 
the  quarterly  fee  is  $29  to  $31  Yuan. 

POSTAL  FACILITIES 

There  are  no  special  features  connected  with  the  postal  service  at 
Tsingtao.  At  times  mail  is  received  in  Tsingtao  from  New  York 
within  24  or  25  days  after  its  dispatch,  but  the  transit  time  is  usually 
from  27  to  30  days.  Under  normal  traffic  conditions  mail  between 
Tsingtao  and  Peking  goes  by  rail  via  Tsinan  and  Tientsin,  and  mail 
between  Tsingtao  and  Shanghai  (and  between  Tsingtao  and  the 
United  States)  goes  by  rail  via  Tsinan  and  Pukow.  Tsingtao  mail 
to  and  from  the  United  States  is  transshipped  at  Shanghai  to  and 
from  the  trans- Pacific  steamers. 


758 


COMMERCIAL  HANDBOOK  OF  CHINA 


SHIPPING  AND  WAREHOUSING  FACILITIES 

HARBOR  FACILITIES 

Vessels  of  any  draft  can  enter  the  outer  harbor  of  Tsingtao  at  all 
tides  in  all  seasons.  The  shallowest  water  through  which  a  vessel 
floats  on  its  way  to  the  “  commercial  harbor  ”  through  the  inner 
harbor  is  at  “Horseshoe  Reef.’’  At  the  period  of  the  lowest  tides  of 
the  year  the  minimum  depth  of  the  water  at  this  point  is  about  37 
feet.  The  outer  harbor  is  separated  from  the  inner  harbor  by  a 
long  neck  of  land  called  Tai  Hsichen  (Yuni  San  Point),  which 
stretches  itself  into  the  bay  and  forms  a  breakwater.  The  piers  are 
inclosed  in  a  basin  called  the  “  commercial  harbor,”  formed  by  the 
arms  comprising  No.  1  and  No.  4  piers.  The  depth  of  the  water  at 
the  period  of  lowest  tides  at  the  entrance  of  the  basin  is  29  feet. 

The  commercial  harbor  is  reserved  for  ocean-going  and  coastwise 
steamers.  Native  junks  load  and  discharge  their  cargoes  in  the 
“small  harbor”  or  “junk  harbor,”  in  which  the  depth  of  the  water 
is  approximately  10  feet  in  certain  places.  In  other  places  within  the 
small  harbor  the  bottom  is  exposed  at  low  tide.  While  one  or  two 
very  small  coasting  steamers  (little  more  than  large  launches)  use 
the  junk  harbor  in  discharging  native  passengers  and  inward  cargo, 
it  is  used  in  the  main  by  junks  plying  between  Tsingtao  and  the 
small  ports  in  Kiaochow  Bay  and  along  the  coast  as  far  south  as 
Haichow  and  as  far  north  as  Siatsun. 

There  is  ample  anchorage  room  in  the  inner  harbor  for  any  reason¬ 
able  number  of  vessels.  Outside  this  anchorage  ground,  however, 
the  bay  shoals  rapidly  and  is  navigable  throughout  its  inner  reaches 
only  by  launches  of  very  shallow  draft  and  by  junks. 

Vessels  entering  the  harbor  are  required  to  anchor  in  the  quaran¬ 
tine  anchorage  area  in  the  outer  harbor  opposite  Tsingtao  Island 
(Arcona)  until  they  have  been  granted  pratique.  The  employment 
of  pilots  by  vessels  arriving  at  or  departing  from  Tsingtao  is 
optional. 

Organizations  of  Chinese  merchants  at  Tsangkow,  Tafutao,  Hung- 
shihyieh  and  Shatzekou  levy  taxes  upon  junk  cargoes  for  local  ex¬ 
penditure  as  follows:  (1)  On  cargoes  loaded  on  junks  for  export, 
a  loading  tax  of  1  per  cent  of  the  value  of  such  cargoes;  (2)  on 
cargoes  imported  in  junks  a  weighing  tax  of  four-fifths  of  1  per 
cent  of  the  value  of  such  cargoes. 

Inquiries  among  American  firms  indicate  that  the  preceding  taxes 
have  not  thus  far  been  imposed  upon  American  goods. 

In  the  “  commercial  harbor  ”  of  Tsingtao  there  are  four  piers  with 
berthing  space  extending  for  a  length  of  10,650  feet. 

Pier  No.  1  is  used  principally  for  coastwise  vessels.  It  is  2,534 
feet  long,  and  it  can  accommodate  six  vessels  at  a  time.  There  are 
four  warehouses  opposite  berths  A,  B,  C,  and  D.  Berths  E  and  EE 
are  for  coaling  and  are  generally  used  only  when  vessels  requiring 
a  large  quantity  of  bunker  coal  are  in  port. 

Pier  No.  2  has  a  lineal  berthing  space  of  3,666  feet — 1,329  feet 
(berths  F,  G,  H)  on  the  south  side,  336  feet  (berth  M)  on  the  end, 
and  2,001  feet  (berths  FF,  GG,  and  HH)  on  the  north  side.  Berth 
F  is  used  by  the  smaller  ocean-going  vessels  drawing  about  20  feet. 
Berth  G  can  accommodate  vessels  drawing  23  feet,  and  berth  H  ves- 


TSINGTAO  CONSULAR  DISTRICT 


759 


sels  drawing  27  feet  when  loaded.  Berths  FF  and  GG  can  accom¬ 
modate  vessels  drawing  27  feet,  and  berth  HH,  with  water  a  little 
deeper,  can  accommodate  vessels  drawing  29  feet. 

Pier  No.  3,  only  564  feet  long,  is  usually  spoken  of  as  the  “  petro¬ 
leum  mole.”  It  is  equipped  with  two  pipe  lines  (6  inches  and  8 
inches)  for  the  discharge  of  oil  tankers  into  the  installations  of  two 
near-by  oil  companies.  It  is  also  used  for  the  discharge  of  timber 
and  other  cargo  not  subject  to  damage  if  stored  in  the  open,  as  well 
as  for  dangerous  goods.  There  are  no  warehouses  on  the  pier,  but 
in  the  immediate  neighborhood  there  are  two  storehouses  (isolated) 
available  for  rental  to  firms  desiring  to  store  dangerous  goods  there¬ 
in.  The  water  alongside  has  a  comparatively  narrow  channel  and  is 
29  feet  deep.  The  berth  can  therefore  take  a  vessel  drawing  not 
more  than  27  feet. 

Pier  No.  4  has  3,886  linear  feet  of  berthing  space  and  is  used 
principally  for  coal,  heavy  machinery,  and  salt.  There  are  two  berth¬ 
ing  spaces,  K  and  L,  upon  this  pier  which  can  accommodate  vessels 
drawing  29  and  28  feet,  respectively.  At  berth  K  three  warehouses 
are  available  for  rental  to  firms  desiring  storage  on  monthly  or 
yearly  terms. 

CARGO-HANDLING  EQUIPMENT 

Pier  No.  4  is  equipped  with  a  crane  with  a  cargo-lifting  capacity 
of  100  tons,  available  for  rental  at  $70  for  the  first  hour  and  $30  for 
each  hour  thereafter.  In  addition,  there  are  two  floating  cranes. 
The  larger  one,  with  a  lifting  capacity  of  30  tons,  is  available  for 
rental  at  $25  for  the  first  hour  and  $11  for  each  hour  thereafter. 
The  smaller  crane  is  available  for  rental  at  $14  for  the  first  hour 
and  $8  for  each  hour  thereafter. 

The  general  import  and  export  cargo  of  the  port  is  handled  al¬ 
most  exclusively  by  human  labor.  The  supply  of  coolie  labor  is 
adequate  and  averages  with  that  of  the  other  coast  ports  of  China. 
The  average  rate  of  loading  and  discharge  of  steamers  is  about  30 
tons  per  hatch  during  each  working  hour.  This  includes  taking 
cargo  from  the  ship’s  hold  and  storing  it  in  the  warehouse  on  the 
pier,  and  vice  versa. 

The  average  wharfage  charge  for  cargo  of  a  general  nature  is  $0.45 
Yuan  per  ton.  The  rates  for  stevedorage  are  about  $0.18  Yuan 
(base)  per  ton  for  day  work,  with  an  increase  of  80  per  cent  for 
night  work  up  to  midnight  and  150  per  cent  from  midnight  to  morn¬ 
ing.  Packages  weighing  or  measuring  more  than  1  and  less  than  3 
tons  are  charged  for  at  double  the  stevedorage  base  rate.  Packages 
weighing  3  tons  or  more  and  less  than  5  tons  are  charged  for  at  three 
times  the  base  rate.  For  ordinary  cargo  the  average  cost  of  handling 
from  ship’s  hold  into  the  warehouse,  and  vice  versa,  is  63  cents  a  ton. 

WAREHOUSING 

The  four  warehouses  on  Pier  No.  1  have  a  total  floor  area  of 
105,984  square  feet,  and  are  easily  accessible  from  the  different 
berths.  All  the  piers  in  the  commercial  harbor  are  equipped  with 
railway  tracks  along  their  entire  length,  so  that  import  cargo 
destined  to  Tsinan  or  points  along  the  Kiaochow-Tsinan  Railway 
may  be  loaded  on  railway  bracks  directly  from  the  ship’s  hold  with 


760 


COMMERCIAL  HANDBOOK  OF  CHINA 


a  single  handling.  Three  large,  brick-walled,  iron-roofed  ware¬ 
houses  on  Pier  No.  2,  with  a  floor  area  of  148,932  square  feet,  are 
inadequate  to  house  the  import  and  export  cargo  handled  on  it. 

These  warehouses  are  not  available  for  rent  in  the  ordinary  sense 
of  the  word.  They  are  the  property  of  the  Government  and  are 
used  exclusively  for  the  landing  and  shipment  of  cargo.  Import 
cargo  may  be  left  therein  for  a  period  of  four  days  without  payment 
of  other  than  ordinary  wharfage  charges  (averaging  about  $0.45 
Yuan  per  ton).  After  the  expiration  of  that  period  demurrage  is 
charged  on  cargo  left  in  the  warehouses  or  upon  the  piers. 

The  three  warehouses  on  Pier  No.  4,  at  berth  K,  are  in  very  poor 
condition  and  would  require  a  considerable  amount  of  repair  to 
render  them  suitable  for  use.  It  is  estimated  that  thev  will  hold 
about  2,000  tons  of  cargo. 

In  addition  to  the  foregoing,  the  Harbor  and  Wharf  Administra¬ 
tion  has  10  warehouses  in  the  wharf  area  (generally  known  as  the 
bonded  area)  with  a  total  storage  capacity  of  about  8,000  tons. 
They  may  be  rented  by  firms  desiring  storage  for  import  and  export 
cargo. 

CUSTOMS  AND  SHIPPING  PRACTICE  AT  TSINGTAO 

The  establishment  of  a  customhouse  at  Tsingtao  under  direction 
of  the  Chinese  Maritime  Customs  was  pro  Added  for  in  an  agreement 
signed  on  April  IT,  1899,  by  Heyking,  German  minister  to  China, 
and  Sir  Robert  Hart,  inspector  general  of  the  Chinese  Maritime 
Customs.  The  agreement  provided  that  all  goods  coming  into  the 
German  leased  territory  of  Kiaochow  should  be  duty  free,  both  from 
abroad  and  from  China  coast  ports.  The  agreement  also  provided 
that  the  full  tariff  import  duty  in  the  case  of  foreign  goods  and 
coast-rate  duty  in  the  case  of  native  goods  should  be  paid  upon  the 
shipment  of  such  goods  from  the  leased  territory  to  the  interior  of 
China.  For  the  collection  of  such  duties  barriers  Avere  established 
at  the  Kiaochow-Tsinan  Railway  station  and  the  ATarious  other  exits 
from  the  leased  territory. 

In  1904  a  Sino-German  commission  Avas  appointed  by  the  Chinese 
and  German  GoA^ernments  for  the  amendment  of  the  existing 
customs  regulations,  which  had  been  found  to  be  unsatisfactory. 
The  investigation  of  the  commission  resulted  in  the  conclusion  that 
approximately  20  per  cent  of  all  coastwise  and  foreign  imports  into 
the  German  leased  territory  were  consumed  locally  and  the  remain¬ 
ing  80  per  cent  shipped  to  the  interior.  An  agreement 2  was  arrived 
at  in  December,  1905,  containing,  among  others,  the  following 
provisions : 

1.  The  establishment  of  a  very  small,  duty-free  area,  including  the  piers  and 
warehouses  thereon,  together  with  the  ground  immediately  adjacent  thereto. 

2.  Full  payment  of  import  and  coastwise  duties  upon  all  goods  imported  from 
abroad  and  Chinese  territory  leaving  such  free  area,  excepting  certain  sup¬ 
plies  for  the  German  armed  forces  and  machinery  (plant  as  well  as  parts  of 
machinery ) ,  implements,  and  tools  required  for  manufacturing,  industrial,  and 
agricultural  purposes ;  also  all  building  materials,  fittings,  and  other  articles 
for  public  and  official  works.  The  goods  covered  by  this  exception  were  to  be 
duty  free  so  long  as  they  remained  in  the  German  leased  territory. 

3.  Full  payment  of  export  and  coastwise  export  duties  upon  all  shipments 
passing  from  the  German  leased  territory  for  export. 


-  MacMurray  :  Treaties  and  Agreements  with  and  Concerning  China.  Vol.  I.  p.  193, 


TSINGTAO  CONSULAR  DISTRICT 


761 


4.  The  payment  of  20  per  cent  of  all  import  and  coast-rate  import  revenue 
to  the  government  of  the  German  leased  territory  (that  being  the  percentage 
of  the  total  imports  estimated  to  remain  in  the  leased  territory)  for  ad¬ 
ministrative  expenses. 

All  of  the  above  provisions  excepting  the  second  are  still  effective. 
Article  XXVII  of  the  Sino- Japanese  agreement  for  the  settlement 
of  outstanding  questions  relative  to  Shantung  provides  for  the  free 
entry  into  the  Kiaochow  territory  of  machinery  (plant  as  well  as 
parts  of  machinery),  implements,  and  tools  required  for  manufactur¬ 
ing,  industrial,  and  agricultural  purposes;  also  all  building  materials, 
fittings,  and  other  articles  for  public  and  official  works,  if  such 
goods  were  contracted  for  in  good  faith  on  or  before  February  4, 
1922,  and  imported  within  four  years  from  that  date. 

The  continuance  of  the  duty-free  area  (now  known  as  the  bonded 
area)  was  provided  for  in  Article  XXVI  of  the  above-mentioned 
agreement.  There  is  no  advantage  to  be  gained  by  leaving  import 
cargo  in  this  bonded  area.  The  demurrage-exempt  period  is  only 
four  days.  After  this  period,  which  is  often  inadequate  for  the 
clearance  and  removal  of  imported  goods,  the  demurrage  charges  for 
storage  in  the  bonded  area  offset  the  saving  on  interest  charges.  A 
refund  of  import  duty  may  be  obtained  upon  reexportation  of  the 
goods  covered  thereby.  There  is,  however,  an  advantage  to  the 
public  in  the  matter  of  goods  landed  for  immediate  transshipment. 
Such  goods  may  be  discharged  upon  the  wharves  or  into  the  ware¬ 
houses  thereon  and  reshipped  without  the  payment  and  refund  of 
import  duty,  the  only  formality  being  the  filing  of  a  transshipment 
application.  Cargo  for  transshipment  or  importation  may  be  re¬ 
packed  in  the  bonded  area  under  customs  supervision  without  the 
payment  of  duty. 

Under  China’s  treaty  provisions  with  foreign  nations  a  foreign 
steamship  may  be  cleared  through  the  customs  and  the  consulate 
concerned  when  all  import  duties  upon  cargoes  discharged  by  such 
vessel  and  all  export  duties  upon  cargoes  laded  have  been  paid,  and 
not  before.  As  a  matter  of  convenience,  the  Chinese  Maritime  Cus¬ 
toms  permit  steamship  agents  at  the  various  ports  in  China  to  file 
a  bond  or  guaranty  covering  their  vessels’  liability  for  the  payment 
of  duties,  thus  enabling  the  steamers  covered  thereby  to  clear 
promptly.  In  Tsingtao  no  such  bond  or  guaranty  is  required.  In¬ 
ward  cargo  is  discharged  upon  the  wharves,  which  are  under  the 
custody  of  the  wharf  office,  and  the  ship  has  no  responsibility  for 
the  payment  of  duty.  Outward  cargo  is  laded  from  the  custody  of 
the  wharf  office,  and  the  vessel  in  this  case  also  is  not  responsible  for 
the  payment  of  export  duty. 

Tsingtao  is  unlike  any  other  port  in  China,  in  that  all  of  its 
wharves  or  piers  are  publicly  owned.  Berths  are  granted  without 
discrimination  or  favor  to  vessels  applying  therefor.  This,  of  course, 
so  far  as  Tsingtao  is  concerned,  eliminates  for  newly  established 
steamship  lines  the  very  difficult  problem  of  terminal  facilities. 

PUBLIC  WORKS  AND  UTILITIES 

ELECTRIC-LIGHT  PLANTS 

The  Tsingtao  electric-light  plant  is  under  Sino- Japanese  manage¬ 
ment.  It  carries  a  lighting  load  of  1,200  kilowatts  and  a  power 


762 


COMMERCIAL  HANDBOOK  OF  CHINA 


load  of  2,000  kilowatts.  The  rates  vary  according  to  the  amount 
of  current  used  per  kilowatt  hour.  Current  is  sold  through  the 
meter  except  in  a  few  cases  where  flat  monthly  rates  are  charged  for 
current  used  in  electric  display  signs. 

The  plant  has  four  steam  turbine  generators.  The  two  largest 
are  of  Swedish  manufacture,  one  is  of  Japanese  make,  and  the 
smallest  is  German.  Of  the  nine  boilers  in  use,  seven  are  of  British 
manufacture  and  two  German.  An  alternating  current,  three  phase, 
with  a  frequency  of  50  cycles  is  produced.  The  voltage  at  the 
power-station  generators  is  *3,300 ;  the  voltage  at  customers’  terminals 
for  light  is  120.  The  plant  supplies  current  to  the  city  of  Tsingtao 
and  the  suburbs  of  Litsun,  Tsangkow,  and  Ssufang. 

WATERWORKS 

Tsingtao  obtains  its  water  supply  from  64  municipally  owned  and 
operated  wells  formed  by  6-inch  brass,  zinc-covered  pipes  sunk  into 
the  ground.  Twenty-seven  of  these  wells  are  located  at  Paisha  and 
27  at  Litsun.  The  Litsun  station  is  connected  with  the  Tsingtao 
reservoirs  by  two  16-inch  mains,  and  water  reaches  the  city  from  the 
reser Avoirs  by  gravity.  The  Tsingtao  water works  have  a  delreering 
capacity  of  11,000  tons  per  24  hours. 

In  addition  to  the  aboA^e  wells,  there  are  17  shallow  wells  at  Litsun, 
and  13  “emergency”  wells  at  Haipoho  (about  1  mile  from  the 
reserAT>irs),  of  which  onlv  10  are  ordinarily  used. 

Water  rates  for  household  and  industrial  use  Arary  from  $0.09  to 
$0.15  Yuan  per  cubic  meter,  according  to  the  quantity  used  per 
month. 

Tsingtao  is  now  consuming  the  full  amount  of  water  which  its 
water  system  is  capable  of  producing.  It  is  regarded  as  possible  that 
the  city’s  immediate  industrial  development  may  be  retarded  unless 
prompt  steps  are  taken  to  increase  its  water  supply. 

EXPORT  AND  IMPORT  TRADE 

The  treaty  of  1898,  by  which  China  leased  to  Germany  the  Kiao- 
chow  Bay  territory  for  99  years,  may  be  said  to  haATe  constituted  the 
origin  of  the  port  of  Tsingtao.  Before  the  German  occupation  it 
was  a  fishing  ATillage  of  no  importance.  The  rapid  deArelopment  of 
Tsingtao  as  a  maritime  port  in  the  brief  space  of  27  years  and  under 
the  administration  of  three  nations  is  apparent  from  the  following 
figures : 


Items 

1903 

1913 

1923 

Total  exports  to  foreign  countries  and  to  other  Chinese  ports. _ 

Imports  from  foreign  countries.  _ _ _ 

$2,  132,  508 
3,  285,  907 

1,  800,  837 

$18,  976,  745 
11,468,  621 

7,  964,  548 

$34,  761,  431 
34,  552, 117 
19, 136,  989 

Imports  from  other  Chinese  ports  _ _ 

Total  exports  and  imports . . . 

7,  219,  252 

38,  409,  914 

88,  450,  537 

Note. — The  above  figures  and  those  following  refer  only  to  the  water  trade  of  the  port.  They  are  in 
United  States  currency  and  were  converted  at  the  following  equivalents  for  the  haikwan  tael:  1903,  $0.64; 
1913,  $0.7415;  1923,  $0.8231.  In  addition  to  the  water-borne  trade  there  is  a  large  volume  of  trade  over  the 
Kiaochow-Tsinan  Railway, 


TSINGTAO  CONSULAR  DISTRICT 


763 


EXPORTS 

The  values  (in  haikwan  taels)  of  the  principal  articles  exported 
from  Tsingtao  for  the  years  1903,  1913,  and  1923  are  as  follows : 


Articles 

1903 

1913 

1923 

Beef  _ _ _ _ _ _ _  _ 

Taels 

Taels 

767, 145 
4, 172 
370,  962 

Taels 

1, 470, 456 
720, 610 
344,  807 

1,  020,  838 

2,  201,  499 
514,  058 

3,  003,  271 

43, 197 

4,  973, 142 

1,  031,  222 
9,  038,  900 
288,  251 
931,  200 

1,  780,  963 

2,  777,  396 

Bran  _  -  . .  .  .  _  -  -  .  . _  _  _ 

Bristles..  . . . . .  .  _ _  .  _ _ 

43, 616 

Clogs,  wooden . .  .  ..  _  .  _  .  _ 

Coal  .  . .  .  . . .  . 

828,  909 

Cotton  yarn _  _ _  .....  _ _  .  ..  .  ..  _ _ _ 

Eggs,  fresh.  . . .  . .  ..  .  _ 

178,  570 

242,  783 

1,  812,  543 

Oil: 

Bean  _ _ _ _  .  .  _  .  .  ..  _ 

384,  484 
703,  886 

74  392 

Peanut.  . .  ...  _  .... _ _  .  _ _ _ 

Peanuts: 

In  shell  _ _ _ _  .  .  .  .  _ ' _ 

Kernels.  _ .....  ._  .  .  .  ...  _ 

5, 116,  403 

Salt _ 

Silk,  raw,  yellow  .  .  ..  .  .  _ _ _  _ 

416,  280 
573,  240 

1,  690,  770 
4, 184,  714 
5, 755 

Straw  braid  . .  .  _  .  _ 

Tobacco _  _ _  _ _ _  .  _ _ _ _ 

Most  of  the  increases  in  the  items  of  export  are  due  merely  to  the 
rapid  growth  of  a  new  port  possessing  many  advantages,  natural 
and  acquired.  The  beef  industry  has  been  developed  under  the 
German,  Japanese,  and  Chinese  administrations.  Practically  all  the 
exports  of  beef  and  eggs  go  to  Japan.  The  existence  and  growth 
of  tobacco  exports  are  purely  the  result  of  the  enterprise  of  large 
foreign  tobacco  companies  which  established  experimental  and  pur¬ 
chasing  stations  along  the  Kiaochow-Tsinan  Railway  and  en¬ 
couraged  the  local  farmers  to  plant  tobacco.  Tobacco  now  has  a 
great  importance  in  the  district  around  Erhshihlipu  as  a  “  cash  ” 
crop.  The  falling  off  in  the  exports  of  bean  oil  is  due  to  the  fact 
that  the  Shantung  farmer  has  turned  from  the  cultivation  of  beans 
to  peanuts  and  tobacco.  The  drop  in  the  exports  of  straw  braid 
during  the  period  from  1913  to  1923  is  due  to  the  fact  that  during 
the  dislocation  of  trade  in  1914,  when  Tsingtao  was  captured  after 
a  siege  by  Japanese  troops,  the  straw-braid  market  was  moved  to 
Tientsin.  Only  in  the  last  two  or  three  years  has  it  shown  a  tendency 
to  return  to  this  port. 

The  following  figures  show,  by  percentages,  the  destinations  of 
Tsingtao’s  principal  exports  during  1923 : 


Articles 

To  other 
Chinese 
ports 

To 

Great 

Britain 

To 

Japan 

To 

Hong¬ 

kong 

To 

Ger¬ 

many 

To 

France 

To 

United 

States 

To  other 
countries 

Beef.  .  ...  _  _ 

2 

98 

Bran _  .  .  .... _ ... 

100 

Bristles _  _  ....  . 

4 

62 

9 

21 

4 

Clogs,  wooden  ....  ._  . 

100 

Coal... _ _ 

64 

33 

3 

Cotton  yarn  _  . . . . 

87 

13 

Eggs,  fresh _ 

100 

Oil- 

Bean.  _  ...  _ 

87 

13 

Peanut _  _ 

51 

20 

29 

Peanut  kernels.  . . . 

31 

1 

14 

5 

13 

16 

20 

Peanuts  in  shell  ...  _  . 

1 

21 

16 

4 

26 

6 

26 

Salt _ _ _  _ 

100 

Silk,  raw,  yellow  .  .  ...  . 

80 

20 

Straw  braid. . . 

3 

2 

77 

1 

8 

3 

2 

4 

Tobacco  leaf  . . .  . 

96 

2 

2 

764 


COMMERCIAL  HANDBOOK  OF  CHINA 


A  casual  examination  of  the  above  table  shows  that  Japan  not 
only  takes  a  greater  percentage  of  Tsingtao’s  exports  than  any  other 
foreign  country,  but  more  even  than  other  parts  of  China  (so  far 
as  water  traffic  is  concerned).  This  great  trade  was  developed  dur¬ 
ing  the  Japanese  occupation  of  the  port  of  Tsingtao.  Prior  to  the 
period  of  the  Japanese  occupation  Japan’s  interests  in  and  trade 
with  Tsingtao  amounted  to  but  little. 

Peanuts  and  peanut  oil  are  the  greatest  items  in  Tsingtao’s  ex¬ 
ports  to  the  United  States.  An  interesting  feature  of  this  trade  is 
that  whereas  prior  to  1922  American  peanut  buyers  made  their  pur¬ 
chase  contracts  at  Kobe  (Japan)  for  Shantung  peanuts,  they  are 
now  largely  buying  direct  from  Tsingtao.  Shipments  go  direct 
from  this  port  to  the  United  States,  contrary  to  the  former  practice 
of  transshipment  at  Japanese  ports. 


IMPORTS 

Below  are  given  the  values  (in  haikwan  taels)  of  the  principal 
articles  imported  into  Tsingtao  through  the  Chinese  Maritime 
Customs  in  1908,  1918,  and  1923. 


#  -  = 

Articles 


Cotton  goods: 

Lastings,  plain,  colored 

Prints,  plain _ 

Sheetings,  gray,  plain.. 

T  cloths. _ _ 

Yarn. . . . 

Cotton,  raw . . . 

Dyes: 

Aniline . 

Indigo . . . . 

Electrical  materials . 

Flour,  wheat _ 

Iron  and  mild  steel: 

New . . . 

Old. . . 

Machinery,  textile . . 

Oil,  kerosene _ 

Rice. . . 

Sugar: 

Brown.. . . . 

Refined.. _ _ 

Timber: 

Hardwood _ _ 

Softwood . . 


1903 


Taels 
32, 574 
14, 189 
421,  446 
40,  868 
3,  609,  407 


57,  005 
156,  055 


649 
30,  203 


205,  868 


29, 849 
851 


1913 


Taels 
66,  585 
332,  510 
1,  205,  542 
1,265, 110 
7, 115,  761 


306, 173 
1, 154,  314 
39,  833 
291,  733 

55,  092 
266,  691 
1, 140 
1,  216,  997 
81,  086 

655,  932 
474,  879 


1923 


Taels 
962,  492 
839, 441 
1,  207,  980 
272,  611 

4,  310,  352 

5,  649,  000 

479,  332 

1,  360,  569 
226, 158 
775,  327 

122, 143 
331,534 

2,  804,  884 
2,  961,214 
1,083, 113 

805, 896 
1,134,554 


10, 094  165, 145 

111,374  432,424 


The  textile  industry  in  Tsingtao  had  its  beginning  about  six  years 
ago,  and  the  large  imports  of  textile  machinery  are  due  to  the  es¬ 
tablishment  and  extension  of  spinning  mills.  The  imports  of  textile 
machinery  in  1922  amounted  in  value  to  5,101,992  haikwan  taels. 
The  cotton  yarn  (valued  at  514,058  haikwan  taels  in  the  1928  exports) 
and  the  raw  cotton  (5,649,000  haikwan  taels  in  the  1928  imports) 
represent  only  small  fractions  of  local  dealings  in  these  commodities. 
Most  of  the  cotton  received  in  Tsingtao  comes  in  by  rail  from  and 
through  Tsinan  and  the  territory  along  the  Kiaochow-Tsinan  Rail¬ 
way.  Most  of  the  yarn  shipped  from  Tsingtao  goes  by  rail  to  and 
through  Tsinan  and  the  territory  along  the  Kiaochow-Tsinan  Rail¬ 
way,  without  being  shown  in  the  Chinese  Maritime  Customs  statistics, 
from  which  the  above  figures  are  taken. 


TSINGTAO  CONSULAR  DISTRICT 


765 


The  following  figures  show,  by  percentages,  the  origin  of  Tsing- 
tao’s  principal  imports  by  water  during  1923 : 


Articles 

From 

other 

Chinese 

ports 

From 

Great 

Britain 

From 

J  apan 

From 

Hong¬ 

kong 

From 

Ger¬ 

many 

From 

United 

States 

From 

other 

countries 

Cotton  goods: 

Lastings,  plain,  colored 

38 

62 

Prints,  plain  .  _  _ 

38 

61 

1 

Sheetings,  gray,  plain  _ 

14 

86 

T  cloths.  ..  * _  .  . 

22 

78 

Yarn _ 

3 

97 

Cotton,  raw..  _  ... 

2 

97 

1 

Dyes: 

Aniline  . . . . 

61 

1 

1 

17 

20 

Indigo. _  ...  _ _ 

95 

5 

Electrical  materials  ..... 

24 

69 

4 

3 

Flour,  wheat _ 

52 

48 

Iron  and  mild  steel: 

New  .  ...  ..... 

44 

13 

40 

3 

Old.. 

23 

42 

35 

Machinery,  textile _  ... 

6 

9 

85 

Oil,  kerosene _ 

3 

5 

92 

Rice.  _  . 

32 

66 

2 

Sugar: 

Brown  ...  .  _  _ 

1 

99 

Refined.. .  _  . 

60 

39 

1 

Timber: 

Hardwood.  ... _ _ 

100 

Softwood  _  .  .  ...  . 

1 

23 

76 

• 

Note. — There  are  notable  inaccuracies  in  the  above  percentages,  for  the  reason  that 
Japan,  like  Hongkong,  acts  as  a  screen,  hiding  to  a  considerable  extent  the  true  origin 
of  imports  and  the  destination  of  exports.  B'or  example,  although  Japan  produces  only 
a  negligible  quantity  of  cotton,  that  country  is  accredited  as  the  source  of  97  per  cent 
of  the  water-borne  imports  of  cotton  into  Tsingtao,  amounting  in  value  in  1923  to 
5,469,000  haikwan  taels.  Nearly  all  the  cotton  imported  by  water  into  Tsingtao  is 
produced  in,  India,  the  United  States,  and  China,  Japan  being  merely  a  transshipment 
point. 


MONEY,  BANKING,  AND  CREDITS 

BANKS 

The  only  banks  in  the  district  doing  business  in  foreign  exchange 
and  foreign  bills  are  the  Yokohama  Specie  Bank  (Japanese)  and 
the  Hongkong  and  Shanghai  Banking  Corporation  (British),  both 
too  well  known  to  require  identification.  These  banks  have  branches 
in  the  United  States,  in  Europe,  and  throughout  the  Far  East.  The 
Tsingtao  branches  handle  all  classes  of  foreign  exchange  and  credits. 

LOCAL  CURRENCIES 

The  three  currencies  in  circulation  in  Tsingtao  are,  in  order  of 
their  importance,  the  Yuan  dollar,  Kiaochow  tael,  and  the  copper. 
The  Kiaochow  tael  weighs  574.263  grains  and  is  987.75  fine.  The 
copper  fluctuates  in  exchange  value  from  about  230  to  255  to  the 
Yuan  dollar. 

Comparatively  few  silver  Yuan  dollars  are  in  circulation  in 
Tsingtao.  The  principal  currency  of  the  port  is  the  paper  bank 
note  based  upon  the  Y  uan  dollar.  Prices  for  practically  all  commod¬ 
ities  of  commerce,  excepting  bristles  and  straw  braid,  are  expressed 
in  YTian  dollars.  Prices  for  bristles  and  straw  braid  are  quoted 
in  Kiaochow  taels,  which  are  usually  at  a  premium  of  about  6  per 
cent  as  compared  with  Shanghai  taels.  Copper  coins  are  used  for 
fractions  of  less  than  10  cents.  These  coins  are  current  in  the  Chi- 


766  COMMERCIAL  HANDBOOK  OF  CHINA 

nese  hand-to-hand  trade  of  the  port  and  to  a  certain  extent  in  the 
payment  of  labor,  but  they  do  not  occupy  an  important  position  in 
local  trade. 

Native  bank  orders,  written  and  “  chopped  ”  entirely  in  the 
Chinese  language,  play  an  important  part  in  the  trade  of  the  port 
and  in  the  up-country  trade.  The  making  of  large  remittances  is 
accomplished  through  the  exchange  at  Tsingtao  of  native  bank 
orders  on  banks  in  different  Chinese  cities,  the  exchange  rate  on  any 
given  day  being  settled  by  the  demand  upon  that  particular  day. 
The  daily  exchange  rate  between  the  Kiaochow  tael  and  the  Shang¬ 
hai  tael  and  also  the  Yuan  dollar  is  fixed  in  this  manner. 

The  cost  of  the  remittance  of  funds  from  Tsingtao  to  Shanghai 
through  the  usual  banking  facilities  is  normally  from  a  quarter  to 
a  half  of  1  per  cent. 

At  times  fluctuation  in  exchange  has  a  very  disturbing  effect 
upon  Tsingtao's  foreign  trade.  Because  of  their  failure  to  fix  ex¬ 
change  by  forward  banking  arrangements  at  the  time  of  contract, 
local  firms  are  at  times  involved  in  heavy  losses  in  the  matter  of  im¬ 
port  and  export  shipments  during  exchange  fluctuations.  Tsingtao’s 
export  trade  to  America,  chiefly  peanuts,  is  particularly  sensitive  to 
exchange  fluctuations.  Peanuts  from  Tsingtao,  after  surmounting 
the  American  customs  barrier  of  3  and  4  gold  cents  per  pound,  com¬ 
pete  with  American-grown  nuts  on  a  margin  so  small  that  at  times 
only  slight  exchange  fluctuations  affect  the  trade  seriously. 

CREDITS 

Speaking  generally,  it  may  be  said  that  the  export  trade  from 
Tsingtao  to  the  United  States  is  on  a  00-day  basis  for  shipments  to 
the  Pacific  coast  and  on  a  90-day  basis  for  shipments  to  the  Atlantic 
coast.  In  the  same  manner  it  may  be  said,  subject  to  frequent  ex¬ 
ceptions,  that  the  import  trade  from  the  United  States  is  on  a  90-day 
basis.  There  is,  however,  a  considerable  amount  of  business  with 
the  United  States,  both  import  and  export,  transacted  upon  sur¬ 
render  of  bills  of  lading  and  other  documents  against  payment.  In 
Tsingtao  the  question  of  credits  is  an  important  phase  of  foreign 
trade — one  that  merits  careful  study  by  representatives  of  firms 
transacting  or  contemplating  business  in  this  territory. 

In  establishing  a  credit  to  cover  an  importation  from  the  United 
States  a  firm  in  Tsingtao  presents  to  its  bank  a  written,  signed  re¬ 
quest  somewhat  similar  to  the  following: 

Please  instruct  your  _  branch  by  wire/letter  to  negotiate  the 

draft  of _ on  me/us  for  full  or _ per  cent  of  the  invoice  cost 

of  _ 

Drafts  to  be  drawn  at _ days/months  sight  and  accompanied  by  all 

shipping  documents. 

Marine  insurance  and  war  risks  to  be  effected  in _ 

This  request  is  to  remain  in  force  for _ calendar  months. 

I/We  hereby  guarantee  to  accept  all  drafts  drawn  under  the  above  credit 
on  presentation  and  pay  the  same  at  or  before  maturity.  All  exchange  in 
connection  with  the  transaction  is  to  be  settled  through  you. 

In  some  instances  the  bank  may  establish  the  desired  credit  upon 
this  written  request  without  further  ado,  but  more  often  it  will 
require  the  applicant  to  deposit  a  percentage  of  the  desired  credit 
as  a  guaranty,  protecting  itself  as  regards  the  balance  by  holding, 


TSINGTAO  CONSULAR  DISTRICT  767 

upon  their  arrival,  the  bill  of  lading  and  other  shipping  documents 
against  payment. 

There  are  no  public  storage  warehouses  in  Tsingtao.  An  Ameri¬ 
can  firm  in  shipping  goods  to  Tsingtao  covered  by  a  bill  of  lading 
attached  to  a  60  or  90  day  sight  draft,  with  flat  instructions  to  the 
bank  not  to  surrender  bill  of  lading  until  the  draft  is  paid,  may 
place  both  the  bank  and  its  customer  in  an  awkarcl  predicament.  Un¬ 
less  the  shipment  is  cleared  promptly  through  the  customs  and  re¬ 
moved  from  the  public  warehouses  upon  the  piers,  demurrage 
charges  soon  become  disastrous.  Frequently  the  purchasing  firm 
desires,  or  perhaps  finds  it  necessary,  to  avail  itself  of  the  full  60 
or  90s  days  stipulated  in  the  draft.  While  the  matter  is  one  to  be 
decided  by  each  firm  upon  its  own  responsibility,  the  interests  of 
the  American  firm  would  probably  be  adequately  protected  if  the 
local  bank  were  given  some  discretion  in  the  matter  of  the  surrender 
of  shipping  documents.  Frequently  the  local  banks,  knowing  with 
some  intimacy  the  financial  position  and  standing  of  Tsingtao  firms 
with  whom  they  are  dealing,  are  able  to  release  shipping  documents, 
without  the  immediate  payment  of  the  covering  draft,  upon  the 
execution  by  the  purchasing  firm  of  a  “  trust  receipt  ”  containing 
some  such  stipulations  as  the  following: 

1.  That  the  goods  in  question  (not  delivered  to  purchasers)  will  be 
stored  by  the  purchasing  firm  only  as  trustee  on  behalf  of  the  bank, 
as  a  guaranty  of  payment  of  the  accepted  draft  upon  its  maturity, 
and  that  the  proceeds  of  the  sale  of  all  or  any  part  of  such  goods 
will  be  handled,  pending  payment  of  the  draft,  only  as  trust  funds 
belonging  to  the  bank. 

2.  That  the  goods  or,  in  the  event  of  prior  disposal,  value  thereof 
will,  pending  payment  of  the  draft,  be  surrendered  to  the  bank  upon 
demand. 

3.  That,  pending  payment  of  the  draft,  the  goods  will  be  fully  in¬ 
sured  in  favor  of  the  bank  against  all  risks. 

The  export  of  merchandise  from  Tsingtao  to  the  United  States  is 
accomplished  under  approximately  the  same  credit  and  banking 
arrangements  as  imports. 

POWERS  OF  ATTORNEY 

Too  much  emphasis  can  not  be  placed  upon  the  necessity  of  the 
proper  wording  of  the  powers  of  attorney  which  representatives  of 
American  firms  should  have  in  order  to  conduct  expeditiously  the 
business  of  their  principals.  Powers  which  do  not  answer  the  re¬ 
quirements  of  local  banks  are  frequently  the  cause  of  embarrassment 
and  loss  of  time  to  representatives  of  American  firms.  Where  a 
general  power  is  intended,  it  is  not  sufficient  to  have  it  couched 
merely  in  general  terms.  It  should,  in  addition  to  a  conventional 
blanket  expression  of  general  power,  include  the  following  specific 
powers : 

(!)  To  open  and/or  operate  current  accounts  in  the  name  of  the 
principal;  (2)  to  overdraw  that  account;  (3)  to  borrow  money  in  the 
name  of  the  principal;  (4)  to  pledge  goods  and/or  securities;  (5)  to 
draw,  accept,  and  indorse  bills  of  exchange  and  related  documents; 
(6)  to  make  forward  exchange  settlements;  (7)  to  substitute. 


768 


COMMERCIAL  HANDBOOK  OF  CHINA 


ADVERTISING 

The  local  newspapers  afford  the  most  effective  single  means  of 
advertising  in  Tsingtao.  Of  the  four  largest  newpapers,  two  are 
published  in  the  Japanese  language,  one  in  Chinese,  and  one  in 
English.  Their  names,  estimated  circulation,  and  published  ad¬ 
vertising  rates  may  be  obtained  upon  application  to  the  consulate. 

For  articles  such  as  toilet  preparations,  patent  medicines,  wearing 
apparel,  foodstuffs,  office  and  household  furniture  and  supplies, 
cigarettes  and  tobacco,  and  novelties,  possibly  the  newspapers,  sup¬ 
plemented  by  window  and  signboard  posters,  would  be  the  most 
effective  means  of  advertising.  Pictures  of  a  striking  nature  are 
essential  to  any  comprehensive  advertising  campaign  designed  k> 
reach  the  majority  of  the  population. 

Another  reasonably  effective  means  of  advertising  is  the  use  of 
slides  in  motion-picture  theaters,  of  which  there  are  four  in  Tsingtao. 
The  rates  charged  by  the  theaters  for  slide  advertising  vary  according 
to  the  number  of  performances  at  which  the  slide  is  to  be  exhibited, 
but,  on  the  whole,  are  considered  reasonable.  At  one,  where  new 
pictures  are  shown  every  second  day,  the  monthly  rate  for  one  slide 
is  $15  Yuan. 

There  are  no  regular  advertising  agencies  in  Tsingtao.  Through 
their  native  dealers  or  agents,  foreign  firms  arrange  for  roadside, 
wall,  and  street  advertising.  Roadside,  street,  or  wall  advertisements 
larger  than  8  feet  square  and  roof  advertisements  larger  than  10 
feet  square  are  prohibited  by  municipal  regulation.  The  following 
municipal  tax  is  levied : 

Per  square  foot 
per  month 


Roadside  advertisements _ • _ $0.  04 

Wall  advertisements _  .  02 

Roof  advertisements _  .  02 

Roof  advertisements  (with  shelf  and  electrical  wiring) _  .05 


A  reduction  of  20  per  cent  is  given  in  the  rate  of  taxation  for  advertisements 
exhibited  for  longer  periods  than  three  months,  and  a  reduction  of  40  per  cent 
for  periods  longer  than  six  months. 

TRADE  ORGANIZATIONS 

The  leading  trade  organizations  in  Tsingtao  are  the  American 
Chamber  of  Commerce,  British  Chamber  of  Commerce,  Chinese 
Chamber  of  Commerce,  German  Chamber  of  Commerce,  and  Japa¬ 
nese  Chamber  of  Commerce.  The  American  and  British  organi¬ 
zations  do  not  maintain  offices.  The  addresses  of  their  honorary 
secretaries  change  when  new  secretaries  are  elected.  It  is  suggested 
that  letters  intended  for  these  organizations  be  addressed  in  care  of 
the  American  and  British  consulates,  respectively. 

The  American,  British,  and  German  chambers  of  commerce  are 
small,  informal  organizations  which  ordinarily  become  active  only 
when  questions  affecting  their  respective  community  or  business  in¬ 
terests  arise.  The  Chinese  and  Japanese  chambers  have  paid  secre¬ 
tarial  staffs  and  are  quite  active  in  fostering  their  respective  inter¬ 
ests.  The  Japanese  chamber  especially  is  active  in  the  compilation 
of  useful  statistics,  arbitrating  disputes  in  which  its  members  are 
involved,  and  making  investigations  of  an  economic  nature.  It 
also  maintains  a  laboratory  equipped  to  make  commercial  analyses. 


TSINGTAO  CONSULAR  DISTRICT 


769 


HOTELS 

The  two  main  hotels  at  Tsingtao  are  operated  by  Europeans 
under  Japanese  control.  These  hotels  afford  ample  accommoda¬ 
tions  upon  the  American  plan.  Commercial  travelers  are  given  a 
discount  of  10  per  cent  from  the  regular  rates. 

There  are  a  number  of  first-class  boarding  houses  in  Tsingtao,  the 
rates  being  somewhat  higher  in  summer  than  winter,  as  Tsingtao 
is  a  popular  summer  resort.  Board  and  room  for  an  adult,  how¬ 
ever,  should  not  cost  more  than  $150  Yuan  per  month  throughout 
most  of  the  year. 

PROPERTY  VALUES  AND  RENTS 

In  order  to  convey  an  understanding  of  the  present  status  of 
real  property  in  Tsingtao  it  is  necessary  to  refer  briefly  to  the  begin¬ 
ning  of  the  port.  Shortly  after  the  German  Government  became 
established  in  the  leased  territory  of  Kiaocliow  Bay  it  acquired  by 
purchase  from  the  Chinese  owners  more  than  12,000  acres  of  land 
to  be  used  as  the  site  for  the  city  of  Tsingtao.  Of  this  the  German 
Government  sold  outright  to  private  individuals  only  about  310 
acres,  holding  the  remainder  in  reserve  or  leasing  it  to  persons  or 
firms  for  the  erection  of  residential  or  business  properties. 

When  a  Japanese  military  government  occupied  Tsingtao  in; 
1914  it  took  possession  of  the  German  public  lands,  and  later,  in 
1917  and  1918,  acquired  by  purchase  from  the  Chinese  owners  some 
2,700  acres  of  additional  land.  A  great  deal  of  this  land  was  thrown 
open  to  the  public  for  building  purposes  under  10-year  leases.  When 
the  Kiaochow  territory  was  restored  to  China  on  December  10,  1922, 
the  Sino- Japanese  agreement  pertaining  thereto  provided  for  the 
extension  of  all  valid  leases  for  a  period  of  30  years  upon  the  then 
existing  terms  and,  at  the  expiration  of  that  time,  for  a  renewal  for 
a  further  period  of  30  years  upon  terms  to  be  fixed  at  the  time  of 
renewal.  In  the  negotiations  concerning  the  titles  to  the  310  acres 
sold  outright  by  the  German  Government  the  Chinese  delegates 
maintained  that  since  the  German  Government  held  the  Kiaochow 
territory  under  only  a  99-year  lease  it  could  not  convey  title  to  lands 
situated  therein  for  a  longer  period  than  99  years.  The  Japanese 
delegates  held  that  the  German  Government,  having  divested  the 
original  Chinese  owners  of  all  rights  in  the  land,  was  in  a  position 
to  convey  title  in  perpetuity.  No  understanding  wTas  reached,  and 
the  matter  was  left  open  for  future  settlement.  That  settlement 
has  not  yet  been  accomplished.  It  is  not  the  policy  of  the  Chinese 
Government  to  grant  leases  in  perpetuity  covering  lands  in  the 
Kiaochow  territory.  All  new  leases  issued  by  it  are  for  periods  of 
30  years  or  for  shorter  periods. 

There  have  been  few  transfers  of  privately  owned  land  since  the 
restoration,  and  it  is  impossible  at  present  (with  the  question  of 
the  titles  thereto  still  pending)  to  give  any  fair  idea  of  the  value 
of  such  property.  Most  of  the  desirable  public  land  sites  open  to 
lease  have  been  taken  up.  No  initial  payment  is  made  to  the  Gov¬ 
ernment  in  obtaining  original  leases,  but  the  demand  for  leases  is 
such  in  the  transfer  of  leased  land  (which  can  be  accomplished  only 

100020°— 26 - 50 


770 


COMMERCIAL  HANDBOOK  OF  CHINA 


by  the  sale  of  buildings  thereon)  between  private  individuals  that 
land  is  rapidly  acquiring  a  sales  value.  Leased  land  in  the  city  of 
Tsingtao  is  divided  into  five  classes,  the  annual  rental  charged  by 
the  Government  being  as  follows  (per  fang-pu,  a  unit  equivalent 


to  25  square  feet)  : 

Yuan 

First  class _ $0.  62 

Second  class _ . _ .  542 

Third  class _  .  465 

Fourth  class _  .  387 

Fifth  class _  .  310 


The  first  and  second  classes  are  in  the  principal  business  sections 
of  the  city  and  the  third,  fourth,  and  fifth  are  in  the  residential 
sections. 

While  no  hard  and  fast  statement  can  be  made  concerning  the 
price  at  which  office  space  may  be  rented  in  Tsingtao,  it  may  be 
stated  that  office  rooms  with  about  14  by  16  feet  of  floor  space  are 
at  the  present  time  being  rented  for  about  $50  Yuan  per  month, 
including  light  and  heat. 

Warehouse  space  in  the  bonded  area  (adjacent  to  the  wharves) 
may  be  rented  for  $0.60  Yuan  per  fang-pu  (25  square  feet)  per 
month  under  rent  agreements  which  usually  cover  a  period  of  six 
months.  The  buildings  in  this  area  are  made  of  corrugated  iron 
and  are  owned  by  the  Harbor  Administration.  The  charge  for  ware¬ 
house  space  rented  from  private  owners  would  perhaps  be  about  25 
to  50  per  cent  higher. 

Houses  containing  from  8  to  10  rooms  may  be  rented  for  resi¬ 
dential  purposes  at  prices  ranging  from  about  $150  to  $400  Yuan 
per  month,  depending  upon  their  location  and  the  size  of  the  plot 
of  ground  upon  which  they  stand.  In  outlying  sections  of  the  city, 
2  to  3  miles  from  the  business  section,  houses  containing  about  seven 
rooms  may  at  times  be  rented  for  approximately  $100  Yuan  per 
month. 

TAXES  AND  OTHER  ASSESSMENTS 

Taxation  in  Tsingtao  is  comparatively  light.  Owned  land  is  taxed 
at  the  rate  of  6  per  cent  upon  a  taxation  value  arrived  at  in  1912, 
when  owned  land  was  divided  into  11  classifications  ranging  in  value 
from  $2.40  Yuan  per  square  meter  in  the  main  business  section  down 
to  $1  in  more  or  less  undeveloped  sections.  Improvements  upon 
land  in  Tsingtao  are  not  taxed. 

LIVING  COSTS 

Only  occasionally  are  furnished  rooms  available  without  board. 
Where  such  rooms  are  available  the  question  of  rent  is  one  for  nego¬ 
tiation.  The  estimated  necessary  monthly  living  expenses  (in  Yuan 
dollars)  are  approximately  as  follows-:  For  a  single  man,  $300;  sin¬ 
gle  woman,  $270;  married  couple,  $500;  married  couple  with  two 
children,  (living  in  two  rooms),  $700. 

The  estimate  of  necessary  living  expenses  includes  a  small  amount 
for  recreation,  such  as  moderate  club  expense,  motion  pictures,  and 
similar  expenditures,  but  does  not  include  the  expense  of  entertain¬ 
ing.  It  may  be  stated,  however,  that  anyone  desiring  to  participate 


TSINGTAO  CONSULAR  DISTRICT  771 

in  community  social  activities  would  find  it  necessary  to  do  some  en¬ 
tertaining. 

There  is  at  present  an  efficiently  managed  school  in  Tsingtao  open 
to  American  and  European  children.  Students,  upon  graduation 
from  the  high  school,  may  pass  directly  into  American  colleges  and 
universities. 

CHANGES  IN  TRADE  CONDITIONS  IN  PAST  DECADE 

In  1913  Tsingtao  was  known  principally  as  a  summer  resort. 
Trade  was  insignificant,  but  healthy  and  growing.  There  were, 
practically  speaking,  no  industries.  Connected  with  Tsinan — 256 
miles  distant  on  the  Tientsin-Pukow  Railway — by  the  Shantung 
Railway  (which  owned  and  operated  the  principal  coal  and  iron 
mines  along  its  route),  and  equipped  through  German  enterprise 
with  a  splendid  harbor,  Tsingtao  was  the  open  door  to  Shantung’s 
30,000,000  people  and  its  vast  agricultural  and  mineral  wealth.  At 
that  time  Japanese  interests  in  the  port  and  in  its  trade  were  almost 
nonexistent. 

In  the  autumn  of  1914  Tsingtao  came  into  world-wide  prominence. 
That  time  marked  the  inauguration  of  a  notable  change  in  Tsingtao’s 
foreign  trade  affiliations.  A  Japanese  civilian  population  flocked  to 
the  port  and  soon  became  firmly  established  in  trade  and  industry. 
•Japanese  steamship  lines  began  to  ply  between  Japanese  ports  and 
Tsingtao,  which  shortly  became  an  important  source  of  raw  materials 
and  food  supply.  Shantung’s  coal  and  iron  ore  went  to  Japan,  and 
a  large  export  trade  developed  in  eggs,  beef,  salt,  and  peanuts.  Kobe 
became  the  market  in  which  the  peanut  buyers  of  Europe  and  Amer¬ 
ica  made  their  contracts  for  Shantung  peanuts  and  peanut  oil. 
Freight  rates  guided  Tsingtao’s  exports  to  and  through  Japanese 
ports  for  transshipment. 

After  Tsingtao’s  restoration  to  China  in  December,  1922,  there 
began  a  new  phase  in  its  history.  Tsingtao  became  an  important 
center  of  direct  trade  between  China  and  foreign  countries,  and  the 
port  now  ranks  third  among  the  world’s  peanut  export  markets. 
American  and  European  peanut  buyers  who  formerly  visited  and 
placed  their  contracts  in  Kobe  now  transact  their  business  in  Tsing¬ 
tao.  The  city  has  manufacturing  and  industrial  enterprises  re¬ 
presenting  investments  totaling  over  $100,000,000  Yuan.  It  has 
climbed  to  fifth  place  in  importance  amongst  China’s  foreign-trade 
ports,  and  is  connected  with  Europe  and  America  by  18  direct  trans¬ 
oceanic  steamship  lines. 


YUNNAN  CONSULAR  DISTRICT 


By  Consul  M.  S.  Myers 


LOCATION  AND  AREA 

The  Yunnan  consular  district  comprises  the  whole  of  the  Province 
of  Yunnan,  which  may  be  called  the  southwestern  corner  of  China. 
It  is  bounded  on  the  north  by  Szechwan,  on  the  east  by  the  Provinces 
of  Kweichow  and  Kwangsi,  on  the  south  by  Indo-China  and  Burma, 
and  on  the  west  it  is  bordered  by  Burma  and  Tibet. 

Roughly,  Yunnan  Province  lies  between  22°  and  28°  north  latitude, 
corresponding  with  the  northern  half  of  Mexico.  It  has  an  area  of 
146,718  square  miles,  or  slightly  larger  than  that  of  Montana.  Yun¬ 
nan  Province  is  mountainous  throughout,  having  high  table-lands 
in  the  east,  and  high,  narrow  mountain  ranges  in  the  west,  separated 
by  deep  river  valleys. 

In  general  the  climate  is  excellent,  especially  on  the  table-lands. 
It  ranges  greatly,  however — from  subtropical  heat  in  the  low- 
lying  valleys  to  perpetual  snow  on  the  high  mountains.  At  Yun- 
nanfu,  6,200  feet  above  sea  level,  the  average  minimum  temperature 
in  winter  is  39°  F.,  and  the  average  maximum  in  summer,  79°  F. 
Autumn  and  winter  constitute  the  dry  season ;  spring  and  summer 
make  up  the  rainy  season,  with  an  average  rainfall  of  about  40 
inches. 

POPULATION 

According  to  estimates  of  the  Chinese  Post  Office,  the  population 
is  9,839,000;  other  estimates  place  it  at  about  12,000,000.  The  popu¬ 
lation  of  Yunnan  is  the  most  heterogeneous  in  China.  The  Chinese, 
immigrants  from  other  Provinces,  are  the  most  numerous,  but  there 
are  many  singular  tribes  of  mixed  Mongol  stock,  the  most  important 
and  interesting  of  which  are  the  Lolos  and  the  Shans.  The  Chinese 
speak  a  Mandarin  dialect,  but  the  tribes  have  their  own  languages. 

CITIES 


In  the  following  table  are  shown  the  leading  cities  of  the  district : 


City 

Population 

(estimated) 

Europeans 

(approxi¬ 

mate) 

Americans 

American 

business 

firms 

Yunnanfu. _  _ 

120,  000 
75,000 
26,000 
30,  000 

150 

10 

1 

Kochiu  . . .  .  _  _ _ _ 

3 

Talifu  _  _  _  _ 

8 

1 

Chaotung  _ 

10 

Yunnanfu ,  situated  at  the  railhead  of  the  Haifong-Yunnanfu 
Railway,  534  miles  from  the  seacoast  at  Haifong,  Indo-China,  is  the 
capital,  largest  city,  and  chief  commercial  center  of  the  Province. 

772 


YUNNAN  CONSULAR  DISTRICT 


773 


It  was  designated  as  a  treaty  port,  but  has  never  been  actually 
opened,  though  foreign  firms  have  located  there  and  are  engaged  in 
import  and  export  trade. 

Kochiu ,  about  25  miles  west  of  Mengtz,  is  the  seat  of  the  tin  in¬ 
dustry. 

Talifu ,  about  220  miles  west  of  Yunnanfu,  is  the  principal  city  of 
western  Yunnan.  It  is  a  collecting  point  for  skins  and  hides  and 
some  furs  and  a  distributing  point  for  cotton  yarns.  Near  by  are 
the  quarries  of  the  much-prized  Tali  marble. 

Chaotung ,  227  miles  north  of  Yunnanfu  and  170  miles  south  of 
Suifu,  in  Szechwan,  is  the  chief  city  in  northeastern  Yunnan.  For¬ 
merly  it  was  the  center  of  an  important  caravan  traffic  with  Szech¬ 
wan,  but  since  1910  much  of  this  traffic  has  been  carried  by  the 
Yunnan  Railway,  completed  in  that  year. 

There  are  no  foreign  concessions  in  Yunnan  Province. 

AGRICULTURE 


In  the  following  table  is  shown  the  average  production  of  the 
four  principal  products  in  the  order  of  their  importance : 


Product 

Planting  season 

Harvesting 

season 

Average 

produc¬ 

tion 

per  acre 

Estimated 

annual 

production 

Use  or  disposition  of  crop 

Rice _  . 

Beans  (broad) _ 

Corn.  ...  _ 

Wheat _ _ 

Spring.. . 

Autumn.  _ 

Spring.  _ 

Autumn.  ..  . 

Autumn.  _ 

Spring  ..  ... 

Autumn . . 

Spring..  ...  . 

Bushels 
i  20 
i  13  to  14 

3  14 
i  13  to  14 

Short  tons 

1,  000,  000 

2  400,  000 
133,  333 
106,  666 

Food. 

Food  and  feed  for  animals. 

Do 

Food. 

1  Bushels  of  60  pounds  each.  2  Includes  all  varieties.  3  Bushels  of  56  pounds  each. 


Rice,  the  most  important  crop  and  staple  foodstuff  of  the  popula¬ 
tion,  is  grown  in  the  lower  valleys  throughout  the  Province  and  to 
some  extent  in  the  hills.  The  entire  product  is  used  locally,  some 
rice  being  imported  when  the  crop  is  poor. 

Beans  of  many  kinds  are  raised,  though  the  broad  bean  is  the 
principal  variety.  Yellow  beans  and  small  kidney  beans,  cultivated 
in  the  summer,  are  the  only  beans  exported.  The  bean  exports 
are  inconsiderable  and  go  entirely  to  Tonkin. 

Wheat  and  maize  are  widely  grown.  Buckwheat  and  millet  are 
important  hill  crops.  Barley ,  from  which  the  Tibetans  make 
u  tsamba,”  is  cultivated  in  the  high  altitudes  of  the  northwest.  The 
cultivation  of  opium  has  been  widespread  during  the  past  few 
years,  having  become  again  one  of  the  principal  winter  crops. 

Agriculture  is  the  chief  occupation  of  the  people,  and  two  crops 
a  year  are  usually  grown.  Land  holdings  are  very  small,  and  the 
implements  of  cultivation  are  most  primitive. 

MINERALS  AND  MINING 


Tin. — The  tin  belt  under  development  is  confined  to  the  vicinity 
of  Kochiu,  about  25  miles  west  of  the  treaty  port  of  Mengtsz.  It 
extends  about  20  miles  north  and  south  and  between  3  and  4  miles 


774 


COMMERCIAL  HANDBOOK  OF  CHINA 


east  and  west.  The  deposits  are  mostly  residual  in  ferruginous 
clay,  contained  in  water-worn  cavities  in  the  limestone.  Except  as 
stated  below,  only  native  mining  and  treating  methods  are  used  in 
this  industry. 

The  principal  factors  retarding  the  development  of  the  industry 
are  the  dependence  upon  rains  for  providing  an  adequate  supply 
of  water  for  concentrating  purposes,  on  account  of  which  this  phase 
of  the  industry  can  not  be  carried  on  during  four  or  five  months 
each  year;  native  methods  of  treating  the  ore;  and  the  high  cost 
of  transporting  concentrates  by  pack  animals  to  the  smelters  at 
Kochiu. 

The  Kochiu  Tin  Trading  Co.,  largely  owned  by  the  provincial 
government,  is  the  leading  tin-mining  concern.  Its  original  capital 
was  $2,000,000  (Yunnan  currency),  and  its  principal  mine  is  Malaga 
(Ma  La  Ko),  located  in  the  mountains  between  Mengtsz  and  Kochiu. 
The  output  in  1923  was  about  900  tons  of  tin.  The  plant  has  modern 
equipment,  of  German  make,  with  a  capacity  of  about  400  tons  per 
day,  and  an  aerial  tramway.  The  mine  has  never  been  operated  at 
full  capacity. 

Practically  the  whole  tin  output  of  the  district  is  exported  in  slabs 
to  Hongkong,  where  it  is  refined  before  shipment  to  western  coun¬ 
tries.  The  number  of  laborers  engaged  in  the  tin-mining  industry 
varies.  During  part  of  1923  laborers  employed  were  estimated  at 
20,000,  but  the  force  increased  to  50,000  in  the  early  part  of  1924. 

During  1923  the  price  of  tin  in  slabs  at  Kochiu  ranged  from 
$1,079  to  $1,682  Yunnan  ($415  to  $648  United  States  currency) 
for  1,000  catties  (1,400  pounds  in  this  trade),  or  about  37  cents 
(United  States  currency)  per  pound. 

Coal  is  widely  distributed,  but  little  is  known  of  its  extent  and 
.  quality.  The  most  important  present  production  areas  are  the 
Kopaotsun  field  and  the  Hsiaolungtan  field,  both  lying  close  to  the 
Yunnan  Railway.  The  former  has  produced  as  much  as  20,000 Tons 
of  bituminous  coal  a  year,  but  is  now  producing  little.  The  output 
of  the  latter  field  is  described  as  a  hardened  lignite,  and  its  in¬ 
creasing  output  is  now  reported  to  be  in  the  neighborhood  of  20,000 
tons  annually. 

Copper. — The  principal  copper-producing  districts  are  Chiaochia, 
Tungchwan,  Yimen,  and  Lungling,  in  the  northeastern  part  of  the 
Province.  Yungchang  and  several  other  districts  in  western  Yun¬ 
nan  also  contain  valuable  deposits.  According  to  Government  re¬ 
turns,  production  has  decreased  about  50  per  cent  as  compared  with 
that  of  1914  and  1915  and  is  only  about  one-twentieth  of  that  of  the 
reigns  of  Chien  Lung  and  Chia  Ching,  of  the  Ching  dynasty  (1736- 
1821  A.  D.).  The  heavy  cost  of  transportation  by  pack  animals  is 
the  chief  factor  militating  against  the  development  of  this  industry. 
Disturbed  conditions  have  also  adversely  affected  the  output. 

The  average  price  of  copper  at  Tungchwan,  the  main  copper- 
producing  district,  during  1923  was  about  $289  (United  States  cur¬ 
rency)  per  short  ton. 

Zinc. — Zinc  mining  in  this  Province  is  an  old  industry,  having 
existed,  it  is  claimed,  before  the  Yuan  dynasty  (1280  to  1368  A.  D.). 
Zinc  deposits  are  numerous,  according  to  official  reports,  the  prin¬ 
cipal  ones  being  found  in  the  northeastern  and  eastern  parts  of  the 


“YUNNAN  CONSULAR  DISTRICT 


775 


Province — the  districts  of  Tungchwan,  Yiliang,  Chiaochia,  Lutien, 
Loping,  and  Liman.  Production  has  decreased  since  1915,  when  it 
was  over  2,000  tons  annually,  the  highest  point  since  the  revolution 
of  1911.  This  industry  has  been  affected  by  the  same  conditions 
that  have  affected  the  copper  industry. 

The  average  price  of  zinc  at  Tungchwan  during  1923  was  about 
$58  (United  States)  per  ton. 

Yunnan  Province  undoubtedly  contains  varied  and  important 
mineral  deposits.  In  addition  to  the  ones  mentioned  above,  there 
are  silver,  gold,  iron,  lead,  quicksilver,  antimony,  bismuth,  mica, 
asbestos,  soda,  cobalt,  and  salt.  As  far  as  is  known  the  tin  deposits 
are  the  most  important  but  owing  to  the  lack  of  reliable  data  on 
the  subject  the  relative  importance  of  these  mineral  deposits  can 
not  be  given.  Mining  operations  are  carried  on  by  Chinese  com¬ 
panies  or  individuals  who  use  primitive  native  methods  entirely. 
The  operations  are  generally  conducted  on  a  very  small  scale,  but 
it  is  believed  that  the  extraction  of  the  ore  could  not  be  done  more 
economically  by  modern  methods  than  it  is  at  present. 

MANUFACTURING  AND  INDUSTRIAL  DEVELOPMENT 

The  manufacturing  industries  of  Yunnan  are  of  the  primitive 
household  type.  The  weaving  of  cotton  cloth  on  native  hand  looms 
is  the  principal  one,  though  leather,  grass  paper,  bamboo  baskets, 
canebrake  mats,  copperware,  and  some  other  articles  are  manufac¬ 
tured.  The  few  small  plants  which  use  modern  machinery  are  lo¬ 
cated  at  Yunnanfu,  and  include  machine  shops,  factories  for  mak¬ 
ing  socks,  metal  works,  and  a  sugar  factory.  Hand  machines  are 
used  in  some  places  for  knitting  socks. 

LABOR  CONDITIONS 

The  wages  of  ordinary  carpenters  and  masons  average  27  cents 
(LYiited  States  currency)  per  day  of  8  hours,  without  food.  The 
masons  are  well  regarded  for  craftsmanship,  but  the  carpentry  work 
is  rough. 

The  local  hosiery  factory,  using  electrically-driven  machines,  pays 
female  labor  8  cents  silver  per  dozen  socks.  The  earnings  on  day 
shift  of  8V2  hours,  for  an  output  of  11  to  12  dozen,  averages  34 
to  37  cents  gold,  without  food;  night  shift  of  8  hours,  including 
mealtime,  pays  12  cents  silver  per  dozen,  or  about  32  cents  gold  for 
the  average  output  of  7  dozen.  A  meal  is  furnished  to  employees 
at  midnight.  It  may  be  of  interest  to  note  that  day  workers  are 
now  required  by  the  local  authorities  to  attend  school,  which  is 
held  at  the  factory,  between  4.30  and  5.30  p.  m. 

TRANSPORTATION  AND  COMMUNICATION 

WATERWAYS 

Yunnan  has  no  navigable  waters  of  commercial  importance.  Two 
flat-bottom  stern-wheel  steamers  comprise  the  only  powered  com¬ 
mercial  craft.  They  ply  on  Kunyang  Lake  between  Yunnanfu  and 
Kunyang,  about  40  miles. 


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COMMERCIAL  HANDBOOK  OF  CHINA 


RAILWAYS 

The  Yunnan  section  of  the  Haifong-Yunnanfu  Railway  (Com- 
pagnie  Francaise  cles  Chemins  cle  Fer  cle  l'lndochine  et  du  Yunnan, 
mileage  534,  head  office  Paris)  runs  between  Hokow  and  Yunnanfu, 
289  miles,  and  is  commonly  known  as  the  Yunnan  Railway. 

For  purposes  of  computing  the  passenger  and  freight  rates,  the 
line  is  divided  into  four  zones,  the  rates  in  Tonkin  being  payable 
in  piasters  and  those  in  Yunnan  in  Yunnan  dollars. 

As  this  railway  provides  the  only  practicable  communication 
with  the  sea,  its  importance  is  obvious.  The  whole  foreign  trade 
passing  through  the  port  of  Mengtsz — that  is,  of  a  large  part  of 
the  Province — which  amounted  to  $18,216,074  and  $19,189,555  in 
1922  and  1923,  respectively,  is  hauled  over  this  line. 

The  Kopi  Railway  (Chinese) — Kopi  Railway  Co. — 45  miles  long, 
is  the  only  other  railway  in  the  Province.  It  is  60-centimeter  gauge 
and  connects  Kochiu,  the  tin  center,  with  Pishihchai  on  the  Haifong- 
Yunnanfu  line.  Its  head  office  is  at  Kochiu.  Tin  in  slabs  consti¬ 
tutes  the  chief  article  of  trade  carried  over  it,  the  rate  per  short 
ton  per  mile  being  about  4  cents  (United  States  currency). 

A  60-centimeter-gauge  line  connecting  Kopaotsun,  a  station  on 
the  Haifong-Yunnanfu  Railway,  with  Erhlunghsichu,  in  the  cen¬ 
ter  of  the  Kopaotsun  coal  field,  is  being  surveyed  and  will  be  built 
by  the  Compagnie  Francaise  des  Chemins  de  Fer  de  l’lndochine 
et  du  Yunnan  under  contract  for  the  Ta  Lu  Coal  Transportation 
Co.  (Chinese).  The  line  will  be  about  17  miles  long  and  should  be 
completed  in  three  years. 

ROADS 

There  are  no  roads  for  motor  transportation  in  Yunnan  Province. 
The  main  highways  are  very  narrow — about  3%  feet  in  width — and 
are  mostly,  or  were  once,  paved  with  flags  and  cobblestones.  Trans¬ 
portation  is  principally  by  means  of  pack  animals  or  by  coolie  car¬ 
riers. 

The  construction  of  a  motor  road  connecting  Yunnanfu  and 
Shetze,  a  distance  of  about  65  miles,  has  recently  been  started.  This 
new  road  will  form  a  link  in  the  Yunnanfu-Talifu  road,  which  is 
about  220  miles  long. 

TELEGRAPHS,  CABLES,  AND  WIRELESS  SERVICE 

The  Chinese  Telegraph  Administration  has  42  stations  throughout 
Yunnan  connecting  with  the  rest  of  the  Republic  and  with  Hong¬ 
kong,  Indo-China,  and  Burma.  In  recent  years  disturbances  in 
other  parts  of  China  have  made  it  necessary  to  route  telegrams  via 
Saigon,  and  thence  by  cable  to  Hongkong.  The  cost  of  a  telegram 
to  Shanghai  by  this  route  is  about  63  cents  (United  States  currency) 
per  word. 

Yunnanfu  has  two  wireless  installations,  one  of  5  kilowatts,  for 
the  private  use  of  the  railway  company  to  which  it  belongs,  and 
the  other  of  50  kilowatts,  belonging  to  the  Yunnan  government.  The 
latter,  though  completed,  is  not  in  use. 


YUNNAN  CONSULAR  DISTRICT 


777 


TELEPHONES 

There  is  local  telephone  service  in  Yunnanfu,  Kochiu,  Mengtsz, 
and  Talifu.  There  is  no  immediate  prospect  of  extending  any  of 
these  lines.  The  service  in  Yunnanfu  is  fairly  satisfactory. 

POSTAL  FACILITIES 

The  Chinese  Postal  Administration  maintains  275  offices  in  the 
district,  and  international  postal  rates  apply  to  all  mail  matter. 
On  parcels  by  mail  from  the  United  States  via  Indo-China  the  ad¬ 
dressee  must  pay  a  tax  of  50  cents  (Yunnan)  per  parcel  irrespective 
of  weight.  The  weight  limit  is  22  pounds  for  steam-served  places 
and  11  pounds  for  places  reached  only  by  courier  service. 

SHIPPING  AND  WAREHOUSING  FACILITIES 

There  are  no  public  warehousing  or  storage  facilities  in  the  dis¬ 
trict.  Goods  are  carried  from  the  railway  station  either  by  porters 
or  in  small  two-wheeled  carts. 

PUBLIC  UTILITIES 

ELECTRIC-LIGHT  PLANTS 

The  following  table  shows  the  location,  capacity,  rates,  and  char¬ 
acter  of  equipment  of  the  principal  electric-light  plants  in  the  dis¬ 
trict.  They  are  all  Chinese  owned. 


Location 

Kilowatt 

lighting 

load 

Kilowatt 

power 

load 

Rates 1 

Yunnanfu _  . 

500 

150 

Per 

kilo¬ 

watt 

hour 

$0. 11 

Mengtsz _ _ 

88 

.  12 

Linanfu  . 

45 

.  11 

Amichow _ 

20 

.  11 

Hokow. . . 

18.4 

2 .54 

Character  and  nationality  of  equipment 


Alternating  current,  3  phase,  60  cycles;  German. 
Alternating  current,  3  phase,  60  cycles;  British. 
Alternating  current,  3  phase,  60  cycles;  American. 
Alternating  current,  3  phase,  60  cyclesBritish. 
Direct  current, 2-wire  system;  American  dynamo. 


1  Rates  are  in  United  States  currency.  2  Rate  per  lamp. 


The  Yunnanfu  plant — Yao  Lung  Electric  Lighting  Co.,  capital 
now  $1,000,000  Yunnan  ($385,000  LTnited  States  currency) — is  being 
extended  by  the  addition  of  two  generators  of  350  kilovolt-amperes 
each,  together  with  complementary  equipment,  all  German. 

WATERWORKS 

The  plant  of  the  Waterworks  Co.  (Chinese),  at  Yunnanfu,  has  a 
capacity  of  30,000  gallons  per  hour.  Its  meter  rate  is  10  cents 
(about  4  cents  United  States  currency)  per  100  gallons.  The  equip¬ 
ment  comprises  two  motor  engines  of  40  horsepower  each  for  pump¬ 
ing  the  water  500  meters  to  the  reservoir.  The  capacity  of  the  plant 
is  too  small,  and  water  is  usually  turned  off  during  the  night.  A 
small  lake  in  the  city  furnishes  the  water  supply.  There  is  also  a 
very  small  waterworks  plant  at  Kochiu, 


778 


COMMERCIAL  HANDBOOK  OF  CHINA 


FOREIGN  TRADE 

The  value  of  the  foreign  trade  of  the  three  principal  ports  in 
Yunnan  for  1913  and  1923  may  be  summarized  as  follows: 


Port 

Exports 

Imports 

Total 

1913 

1923 

1913 

1923 

1913 

1923 

Mengtsz _ _  _ 

$8,  200, 106 

$7,  442,  917 

$6, 381, 971 

$11,  746,  638 

$14,  582,  077 

$19, 189,  555 

Szemao _ _  .  .  .  . 

29, 165 

35,  285 

137,  003 

151,  495 

166,  168 

186,  780 

Tengvueh..  .  _  _  . 

541, 135 

1,  264,  785 

1,  779,  732 

1,  946,  382 

2, 320,  867 

3,  211, 167 

Note. — Values  are  converted  to  United  States  currency  from  haikwan  taels  at  the  rate  of  $0,741  in  1913 
and  $0.8231  in  1923. 


Attention  should  be  drawn  to  the  completion  of  the  Yunnan  Rail¬ 
way  in  1910,  the  effect  of  which  was  immediately  shown  in  increased 
trade,  which  was  especially  marked  in  exports. 

Szeviao. — The  trade  of  this  port,  largely  with  Burma,  has  varied 
little  during  the  past  20  years.  Its  chief  import  is  raw  cotton 
($31,861  in  1923)  and  its  chief  export  black  tea  ($10,904  in  1923). 

Tengyueh. — Although  the  trade  of  this  port  has  increased  con¬ 
siderably,  it  is  still  relatively  small  and  is  entirely  with  Burma.  The 
principal  imports  are  cotton  yarn  and  raw  cotton.  The  principal 
exports  in  1923  were  raw  silk  (from  Szechwan),  363,733  pounds, 
valued  at  $984,823,  and  orpiment,  905,467  pounds,  valued  at  $77,770. 

EXPORTS 


The  quantity  and  value  of  exports  through  the  port  of  Mengtsz 
for  the  yeafs  1913  and  1923  are  shown  in  the  following  table : 


Item 

1913 

1923 

Quantity 

Value 

Quantity 

Value 

Bristles _ 

Hides. - - 

Leather _ ... 

Goatskins...  .. 
Tin  slabs . . 

...  _ pounds.. 

_  ...do _ 

..  _ do _ 

_  .  pieces.. 

_ short  tons.. 

28,000 
1, 136, 133 
.  15,067 
2,  800 
8,553 

$6,  605 
117,052 
4,888 
883 

7,  769,  312 

220, 667 
789,  067 
146, 933 
293, 180 
8,743 

$135, 194 
154, 087 
106,  000 
107,  344 
6,  397, 878 

Tin  in  slabs  has  always  constituted  the  premier  export  of  this 
Province.  Opium,  of  some  importance  in  1903,  did  not  figure  in  the 
returns  of  1913  nor  of  1923  owing  to  the  official  prohibition  of  its 
cultivation.  Leather  exports,  mostly  low-grade  products,  and 
bristles  have  become  important  only  in  recent  years. 

It  was  estimated  that  in  1923  about  40  per  cent  of  the  exports  of 
tin  were  shipped  to  the  United  States,  16  per  cent  to  Japan,  5  per 
cent  to  Great  Britain,  and  most  of  the  remainder  to  ports  of  China. 
Yunnan  bristles  are  shipped  directly  and  indirectly  to  the  United 
States,  while  some  goatskins  and  hides  from  this  district  are  believed 
to  reach  the  American  market.  Leather  is  exported  to  China  coast 
ports. 

Customs  policy. — Chinese  goods  shipped  via  Tonkin— all  foreign 
trade  goes  by  that  route — are  granted  by  treaty  a  special  reduction 


YUNNAN  CONSULAR  DISTRICT  779 

in  the  Chinese  export  duties  amounting  to  40  per  cent  of  the  pre¬ 
scribed  duty. 

Chinese  merchandise  transported  across  Tonkin  to  a  foreign  desti¬ 
nation  is  subject  to  French  transit  dues  amounting  to  20  per  cent  of 
the  duty  provided  in  the  customs  tariff  of  Indo-China.  There  are 
additional  nominal  charges — statistical,  seal,  stamps  on  bill  of  lad¬ 
ing  and  customs  document — besides  dock  taxes  and  toll  amounting 
to  0.45  piaster  per  metric  ton  on  exports. 

IMPORTS 

The  quantity  and  value  of  the  principal  imports  through  the  port 
of  Mengtsz  for  the  years  1913  and  1923  are  shown  in  the  following 
table : 


.Item 

1913 

1923 

Quantity 

Value 

Quantity 

Value 

Cigarettes _ 

(thousands.. 
---\pounds _ 

55, 366 

$60,  094 

6,080 
797,  467 
19,  697,  600 
84,  455 
1,  200,  020 
522,  667 

$30,  370 
406,  620 

Cotton  yarn.. .  .  _  . 

Dyed  cottons _  ...  _  . 

Kerosene _  ...  ...  ... 

Tobacco,  prepared  .  .  ... 

_ pounds  . 

..  ..  pieces.. 

_ _ gallons.. 

. . pounds.. 

16,  543,  600 
26,  672 
947,  360 
958,  267 

3,  025,  433 
263,  373 
206,314 
167,  387 

6,  283,  624 
554,  027 
411,389 
148, 914 

The  principal  imports  of  1913  in  order  of  importance  were  as  fol¬ 
lows:  Cotton  yarn,  rice  (18,924,533  pounds,  valued  at  $507,553),  dyed 
cottons,  kerosene,  and  prepared  tobacco.  In  1923  the  paper  trade 
($180,561)  slightly  exceeded  that  of  tobacco  on  account  of  a  large 
import  of  unsigned  bank  notes  ($48,831).  The  chief  item  in  this 
trade  is  Chinese  joss  paper. 

Except  postal  parcels  containing  miscellaneous  articles  ($120,800), 
the  only  direct  import  from  Chinese  ports  is  cigarettes — Shanghai 
cigarette  factory  products,  which  amounted  to  797,467  pounds,  valued 
at  $406,620,  in  1923.  The  other  cigarettes  are  foreign,  chiefly  British 
and  French  (Indo-China).  About  78  per  cent  of  the  yarn  imports, 
used  chiefly  for  making  coarse  native  cloth,  are  British,  10  per  cent 
Japanese,  and  the  remainder  from  Indo-China  and  Shanghai.  The 
great  bulk  of  this  import  is  in  No.  10s.  Dyed  cottons — chiefly  Jap¬ 
anese  and  some  British — comprise  italians,  Venetians,  lastings,  and 
poplins,  plain  fast  black,  plain  colored  (chief  items  plain  colored 
italians  and  lastings),  and  figured.  The  kerosene  imports,  which 
in  1903  were  entirely  American,  were  about  70  per  cent  American 
in  1923.  The  prepared  tobacco  is  entirely  Chinese,  imports  coming 
chiefly  from  Kwangtung  and  Fukien  Provinces  via  Hongkong. 

Among  the  American  goods  on  this  market,  there  are,  besides  kero¬ 
sene,  household  stores  (provisions)  ;  metals,  such  as  nails,  galvanized 
iron  wire,  and  bamboo  steel;  electrical  materials  and  fittings;  flour; 
dried  fruits;  machinery;  sewing  and  knitting  machines;  lubricating 
oil;  photographic  materials;  telephone  materials;  and  hand  tools. 

Customs  'policy. — Foreign  goods  shipped  via  Tonkin  are  granted 
by  treaty  a  special  reduction  in  Chinese  import  duties  amounting  to 
30  per  cent  of  the  prescribed  duty.  However,  this  reduction  does 
not  apply  to  the  Chinese  transit  dues. 


780 


COMMERCIAL  HANDBOOK  OF  CHINA 


Merchandise  of  foreign  origin,  other  than  French,  transported 
across  Tonkin  is  subject  to  French  transit  dues  amounting  to  20  per 
cent  of  the  duty  provided  in  the  customs  tariff  of  Indo-China. 
French  goods,  however,  are  imported  into  Indo-China  free  of  duty 
and  consequently  are  not  subject  to  transit  dues  when  transported 
across  Tonkin  to  Yunnan.  Besides  transit  dues,  there  are  a  number 
of  nominal  customs  and  other  charges  levied  on  all  shipments,  such 
as  statistical,  seal,  stamps  on  bill  of  lading  and  customs  documents, 
and  dock  taxes  and  toll  amounting  to  about  1  piaster  per  metric 
ton  on  imports. 

Transportation. — Shipments  from  the  United  States  can  be  made 
to  Haifong,  Indo-China,  via  Hongkong,  on  through  bills  of  lading. 
Between  Hongkong  and  Haifong  there  are  regular  and  frequent 
steamer  services.  At  the  latter  port  the  assistance  of  a  forwarding 
agent  is  required  for  attending  to  the  customs  formalities  and  trans¬ 
shipment  by  railway  ( Haifong- Yunnanfu). 

BANKING  AND  CURRENCY 

BANKS 

The  Banque  de  l’lndo  Chine  (paid  up  capital  68,400,000  francs), 
a  French  bank  with  its  head  office  in  Paris,  maintains  branches  in 
Mengtsz  and  Yunnanfu. 

Exchange  at  Yunnanfu  is  confined  almost  entirely  to  transactions 
in  Hongkong  dollars,  Shanghai  dollars,  and  Indo-China  piasters. 
Exchange  on  France  is  handled  by  the  local  bank,  but  on  the  United 
States  references  to  Haifong  or  Hanoi  branches  are  necessary. 
Except  on  France  there  is  practically  no  foreign-exchange  business 
here. 

LOCAL  CURRENCIES 

Bank  notes,  chiefly  the  issues  of  the  Fukien  (provincial)  Bank  and 
the  small  issues  of  the  Bank  of  Territorial  Development  and  the 
Kopi  Railway  Bank,  are  restricted  in  their  circulation.  Silver 
coins,  much  below  the  official  standard  in  silver,  have  been  minted  in 
the  past  few  years,  but  are  now  rarely  seen  in  Yunnanfu  and  the 
larger  centers.  The  use  of  the  Fukien  bank  notes  is  being  enforced 
throughout  the  Province;  consequently  silver  is  becoming  scarcer  and 
the  exchange  of  notes  for  silver  is  being  severely  restricted.  The 
currency  is  naturally  depreciating.  There  are  no  foreign  bank  notes 
in  circulation. 

The  unfavorable  exchange  on  Hongkong — exchange  transactions 
are  largely  on  that  port — during  the  past  few  years  has  had  a  de¬ 
terrent  effect  on  imports. 

ADVERTISING  AND  MERCHANDISING 

Local  newspapers  are  of  limited  usefulness  as  advertising  medi¬ 
ums.  Pictorial  posters  are  probably  the  most  effective.  Printed  or 
painted  advertisements  should,  where  practicable,  give  a  pictorial 
representation  of  the  article  and  the  trade-mark,  or  chop.  There 
is  no  tax  on  poster  advertising.  Firms  filing  their  catalogues  with 
the  consulate  should  give  the  names  and  addresses  of  their  far  eastern 
representatives,  so  that  inquirers  may  be  referred  to  them. 


YUNNAN  CONSULAR  DISTRICT 


781 


The  foreign  trade  of  the  Province  is  very  largely  handled  by 
Chinese  merchants  who  are  not  in  a  position  to  do  business  with 
western  countries.  Except  French  goods,  bought  in  Tonkin,  pur¬ 
chases  of  foreign  goods  are  made  chiefly  in  Hongkong  and  Shang¬ 
hai.  There  are  only  a  few  foreign  general  merchants  here — no 
Americans.  In  view  of  the  limited  facilities  for  local  representation, 
interested  American  firms  will  usually  be  obliged  to  get  in  touch 
with  this  market  through  their  Hongkong  connections. 

TRAVEL  FACILITIES  AND  HOTELS 

In  Yunnanfu  the  Hotel  du  Commerce,  under  French  ownership, 
has  24  rooms,  and  the  rates  are  $3  per  day  and  up,  American  plan. 
The  Hotel  de  la  Gare,  in  Amichow,  and  the  Hotel  Kalos,  in  Mengtsz, 
are  both  owned  by  Greeks,  and  their  rates  are  somewhat  lower  than 
the  hotel  in  Yunnanfu.  During  the  summer  season  hotel  accommo¬ 
dations  should  be  engaged  in  advance,  as  many  French  people  from 
Indo-China  come  to  Yunnan  to  escape  the  heat. 

There  are  two  night  stopping  places  on  the  train  journey  between 
Haifong  and  Yunnanfu,  the  first  one  at  Laokay,  on  the  Yunnan 
border,  and  the  other  at  Amichow.  Passengers  must  spend  the  night 
at  the  hotel,  and  while  there  should  arrange  for  luncheon  on  the 
train  next  day,  as  the  railway  company  furnishes  no  restaurant  fa¬ 
cilities. 

Commercial  travelers  whose  business  is  with  the  Chinese  would  do 
well  to  bring  a  Mandarin-speaking  interpreter  with  them.  Very  few 
of  the  Chinese  business  men  speak  any  language  but  Chinese.  Com¬ 
mercial  travelers  should  call  at  the  consulate  for  information  regard¬ 
ing  local  conditions. 

TRADE  ORGANIZATIONS 

There  are  two  trade  organizations  in  Yunnanfu — the  Yunnan 
General  Chamber  of  Commerce  (Chinese)  and  the  French  Chamber 
of  Commerce.  Neither  of  these  organizations  conduct  any  special 
service  for  the  development  of  foreign  trade.  The  Chinese  cham¬ 
ber  is  the  organization  with  which  the  Government  deals  in  mat¬ 
ters  relating  to  the  merchants.  It  is  frequently  used  by  merchants 
as  an  arbitration  tribunal  for  disputes  involving  its  members. 

PROPERTY  VALUES  AND  RENTS 

As  this  is  not  an  open  port,  foreign  merchants  can  not  buy  prop¬ 
erty.  Only  Chinese  buildings  are  available  for  renting,  and  rents 
have  increased  considerably  during  recent  years.  A  compound  con¬ 
taining  between  10  and  15  rooms,  besides  quarters  for  servants,  will 
rent  for  $1,200  to  $2,400  Yunnan  ($462  and  $924  United  States  cur¬ 
rency)  a  year.  It  is  the  custom  among  Chinese  tenants  to  pay  a  de¬ 
posit,  which  is  not  returned  until  the  building  is  vacated. 

There  are  no  taxes  that  foreign  tenants  are  required  to  pay. 

CHANGES  IN  TRADE  CONDITIONS  IN  RECENT  YEARS 

Beginning  with  1910,  exports  exceeded  imports  every  year  until 
1921,  the  excess  in  1917  being  approximately  7,000,000  taels.  During 
1921,  1922,  and  1923  the  excess  of  imports  over  exports  amounted 
roughly  to  4,000,000,  3,700,000,  and  5,200,000  million  taels,  respec- 


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tively,  or  a  total  of  nearly  13,000,000  taels.  This  adverse  trade  bal¬ 
ance  is  undoubtedly  one  of  the  causes  of  the  depreciation  of  Yunnan 
currency  during  these  three  years.  Imports  increased  in  these  years — 
11.164,849,  12,981,886,  and  14,271,216  haikwan  taels  in  1921,  1922, 
and  1923,  respectively — the  last  year  being  the  record,  while  exports 
decreased — 7,156,397,  9,240,969,  and  9,042,543  taels,  respectively. 
In  1923  exports  were  more  than  3,800,000  taels  less  than  the  record  of 
1917  (12,865,668  taels). 

The  export  of  tin  in  slabs  for  the  10  years  ended  in  1923  averaged 
137,184  piculs  a  year  and  reached  its  maximum  in  1917,  with  185,- 
634  piculs,  valued  at  11,579,628  taels.  Since  then  the  export  of  tin 
has  fallen  below  the  average  in  the  years  1918,  1921,  and  1923. 

Other  metals  exported  in  some  quantity  during  the  past  decade 
were  as  folloAvs:  Zinc,  30,050  piculs,  valued  at  317,775  taels,  and 
12,946  piculs,  valued  at  103,599  taels,  in  1915  and  1921,  respectively; 
lead,  13,236  piculs,  valued  at  174,694  taels,  and  10,237  piculs,  valued 
at  133,596  taels,  in  1916  and  1917,  respectively ;  and  antimony,  8,118 
piculs,  valued  at  77,126  taels,  in  1915.  The  total  export  of  antimony 
regulus  between  1913  and  1917,  when  it  practically  ceased,  was  24,133 
piculs. 

Under  the  impetus  of  a  strong  demand  and  high  prices,  untanned 
goatskins  were  exported  in  1919  to  the  extent  of  1,084,400  pieces, 
valued  at  588,980  taels.  The  1921  export  was  also  unusually  large, 
consisting  of  714,922  pieces,  valued  at  299,601  taels.  Cow  and  buffalo 
hides,  undressed,  were  exported  in  exceptional  quantities  in  1919 
and  1920,  the  figures  for  these  two  years  being  13,029  piculs,  valued 
at  368,432  taels,  and  10,605  piculs,  valued  at  338,208  taels. 

During  the  years  1913  to  1923  cotton  yarn  imports  increased, 
ranging  between  96,529  piculs,  valued  at  5,318,348  taels,  in  1919,  and 
147,732  piculs,  valued  at  7.634,096  taels,  in  1923.  A  marked  expansion 
has  occurred  in  dyed  cottons,  especially  during  the  past  few  years, 
and  Japanese  goods  have  largely  displaced  British  goods. 

The  cigarette  trade,  which  amounted  in  1918  to  201,193,000, 
valued  at  343,429  taels,  has  made  rapid  strides  during  the  past 
few  }rears.  Beginning  with  1919  the  great  bulk  of  the  imports — 
3,218  piculs,  valued  at  418,362  taels — entered  the  district  as  native 
goods,  the  product  of  modern  factories  at  Shanghai.  The  heavy 
transit  dues  on  foreign-made  cigarettes  crossing  Tonkin  (Chinese- 
made  cigarettes  if  shipped  direct  to  Haifong  are  subject  to  much 
lower  transit  dues — 2  per  cent  ad  valorem)  confine  the  trade  largely 
to  native  goods. 

American  products  have  supplied  the  bulk  of  the  kerosene  imports 
during  recent  years.  Prior  to  1922  the  only  year  in  which  imports 
exceeded  1,000,000  gallons  was  1915,  when  they  amounted  to  1,057,300 
gallons,  valued  at  337.012  taels.  In  1922  imports  reached  1,331,590 
gallons,  valued  at  595,762  taels,  the  record. 

Among  other  imports,  medicines  and  household  stores  may  be 
briefly  mentioned.  The  trade  in  medicines — 94,366  and  178,027  taels 
in  1913  and  1923,  respectively — is  growing  and  is  now  confined  chiefly 
to  products  prepared  in  Shanghai  and  Hongkong.  Household  stores 
were  valued  at  105,555  taels  in  1923,  as  compared  with  an  average 
of  48,660  taels  for  the  preceding  10  years.  American  canned  provi¬ 
sions  figure  prominently  in  this  import  trade. 


APPENDIX 


CHINA  TRADE  ACT,  1922,  AS  AMENDED  BY  THE  ACT  OF  FEBRUARY 

26,  1925 

AN  ACT  To  authorize  the  creation  of  corporations  for  the  purpose  of  engaging  in  business 

within  China 

Be  it  enacted  by  the  Senate  and  House  of  Representatives  of  the  United 
States  of  America  in  Congress  assembled ,  That  this  Act  may  be  cited  as  the 
“China  Trade  Act,  1922.” 

DEFINITIONS 

Sec.  2.  When  used  in  this  Act,  unless  the  context  otherwise  indicates, — 

(a)  The  term  “person”  includes  individual  partnership,  corporation,  and 
association ; 

(b)  The  term  “China”  means  (1)  China  including  Manchuria,  Thibet, 
Mongolia,  and  any  territory  leased  by  China  to  any  foreign  government,  (2) 
the  Crown  Colony  of  Hongkong,  and  (3)  the  Province  of  Macao; 

(c)  That  terms  “China  Trade  Act  corporation”  and  “corporation”  mean  a 
corporation  chartered  under  the  provisions  of  this  Act ; 

(d)  The  term  “federal  district  court”  means  any  federal  district  court,  the 
United  States  Court  for  China,  and  the  Supreme  Court  of  the  District  of 
Columbia ; 

(e)  The  term  “Secretary”  means  the  Secretary  of  Commerce;  and 

(f)  The  term  “registrar”  means  the  China  Trade  Act  registrar  appointed 
under  section  3. 

REGISTRAR 

Sec.  3.  The  Secretary  is  authorized  to  designate  as  China  Trade  Act  regis¬ 
trar  an  officer  of  the  Department  of  Commerce.  The  official  station  of  the 
registrar  shall  be  in  China  at  a  place  to  be  designated  by  the  Secretary.  All 
functions  vested  in  the  registrar  by  this  Act  shall  be  administered  by  him 
under  the  supervision  of  the  Secretary ;  except  that  upon  appeal  to  the  Secre¬ 
tary,  in  such  manner  as  he  shall  by  regulation  prescribe,  any  action  of  the 
registrar  may  be  affirmed,  modified,  or  set  aside  by  the  Secretary  as  he  deems 
advisable. 

ARTICLES  OF  INCORPORATION 

Sec.  4.  (a)  Three  or  more  individuals  (hereinafter  in  this  Act  referred  to 
as  “incorporators”),  a  majority  of  whom  are  citizens  of  the  United  States, 
may,  as  hereinafter  in  this  Act  provided,  form  a  District  of  Columbia  corpora¬ 
tion  for  the  purpose  of  engaging  in  business  within  China. 

(b)  The  incorporators  may  adopt  articles  of  incorporation  which  shall  be 
filed  with  the  Secretary  at  his  office  in  the  District  of  Columbia  and  may  there¬ 
upon  make  application  to  the  Secretary  for  a  certificate  of  incorporation 
in  such  manner  and  form  as  shall  be  by  regulation  prescribed.  The  articles 
of  incorporation  shall  state — 

(1)  The  name  of  the  proposed  China  Trade  Act  corporation,  which  shall 
end  with  the  legend,  “  Federal  Inc.  U.  S.  A.,”  and  which  shall  not,  in  the 
opinion  of  the  Secretary,  be  likely  in  any  manner  to  mislead  the  public ; 

(2)  The  location  of  its  principal  office,  which  shall  be  in  the  District  of 
Columbia ; 

(3)  The  particular  business  in  which  the  corporation  is  to  engage; 

(4)  The  amount  of  the  authorized  capital  stock,  the  designation  of  each 
class  of  stock,  the  terms  upon  which  it  is  to  be  issued,  and  the  number  and  par 
value  of  the  shares  of  each  class  of  stock ; 


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COMMERCIAL  HANDBOOK  OF  CHINA 


(5)  Tlie  duration  of  the  corporation,  which  may  be  for  a  period  of  not 
more  than  twenty-five  years,  but  which  may,  upon  application  of  the  corpora¬ 
tion  and  payment  of  the  incorporation  fee,  be  successively  extended  by  the 
Secretary  for  like  periods ; 

(6)  The  names  and  addresses  of  at  least  three  individuals  (a  majority  of 
whom,  at  the  time  of  designation  and  during  their  term  of  office,  shall  be 
citizens  of  the  United  States),  to  be  designated  by  the  incorporators,  who 
shall  serve  as  temporary  directors ;  and 

(7)  The  fact  that  an  amount  equal  to  25  per  centum  of  the  amount  of  the 
authorized  capital  stock  has  been  in  good  faith  subscribed  to. 

(c)  A  China  Trade  Act  corporation  shall  not  engage  in  the  business  of 
discounting  bills,  notes,  or  other  evidences  of  debt,  of  receiving  deposits,  of 
buying  and  selling  bills  of  exchange,  or  of  issuing  bills,  notes,  or  other 
evidences  of  debt,  for  circulation  as  money ;  nor  engage  in  any  other  form  of 
banking  business ;  nor  engage  in  any  form  of  insurance  business ;  nor  engage 
in,  nor  be  formed  to  engage  in,  the  business  of  owning  or  operating  any  ves¬ 
sel.  unless  the  controlling  interest  in  such  corporation  is  owned  by  citizens 
of  the  United  States,  within  the  meaning  of  section  2  of  the  Shipping  Act, 
1916,  as  amended. 

(d)  No  certificate  of  incorporation  shall  be  delivered  to  a  China  Trade  Act 
corporation  and  no  incorporation  shall  be  complete  until  at  least  25  per  centum 
of  its  authorized  capital  stock  has  been  paid  in  in  cash,  or,  in  accordance 
with  the  provisions  of  section  8,  in  real  or  personal  property  which  has  been 
placed  in  the  custody  of  the  directors,  and  such  corporation  has  filed  a  state¬ 
ment  to  this  effect  under  oath  with  the  registrar  within  six  months  after  the 
issuance  of  its  certificate  of  incorporation,  except  that  the  registrar  may  grant 
additional  time  for  the  filing  of  such  statement  upon  application  made  prior  to 
the  expiration  of  such  six  months.  If  any  such  corporation  transacts  busi¬ 
ness  in  violation  of  this  subdivision  or  fails  to  file  such  statement  within 
six  months,  or  within  such  time  as  the  registrar  prescribes  upon  such  applica¬ 
tion.  the  registrar  shall  institute  proceedings  under  section  14  for  the  revoca¬ 
tion  of  the  certificate. 

CERTIFICATE  OF  INCORPORATION 

Sec.  5.  The  Secretary  shall,  upon  the  filing  of  such  application,  issue  a  certif¬ 
icate  of  incorporation  certifying  that  the  provisions  of  this  Act  have  been 
complied  with  and  declaring  that  the  incorporators  are  a  body  corporate,  if 

(a)  an  incorporation  fee  of  $100  has  been  paid  him;  (b)  he  finds  that  the 
articles  of  incorporation  and  statements  therein  conform  to  the  requirements 
of.  and  that  the  incorporation  is  authorized  by,  this  Act;  and  (c)  he  finds  that 
such  corporation  will  aid  in  developing  markets  in  China  for  goods  produced 
in  the  United  States.  A  copy  of  the  articles  of  incorporation  shall  be  made  a 
part  of  the  certificate  of  incorporation  and  printed  in  full  thereon.  Any  failure, 
previous  to  the  issuance  of  the  certificate  of  incorporation,  by  the  incorpo¬ 
rators  or  in  respect  to  the  application  for  the  certificate  of  incorporation,  to 
conform  to  any  requirement  of  law  which  is  a  condition  precedent  to  such 
issuance,  may  not  subsequent  thereto  be  held  to  invalidate  the  certificate  of 
incorporation  or  alter  the  legal  status  of  any  act  of  a  China  Trade  Act  cor¬ 
poration.  except  in  proceedings  instituted  by  the  registrar  for  the  revocation 
of  the  certificate  of  incorporation. 

GENERAL  POWERS 

Sec.  6.  In  addition  to  the  powers  granted  elsewhere  in  this  Act,  a  China 
Trade  Act  corporation — 

(a)  Shall  have  the  right  of  succession  during  the  existence  of  the  corpo¬ 
ration  ; 

(b)  Shall  have  a  corporate  seal  and  may,  with  the  approval  of  the  Secre¬ 
tary,  alter  it ; 

(c)  May  sue  and  be  sued; 

(d)  Shall  have  the  right  to  transact  the  business  authorized  by  its  articles 
of  incorporation  and  such  further  business  as  is  properly  connected  therewith 
or  necessary  and  incidental  thereto ; 

(e)  May  make  contracts  and  incur  liabilities; 

(f)  May  acquire  and  hold  real  or  personal  property,  necessary  to  effect 
the  purpose  for  which  it  is  formed,  and  dispose  of  such  property  when  no 
longer  needed  for  such  purposes ; 


APPENDIX 


785 


(g)  May  borrow  money  ancl  issue  its  notes,  coupon  or  registered  bonds,  or 
other  evidences  of  debt,  and  secure  their  payment  by  a  mortgage  of  its  prop¬ 
erty  ;  and 

(h)  May  establish  such  branch  offices  at  such  places  in  China  as  it  deems 
advisable. 

SHAKES  OF  STOCK 

Sec.  7.  Each  share  of  the  original  or  any  subsequent  issue  of  stock  of  a 
China  Trade  Act  corporation  shall  be  issued  at  not  less  than  par  value,  and 
shall  be  paid  for  in  cash,  or  in  accordance  with  the  provisions  of  section  8,  in 
real  or  personal  property  which  has  been  placed  in  the  custody  of  the  direc¬ 
tors.  No  such  share  shall  be  issued  until  the  amount  of  the  par  value  thereof 
has  been  paid  the  corporation ;  and  when  issued,  each  share  shall  be  held  to  be 
full  paid  and  nonassessable ;  except  that  if  any  share  is,  in  violation  of  this 
section,  issued  without  the  amount  of  the  par  value  thereof  having  been  paid 
to  the  corporation,  the  holder  of  such  share  shall  be  liable  in  suits  by  creditors 
for  the  difference  between  the  amount  paid  for  such  share  and  the  par  value 
thereof. 

Sec.  8.  No  share  of  stock  of  a  China  Trade  Act  corporation  shall,  for  the 
purposes  of  section  7  or  of  paragraph  (7)  of  subdivision  (b)  of  section  4,  be 
held  paid  in  real  or  personal  property  unless  (1)  a  certificate  describing 
the  property  and  stating  the  value  at  which  it  is  to  be  received  has  been  filed 
by  the  corporation  with  the  Secretary  or  the  registrar  in  such  manner  as  shall 
be  by  regulation  prescribed,  and  a  fee  to  be  fixed  by  the  Secretary  or  the 
registrar,  respectively,  to  cover  the  cost  of  any  necessary  investigation  has  been 
paid,  and  (2)  the  Secretary  or  the  registrar,  as  the  case  may  be,  finds  and 
has  certified  to  the  corporation  that  such  value  is  not  more  than  the  fair 
market  value  of  the  property. 


BY-LAWS 

Sec.  9.  The  by-laws  may  provide — 

(a)  The  time,  place,  manner  of  calling,  giving  notice,  and  conduct  of,  and 
determination  of  a  quorum  for  the  meetings,  annual  or  special,  of  the  stock¬ 
holders  or  directors ; 

(b)  The  number,  qualifications,  and  manner  of  chosing  and  fixing  the  tenure 
of  office  and  compensation  of  all  directors;  but  the  number  of  such  directors 
shall  be  not  less  than  three,  and  a  majority  of  the  directors,  and  the  president 
and  the  treasurer,  or  each  officer  holding  a  corresponding  office,  shall,  during 
their  tenure  of  office,  be  citizens  of  the  United  States  resident  in  China. 

(c)  The  manner  of  calling  for  and  collecting  payments  upon  shares  of 
stock,  the  penalties  and  forfeitures  for  nonpayment,  the  preparation  of  certifi¬ 
cates  of  the  shares,  the  manner  of  recording  their  sale  or  transfer,  and  the 
manner  of  their  representation  at  stockholders’  meetings. 

stockholders’  meetings 

Sec.  10.  (a)  Within  six  months  after  the  issuance  of  the  certificate  of  in¬ 
corporation  of  a  China  Trade  Act  corporation  there  shall  be  held  a  stock¬ 
holders’  meeting  either  at  the  principal  office  or  a  branch  office  of  the  corpora¬ 
tion.  Such  meeting  shall  be  called  by  a  majority  of  the  directors  named  in 
the  articles  of  incorporation  and  each  stockholder  shall  be  given  at  least 
ninety  days’  notice  of  the  meeting  either  in  person  or  by  mail.  The  holders 
of  two-thirds  of  the  voting  shares,  represented  in  person  or  by  proxy,  shall 
constitute  a  quorum  at  such  meetings  authorized  to  transact  business.  At 
this  meeting  or  an  adjourned  meeting  thereof  a  code  of  by-laws  for  the  corpo¬ 
ration  shall  be  adopted  by  a  majority  of  the  voting  shares  represented  at  the 
meeting. 

(b)  The  following  questions  shall  be  determined  only  by  the  stockholders  at 
a  stockholders’  meeting: 

(1)  Adoption  of  the  by-laws; 

(2)  Amendments  to  the  articles  of  incorporation  or  by-laws; 

(3)  Authorization  of  the  sale  of  the  entire  business  of  the  corporation  or  of 
an  independent  branch  of  such  business; 

(4)  Authorization  of  the  voluntary  dissolution  of  the  corporation;  and 


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COMMERCIAL  HANDBOOK  OF  CHINA 


(5)  Authorization  of  application  for  the  extension  of  the  period  of  duration 
of  the  corporation. 

(c)  The  adoption  of  any  such  amendment  or  authorization  shall  require  the 
approval  of  at  least  two-thirds  of  the  voting  shares.  No  amendment  to  the 
articles  of  incorporation  or  authorization  for  dissolution  or  extension  shall  take 
effect  until  (1)  the  corporation  tiles  a  certificate  with  the  Secretary  stating 
the  action  taken,  in  such  manner  and  form  as  shall  be  by  regulations  pre¬ 
scribed,  and  '(2)  such  amendment  or  authorization  is  found  and  certified  by 
the  Secretary  to  conform  to  the  requirements  of  this  Act. 

(d)  A  certified  copy  of  the  by-laws  and  amendments  thereof  and  of  the 
minutes  of  all  stockholders’  meetings  of  the  corporation  shall  be  filed  with  the 
registrar. 

DIRECTORS 

Sec.  11.  The  directors  designated  in  the  articles  of  incorporation  shall,  until 
their  successors  take  office,  direct  the  exercise  of  all  powers  of  a  China  Trade 
Act  corporation  except  such  as  are  conferred  upon  the  stockholders  by  law  or 
by  the  articles  of  incorporation  or  by-laws  of  the  corporation.  Thereafter  the 
directors  elected  in  accordance  with  the  by-laws  of  the  corporation  shall  direct 
the  exercise  of  all  powers  of  the  corporation  except  such  as  are  so  conferred 
upon  the  stockholders.  Iu  the  exercise  of  such  powers  the  directors  may  ap¬ 
point  and  remove  and  fix  the  compensation  of  such  officers  and  employees  of 
the  corporation  as  they  deem  advisable. 

REPORTS  AND  INSPECTION  OF  RECORDS 

Sec.  12.  (a)  For  the  purpose  of  this  Act  the  fiscal  year  of  a  China  Trade 
Act  corporation  shall  correspond  to  the  calendar  year.  The  corporation  shall 
make  and  file  with  the  registrar,  in  such  manner  and  form  and  at  such  time 
as  shall  be  by  regulation  prescribed,  a  report  of  its  business  for  each  such  fiscal 
year  and  of  its  financial  condition  at  the  close  of  the  year.  The  corporation 
shall  furnish  a  true  copy  of  the  report  to  each  of  its  stockholders. 

(b)  The  registrar  shall  file  with  the  Secretary  copies  of  all  reports,  certifi¬ 
cates,  and  certified  copies  received  or  issued  by  the  registrar  under  the  pro¬ 
visions  of  this  Act.  The  Secretary  shall  file  with  the  registrar  copies  of  all 
applications  for  a  certificate  of  incorporation,  and  certificates  received  or  issued 
by  the  Secretary  under  the  provisions  of  this  Act.  All  such  papers  shall  be 
kept  on  record  in  the  offices  of  the  registrar  and  the  Secretary,  and  shall  be 
available  for  public  inspection  under  such  regulations  as  may  be  prescribed. 

DIVIDENDS 

Sec.  13.  Dividends  declared  by  a  China  Trade  Act  corporation  shall  be  de¬ 
rived  wholly  from  the  surplus  profits  of  its  business. 

revocation  of  certificate  of  incorporation 

Sec.  14.  The  registrar  may,  in  order  to  ascertain  if  the  affairs  of  a  China 
Trade  Act  corporation  are  conducted  contrary  to  any  provision  of  this  Act, 
or  any  other  law,  or  any  treaty  of  the  United  States,  or  the  articles  of  in¬ 
corporation  or  by-laws  of  the  corporation,  investigate  the  affairs  of  the  cor¬ 
poration.  The  registrar,  whenever  he  is  satisfied  that  the  affairs  of  any 
China  Trade  Act  corporation  are  or  have  been  so  conducted,  may  institute 
in  the  United  States  Court  for  China  proceedings  for  the  revocation  of  the 
certificate  of  incorporation  of  the  corporation.  The  court  may  revoke  such 
certificate  if  it  finds  the  affairs  of  such  corporation  have  been  so  conducted. 
Pending  final  decision  in  the  revocation  proceedings  the  court  may,  at  any 
time,  upon  application  of  the  registrar  or  upon  its  own  motion,  make  such 
orders  in  respect  to  the  conduct  of  the  affairs  of  the  corporation  as  it  deems 
advisable. 

Sec.  15.  (a)  For  the  efficient  administration  of  the  functions  vested  in  the 
registrar  by  this  Act,  he  may  require,  by  subpoena  issued  by  him  or  under 
his  direction,  (1)  the  attendance  of  any  witness  and  the  production  of  any 
book,  paper,  document,  or  other  evidence  from  any  place  in  China  at  any 
designated  place  of  hearing  in  China,  or,  if  the  witness  is  actually  resident 
or  temporarily  sojourning  outside  of  China,  at  any  designated  place  of  hear- 


APPENDIX 


787 


ing  within  fifty  miles  of  the  actual  residence  or  place  of  sojourn  of  such 
witness,  and  (2)  the  taking  of  a  deposition  before  any  designated  person 
having  power  to  administer  oaths.  In  the  case  of  a  deposition  the  testimony 
shall  be  reduced  to  writing  by  the  person  taking  the  deposition  or  under 
his  direction,  and  shall  then  be  subscribed  by  the  deponent.  The  registrar, 
or  any  officer,  employee,  or  agent  of  the  United  States  authorized  in  writing 
by  him,  may  administer  oaths  and  examine  any  witness.  Any  witness  sum¬ 
moned  or  whose  deposition  is  taken  under  this  section,  shall  be  paid  the 
same  fees  and  mileage  as  are  paid  witnesses  in  the  courts  of  the  United 
States. 

(b)  In  the  case  of  failure  to  comply  with  any  subpoena  or  in  the  case  of 
the  contumacy  of  any  witness  before  the  registrar,  or  any  individual  so 
authorized  by  him,  the  registrar  or  such  individual  may  invoke  the  aid  of 
any  Federal  district  court.  Such  court  may  thereupon  order  the  witness  to 
comply  with  the  requirements  of  such  subpoena  and  to  give  evidence  touching 
the  matter  in  question.  Any  failure  to  obey  such  order  may  be  punished  by 
such  court  as  a  contempt  thereof. 

(c)  No  person  shall  be  excused  from  so  attending  and  testifying  or  deposing, 
nor  from  so  producing  any  book,  paper,  document,  or  other  evidence  on  the 
ground  that  the  testimony  or  evidence,  documentary  or  otherwise,  required 
of  him  may  tend  to  incriminate  him  or  subject  him  to  a  penalty  or  forfeiture ; 
but  no  natural  person  shall  be  prosecuted  or  subjected  to  any  penalty  or 
forfeiture  for  or  on  account  of  any  transaction,  matter  or  thing  as  to  which, 
in  obedience  to  a  subpoena  and  under  oath,  he  may  so  testify,  except  that  no 
person  shall  be  exempt  from  prosecution  and  punishment  for  perjury  committed 
in  so  testifying. 

(d)  For  the  efficient  administration  of  the  functions  vested  in  the  registrar 
by  this  Act,  he,  or  any  officer,  employee,  or  agent  of  the  United  States  au¬ 
thorized  in  writing  by  him,  shall  at  all  reasonable  times  for  the  purpose  of 
examination  have  access  to  and  the  right  to  copy  any  book,  account,  record, 
paper,  or  correspondence  relating  to  the  business  or  affairs  of  a  China  Trade 
Act  corporation.  Any  person  who  upon  demand  refuses  the  registrar  or  any 
duly  authorized  officer,  employee,  or  agent  such  access  or  opportunity  to  copy, 
or  hinders,  obstructs,  or  resists  him  in  the  exercise  of  such  right,  shall  be 
liable  to  a  penalty  of  not  more  than  $5,000  for  each  such  offense.  Such 
penalty  shall  be  recoverable  in  a  civil  suit  brought  in  the  name  of  the  United 
States. 

Sec.  16.  In  case  of  the  voluntary  dissolution  of  a  China  Trade  Act  corpora¬ 
tion  or  revocation  of  its  certificate  of  incorporation,  the  directors  of  the 
corporation  shall  be  trustees  for  the  creditors  and  stockholders  of  the  cor¬ 
poration  ;  except  that  upon  application  to  the  United  States  Court  for  China 
by  any  interested  party,  or  upon  the  motion  of  any  court  of  competent  juris¬ 
diction  in  any  proceeding  pending  before  it,  the  court  may  in  its  discretion 
appoint  as  the  trustees  such  persons,  other  than  the  directors,  as  it  may  deter¬ 
mine.  The  trustees  are  invested  with  the  powers,  and  shall  do  all  acts,  neces¬ 
sary  to  wind  up  the  affairs  of  the  corporation  and  divide  among  the  stock¬ 
holders  according  to  their  respective  interests  the  property  of  the  corporation 
remaining  after  all  obligations  against  it  have  been  settled.  For  the  pur¬ 
poses  of  this  section  the  trustees  may  sue  and  be  sued  in  the  name  of  the 
corporation  and  shall  be  jointly  and  severally  liable  to  the  stockholders  and 
creditors  of  the  corporation  to  the  extent  of  the  property  coming  into  their 
hands  as  trustees. 

REGULATIONS 

SeU  17.  (a)  The  Secretary  is  authorized  to  make  such  regulations  as  may 
be  necessary  to  carry  into  effect  the  functions  vested  in  him  or  in  the  registrar 
by  this  Act. 

(b)  That  the  Secretary  is  authorized  to  prescribe  and  fix  the  amount  of 
such  fees  (other  than  the  incorporation  fee)  to  be  paid  him  or  the  registrar 
for  services  rendered  by  the  Secretary  or  the  registrar  to  any  person  in  the 
administration  of  the  provisions  of  this  Act.  All  fees  and  penalties  paid  under 
this  Act  shall  be  covered  into  the  Treasury  of  the  United  States  as  miscella¬ 
neous  receipts. 

PENALTIES 

Sec.  18.  No  stockholder,  director,  officer,  employee,  or  agent  of  a  China 
Trade  Act  corporation  shall  make,  issue,  or  publish  any  statement,  written 
or  oral,  or  advertisement  in  any  form,  as  to  the  value  or  as  to  the  facts 


788 


COMMERCIAL  HANDBOOK  OF  CHINA 


affecting  the  value  of  stocks,  bonds,  or  other  evidences  of  debt,  or  as  to  the 
financial  condition  or  transactions,  or  facts  affecting  such  condition  or  trans¬ 
actions,  of  such  corporation  if  it  has  issued  or  is  to  issue  stocks,  bonds,  or 
other  evidences  of  debt,  whenever  he  knows  or  has  reason  to  believe  that 
any  material  representation  in  such  statement  or  advertisement  is  false.  No 
stockholder,  director,  officer,  employee,  or  agent  of  a  China  Trade  Act  cor¬ 
poration  shall,  if  all  the  authorized  capital  stock  thereof  has  not  been  paid 
in,  make,  issue,  or  publish  any  written  statements  or  advertisement,  in  any 
form,  stating  the  amount  of  the  authorized  capital  stock  without  also  stating 
as  the  amount  actually  paid  in,  a  sum  not  greater  than  the  amount  paid  in. 
Any  person  violating  any  provisions  of  this  section  shall,  upon  conviction 
thereof,  be  fined  not  more  than  $5,000  or  imprisoned  not  more  than  ten  years, 
or  both. 

Sec.  19.  No  individual,  partnership,  or  association,  or  corporation  not  incor¬ 
porated  under  this  Act  or  under  a  law  of  the  United  States,  shall  engage  in 
business  within  China  under  a  name  in  connection  with  which  the  legend 
“  Federal  Inc.  U.  S.  A.”  is  used.  Any  person  violating  this  section  shall 
upon  conviction  thereof  be  fined  not  more  than  $1,000  for  each  violation. 

JURISDICTION  OF  SUITS  AGAINST  CORPORATION 

Sec.  20.  (a)  That  the  Federal  district  courts  shall  have  exclusive  original 
jurisdiction  of  all  suits  (except  as  provided  by  the  Act  entitled  “An  Act  creat¬ 
ing  a  United  States  Court  for  China  and  prescribing  the  jurisdiction  thereof,” 
approved  June  30,  1906,  as  amended)  to  which  a  China  Trade  Act  corporation, 
or  a  stockholder,  director,  or  officer  thereof  in  his  capacity  as  such,  is  a  party. 
Suit  against  the  corporation  may  be  brought  in  the  United  States  Court  for 
China,  or  in  the  Supreme  Court  of  the  District  of  Columbia,  or  in  the  Federal 
district  court  for  any  district  in  which  the  corporation  has  an  agent  and  is 
engaged  in  doing  business. 

(b)  Every  China  Trade  Act  corporation  shall  maintain  in  the  District  of 
Columbia  a  person  as  its  accredited  agent  upon  whom  legal  process  may  be 
served,  in  any  suit  to  be  brought  in  the  Supreme  Court  of  the  District  of 
Columbia,  and  who  is  authorized  to  enter  an  appearance  in  its  behalf.  In 
the  event  of  the  death  or  inability  to  serve,  or  the  resignation  or  removal,  of 
such  person,  such  corporation  shall,  within  such  time  as  the  Secretary  by 
regulation  prescribes,  appoint  a  successor.  Such  corporation  shall  file  with 
the  Secretary  a  certified  copy  of  each  power  of  attorney  appointing  a  person 
under  this  subdivision,  and  a  certified  copy  of  the  written  consent  of  each 
person  so  appointed. 

Federal  taxation 

Sec.  21.  Title  II  of  the  Revenue  Act  of  1921  is  amended  by  adding  at  the 
end  thereof  a  new  section  to  read  as  follows: 

“  China  trade  act  corporations 

“Sec.  264.  (a)  That  for  the  purpose  only  of  the  tax  imposed  by  section  230 
there  shall  he  allowed,  in  the  case  of  a  corporation  organized  under  the  China 
Trade  Act,  1922,  a  credit  of  an  amount  equal  to  the  proportion  of  the  net 
income  derived  from  sources  within  China  ( determined  in  a  similar  manner  to 
that  provided  in  section  21 7)  which  the  par  value  of  the  shares  of  stock  of 
the  corporation  owned  on  the  last  day  of  the  taxable  year  by  individual  citizens 
of  the  United  States  or  China,  resident  in  China,  bears  to  the  par  value  of  the 
ivliole  number  of  shares  of  stock  of  the  corporation  outstanding  on  such  date: 
Provided,  That  in  no  case  shall  the  amount  by  which  the  tax  imposed  by  section 
230  is  diminished  by  reason  of  such  credit  exceed  the  amount  of  the  special 
dividend  certified  under  subdivision  ( b )  of  this  section. 

“(b)  Such  credit  shall  not  be  allowed  unless  the  Secretary  of  Commerce  has 
certified  to  the  commissioner  ( 1 )  the  amount  which,  during  the  year  ending  on 
the  date  of  filing  the  return,  the  corporation  has  distributed  as  a  special 
dividend  to  or  for  the  benefit  of  such  individuals  as  on  the  last  day  of  the 
taxable  year  were  citizens  of  the  United  States  or  China,  resident  in  China, 
and  owned  shares  of  stock  of  the  corporation,  (2)  that  such  special  dividend 
was  in  addition  to  all  other  amounts,  payable  or  to  be  payable  to  such  individr 


APPENDIX 


789 


uals  or  for  their  benefit,  by  reason  of  their  interest  in  the  corporation,  and 
( 3 )  that  such  distribution  has  been  made  to  or  for  the  benefit  of  such  individ¬ 
uals  in  proportion  to  the  par  value  of  the  shares  of  stock  of  the  corporation 
owned  by  each;  except  that  if  the  corporation  has  more  thorn  one  class  of 
stock,  the  certificate  shall  contain  a  statement  that  the  articles  of  incorpora¬ 
tion  provide  a  method  for  the  apportionment  of  such  special  dividend  among 
such  individuals,  and  that  the  amount  certified  has  been  distributed  in  accord¬ 
ance  with  the  method  so  provided. 

“  (c)  For  the  purposes  of  thi s  section  shares  of  stock  of  a  corporation  shall 
be  considered  to  be  owned  by  the  person  in  whom  the  equitable  right  to  the 
income  from  such  shares  is  in  good  faith  vested. 

“  (d)  As  used  in  this  section  the  term  ‘  China  ’  shall  have  the  same  meaning 
as  when  used  in  the  China  Trade  Act,  1922” 

Sec.  22.  Subdivision  (b)  of  section  230  of  the  Revenue  Act  of  1921  is  amended 
to  read  as  folloivs: 

“  (b)  For  each  calendar  year  thereafter,  12y2  per  centum  of  the  amount  of 
the  net  income  in  excess  of  the  credits  provided  in  sections  236  and  261/.” 

Sec.  23.  Subdivision  (f)  of  section  238  of  the  Revenue  Act  of  1921  is  amended 
by  adding  after  the  figures  “262”  the  word  and  figures  “or  265.” 

Sec.  21f.  Subdivision  (c)  of  section  2\0  of  the  Revenue  Act  of  1921  is  amended 
by  adding  at  the  end  thereof  a  new  sentence  to  read  as  follows:  “A  corpora¬ 
tion  organized  under  the  China  Trade  Act,  1922,  shall  not  be  deemed  to  be 
affiliated  with  any  other  corporation  within  the  meaning  of  this  section.” 

Sec.  25.  That  section  2  of  the  Revenue  Act  of  1921  is  amended  by  adding  at 
the  end  thereof  a  new  paragraph  to  read  as  folloivs: 

“(12)  A  corporation  organized  under  the  China  Trade  Act,  1922,  shall,  for 
the  purposes  of  this  Act,  be  considered  a  domestic  corporation.” 

Sec.  26.  Subdivision  (b)  of  section  213  of  the  Revenue  Act  of  1921  is  amended 
by  striking  out  the  period  at  the  end  of  paragraph  (12)  thereof  and  inserting 
in  lieu  thereof  a  semicolon,  and  by  adding  after  paragraph  (12)  a  new  para¬ 
graph  to  read  as  folloivs: 

“  (13)  In  the  case  of  an  individual,  amounts  distributed  as  dividends  to  or 
for  his  benefit  by  a  corporation  organized  under  the  China  Trade  Act,  1922,  if, 
at  the  time  of  such  distribution,  he  is  a  citizen  of  China  resident  therein  and 
the  equitable  right  to  the  income  of  the  shares  of  stock  of  the  corporation  is  in 
good  faith  vested  in  him.” 

Sec.  21.  Subdivision  (a)  of  section  216,  paragraph  (6)  of  subdivision  (a)  of 
section  235,  and  paragraph  (3)  of  subdivision  (a)  of  section  255,  of  the  Revenue 
Act  of  1921,  are  amended  by  inserting  in  each  after  the  word  and  figures  “  sec¬ 
tion  262”  a  comma  and  the  words  “  and  other  than  a  corporation  organized 
under  the  China  Trade  Act,  1922.” 

The  Revenue  Act  of  1921  was  amended  by  sections  21  to  27,  inclusive,  of  the  China 
Trade  Act,  1922,  and  the  amended  sections  were  carried  into  the  Revenue  Act  of  1924. 
Section  264  of  the  Revenue  Act  of  1921  was  changed  to  263  of  the  Revenue  Act  of  1924. 
Section  11  of  the  Act  of  February  26,  1925,  amended  section  263  of  the  Revenue  Act  of 
1924  to  read  asi  follows : 

“  Sec.  263.  ( a )  That  for  the  purpose  only  of  the  tax  imposed  by  section 
230  there  shall  be  allowed  in  the  case  of  a  corporation  organized  under  the 
China  Trade  Act,  1922,  a  credit  of  an  amount  equal  to  the  proportion  of  the 
net  income  derived  from  sources  within  China  (determined  in  a  similar  man¬ 
ner  to  that  provided  in  section  217)  which  the  par  value  of  the  shares  of  stock 
of  the  corporation  owned  on  the  last  day  of  the  taxable  year  by  (1)  persons 
resident  in  China,  the  United  States,  or  possessions  of  the  United  States,  and 
(2)  individual  citizens  of  the  United  States  or  China  wherever  resident,  bears 
to  the  par  value  of  the  whole  number  of  shares  of  stock  of  the  corporation 
outstanding  on  such  date :  Provided,  That  in  no  case  shall  the  amount  by  which 
the  tax  imposed  by  section  230  is  diminished  by  reason  of  such  credit  exceed 
the  amount  of  the  special  dividend  certified  under  subdivision  (b)  of  this 
section. 

“(b)  Such  credit  shall  not  be  allowed  unless  the  Secretary  of  Commerce 
has  certified  to  the  commissioner  (1)  the  amount  which,  during  the  year  end¬ 
ing  on  the  date  fixed  by  law  for  filing  the  return,  the  corporation  has  distrib¬ 
uted  as  a  special  dividend  to  or  for  the  benefit  of  such  persons  as  on  the  last 
day  of  the  taxable  year  were  resident  in  China,  the  United  States,  or  possessions 
of  the  United  States,  or  were  individual  citizens  of  the  United  States  or  China, 
and  owned  shares  of  stock  of  the  corporation,  (2)  that  such  special  dividend 
was,  in  addition  to  all  other  amounts,  payable  or  to  be  payable  to  such  persons 


790 


COMMERCIAL  HANDBOOK  OF  CHINA 


or  for  their  benefit,  by  reason  of  tlieir  interest  in  the  corporation,  and  (3)  that 
such  distribution  has  been  made  to  or  for  the  benefit  of  such  persons  in  pro¬ 
portion  to  the  par  value  of  the  shares  of  stock  of  the  corporation  owned  by 
.  each ;  except  that  if  the  corporation  has  more  than  one  class  of  stock,  the  cer¬ 
tificates  shall  contain  a  statement  that  the  articles  of  incorporation  provide 
a  method  for  the  apportionment  of  such  special  dividend  among  such  persons, 
and  that  the  amount  certified  has  been  distributed  in  accordance  with  the 
method  so  provided.” 

Paragraph  (13)  of  subdivision  (b)  of  section  213  of  the  Revenue  Act  of  i924  was 
amended  by  section  12  of  the  Act  of  February  2G,  1925,  to  read  as  follows: 

“  (13)  In  the  case  of  a  person,  amounts  distributed  as  dividends  to  or  for 
his  benefit  by  a  corporation  organized  under  the  China  Trade  Act,  1922,  if, 
at  the  time  of  such  distribution,  he  is  a  resident  of  China  and  the  equitable 
right  to  the  income  of  the  shares  of  stock  of  the  corporation  is  in  good  faith 
vested  in  him.” 

RESERVATION  OF  RIGHT  TO  AMEND 

Sec.  28.  The  Congress  of  the  United  States  reserves  the  right  to  alter,  amend, 
or  repeal  any  provision  of  this  Act. 

Sec.  29.  Hereafter  no  corporation  for  the  purpose  of  engaging  in  business 
within  China  shall  be  created  under  any  law  of  the  United  States  other  than 
the  China  Trade  Act. 

Approved  September  19,  1922 ;  amended  by  Act  approved  February  26,  1925. 

REGULATIONS,  CHINA  TRADE  ACT,  1922 

The  following  regulations,  effective  immediately,  are  in  accordance  with 
the  following  sections  of  Ihe  above  law,  approved  September  19,  1 1)22,  as 
amended. 

Section  3. — Appeal  from  decision  of  registrar 

1.  Appeal  from  any  decision  of  the  registrar  may  be  made  direct  to  the 
Secretary,  but  only  after  due  notice  of  the  appeal  has  been  filed  with  the 
registrar  by  the  person  appealing.  No  action  shall  be  taken  by  the  registrar 
pending  the  Secretary’s  decision. 

2.  A  transcript  of  the  record  in  each  particular  case  of  any  controverted 
question,  together  with  a  copy  of  the  registrar’s  decision,  must  accompany  the 
appeal,  with  a  certificate  signed  by  the  registrar  that  such  transcript  and  deci¬ 
sion  are  correct  copies. 

3.  In  case  of  any  dispute  on  the  above,  resulting  in  the  failure  of  the 
registrar  to  sign  such  certificate,  he  shall  submit  his  reasons  in  full  with 
documents  supporting  to  the  Secretary.  The  person  making  the  appeal  may 
do  likewise,  provided  his  statement  is  submitted  under  oath. 

4.  The  decision  of  the  Secretary  will  be  communicated  in  writing  independ¬ 
ently  to  both  the  registrar  and  the  person  appealing  as  soon  as  practicable. 

Section  4(b). — Application  for  certificate  of  incorporation 

5.  The  application  for  certificate  of  incorporation  of  a*  China  trade  company 
shall  contain  the  following  information  and  be  signed  and  sworn  to,  before  a 
notarial  officer  of  the  United  States  or  any  State,  by  a  majority  of  the  in¬ 
corporators.  All  such  applications  originating  in  China  shall  first  be  sub¬ 
mitted  to  the  registrar,  who  shall  forward  the  same,  together  with  his  recom¬ 
mendation  thereon,  to  the  Secretary ;  upon  presentation  to  the  Secretary  of 
an  application  originating  in  the  United  States  the  registrar  will  be  advised  and 
his  recommendation  obtained  before  action  is  taken.  Copies  of  the  certificate 
when  issued  are  to  be  filed  with  the  American  Legation,  Peking,  and  with  the 
consular  officers  for  the  districts  in  which  its  main  and  branch  offices  or 
agencies  in  China  are  situated. 

(1)  Date  of  application. 

(2)  Place  of  application. 

(3)  Name  and  address  of  resident  incorporator. 

(4)  Whether  application  for  original  or  extended  certificate. 

(5)  Names  and  addresses  of  incorporators. 

(6)  Reason,  if  any,  for  failure  of  any  incorporators  to  sign. 


APPENDIX 


791 


(7)  Nationality  of  each  incorporator  by  name. 

(8)  In  case  of  naturalized  citizens  a  certificate  of  naturalization  must  ac¬ 
company  the  application  for  each  incorporator  so  naturalized. 

(9)  Statement  as  to  manner  and  extent  proposed  corporation  will  aid  in 
the  development  of  markets  in  China  for  goods  produced  in  the  United  States. 

(10)  Names  and  nationalities  of  stockholders  with  number  of  shares  sub¬ 
scribed  for  by  each. 

(11)  Minutes  of  meeting  adopting  articles  of  incorporation. 

(12)  Certificate  by  secretary  of  meeting  regarding  adoption  of  articles  of 
incorporation,  with  certified  copy  of  articles  of  incorporation  signed  and 
acknowledged  by  incorporators. 

(13)  Signatures  of  incorporators. 

Section  17(b). — Registration  fees 

i 

6.  The  registration  fees  for  China  companies  shall  be  as  follows  and  shall 
accompany  each  application,  except  that  for  property  value,  which  will  be 
payable  before  certificate  is  issued : 

Certificate  of  registration  (as  provided  in  sec.  5) _ 

Certificate  of  property  value  (as  provided  in  sec.  8) 

(Fee  based  on  value  of  property  and  investigation  necessary  in  each  case.) 

Certificate  of  amendment  of  articles  of  incorporation  or  authority  for  dissolution 

(as  provided  in  sec.  10) _ : - - -  100 

7.  The  fees  shall  be  payable  in  United  States  gold  either  in  Shanghai,  China, 
or  in  Washington,  D.  C.,  and  shall  be  collected  by  the  registrar  or  Secretary 
and  turned  over  to  any  designated  disbursing  officer  of  the  United  States 
Treasury  Department  and  handled  by  him  in  accordance  with  section  17  of 
the  act. 

Section  8. — Certificate  of  property  value 

8.  The  certificate  of  property  value  shall  contain  the  following  information 
signed  and  properly  sworn  to  before  a  notarial  officer  of  the  United  States  or 
any  State  : 

(1)  Date  of  certificate. 

(2)  Names  of  owner  of  property. 

(3)  Exact  description  and  location  of  property,  with  list  or  schedule. 

(4)  Cost  of  property  at  date  of  purchase. 

(5)  Present  liens  or  mortgages  on  property. 

(6)  Statement  of  present  value,  supported  by  statements  of  two  other  per¬ 
sons  verifying  same  with  reasons  for  knowledge  of  value. 

(7)  Signatures  of  three  persons  under  oath. 

Section  10(c). — Certificate  of  amendment  of  articles  of  incorporation  or  author¬ 
ization  for  dissolution  or  extension 

9.  The  certificate  of  amendment  of  articles  of  incorporation  or  authorization 
for  dissolution  or  extension  shall  contain  the  following  information,  signed  by 
a  majority  of  the  directors  and  properly  sworn  to  before  a  notarial  oflicer  of 
the  United  States  or  any  State  by  the  secretary  of  the  meeting: 

(1)  Date  of  certificate. 

(2)  Date  of  meeting  authorizing  action. 

(3)  Total  number  of  stockholders. 

(4)  Total  number  empowered  to  vote. 

(5)  Number  of  stockholders  attending  meeting. 

(6)  Number  of  stockholders  voting  for  action. 

(7)  Signature  of  above  majority  of  directors  and  secretary  of  the  meeting. 

Section  12  (a). — Annual  report 

10.  The  annual  report  of  companies  operating  under  this  act  shall  be  for 
the  year  ending  December  31  and  shall  consist  of  the  following,  subscribed  to 
under  oath  by  the  secretary  of  the  corporation : 

(1)  The  minutes  of  the  stockholders’  meeting  approving  the  balance  sheet 
for  such  fiscal  year. 

(2)  A  certified  copy  of  the  balance  sheet  (as  per  specified  form). 

(3)  A  detailed  statement  of  profit  and  loss  (as  per  specified  form). 

(4)  A  statement  of  the  distribution  of  profits. 

(5)  Changes  in  list  of  stockholders  during  the  year. 


_ $100 

f  maximum _ P»0O 

(.minimum _  25 


792 


COMMERCIAL  HANDBOOK  OF  CHINA 


Section  12  (b). — Inspection  of  records 

11.  Application  for  inspection  of  reports,  certificates,  certified  copies  of  ap¬ 
plications,  etc.,  may  be  made  to  the  Secretary  or  registrar,  and  upon  approval 
the  applicant  may  inspect  the  papers  specified.  Such  applications  shall  con¬ 
tain  the  following : 

(1)  Name  of  company  or  companies  registered. 

(2)  List  of  titles  of  papers  desired  for  inspection. 

(3)  Reason  for  desiring  to  inspect  same. 

(4)  Certificate  under  oath  that  information  will  be  held  strictly  confidential 
and  not  for  publication  or  dissemination. 

(5)  Signature  of  applicant  and  name  of  company  (if  any)  which  he  repre¬ 
sents. 

Herbert  Hoover, 
Secretary  of  Commerce. 

October  20,  1922. 

CHINESE  WEIGHTS  AND  MEASURES 

Early  in  their  treaty  relations  with  China,  the  foreign  powers 
found  it  necessary  to  make  definite  stipulations  regarding  the  equi¬ 
valents  of  China’s  weights  and  measures  as  they  affected  foreign 
trade.  It  was  found  that  while  the  units  in  the  various  Chinese 
communities  were  similar,  the  measures  themselves  varied  greatly. 
The  traveler  in  China  finds  a  Chinese  “  li  ”  or  mile  differing  in  differ¬ 
ent  sections.  The  Chinese  catty  and  picul,  measures  of  weight,  vary 
in  different  sections  of  the  country.  Foreigners  find  it  very  neces¬ 
sary  in  purchasing  Chinese  commodities  from  the  Chinese,  or  in 
selling  foreign  products  to  the  Chinese,  to  be  certain  that  the  weights 
and  measures  are  definitely  understood.  In  currency  units  it  is  par¬ 
ticularly  necessary  that  there  be  no  misunderstanding,  as  every  com¬ 
munity  has  its  own  scales  for  weighing  silver,  which  differ  from 
those  of  other  communities.  The  section  in  this  handbook  on  Chinese 
currency  explains  in  detail  the  currency  standards  in  use  in  the 
country. 

The  regulations  drafted  in  accord  with  the  British  treaty  of  1842 
with  China  stipulated  regarding  weights  and  measures  that  “  sets 
of  balance  yards  for  the  weighing  of  goods,  of  money  weights,  and 
of  measures,  prepared  in  exact  conformity  to  those  hitherto  in  use  at 
the  customhouse  of  Canton,  and  duly  stamped  and  sealed,  in  proof 
thereof,  will  be  kept  in  possession  of  the  superintendent  of  customs 
and  also  at  the  British  consulate  at  each  of  the  five  ports  (opened  to 
trade  by  the  treaty  of  1842),  and  these  shall  be  charged  and  all 
sums  paid  to  the  Government.” 

The  British  treaty  of  1858  stipulated  the  following  equivalents  of 
weights  and  measures  for  customs  purposes : 

1  picul  of  100  catties=133%  pounds  avoirdupois. 

1  chang  of  10  Chinese  feet=141  English  inches. 

1  chuh  or  Chinese  foot =14.1  English  inches. 

The  Chinese  Government  enacted  a  law  in  1914  establishing  a 
system  of  weights  and  measures  and  prescribed  provisions  for  in¬ 
spections  and  penalties.  This  law  has  not  as  yet  been  made  effective. 
It  prescribes  the  following  units: 

Length. — 1  ch’ih=32  meters =1.049867  feet. 

Area. — 1  mow  or  6.000  square  ch’ih=0.06144  hectare=0. 15182  acre. 

Capacity. — 1  sheng= 10.354688  liters=10.9416  liquid  quarts. 

Weight. — 1  liang=37.301  grams=l, 31561  ounces  avoirdupois, 


APPENDIX 


793 


Other  measures  in  local  use  are : 

10  li  (lee)— 1  fen  (candereen). 

10  fen— 1  ch’ien. 

10  ch’ien=l  liang  (tael  or  ounce). 

16  liang=l  chin  (catty). 

100  chin  (gin)=l  tan  (picul). 

However,  for  purposes  of  foreign  trade,  the  weights  in  common 
use  are  as  follows : 

1  liang=583.3  grains— 1%  ounces  avoirdupois=37.7839  grains. 

16  liang— 1  chin  (gin)  or  catty. 

1  chin  or  catty =1%  pounds  or  604.53  grams. 

100  chin  or  catties=l  tan  or  picul. 

1  tan  or  picul =133%  pounds  or  60.453  kilograms. 

The  measures  of  capacity  in  common  use  in  China  are : 

10  ko=l  sheng. 

10  sheng=l  tou. 

10  tou=l  shih. 

These  measures  also  differ  greatly  in  different  parts  of  the  country. 
The  tou  of  the  imperial  granaries  contained  5.1341  liters,  while  the 
common  market  tou  contains  7.4059  liters.  Measures  of  capacity  are 
generally  used  only  for  rice  and  grains,  which  are  also  often  sold  by 
weight.  Fluids  are  often  weighed  like  any  other  merchandise.  The 
American  gallon  has  become  an  important  measure,  especially  for 
petroleum.  It  contains  231  cubic  inches.  The  British  imperial  gal¬ 
lon  contains  277.462879  inches.  An  American  weight  gallon=6.5 
pounds.  The  unit,  however,  for  kerosene  is  10  gallons=65  pounds. 

The  units  of  length  in  common  use  are : 


10  fen=l  t’sun  or  inch. 
10  t’sun =1  ch'ili  or  foot. 
10  ch’ih=l  chang. 

180  chang— 1  li  (lee). 


For  purposes  of  foreign  computations  for  customs  use,  1  ch’ih= 
14.1  inches,  or  0.358  meters. 

Thus  theoretically  1  Chinese  li  (lee)  is  equivalent  to  two-fifths  of 
an  English  statute  mile.  Among  foreigners  in  China  a  “  li  ”  is 
generally  considered  as  one-third  of  a  mile,  but  as  the  “  li  ”  differs 
among  different  Chinese  communities,  it  is  not  possible  to  give  its 
exact  equivalent. 

It  must  also  be  borne  in  mind  that  each  trade  in  China  has  its  own 
ch’ih  or  foot  measure,  varying  from  the  equivalent  of  8.6  inches  to 
27.8  inches. 

The  units  of  area  in  common  use  are : 


25  square  cli'ili=l  pu  or  kung. 
240  pu = 1  mow. 

100  mow=l  ch’ing. 


10  ssii=l  hao. 
10  hao=l  lee. 
10  lee^l  fen. 
10  fen=l  mow 


100  mow=l  cli’ing. 


Among  foreigners  the  mow  has  come  to  be  regarded  as  equivalent 
to  one-sixth  of  an  English  acre  of  43,560  square  feet,  but  it  varies 
greatly  throughout  China  from  one-twelfth  to  two-fifths  of  an  acre. 

For  ready  conversion,  the  following  equivalents  are  commonly 
recognized : 


COMMERCIAL  HANDBOOK  OF  CHINA 


794 


WEIGHTS 


1  short  ton =15  piculs. 

1  long  ton=16  piculs=80  catties. 

1  central  or  liundredweiglit=75  catties. 

1  pound  avoirdupois=%  catty  or  12  taels. 

4  ounces =3  taels. 

1  picul= 1.19047  hundredweight. 

1  tael=l%  ounces =37.783  grams. 

1  catty=l%  pounds=604.53  grams. 

LINEAR  AND  SURFACE  MEASURES 

1  elvili=14.1  inches. 

1  ehang=141  inches  or  11.75  feet. 

1  li  =  %  of  a  mile. 

1  mow=Ve  of  an  acre,  or  7,2G0  square  feet. 

For  currency  equivalents,  see  chapter  on  u  Currency,  exchange,  and 
banking.’’ 


INDEX 


Page 

Advertising,  Amoy  district . 564 

Antung  district . 578 

Canton  consular  district .  427 

Changsha  district. .  597 

Chefoo  district.. .  617 

Chungking  district .  637 

Dairen  district- .  652 

Foochow  district .  666 

foreign  goods... .  191 

Hankow  district. . 449 

Harbin  district .  681 

Hongkong . .  465 

importance  of . 136 

Kalgan  district... . 704 

methods  and  mediums . . 194 

Nanking  district . . 721 

results  in  cigarette  market . . .  75 

Shanghai  district. .  513 

Swatow  district . . 731 

Tientsin  district. . 545 

Tsinan  district .  748 

Tsingtao  district. . 768 

Yunnan  district. .  780 

Aerated-water  factories,  Shanghai _  497 

Agreement  used  in  employing  comprador _  388 

Agricultural  experiment  station,  Litsun _  751 

Agricultural  machinery  import  trade . .  101 

Agriculture,  Amoy  district . 554 

Anhwei  Province . 3 

Antung  district— .  567 

Canton  district .  408 

Changsha  district . . 582 

Chefoo  district . . 601 

Chekiang  Province .  4 

Chihli  Province . .  4 

C hungking  district . .  621 

Dairen  district . . ^ _  640 

Foochow  district. .  656 

Fukien  Province . .  5 

Hankow  consular  district .  434 

Harbin  district.. .  670 

Honan  Province . . .  5 

Hunan  Province... .  6 

Hupeh  Province .  6 

Kalgan  district .  689 

Kansu  Province .  7 

Kiangsi  Province. . 7 

Kiangsu  Province . 8 

Kiaochow  territory .  751 

Kwangsi  Province. . 8 

Kwangtung  Province .  9 

Kweichow  Province . 10 

Manchuria . 13 

Mongolia .  14 

Mukden  district. .  469 

Nanking  district. .  707 

Shanghai  district.,,,,,, . . . .....  493 


Page 

Agriculture,  Shansi  Province . . .  10 

Shantung  Province . 10 

Shensi  Province. . 11 

Sinkiang . 14 

Status  of  industry .  275 

Swatow  district . .  724 

Szechwan  Province. .  12 

Tibet . 15 

Tientsin  district .  524 

Tsinan  district . .  735 

Yunnan  Province. . 12,773 

Alaskan  Code . . 142,143 

Alum,  export  trade. . . .  210 

American  Association  of  South  China _  429 

American  citizens,  protection  in  China .  354 

American  community  organizations,  Shang- 

hai.. _ 515 

American  firms  in  China,  number  and  dis¬ 
tribution . .  351 

regulations  for  incorporating .  139 

American  interests,  Amoy  district .  565 

Anhwei  Province .  4 

Chekiang  Province. .  4 

Chihli  Province . .  5 

Fukien  Province . .  5 

Honan  Province.. . .  6 

Hunan  Province .  6 

Hupeh  Province . .  7 

Kansu  Province .  7 

Kiangsi  Province . 8 

Kiangsu  Province.. . 8 

Kwangtung  Province . 9 

Kweichow  Province . . 10 

Mongolia . . 14 

Shansi  Province. . 10 

Shantung  Province . 11 

Shensi  Province . 11 

Sinkiang.. .  15 

Szechwan  Province .  12 

Tibet . . 15 

Yunnan  Province . .  13 

American  population  in  China .  350 

Ammunition,  import  trade .  124 

Amoy.  See  Amoy  district. 

Amoy  district,  advertising .  564 

agriculture . .  554 

American  interests . 565 

banks . 563 

cable  and  telegraph  service .  556 

chambers  of  commerce... .  564 

cities. . . . 552 

climate .  552 

credits . 563 

currency.  _ _ 563 

electric-light  plants . 558 

fisheries . 554 

foreign  concessions . 553 


795 


796 


INDEX 


Page 


Amoy  district,  guilds . 564 

harbor  facilities . . . „  557 

labor  conditions .  555 

living  costs . . __  565 

location  and  area .  552 

manufacturing. .  555 

minerals . . 555 

merchandising  methods .  563 

motor-bus  service .  556 

population .  552 

port  charges .  558 

postal  facilities .  556 

railways .  556 

roads .  656 

schools... .  553 

shipping  facilities .  557 

telephone  service .  556 

trade... . 559 

changes  in  recent  years .  565 

warehousing  facilities .  557 

waterways . 556 

waterworks . 559 

See  also  Fukien  Province. 

Amur  River . 672 

Amusements . 394 

See  also  Recreations. 

Ancestors,  respect  for .  392 

Anhwei  Province,  agriculture .  3 

American  interests . 4 

cities . 4 

communications... . 3 

industries . . 3 

language  and  characteristics  of  people...  4 

minerals .  3 

population . .  3 

railways .  3 

rivers .  3 

topography .  3 

treaty  ports .  4 

See  also  Nanking  district. 

Antimony,  Canton  district .  412 

export  trade... .  211 

Hunan  Province.. .  582 

See  also  Minerals. 

Antung.  See  Antung  district. 

Antung  district,  advertising .  578 

agriculture .  567 

banks .  577 

chambers  of  commerce .  579 

cities .  566 

climate . 566 

conservancy  and  reclamation  works _  574 

credits . 577 

currency . 577 

electric-light  plants . 573 

forestry .  568 

fur  industry .  569 

guilds .  579 

hotels .  578 

labor  conditions . 570 

living  costs . .  579 

location  and  area .  566 

lumbering... .  568 

manufacturing .  569 

mines .  568 

motor-bus  service .  572 


Page 

Autung  district,  population . . . .  566 

postal  service .  573 

property  values .  579 

railways .  572 

recreations .  580 

rents .  679 

roads .  572 

schools. . 680 

sericulture .  568 

shipping . 571 

•  telegraph  service . 672 

trade... . . 574 

recent  changes . .• . . .  680 

tramways...... . 674 

travel  facilities . . . 678 

waterways . 571 

waterworks. . 673 

See  also  Manchuria;  Shengking. 

Antzu  Mines . 626 

Area. . 1 

Amoy  district....................... _  552 

Changsha  district............. . 581 

Chefoo  district.......— .  599 

Chekiang  Province . .  3, 4 

Chihli  Province .  3,4 

Chungking  district .  620 

Dairen  district . 640 

Foochow  district .  655 

Fukien  Province . 3,5 

Harbin  district .  669 

Honan  Province .  3,  5 

Hunan  Province . . .  3,  6 

Hupeh  Province . 3,6 

Kalgan  district .  686 

Kansu  Province .  7 

Kiangsi  Province .  3, 7 

Kiangsu  Province .  3,8 

Nanking  district .  706 

Swatow  district .  724 

Tientsin  district . 522 

Tsinan  district .  733 

Tsingtao  district . 750 

Yunnan  Province . 3,12,772 

Argun  River .  673 

Arsenal,  Chengtu .  625 

Arsenic,  export  trade .  211 

Hunan  Province .  584 

Asbestos,  Antung  district .  569 

export  trade .  211 

Manchuria .  473 

See  also  Minerals. 

Automobiles,  Shanghai .  508 

body  manufacture,  Kalgan .  695 

See  also  Motor  vehicles. 

Automotive  equipment,  import  trade .  109 

Bamboo,  utility  of. . 252 

Bank  comprador . 386 

Banking . 172 

Banks,  Amoy .  563 

Antung  district.. I . 577 

Canton  district .  426 

C hangsha  district. . 596 

Chefoo  district . 616 

Chungking  district .  636 

Chinese . 173, 178 


INDEX 


797 


Page 


Banks,  Dairen  district.. . . .  650 

financing  business  through . .  179 

Foochow  district _ 665 

foreign . . 172 

Hankow  district _ 449 

Harbin  district . 678 

Hongkong _ _  462 

Kalgan  district. _ _  703 

Mukden  district . . 488 

N anking  district _ 720 

Shanghai. _ 508 

Swatow  district _ _ 730 

Tientsin  district _  543 

Tsinan  district _ _ 747 

Tsingtao  district . 765 

Yunnan  district _  780 

.Barley,  Hankow  district _ 434 

Bean  industry . . 229 

C  hefoo  district _ _ _ * _  606 

Dairen  district _ 641 

Harbin  district _ 671 

Mukden  district _ 473 

Nanking  district _ 707 

Bean  products,  exports _ 229 

Beans,  exports _ 229 

production  in  Manchuria . . 230 

production  in  Tsinan  district _ _ 736 

yield,  Hankow  district . .  434 

Y unnan  district _ _ 773 

Bills  of  exchange,  handling  of _ 207 

Bismuth,  Canton  district . . 413 

Hunan  Province . 584 

Bobbin-lace  industry,  Chefoo  district _  604 

Books,  import  trade . 125 

Bran,  export  trade .  250 

Brand  names,  importance  in  China . .  192 

Breweries,  Shanghai  district . 497 

Brick  kilns,  Canton  district. . 411 

Shanghai  district .  496 

Bristles _ 218 

Building  materials,  import  trade . . .  125 

Bus  lines,  Shanghai _  508 

See  also  Motor-bus  service. 

Business  houses,  opening  of  in  China _  130 

Cable  service,  Amoy  district. . 556 

C  hefoo  district . .  608 

Dairen  district _ 643 

Foochow  district . 660 

Harbin  district _ 674 

Hongkong... . 455 

Mukden  district. . . 479 

N anking  district _ 715 

Shanghai  district _ 501 

Swatow  district _ 726 

Tientsin  district. . 533 

Tsingtao  district . . . 757 

Y unnan  district _ 776 

Calendars  in  advertising _ 200 

Camels,  Kalgan  district _  690 

Camel’s  hair,  exports. . . 228 

Camphor  industry  and  export  trade. .  230 

Canning  factories,  Amoy  district . .  555 

Canton,  city  of  ( see  Canton  district) . .  407 

Canton  district,  advertising .  427 

agriculture .  408 


Page 

Canton  district,  banks . 426 

brickkilns . 411 

Canton  Club. . 430 

cement  plant _ _ 411 

cities . 407 

climate.. . 407 

communication... _ 414 

conservancy  and  reclamation  works .  420 

copper  mills _ 410 

currency _  426 

electric-light  plants . . 420 

harbor  facilities _ 419 

ice-making  plants.. . . 411 

living  costs . . 430 

location  and  area . 407 

manufacturing . 409 

marine  engine  manufacture . . 411 

match  manufacture . 410 

minerals  and  mining . . 412 

population . . 407 

postal  service _ _ 418 

property  values  and  rents . . 429 

public  works  and  utilities _  420 

radio  service _ _ 418 

railways . 416 

roads. _ _  417 

rubber-sole  manufacture...:. . . .  410 

schools _ _ 430 

shipping  facilities _  418 

tanneries. _ 410 

taxes _ _ _ 429 

telegraphs . 417 

telephones. _ _ _ 418 

trade. . 421 

trade  conditions,  changes  in  recent  years.  430 

trade  organizations _ _ 428 

tramways . . 420 

transportation _ 414 

travel  facilities . _  427 

warehouse  facilities _  419 

water  supply . 420 

waterways _ 414 

See  also  Kwangtung  Province;  Kwangsi 
Province. 

Canton-Hankow  Railway _  416, 440,  589 

Canton-Kowloon  Railway _ _ 416,454 

Capitals  of  Provinces _ _ _ ....  3 

Caravan  route,  Mongolia _ _ 607 

Carpet  and  rug  industry _  253 

Tientsin  district.! . 528 

Cassia . . 252 

Cattle.. . 219 

Kalgan  district _ 690 

Tsinan  district _ _ _ 737 

See  also  Livestock. 

Cement  manufacture,  Canton  district. .  411 

Shanghai  district . 496 

Tientsin  district.. . 528 

Ceramic  industry . 253 

Chahar.  See  Kalgan  district. 

Chambers  of  commerce,  Amoy . . .  564 

Antung  district.. .  579 

Canton  consular  district .  428 

Chefoo. . 617 

Chinese . 376 

Chungking  district .  637 


798 


INDEX 


Page 


Chambers  of  commerce,  Dairen  district .  652 

Foochow  district . . . _ .  666 

foreign . 378 

Hankow  district. . 450 

Harbin . .  682 

Hongkong... . 466 

Kalgan  district . 704 

Mukden  district. .  490 

national  organizations . . .  381 

Shanghai... . 514 

Tientsin  district. . . 546 

Tsinan . . 748 

Tsingtao _ 768 

Changchow,  electric-light  plant .  559 

Changchun-Kirin  Railway,  mileage  and 

freight  rates . 477 

Changes  accompanying  establishing  of  Re¬ 
public. .  276 

Changsha,  city  of.  See  Changsha  district. 

Changsha  district,  advertising... .  597 

agriculture _ . 582 

banks _ _ 596 

cities.. . 581 

climate . 581 

credits. . 597 

currency . .  596 

electric-light  plants _ 590 

foreign  concessions . . 581 

guilds . 597 

harbor  facilities . . . . _■ _  591 

hotels.. . 597 

labor  conditions. . . .  588 

living  costs. . .  598 

location  and  area . 581 

manufacturing _ 587 

minerals . 582 

population.  . . 581 

postal  facilities.  . . 590 

property  values . . 598 

railways . J . . .  589 

rents . . 597 

roads _ 589 

schools . . . 598 

shipping  facilities _  591 

telegraph  service . . 590 

telephone  service . 590 

trade . 591 

trade  conditions,  changes  in  recent  years.  598 

transportation . 589 

travel  facilities . . 597 

warehousing  facilities. . 591 

waterways . .  589 

waterworks . . 591 

See  also  Hunan  Province;  Kweichow 

Province. 

Chaotung... . 773 

Chefoo,  city  of.  See  Chefoo  district. 

Chefoo  district,  advertising . . 617 

agriculture . 601 

banks . . -  616 

bean  products . 606 

chambers  of  commerce . . 617 

bobbin-lace  industry . 604 

cable  service . . . 608 

cities . . 600 

climate _ _ -  599 


Page 

Chefoo  district,  credits.. . . 616 

crops  and  yields.. . 601 

currency . . . *. . .  616 

electric-light  plants . 610 

fishing... . . 607 

grape  culture _ 602,606 

guilds . . . 618 

hair-net  industry _ 603 

harbor  facilities . . . 609 

hotels.. . . 618 

labor  conditions . . 607 

livestock.. _ 602 

location  and  area _ _  599 

manufacturing _  603 

merchandising  methods _  617 

minerals . 603 

motor-bus  service _ _  608,  618 

newspapers _ _ 617 

peanuts  and  peanut  oil _ 605 

population _ _ 599 

postal  facilities _ _ _ 609 

property  values _ ...  618 

rents _ _ _ 618 

roads. . 607 

'  shipping  facilities _  609 

silk  industry . . . 604 

telephone  service _ _  609 

topography _ 599 

trade _ _ _ 611 

transportation . . . 607 

travel  facilities _  618 

.  wages.  . . 607 

warehousing  facilities. _ _  609 

water  supply . 610 

wine  industry.. . 606 

wireless  service . 608 

See  also  Shantung  Province. 

Chekiang  Province,  agriculture . . 4 

American  interests _  4 

area . 4 

cities. . 4 

industries _ _ 4 

language  and  characteristics  of  natives..  4 

minerals . . 4 

population- . . 4 

railways . 4 

topography . . 4 

treaty  ports - - 4 

waterways - - 4 

See  also  Shanghai  district. 

Chemicals,  import  trade . . 57 

utilization  in  Chinese  industries. . .  58 

Chengtu . . 621,637 

Chihli  Province,  agriculture - -  4 

American  interests - 5 

area . . . 4 

cities . 5 

climate . 4 

coalmines. . 625 

communications _ 5 

electric-light  plants . . 535 

industries . . . - .  4 

minerals . 4 

population . .  4 

railways . 5 

topography .  4 


INDEX 


799 


Page 

Chihli  Province,  treaty  ports . _  5 

waterways . ., . .  5 

See  also  Tientsin  district. 

Chimingshan  Colliery . 526 

China  grass. . 237 

China  trade  act.. . .  142, 145,  783 

C hina  T r ade- M ark  Bureau . . 346 

Chinaware  and  porcelain _  253 

Chinaware,  import  trade _  125 

Chinese  Eastern  Railway _ _  673,  684 

Chinese  students  in  America . 270 

Chinese  Turkestan,  minerals _  15 

topography _ 14 

See  also  Sinkiang. 

Ching  Hsing  Coal  Mines _ 526 

Chinkiang... _ 706 

shipping  ini  924 _ 716 

C  hinwangtao. . 523 

trade . 542 

C ho w  d ynasty . 18 

Chowtsun . 735 

Chowkiskow-Siangyangfu  Railway _  440 

Chungking,  city  of.  See  Chungking  district. 

C  hungking  district,  advertising . 637 

agriculture . 621 

arsenal. . . 625 

banks . . . 636 

chambers  of  commerce. . 637 

cities. . . . 620 

climate.. _ 620 

conservancy  works. _ _ 631 

guilds . 637 

harbor  facilities . 629 

hotels . 637 

industrial  methods _ 625 

industries _ _ 623 

irrigation  works _ 631 

labor  conditions _ _ 625 

livestock _ 622 

living  costs . 638 

location  and  area . . 620 

minerals . 622 

mints.. . 625 

newspapers.. _ _ 637 

postal  facilities . . 629 

railwayprojects . 627 

rents . 638 

roads . 627 

shipping  facilities _ _ 629 

telegraph  service _ 628 

telephone  service. i.. . 629 

trade . . . 631 

transportation . 626 

travel  facilities. . . . 637 

wages . . 626 

warehousing  facilities . 630 

waterways . 626 

See  also  Szechwan  Province;  Tibet. 

Cigarette  import  trade .  71 

Cigarette  manufacture .  242 

Shanghai  district .  495 

Tsingtao... . 753 

See  also  Tobacco. 

Cities,  Amoy  district .  552 

Anhwei  Province .  4 

Antung  district .  566 


Page 


Cities,  Canton  district . . . 

Changsha  district . . . . . 

Chefoo  district . . . 

Chekiang  Province . . . . . 

Chihli  Province. . . . 

Chungking  district _ _ 

Foochow  district . . * _ 

Fukien  Province . . . . 

Hankow  consular  district _ 

Harbin  district . . . 

Honan  Province _ _ 

Hunan  Province. . . . . 

Hupeh  Province . . . . . 

Kalgan  district _ _ _ 

Kansu  Province _ _ _ _ 

Kiangsi  Province _ 

Kiangsu  Province _ _ 

Kwangsi  Province. . . . 

Kwangtung  Province _ _ 

Kweichow  Province . . . . 

Manchuria. . . . . . 

Mongolia.. . . 

Mukden  district _ 

Nanking  district _ _ _ 

Shanghai  district _ _ 

Shansi  Province _ _ 

Shantung  Province _ 

Shensi  Province _ _ _ 

Sinkiang _ _ _ _ 

Swatow  district _ _ 

Szechwan  Province _ _ 

Tibet _ _ _ _ _ _ 

Tientsin  district _ 

Tientsin  Province _ _ _ 

Tsinan  district . . . . 

Tsingtao  district _ 

Yunnan  district _ _ _ 

Yunnan  Province. _ _ _ 

Claims  of  American  citizens  in  China,  adjust¬ 
ment  of . . . 

Climate,  general _ _ _ 

Amoy  district . . . . 

Antung  district . . . 

Canton  district _ _ _ 

Changsha  district . . . . 

Chefoo  district . . . 

Chihli  Province.. . . . . 

Chungking  district . . . . 

Dairen  district . . . . . 

Foochow  district _ _ _ 

Fukien  Province _ _ _ _ 

Hankow  district . . . 

Harbin  district.. . . . . . 

nonan  Province . . . . . 

Kalgan  district . . . 

Kansu  Province . . . 

Kiangsi  Province . . . 

Kwangsi  Province . 

Kwangtung  Province . . 

Manchuria. . . . 

Mongolia . . . 

Mukden  district . 

Shanghai  district . . . 

.Shansi  Province . . . 

Swatow  district . . . 

Szechwan  Province . 


407 

581 

600 

4 

5 

620 

655 

5 

433 

669 

6 

6,581 

7 

688 
7,  433 

8 
8 
9 
9 

10,  581 
14 

14 
468 
706 
492 

10 

11 

11 

15 
724 

12 

15 

522 

522 

734 

750 

772 

12 

366 
2 
552 
*  566 
407 
581 
599 

4 

620 

640 

655 

5 

432 

669 

5 

687 

7 

7 

8 
9 

13 

14 
468 
492 

10 

724 

11 


800 


INDEX 


Page 

Climate,  Tientsin  district . 522 

Tsinan  district . 733 

Tsingtao  district . . 750 

Yunnan  Province . . . 12,772 

Clocks,  import  trade . 126 

Clothing.  See  Wearing  apparel. 

Clubs,  Canton  Club . 430 

Hongkong _ 467 

international  club,  Mukden... . .  491 

Shanghai. . 515 

Coal,  Antung  district _ 569 

export  trade . 211 

Fukien  Province . 555 

Hankow  district . 436 

Harbin  district _ 670 

Hunan  Province _ _ _ 585 

Kalgan  district . . . .  691, 694 

Manchuria . 471 

Mongolia . 692 

Mukden  district _ 470 

Nanking  district . . 710 

resources  and  production . . ^  .  211 

Shantung . 737 

Swatow  district _ _ 725 

Szechwan  Province. . . 623 

Tientsin  district. _ 524 

Y unnan  district . 774 

Commercial  treaty  of  1903 _ 356 

Communication,  Amoy  district . . .  556 

Anhwei  Province . 3 

Antung  district _ 571 

Canton  district . 414 

Changsha  district _ _ 589 

Chef oo  district _ _ 607 

Chekiang  Province . 4 

Chihli  Province . 5 

Chungking  district .  626 

Dairen  district . 642 

effect  of  restricted  facilities . .  274 

Fukien  Province _ 5 

Harbin  district . 672 

Honan  Province... . 6 

Hunan  Province . 6 

Hupeh  Province . . 7 

Kalgan  district _ 695 

Kansu  Province _ _ 7 

Kiangsi  Province _ _ 8 

Kiangsu  Province _ 8 

Kwangsi  Province . . . 9 

Kwangtung  Province . . 9 

Kweichow  Province _ _  10 

Manchuria . . 13 

Mongolia . . 14 

Nanking  district _ _ 712 

Swatow  district . 726 

Shansi  Province..: . 10 

Shantung  Province . 11 

Shensi  Province . 11 

Szechwan  Province... .  12 

Tibet . 15 

Tientsin  district . 529 

Tsinan  district . . . 741 

Yunnan  Province .  12 


See  also  Cable  service;  Postal  service; 
Telegraphs;  Telephones;  Transporta¬ 
tion;  Wireless  service. 


Page 


Comprador,  position  in  Chinese  trade .  188, 384 

Compradors,  Kalgan  district .  704 

Conservancy  works,  Antung  district .  574 

Canton  district .  420 

Chungking  district . . .  631 

D  airen  district . . 648 

Foochow  district _ 661 

Hankow  district . .' . .  445 

Mukden  district . .  482 

Nanking  district _ _ 718 

Shanghai  district . . 507 

Tientsin  district .  536 

Consortiums,  loans  floated  through . .  297 

Consular  courts  in  China .  358 

Consular  registration. .  149 

Consuls, 'American . .  357 

provisions  of  treaty  of  1844... . 353 

relations  to  American  claims . .  366 

Coolie  migration  from  Fukien  Province .  555 

Copper,  Antung  district . . .  569 

Kalgan  district . 693 

Manchuria .  472 

Mongolia .  693 

production  and  trade _ 212 

Yunnan  district . 774 

Copper  mills,  Canton  district .  410 

Copyrights,  claims  concerning  infringe¬ 
ments .  369 

protection  in  Hongkong. . 348 

protection  under  commercial  treaty .  346 

provisions  of  commercial  treaty  of  1903..  356 

treaties  regarding  reciprocal  protection. ..  347 

Corn,  Hankow  district... . . .  435 

N anking  district . . 708 

See  also  Maize. 

Corporate  enterprises  in  China. .  264 

Cotton,  Hankow  district .  434,435 

import  trade .  80 

Manchuria .  470 

Nanking  district .  708 

production  and  export  trade .  231 

Tientsin  district . 524 

Tsinan  district . . 735 

Cotton  goods  import  trade _ 76,80 

Cotton  manufacture . . 267 

Chungking  district . 624 

Hunan  Province - - - 588 

Mukden  district _ 473 

Shanghai  district . 493 

Tientsin  district . . .  527, 528 

Tsingtao . ---  753 

Courts,  American,  in  China - -  357 

extraterritorial . 368 

Credit  conditions . 185 

Credits,  Amoy  district - 563 

Antung  district . . . 577 

Changsha  district - - 597 

Chefoo  district. . 616 

Dairen  district. . 651 

Foochow  district . . .  665 

Hankow  district .  449 

Harbin  district - - 079 

Kalgan  district . . . 703 

Mukden  district . . 489 

Shanghai . - .  511 

Swatow  districts ---------- . 731 


INDEX 


801 


Page 

Credits,  Tientsin  district. . 543 

Tsinan  district . 748 

Tsingtao  district . 766 

Crop  production,  Changsha  district. . . .  582 

C  hef oo  district . . 601 

Kalgan  district . 689 

Mukden  district . . 470 

Currency,  Amoy  district _  563 

Antung  district _ _ 577 

C  anton  district _ 426 

C  hangsha  district . . 596 

Chef  oo  district _  616 

Chungking  district _  636 

Dairen  district . 651 

Foochow  district _ _  665 

Hankow  district _ 449 

Harbin  district _  678, 683 

Hongkong _ 464 

Kalgan  district _ _ 703 

Mukden  district _  489 

Nanking  district _ _  720 

Shanghai  district _  510 

Swatow  district _  730 

Tientsin  district _ 545 

Tsinan  district . . 747 

Tsingtao  district _ _ 765 

varieties  in  use.. _ _ 151 

Yunnan  district . 780 

Customs.  See  Tariffs. 

Dairen.  See  Dairen  district. 

Dairen  district,  advertising . . .  652 

agriculture . . . 640 

banks _  650 

bean-milling  industry _  641 

cable  service. . . - - -  643 

chamber  of  commerce _ 652 

climate - - 640 

conservancy  works - - 648 

credits _ _ _ -  651 

currency - - 651 

electric-light  plants . . . 647 

fruit  growing _ 641 

harbor  accommodations,  port  of  Dairen..  644 

labor  conditions . .  r . .  642 

living  conditions _  654 

location  and  area _  640 

manufacturing _ -  641 

merchandising  methods _ 651 

minerals - 641 

population.. - -  640 

property  values - - 653 

railways. - -  642 

recreational  facilities .  654 

rents _  653 

roads. - - 643 

shipping  and  shipping  facilities .  644 

taxes. - - 653. 

telephone  service . 644 

trade . . 648 

trade  conditions,  changes  in  recent  years..  654 

tramways . 647 

transportation.. . 642 

travel  facilities - - 652 

warehouse  facilities _ _ _ _  645 

100020°— 26 - 52 


Page 

Dairen  district,  wireless  service . .  643 

Debt  consolidation  plans _ _ 288 

Debts,  public.. .  283 

recovery  of,  provisions  of  treaty  of  1844.  _  353 

Disease,  protection  against . 400 

Distances  from  Shanghai .  2 

Distilleries,  Harbin  district. . . 671 

Distribution  methods  in  China _ _ 193 

Donkeys  as  draft  animals _ 223 

Dress,  customs  of _  395 

Dyes  and  colors,  import  trade _ _ 60 

Dyes,  aniline,  imports. _ 64 

Earthenware,  import  trade _ _  125 

Economic  structure  of  China . . 272 

Economic  development,  China  and  United 

States. . 268 

Educational  facilities.  See  Schools. 

Egg  products,  Shanghai  district . 496 

United  States  import  duties _ _  220 

Eggs,  export  trade . 219 

prices . . 220 

Electric  light  and  power  plants,  Amoy  dis¬ 
trict.  . . 558 

Antung - - 573 

Canton  district— . - - -  420 

Changsha  district _ _ 590 

Chefoo  district _ •-& -  610 

Chungking  district . . . 630 

Dairen  district _ 647 

Foochow  district - - 661 

Hankow  consular  district - -  443 

Harbin  district . ^ . . .  676 

Hongkong.. - - 459 

Kalgan  district - - 700 

Manchuria . . 481 

modern  installations  increasing.. .  106, 267 

Mukden  district... . . . 481 

Nanking  district . . 717 

Shanghai  district.. . . . . .  496, 507 

Swatow  district - - 727 

Tientsindistrict _ 535 

Tsinan  district - 744 

Tsingtao  district _ 761 

Yunnan  district... _ 777 

Electric  railways.  See  Tramways. 

Electrical  equipment  industry,  Shanghai 

district. . 497 

Electrical  machinery  and  appliances,  import 

trade. .  105 

Electrical  signs  in  advertising . . 200 

Embroidery  industry  and  exports .  254 

Etiquette  in  China . 392 

Exchange  brokers,  Shanghai .  511 

Expenditures,  Government .  292 

Export  products .  206 

Extraterritoriality,  provisions  of  commercial 

treaty  of  1903 . 357 

provisions  of  treaty  of  1844  .  354, 358 

“ Face"  in  Chinese  social  system .  278, 395 

Feasts,  social  customs .  396 

Feathers,  export  trade .  220 

Feldspar,  Manchuria... .  473 

Fengtein  Province.  See  Shengking  Province. 
Fertilizers,  Amoy  district .  554 


802 


INDEX 


Page 

Fertilizers,  Hankow  district . . -  436 

Tsinan  district _  737 

Finances,  Government _  280 

Financing  export  trade  from  United  States 

to  Hongkong . - . . .  463 

Financing  import  trade,  Dairen  district -  651 

Firecrackers.. - - 254 

Fishing,  Amoy  district -  554 

Chefoo  district -  607 

Shanghai  district _  493 

Flour,  export  trade _  248 

import  trade _  63 

Flour  milling _  249, 267 

Harbin  district _  671 

Mukden. _ 474 

Shanghai  district _  495 

Tientsin  district . 527 

Flour-milling  machinery,  import  trade -  101 

Flour  strings,  manufacture  of . . 260 

Fluorite,  Manchuria _  473 

Foochow  district,  advertising _  666 

agriculture  . . 656 

banks _ 665 

cable  service . 660 

chambers  of  commerce _  666 

cities . . 655 

climate. . 655 

conservancy  work . . 661 

credits - - 665 

currency. .  665 

fruit  growing . . 656 

hotels.  . . 667 

living  costs _ '. - -  667 

lumber  i  ndustr  y . 657 

manufacturing . 658 

merchandising  methods _ 666 

minerals _ 657 

mines _ 658 

population . . 655 

postal  facilities _ 660 

property  values  and  rents . .  667 

roads _ _ 660 

shipping  facilities. - 660 

telegraph  service . 660 

telephone  service _ _ 660 

trade . . .  662 

trade  conditions,  recent  changes _  667 

transportation. . . . ^ -  659 

travel  facilities . 666 

warehousing  facilities . . 660 

waterways.. . 659 

wireless  service . . 660 

See  also  Fukien  Province. 

Foodstuffs  import  trade _ 66 

Foreign  capital  in  China,  problems  confront¬ 
ing _  300 

Foreign  concessions,  Amoy - 553 

Changsha  district - - - 581 

Hankow . . . 433 

Kalgan  district.. . . . 688 

Tsingtao.. . 750 

Tientsin . . . . .  522, 548 

Foreign  exchange,  basis  of  transactions -  161 

Dairen  district . . 651 

handling  of . . 207 

problem  in  Chinese  trade.. .  189 


Page 

Foreigners  resident  in  China,  provisions  of 


treaty  of  1844. _ 354 

Forestry,  Antung  district _  568 

Tsingtao  district _  751 

Forests,  Harbin  district _ 670 

Freight  rates,  railway,  Canton- Kowloon 

Railway . . 455 

Changchun-Kirin  Railway _ _ 477 

charges  per  ton  kilometer . .  274 

Chinese  Government  railways .  325 

Peking-Mukden  Railway _  477 

Shanghai  district _  499 

South  Manchuria  Railway _  476,  642 

Tientsin  district _  531 

Tientsin- Pukow  Railway . . 742 

river  steamers,  between  Canton  and 

Hongkong _ 415 

steamship,  from  Shanghai _ _  499,502 

Yangtze  traffic.. _ _ _ 439,713 

Freight  traffic,  classification  on  Chinese  Gov¬ 
ernment  railways _ 531 

Fruits,  native. _ _  251,554 

Fruit  growing,  Dairen  district _  641 

Foochow  district _ 656 

Fuchiatien _ _ ;. . .  670 

Fu  Chung  Corporation _ _ 526 

Fuel  oil,  import  trade _ 89 

Fukien  Province,  agriculture _ _  5 

American  interests _ _ 5 

area _ 5 

cities . 5 

climate  and  topography . . 552 

coal _ _ 555 

communications . . . 5 

coolie  migration _ 555 

industries _ 5 

language  and  people _  5 

minerals _ 5 

population _ 5 

railways . . 5 

treaty  ports _ 5 

waterways.. . 5 

Fukien  Province.  See  also  Amoy  dis¬ 
trict;  Foochow  district. 

Fur  industry,  Antung  district- . 569 

Mukden  district _ _ 469 

Furs,  exports _ 221 

Furniture,  rattan,  reed,  and  sea-grass _  254 

Game,  wild _ _ 220 

Gasoline,  import  trade.. . 90 

Geographical  description  of  Provinces _  3 

Gifts,  presentation  of . . .  397 

Ginger _ 252 

Glass  industry,  Chungking  district . .  625 

Tientsin  district . 528 

Goats _ 223 

Gobi  region . . 686 

Gold,  Antung  district - - 568 

bar,  in  foreign  exchange  transactions .  170 

Canton  district . 412 

Harbin  district - - 671 

Hunan  Province . . - . -  585 

Kalgan  district . 693 

Manchuria. .  472 

Mongolia . . . 693 

position  in  monetary  system.. . 160 


INDEX 


803 


Page 


Gold,  Shantung . 738 

Grape  culture,  Chefoo  district _  602, 606 

Graphite,  Antung  district _  569 

Grass  cloth, industry,  Chungking  district...  624 

exports _ 238 

Guild,  bankers’ _ 177 

Guilds,  Amoy  district _ : _  564 

Antung  district _ _ 579 

Changsha  district _ _ 597 

Chefoo  district . 618 

Chungking  district _ _ 637 

prevalence  in  China _  370 

protective  nature  of _  262 

provincial _ 374 

silk  industry,  Chefoo  district _ _  604 

Szechwan  Province _ 626 

trade  and  craft _ _ 371 

Gutta-percha  manufactures,  import  trade _  127 

Gypsum _ 213 

Haifong-Yunnarffu  Railway. . . .  776 

HaiHo... . 529,536 

Hailar _ : . . .  670 

Hairnets _ 255 

manufacture  in  Chefoo _  603 

Han  dynasty _ 19 

Han  River _ 726 

Hankow,  city  of _ _ 6,433 

See  also  Hankow  district. 

Hankow  district,  advertising _ _ _ 449 

agriculture _ _ 434 

banks _ _ 449 

chambers  of  commerce _  450 

cities _  433 

climate _ 432 

conservancy  and  reclamation  work _  445 

credits. _ _ 449 

currency _ _ . _ _  449 

electric-light  plants _  443 

harbor  facilities _  442 

guilds _ _  450 

hotels _ ... _ _  450 

industrial  plants _  437 

labor  conditions _  438 

land  leasing _  451 

living  costs _ 451 

1  ocation  and  area _ 432 

manufacturing _ 437 

minerals _  436 

mines _  437 

physical  features _  433 

population _  432 

postal  service _ 442 

prices _ 438 

property  values _  450 

railways. . . . 439 

recreations _  451 

rents _ . _ _  450 

roads _ 441 

schools _ _ 452 

shipping  facilities. . 442 

taxes . . 451 

telegraphs . . 442 

telephones _ 442 

trade _ 445 

trade  conditions,  changes  in  recent  years.  452 


Page 


Hankow  district,  tramways _ _  444 

transportation . 438 

travel  facilities . . 449 

•  wages _ _ 438 

warehousing  facilities _  443 

waterways _  438 

waterworks _  444 


See  also  Honan  Province;  Hupeh  Prov¬ 
ince;  Kansu  Province;  Kiangsi  Prov¬ 
ince;  Kokonor;  Shensi  Province;  Sin- 


kiang. 

Harbin.  See  Harbin  district. 

Harbin  district,  advertising _  681 

agriculture _  670 

banks _ 678 

cable  service . 674 

chambers  of  commerce . . 682 

cities _  669 

climate _ 669 

credits -  679 

currency -  678,683 

electric-light  plants _  676 

forests -  670 

hotels _  682 

labor  conditions _  672 

location  and  area _  669 

manufacturing _  671 

minerals _  670 

motor-bus  service _  677 

newspapers _  681 

population  _ _ _  669 

postal  facilities _  675 

powers  of  attorney _  680 

property  values _  682 

railways _  673 

rents _  682 

roads -  673 

shipping  facilities _  675 

stock  raising _  670 

taxes -  683 

telegraphs _ • _  674 

telephone  service _  674 

trade -  677 

trade  conditions,  changes  in _  683 

transportation _  672 

travel  facilities _  682 

wages -  672 

warehousing  facilities _  675 

waterways -  672 

warehousing  facilities _  675 

waterways -  672 

wireless  service _  674 

Harbor  control,  Shanghai _  503 

Harbor  facilities,  Canton _  419 

Changsha  district _ _  591 

Chefoo. _ _  609 

Chungking _  629 

Hankow _ _ 442 

Hongkong _ 457 

Mukden  district _  480 

Nanking  district _ _  .715 

Hardware,  import  trade _  93 

Hats,  rush,  manufacture  and  export  trade _  256 

Health,  maintenance  of _  399 

Heilungkiang,  brief  geographical  description.  13 
See  also  Harbin  district. 


804 


INDEX 


Page 

Hemp,  Chungking  district _  622 

Hankow  district _  435 

production  and  export  trade _  232 

Hides  and  skins,  exports _  221 

History  of  China,  brief  sketch _  17 

Hogs - 223 

Home  industries,  Canton  district _  409 

Honan  Province,  agriculture _ _  5 

area _  5 

cities _  6 

climate _  5 

coal  mines _  526 

communications _ 6 

electric-light  plants _  444 

industries _ _  6 

language  and  characteristics  of  people _  6 

minerals . . 6 

population . 5 

topography. _ _  5 

treaty  ports _ 6 

See  also  Tientsin  district;  Hankow  dis¬ 
trict. 

Hong  merchants _  384 

Hongkong  district,  advertising . 465 

banks _ 462 

chambers  of  commerce. . . . 466 

climate _ _ 453 

clubs _ 467 

currency - - 464 

electric-light  plants -  459 

harbor  facilities _  457 

labor  conditions -  454 

living  costs - 467 

location  and  area _ _ _ 453 

manufacturing . 453 

newspapers _  465 

population . 453 

postal  service _ 456 

powers  of  attorney _  464 

property  values. ,. _ 466 

railways _  454 

reclamation  projects.. . . . 460 

rents _  466 

roads _  455 

shipping _ 462 

steamship  tonnage  entered,  1913  and 

1923 _ 48 

shipping  facilities _  457 

taxes _  466 

telegraph  and  telephone  service _  455 

trade -  460 

trade  conditions,  changes  in -  461 

trade  organizations -  466 

trade-marks,  copyrights,  and  patents, 

protection  of _ _  348 

tramways . . . — . .  459 

transportation _  454 

warehousing  facilities -  458 

waterworks . . .  459 

wireless  service . . r .  455 

Hongkong  companies  ordinances _ 142, 144 

Horses.. . 223,689 

Hosiery,  import  trade .  126 

Hotels,  Antung .  578 

Changsha. . 597 

Chefoo  district .  618 


Page 


Hotels,  Chungking  district . . 637 

Foochow . 667 

Hankow  district . 450 

Harbin  district . . 682 

Kalgan  district _ _ _ 704 

Nanking... _ 721 

Peking . 546 

Shanghai  district...^ _ 513 

Swatow  district . 732 

Tientsin... . 546 

Tsingtao . 769 

Weihaiwei .  618 

Y unnan  district .  781 

Hunan  Province,  agriculture .  6 

American  interests .  6 

antimony..... .  582 

area .  6 

arsenic .  584 

bismuth . 584 

cities . 6,581 

coal . 585 

communications . .  6 

electrical  development . . .  590 

gold . 585 

industries . 6 

iron . 584 

labor  conditions . 588 

language  and  characteristics  of  people _  6 

lead. . 1 . 583 

manganese .  584 

manufacturing . 587 

mercury . . .  585 

minerals . 6,582 

trade  in .  586 

population . -. .  6 

railways . . . 6 

silver .  585 

tin _ _ _ 583 

topography . 6 

treaty  ports . 6 

tungsten . 584 

waterways. _ _ 6,589 

zinc . 583 

See  also  Changsha  district. 

Hupeh  Province,  agriculture .  6 

American  interests .  7 

area . 6 

cities . 7 

communications . 7 

electric-light  plants. _ _  443 

industries _ 6 

language _ _ 7 

minerals _ 6 

population _ 6 

railways . . 7 

roads . . 7 

topography . 6 

treaty  ports _ 7 

waterways . 7 

See  also  Hankow  district. 

Hwai  River  conservancy  plans - -  718 

Hygiene . 399 

Ice-making  plants,  Canton  district .  411 

Ichang . . 433 

Income,  Government. . . 286 


INDEX 


805 


Page 

India-rubber  manufactures,  import  trade _  127 

Indigo,  import  trade .  63 

Individualistic  development  of  Chinese 

people .  275 

Industrial  methods,  Chungking  district .  625 

Industrial  development,  essential  conditions.  263 

Swatow  district.. .  725 

Industrial  plants,  Hankow  district .  437 

Hongkong  district .  453 

Industries,  Anhwei  Province .  3 

Antung  district .  569 

Chekiang  Province . •.  4 

Chihli  Province .  4 

Chungking  district .  623 

Foochow  district . . .  658 

Fukien  Province _ , . . .  5 

Honan  Province .  6 

Hunan  Province............... .  6 

Hupeh  Province _ .............. _  6 

Kalgan  district . 694 

Kansu  Province . . 7 

Kiangsi  Province . 7 

Kiangsu  Province . . 8 

Kwangsi  Province.. . . . 8 

Kwangtung  Province... . 9 

Kweichow  Province . . 10 

Manchuria _ 13 

modern,  types  represented . . .  269 

Mongolia . 14 

Mukden  district . 473 

Nanking  district . . . 711 

Shansi  Province . 10 

Shantung  Province.. .  11 

Shensi  Province .  11 

Sinkiang . .  15 

Swatow  district . 725 

Szechwan  Province . 12 

Tibet . . . 15 

Tsinan  district . 740 

Tsingtao  district . 752 

Yunnan  district . 12,775 

Inland  steam  navigation,  provisions  of  com¬ 
mercial  treaty  of  1903 .. _ 356 

Inventions,  treaties  regarding  reciprocal  pro¬ 
tection _ 347 

Iron,  Antung  district- _ _ _ 568 

Canton  district .  413 

Hankow  district .  436 

Hunan  Province .  584 

Kalgan  district . 692, 694 

Manchuria . . 471 

manufacture,  Mukden . 474 

Mongolia..... . 692 

Nanking  district . . 709 

resources  and  production . .  213 

Shantung . . 737 

Szechwan  Province . . . 623 

Tientsin  district... . . . . 525, 527 

Iron  and  steel,  consumption  as  indicitive  of 

economic  development . 278 

industry  in  Shanghai . . 497 

Irrigation  works,  Chungking  district . .  631 

Japanese  interests  in  Chinese  industry .  265 

Jehol.  See  Kalgan  district. 

Judicial  procedure  in  China...... .  366 


Tage 

Kailan  Mining  Administration . 525 

Kalgan,  city  of.  See  Kalgan  district. 

Kalgan  district,  advertising . . .  704 

agriculture . 689 

banks _ 703 

chambers  of  commerce. .  704 

cities . . 688 

climate . . 687 

comprador  system  less  in  evidence _  704 

credits... . . 703 

currency _ _ 703 

electric-light  plants . 700 

foreign  concessions. . . . 688 

hotels - - 704 

labor  conditions ... . 695 

lakes . . 686 

livestock _  689 

living  conditions. . 705 

location  and  area _ 686 

manufacturing _ _ 694 

minerals... -  691 

mines - - 694 

population _  687 

postal  facilities _ _ 699 

property  values _ 705 

railways - - 696 

recreations.— ^ - 705 

rents - 705 

rivers - - 686 

roads -  697 

tariffs - - . - - 701,  702 

taxes - -  698 

telegraph  service . . 698 

telephone  service _  699 

trade.. . 701 

transportation. - - 695 

travel  facilities _ 704 

warehousing  facilities.. -  700 

waterways - -  695 

wireless  service - - 698 

See  also  Chihli  Province;  Mongolia; 

Shansi  Province. 

Kansu  Province,  agriculture... . 7 

American  interests . . 7 

area . 7 

cities . 7,433 

climate . 7 

communications. . 7 

industries - - 7 

language  and  character  of  people _  7 

minerals - - - 7 

population . 7 

topography.. - - 7 

waterways .  7 

See  also  Hankow  district. 

Kaoliang,  culture  and  export  trade .  233 

Nanking  district . .  708 

Kaolin  deposits . . 215 

Kerosene,  import  trade . 85 

Kerulen  River .  687 

Kiangsi  Province,  agriculture .  7 

American  interests .  8 

area .  7 

Cities . 8,434 

climate... .  7 

communications. _ _ 8 

electric-light  plants . 444 


806 


INDEX 


Page 

Kiangsi  Province,  industries . .  7 

language _ _ - . . . .  8 

minerals _ 7 

population . 7 

railways . _ . . . .  8 

topography . . . . . .  7 

treaty  port . 8 

waterways . 8 

See  also  Hankow  district. 

Kiangsu  Province,  agriculture -  8 

American  interests - - 8 

area . 8 

cities . . 8 

communications _ 8 

industries _ _ 8 

language - 8 

minerals _ 8 

population - 8 

railways _ 8 

topography _ _ -  8 

treaty  ports _  8 

waterways _ 8 

See  also  Nanking  district;  Shanghai  dis¬ 
trict. 

Kiaochow  territory.  See  Tsingtao  district.. .  750 

Kiaochow-Tsinan  Railway.. . . .  741,754 

Kiating . . 621 

Kirin  Province.  See  Manchuria;  Harbin  dis¬ 
trict;  Mukden  district. 

Kiukiang . . 433 

Kiungchow . 408 

Knitting  machines,  import  trade - -  104 

Kochiu . . 773 

Kokonor.  See  Hankow  district. 

Kongmoon . 408 

Kopi  Railway . 776 

Kowloon.  See  Hongkong  district. 

Kulangsu,  electric-light  plant _ _ 559 

international  settlement _  553 

Kwangsi  Province,  agriculture . . 8 

area _  8 

cities. - - 9 

climate . 8 

communications - - 9 

industries . . 8 

minerals . . 8 

population . . 8 

topography .  8 

waterways... . 9 

See  also  Canton  district _ ' _ _  407 

Kwangtung  Province,  agriculture . 9 

American  interests . . 9 

area . 9 

cities. . . . 9 

climate . . . . . -. . .  9 

communications . 9 

industries - - 9 

language . 9 

minerals.. . 9 

population _ 9 

railways . . 9 

topography. . . . 9 

treaty  ports. . 9 

waterways.. .  9 


See  also  Canton  district;  Swatow  district. 


Page 

Kwantung  leased  territory.  See  Dairen  dis¬ 


trict. 

Kweichow  Province,  agriculture . .  10 

American  interests .  10 

area . 9 

cities . 581 

communications . ." _ _  10 

industries. _ _ _ 10 

language  and  characteristics  of  people _  10 

minerals . 10,582 

population . 9 

roads _ 10 

topography. _ _ 10 

waterways _ _ 10 

See  also  Changsha  district. 

Kweihwating . . 688 

Labor  conditions,  Amoy  district. . . .  555 

Antung  district . . 570 

Canton  district . 414 

Chefoo  district . . . 607 

C  hungking  district . . 625 

Dairen  district _ 642 

Hankow  district . 438 

Harbin  district .... . 672 

Hongkong  district . 454 

Hunan  Province . . 588 

Kalgan  district. . 695 

Mukden  district . 475 

Nanking  district.. . * . .  712 

Shanghai  district . . 497 

Swatow  district. . 725 

Tientsin  district . 528 

Tsinan  district _ _ 741 

Yunnan  district _ 775 

Lace,  handmade,  industry  and  trade _ ...  256 

Lacquer  varnish _ 233 

Laichow.. . 600 

Lakes,  Kalgan  district . . . 686 

Land,  leasing  in  Hankow  district _ .  451 

transfers  restricted  in  Hankow  district _  450 

values  and  development,  Shanghai _  519 

values  in  Canton  district . 429 

values  i n  Hongkong . . 466 

Land  procedure  in  Shanghai . .  517 

Language  and  people,  Anhwei  Province _  4 

Chekiang  Province -  4 

Chihli  Province  . .  4 

Fukien  Province . . ....  5 

Honan  Province - 6 

Hunan  Province . . . . . ... .  6 

Hupeh  Province. . . 7 

Kansu  Province . . 7 

Kiangsi  Province _ 8 

Kiangsu  Province . . 8 

Kwangtung  Province _ 9 

Kweichow  Province . . 10 

Manchuria . . 14 

Mongolia . 14 

Shansi  Province - 10 

Shantung  Province - - — . -  11 

Shensi  Province _ 11 

Szechwan  Province.  . . 12 

Tibet.. . 15 


INDEX 


807 


Page 

Language  and  people,  Yunnan  Province -  13 

Lawsuits,  treaty  provisions  of  1844 -  354 

Lead.-.. - - *. -  215 

Antung  district - - - -----  569 

Canton  district . . - . - .  413 

Chefoo  district . . - . . .  603 

Hunan  Province _ ^ . ----- .  583 

Manchuria - - 472 

Leather,  import  trade . . - . 127 

industry  of  Chungking  district — - .  625 

Legal  redress  under  treaty  of  1880.  .  ^ -  355 

Liao  River,  conservancy  plans _ 482 

traffic.. . . . - _  475 

Licorice  root _ _ 234 

Lincheng  Colliery,  Tientsin  district _  526 

Linkiang _ _ _ _ . -  567 

Linseed  and  linseed  oil — - ...  235 

Liuchang  Coal  Mining  Co.  . . 526 

Liu-Ho  Kou  Mining  Co . - . . .  527 

Livestock - - 222 

Chefoo  district _ 602 

Chungking  district - - 622 

Hankow  consular  district - -  435 

Kalgan  district _ . -  689 

Mukden  district - - 469 

Shanghai  district _  493 

Tsinan  district... - ...  735 

Living  conditions,  Chinese  industry. -  269 

Dairen  district _ 654 

Kalgan  district _ 705 

Living  costs,  Amoy  district _ 565 

Antung  district _ -  579 

Canton  consular  district _  430 

Changsha  district _  598 

Chefoo  district _  618 

Chungking  district _ _ 638 

Foochow  district - - . -  667 

Hankow  district _ _ 451 

Hongkong. _  467 

Mukden  district _ _ 491 

Nanking  district . 722 

Shanghai _ 514 

Swatow  district _ _ 732 

Tientsin  _ _ 549 

Tsinan  district ... _ 749 

Tsingtao  district - - ...  770 

Lubricating  oil,  import  trade _ _ 91 

Lumber  import  trade _ 118 

Lumbering,  Antung  district _ .  568 

Foochow  district . 657 

Lung-Hai  Railway _ _ 440,713 

Lungkow . . 600 

trade _ 615 

Lungyen  Mining  Administration. _ .  527 

Machine  belting,  import  trade. .  125 

Machine  tools,  import  trade . .  99 

Machinery,  import  trade . 97 

mining,  Hankow  district.  .. _ . _  437 

Magazines  as  advertising  mediums _  196 

Magnesite . 215,473 

Mah-jongg  sets . .  257 

Maize,  Chungking  district- . . 622 

See  also  Corn. 

Manchouli... . . 670 

Manchu  dynasty _ _ 22 


Page 

Manchuria,  agriculture _ 13 

area _ 13 

bean  production. - - 230 

cities.. . . . 14 

climate . .  13 

coal. . . . 471 

communications . 13 

copper . . 472 

cotton  production . . 470 

cotton  spinning  and  weaving _  474 

electric  light  and  power  plants _  481 

foreign  trade. _ _ 483 

industries _  13 

iron  mining _ 471 

language  and  people. . 14 

mines . . 472 

population _  13 

railways.. _ 13 

taxes,  internal _  488 

topography. . 13 

waterways _ 13 

See  also  Antung  district;  Harbin  district; 

Mukden  district. 

Manganese _ 217,473,584 

Manufactured  products,  native _  252 

Manufacturing,  Amoy  district _  555 

Antung  district _ _ 569 

Canton  district _ 409 

Changsha  district _  587 

Chefoo  district _  603 

Dairen  district _ 641 

Foochow  district _ 658 

foreign-type  products _  265 

Hankow  district _ 437 

Harbin  district _ 671 

Hongkong  district _ _ 453 

Kalgan  district _ 694 

Mukden  district _  473 

Nanking  district _  711 

Shanghai  district _  493,  495 

Swatow  district _ 725 

Szechwan  Province _ 623 

Tientsin  district _ 527 

Tsinan  district _  740 

Tsingtao  district _  752 

Marine  engines,  manufacture  in  Canton 

district _ 411 

Market  development _ 129 

Match  industry,  Canton  district . . 410 

Chungking  district _ 625 

Shanghai  district _ 496 

Swatow  district _  725 

Tientsin  district . . 528 

Mats  and  matting _ _ _ 258 

Mentowkow  Coal  Mines. . . . 526 

Merchandising  methods,  Amoy  district _  563 

C hefoo  district . . 617 

Dairen  district . 651 

Foochow  district . 666 

Tsinan  district . 748 

Y unnan  district . . 781 

Mercury . 215,585 

See  also  Minerals. 

Metallurgical  industries .  268 

Metals,  export  from  Hankow  district . .  436 

import  trade . 114 


808 


INDEX 


Page 

Metals,  utilization  in  China . 116 

See  also  specific  entries  and  Minerals. 

Millet,  exports . 233 

Hankow  district . . 435 

Min  River _ _ _  626,  659,  661 

Minerals,  Amoy  district _ 555 

Anhwei  Province _ _ 3 

Canton  district.. . 412 

C  hangsha  district _ 582 

Chefoo  district _  603 

Chekiang  Province _ 4 

Chihli  Province _ 4 

Chinese  Turkestan _  15 

Chungking  district _ 622 

Dairen  district _  641 

Foochow  district _ _ 657 

Fukien  Province _  5 

Hankow  district _ _ 436 

Harbin  district _  670 

Honon  Province _ _ 6 

Hunan  Province _ _ _ _ 6,  582 

Hupeh  Province _ _ 6 

Kalgan  district _ _ 691 

Kansu  Province.. _ _  7 

Kiangsi  Province.. _ _ 7 

Kiangsu  Province _ 8 

Kwangsi  Province . . 8 

Kwangtung  Province _ _ 9 

Kweichow  Province _ 10,582 

Manchuria . . 13 

Mongolia— . 14 

Mukden  district . 470 

Nanking  district.. . . .  709 

Shanghai  district . . 493 

Shantung  Province . . 11 

Shansi  Province . 10 

Shensi  Province . . 11 

Swatow  district . 725 

Szechwan  Province.. . 12,622 

Tibet... . . .  15 

Tientsin  district. . . 524 

trade  in. . . 114,209,586 

leading  ports .  117 

Tsinan  district . .  737 

Tsingtao  district . . . 754 

Yunnan  Province . 12,773 

See  also  specific  entries  and  Metals. 

Mines,  Antung  district . 568 

Canton  district. . 413 

Foochow  district .  658 

Hankow  district... .  437 

Kalgan  district... . . 694 

Manchuria . 471 

Tientsin  district .  525 

Tsinan  district . 737 

Ming  dynasty.. . 21 

Mining,  Canton  district . 412 

methods  in  Szechwan  Province _  623 

Mukden  district. . 470 

Shantung . . 738 

Tientsin  district . 524 

Mining  regulations,  provisions  of  commercial 

treaty  of  1903 . .  356 

Mints,  Chungking  district _ 625 

Missionary  enterprises,  provisions  of  com¬ 
mercial  treaty  of  1903 . 357 


Page 

Molybdenum . 217,413 

Monetary  exchange.  See  Foreign  exchange. 

Money-order  service . 330 

Mongol  dynasty . .  20 

Mongolia,  agriculture .  14 

American  interests . .  14 

area _ _ .- . . .  14 

cities. _ 14 

climate. _ _ 14 

coal _ _ 692 

communications _ 14  ' 

industries.. _ 14 

language  and  people... . . 14 

livestock _ 689 

minerals.. _ _ 14,691 

motor  traffic _ 697 

population _ _ _ _ _ _■  14 

topography - 14 

treaty  ports _ 14 

wireless  service . 698 

See  also  Kalgan  district. 

Mongolian  Central  Cooperative  Society .  691 

Monopolies,  prohibition  of,  treaty  of  1844 _  353 

Most-favored-nation  treatment,  under  treaty 

of  1858.. . . 355 

Motion  pictures  as  means  of  advancing  trade.  201 

Motor-bus  service,  Amoy  district .  556 

Antung  district .  572 

Chefoo  district . .  608, 618 

Harbin  district . . 677 

rates,  Kalgan  to  Urga.. .  704 

Tsinan  district .  743 

Motor  route,  Kalgan  to  Urga. . .  14 

Motor  traffic,  Mongolia . 697 

Motor  vehicles,  Mukden  district.. . 479 

trucks,  import  trade . H2 

load  restrictions,  Hongkong . .  455 

Shanghai .  508 

Mukden.  See  Mukden  district. 

Mukden  district,  agriculture. .  469 

banks .  488 

cable  service . 479 

chambers  of  commerce... .  490 

cities.. . 468 

climate . . .  468 

clubs . 491 

coal . 470 

cotton  industry . . . 473 

credits . 489 

crops,  average  production . . 470 

currency . . 489 

electric  light  and  power  plants. . 481 

flour  milling . 474 

freight  rates . 476 

fur  industry . 469 

harbor  facilities.. . .  480 

industries _ 473 

ironworks . . 474 

labor  conditions . 475 

livestock . . 469 

living  costs _ 491 

location  and  area _ 468 

manufacturing  _ _ 473 

motor  vehicles.. .  479 

minerals. _ _ 470 

mining. . 470 


INDEX 


809 


Page 

Mukden  district,  population .  468 

postal  facilities . . .  480 

property  values . 490 

reclamation  works,  Liao  River. . .  482 

rents . 490 

roads . . . 478 

schools. . 491 

shipping . 480 

storage  charges . . .  478, 481 

sugar  refining . 474 

telegraphs . 479 

telephone  service _ 479 

trade. . 483 

tramways . . 482 

transportation . 475 

wages  in  industry . . 475 

warehousing  facilities . . . 481 

waterways . 475 

waterworks .  482 

wireless  service . 479 

See  also  Manchuria. 

Mules . 223 

Music,  import  trade.. . 125 

Muscial  instruments,  import  trade. .  126 

Musk. _ _ _ 224 

Names,  choosing  of  Chinese  equivalents _  397 

Nan-Hsun  Railway -  440 

Nanking.  See  Nanking  district. 

Nanking  district,  advertising _  721 

amusements . . 723 

banks _ _ _ 720 

cable  service - - - 715 

chambers  of  commerce.. . . 721 

cities.. _ _ 706 

coal . . 710 

conservancy  and  reclamation... . .  718 

cotton _ 708 

currency . 720 

hotels . 721 

industries. - 711 

iron . . 709 

labor  conditions  . . 712 

living  costs . .  722 

location  and  area.. . 706 

manufacturing . . 711 

minerals _ 709 

peanuts .  708 

population. .  706 

postal  service .  715 

property  values .  722 

railways . 713 

roads _ 713 

school  for  American  children . .  723 

shipping  facilities . 715 

shipping  in  1924 . 716 

taxes . . 722 

telegraph  service . . .  715 

telephone  service . . .  715 

trade _ _ 718 


Page 

Nanking  district,  waterways . . .  712 

wireless  service . .  715 

See  also  Anhwei  Province;  Kiangsu 
Province. 

Nanning . . 408 

Nantai  Island. . 667 

Nantungchow. . 707 

Newchwang,  shipping,  1923 . 480 

Newspapers,  Chefoo _ _ _ 617 

Chengtu. . 637 

Chungking _ 637 

Harbin  district  _ _ 681 

Hongkong _ 465 

Shanghai  district . . 513 

Tientsin  district _ 545 

value  as  advertising  mediums _  196 

Ningpo . 492 

Nonni  River . . 673 

Nutgalls . 235 

Nuts,  native . 251 

Oil  tins,  empty,  utilization  of . . 87 

Oilcloth,  import  trade _ 127 

Open  ports,  provision  of  commercial  treaty 

of  1903 _ 356 

Opium  trade,  restrictions  imposed  under 

treaty  of  1880 _ 355 

Orkhon  River. . 686 

Package  goods,  marketing  in  China . .  191 

Packing  goods  for  Dairen  district _  645 

Packing  goods  for  Szechwan  trade _  630 

Pakhoi _ 408 

Pao  Chin  Coal  Mining  Co _ 527 

Paper,  import  trade _ 121 

manufacture  in  China . . .  121, 258, 625 

Paper-making  materials _ 258 

Paraffin  wax,  import  trade _  92 

Passenger  rates,  railway,  Canton-Kowloon 

Railway... _ _ 416 

Chinese  Government  railways _  325 

Hongkong _  455 

Shanghai  district _  500 

South  Manchuria  Railway . .  477 

Tientsin  district . . . 530 

river  steamers,  Hankow  and  Shanghai.  439,450 

steamship,  Shanghai... . . 499 

Yangtze  River  traffic . 712 

Patents,  protection  of . .  347, 348, 356, 369 

Peanut  oil,  Chefoo  district . 605 

ex  port  trade . 235 

Peanuts,  Chefoo  district .  602, 605 

export  trade .  235 

Hankow  district . - .  434 

Nanking  district . .  708 

Tsinan  district .  736 

Peas,  Hankow  district .  435 

Pei  Ho.  See  Hai  Ho. 

Peking .  523 

See  also  Tientsin  district. 


trade  conditions,  changes  in  recent  years.  723 

tramways . 718 

transportation . . .  712 

travel  facilities _ 721 

wages . . 712 

warehousing  facilities.......... .  715 


Peking-Hankow  Railway .  439,  532 

Peking-Mukden  Railway . .  477,532 

Peking-Suiyuan  Railway . . . 532,696 

Perigpu.i. .  707 

Petroleum,  import  trade .  85 

resources...  ...... ........ . 21() 


810 


INDEX 


Petroleum,  Szechwan  Province _ 

Phosphate _ _ _ _ 

Photographic  materials,  import  trade. 

Pilferage  on  Chinese  railways _ 

Pienlo  Railway. . . . . 

Population . . . 

American,  in  China _ _ 

Amoy  district - - 

Antung  district - - 

Anhwei  Province _ _ _ 

Canton  district.. - - - 

Changsha  district _ 

Chefoo  district . . . . . 

Chekiang  Province.... - - 

Chihli  Province - - - 

Dairen  district - - - 

Foochow  district - - 

Fukien  Province . 

Hankow  consular  district . . 

Harbin  district - - - 

Honan  Province... - 

Hongkong  district. - 

Hunan  Province - - 

Hupeh  Province - - - 

Kalgan  district.. . . 

Kansu  Province.-- . 

Kiangsi  Province _ _ 

Kiangsu  Province. - - 

Mukden  district - - 

Nanking  district . . . 

Shanghai  district . . 

Swatow  district . . . . 

Szechwan  Province. . . 

Tientsin  district. . . 

Tsinan  district . . . . 

Tsingtao  district . . . 

Yunnan  district . 

Porcelain . . 

Port  charges,  Amoy - - 

Postal  service - - - 

Amoy  district . . 

Antung  district . 

Canton  district . . 

Changsha  district. . . 

Chefoo  district . . 

Chungking  district . . . 

Foochow  district . . . 

Hankow  district . . 

Hardin  district . 

Hongkong. . . 

Kalgan  district . 

Mukden  district . . 

Nanking  district . . 

Shanghai  district . . . 

Swatow  district . . . 

Tientsin  district . 

Tsingtao  district . . 

Yunnan  district _ _ 

See  also  Communications. 

Potatoes,  Hankow  district _ _ 

Poultry- . . 

Powers  of  attorney,  Harbin  district... 

Hongkong . 

Shanghai . 

Tsingtao  district . 


Page 
.  623 

.  216 
.  127 

.  325 

.  440 

1,  3,  272 
-  350 

.  552 

.  566 

3 

.  407 

.  581 

.  599 

4 

4 

.  640 

.  655 

5 

.  432 

.  669 

5 

.  453 


6 

.-  687 

7 

7 

8 

..  468 

-  706 

..  492 

-  724 

..  620 
..  522 

-  733 

-  750 

..  772 

-  253 

..  558 

..  328 

-  556 

..  573 

-  418 

..  590 

..  609 

..  629 

.-  660 
..  442 

..  '  675 
..  456 

..  699 

..  480 

-  715 

-  502 

-  726 

-  534 

-  757 

-  777 

-  435 

219,  224 

-  680 

.  464 

.  512 

-  776 


Page 


Price  index . . .  270 

Prices,  leading  commodities,  Hankow  dis¬ 
trict . . 438 

Private  wealth,  increase  in  China _  270 

Property  values,  Antung . . .  579 

Canton  district . . 429 

Changsha  district _ 1 . .  598 

Chefoo . . 6i8 

Dairen  district _ _ 653 

Foochow  district . . 667 

Hankow  district... . . 450 

Harbin  district . . 682 

Hongkong - - 466 

Kalgan  district _ 705 

Mukden  district _ 490 

Nanking  district . . 722 

Swatow  district _ _  732 

Tientsin . 547 

Tsinan . . . . . . ...  749 

Tsingtao - 759 

Public  works,  Amoy  district _  558 

Antung  district _  573 

Canton  district _  420 

Changsha  district _  590 

Chefoo  district _  610 

Chungking  district- _  630 

Dairen  district _  647 

Foochow  district -  661 

Hankow  district _  443 

Harbin  district—. _ 676 

Hongkong -  459 

Kalgan  district -  700 

Mukden  district _  481 

Nanking  district _  717 

Shanghai  district _  507 

Swatow  district _ 727 

Tientsin  district _  535 

Tsinan  district -  744 

Tsingtao  district _ _  761 

Yunnan  district _  777 

See  also  Electric  light  and  power  plants; 

Telegraphs;  Telephones;  Railways; 

Tramways;  Waterworks. 


Quicksilver.  See  Mercury. 

Radio  telegraphs.  See  Wireless  service. 


Railway  labor  union,  Kalgan _ 695 

Railway  materials,  purchasing  of. _  322 

Railway  rates.  See  Freight  rates;  Passenger 
rates. 

Railways _ 309 

Amoy  district -  556 

Anhwei  Province _  3 

Antung  district _ _  572 

Canton  district _  416 

Changsha  district . . 589 

Chekiang  Province _  4 

Chihli  Province _  5 

Chinese  Eastern  Railway . .  318 

Chinese  Government  lines _  319 

connections  with  Shanghai  harbor _  506 

Dairen  district _ _  642 

finances _ _  293,303 

Fukien  Province _  5 


INDEX 


811 


Page 

Railways,  Hankow  district _ _ _ _  439 

Harbin  district -  673 

historical  survey _  310 

Hongkong  district _  454 

Hunan  Province _  6 

Hupeh  Province _  7 

Kalgan  district -  696 

Kiangsi  Province _  8 

Kiangsu  Province -  8 

Kwangtung  Province _  9 

Manchuria _ 13 

mileage  in  proportion  to  population . .  274 

Nanking  district- _ _ 713,  723 

operating  methods _  324 

operating  revenues  and  expenses,  1922-  _ .  318 

projects  in  Chunking  district -  627 

property  and  equipment _  322 

relative  importance  of  lines -  321 

Shanghai  district _  499 

Shansi  Province _  10 

Shantung  Province _  11 

South  Manchuria  Railway _ 319,476 

statistics  of  leading  lines _ _ 317 

Swatow  district _  726 

Tientsin  district _  530 

transportation  methods _  324 

Tsinan  district  - _ 741 

Tsingtao  district _  754 

Yunnan  Province -  12,776 

Rainfall.  See  Climate. 

Ramie.  See  China  grass. 

Rapeseed _  240,622 

Reclamation  works,  Antung  district _  574 

Canton  district _  420 

Dairen  district _  648 

Hankow  district _  445 

Hongkong _  460 

Mukden  district _ _ 382 

Nanking  district _  718 

Shanghai  district -  507 

Recreations,  Antung  district _  580 

Dairen  district _  654 

Hankow  district _  451 

Kalgan  district _  705 

Nanking  district _  723 

Shanghai  district -  515 

Swatow  district _  732 

Religious  persecution,  immunity  from,  under 

treaty  of  1858 - 355 

Rents,  Antung -  579 

Canton  district _  429 

Changsha _  598 

Chefoo _  618 

Chunking  district _ _  638 

D  airen  d  istrict _  653 

Foochow  district - '  667 

Hankow  district _  450 

Harbin  district -  682 

Hongkong _ _ 466 

Kalgan  district .  705 

Mukden  district .  490 

Nanking  district.. . 722 

Swatow  district. . 732 

Tientsin . 547 

Tsinan . . 749 

Tsingtao  district .  770 


Page 

Rents,  Yunnan  district . .  781 

Revenues,  Government  efforts  to  centralize 

control . . . 282 

sources _  288 

Rhubarb _ 238 

Rice,  Amoy  district _ 554 

Foochow  district . .  _ 656 

Hankow  district..* _ 435 

Nanking  district _ _ 707 

production  and  trade _ 239 

Chungking  district . . .  621 

Yunnan  district... _ _  773 

Rivers,  Anhwei  Province _  3 

Canton  district _ _ 414 

Hai  Ho _ 529 

Han _ 726 

Hankow  district _  438 

Kalgan  district _  686 

Kerulen _  686 

Liao . 475,482 

Min. . 626,659,661 

Orkhon _ _  687 

Selenga _ 686 

Sungari _ 672 

Whangpoo _  498 

Yalu . . 574 

Yangtze _  438, 439, 450, 498, 626, 631,  712 

Yellow _ 687,741 

Yung... _ _ 726 

See  also  Waterways. 

Roads,  Amoy  district . . . 556 

Antung  district . . 572 

Canton  district _  417 

Changsha  district _  589 

Chefoo  district _ 607 

Chungking  district _  627 

construction  with  relief  funds _  532,  713,  743 

Dairen  district _ 643 

Foochow  district _ _ 660 

Hankow  district _ 441 

Harbin  district _ 673 

Hongkong  district _ 455 

Hupeh  Province _ _ 7 

Kalgan  district . 697 

Kweichow  Province. _ _ 10 

Mukden  district _ 478 

Nanking  district... _ _ _ 713 

Shanghai  district . . 500 

Shansi  Province. . . 10 

Shantung  Province . 11 

Shensi  Province . 11 

Swatow  district . 726 

Ta-lu,  or  Great  Road. . . . 628 

Tibet. . . 15 

T  entsin  district . 532 

Tsinan  district . 742 

Tsingtao  district . 756 

Yunnan  district . 776 

Rubber-sole  factories,  Canton  district .  410 

Salt,  revenues  from.. . 290 

Szechwan  Province .  623 

Saltpeter . . .  216 

Samples  in  advertising . . .  200 

Samshui . 408 

Samshui  Railway . 416 

Santuao .  656 


812 


TNDEX 


Page 

Sausage  casings . 225 

Schools,  Amoy . 553 

Antung  district .  580 

Canton  district . ? . . . .  430 

Changsha  district. . 598 

Chungking  district . 638 

Hankow  district.. .  452 

Mukden  district . 491 

Nanking . 723 

Peking .  551 

Shanghai . 515 

Swatow  district . 732 

Tientsin .  551 

Tsingtao  district.. .  771 

Selenga  River .  686 

Sericulture.  See  Silk. 

Sesame .  239 

Hankow  district .  434, 435 

N anking  district . 708 

Sesame  oil .  239 

Sewing  machines,  import  trade .  104 

Shanghai .  492 

American  community  organizations .  515 

distances  from . 2 

railway  connections,  Shanghai  harbor —  506 

steamship  services  and  rates .  503 

See  also  Shanghai  district. 

Shanghai  district,  advertising .  513 

aerated-water  factories .  497 

agriculture .  493 

animal  industry .  493 

automobiles .  508 

banks _ _ 508 

bonded  warehouses .  505 

breweries .  497 

brick  works .  496 

buslines. .  508 

cable  service... .  501 

cement  works .  496 

chambers  of  commerce . .  514 

cigarette  manufacture .  495 

cities .  492 

climate .  492 

clubs. . 515 

cotton  industry .  493 

credits . 511 

currency .  510 

egg  products . 496 

electric  light  and  power  plants . .  496,  507 

electrical  equipment  manufacture .  497 

engineering  works . 495 

exchange  brokers . 511 

fishing .  493 

flour  milling .  495 

hotels . . . . . 

iron  and  steel  industry . . .  497 

labor  conditions .  497 

land  procedure . 517 

land  values  and  development . . .  519 

living  costs . .  514 

location  and  area. . .  492 

manufacturing . . .  493 

match  factories . .  496 

minerals . 493 

motor  trucks . 508 

newspapers . 513 


Page 

Shanghai  district,  population .  492 

port  accommodations .  503 

postal  facilities . .  502 

powers  of  attorney .  612 

railways .  499 

reclamation  works . 507 

recreations . ^ .  515 

roads .  500 

schools .  515 

shipbuilding .  495 

shipping  facilities .  502 

silk  manufacture . 495 

steamship  rates . 499 

tanneries . 496 

telegraph  service .  501 

telephone  service . 501 

theaters. . . .  515 

trade. . _  508 

trade,  recent  changes . . "...  516 

tramways . 507 

transportation .  498 

travel  facilities . .  513 

vegetable-oil  industry _ 495 

waterways . 498 

waterworks . . 507 

wireless  service .  501 

yeast  manufacture . 497 

See  also  Chekiang  Province;  Kiangsu 
Province. 

Shanghai-Nanking  Railway .  499,713 

Shansi  Province,  agriculture . . Y._  10 

area . 10 

cities . 10 

climate .  10 

coalmines... .  527 

communications .  10 

electric-light  plants. . . 535 

industries . .  10 

language . 10 

minerals . 10 

population . . 10 

railways .  10 

roads. . 10 

topography .  10 

waterways . 10 

See  also  Tientsin  district. 

Shantung  Province,  agriculture . . .  10 

American  interests  — .  11 

area . . . - .  10 

cities. . 11 

communications . 11 

industries . 11 

1  anguage  and  people . .  11 

minerals . 11 

mining . -  738 

population . 10 

railways .  11 

roads . . 11 

topography . . .  10 

treaty  ports . . 11 

waterways . 11 

See  also  Chefoo  district;  Tsinan  district. 

Shasi . . 433 

Sheep... . 223,691 

Shengking.  See  Antung  district;  Manchuria; 

Mukden  district. 


INDEX 


813 


Page 

Shensi  Province,  agriculture .  11 

American  interests. . 11 

area.. .  11 

cities .  11 

communications _ _  11 

geographical  divisions _ 434 

industries . .  11 

language .  11 

minerals . 11 

population.  . .  11 

roads . . - .  11 

topography .  11 

waterways.. . 11 

See  also  Hankow  district. 

Shipbuilding,  Shanghai  district .  495 

Shipping... .  50 

Antung-..- .  571 

Hongkong . . .  462 

Mukden  district. .  480 

Newchwang,  1923 .  480 

port  of  Dairen .  644 

Tientsin,  1923 . 534 

Shipping  facilities,  Amoy  district .  557 

Canton  district .  418 

C  hangsha  district . .  591 

Chefoo  district.. .  609 

Chungking  district. .  629 

Dairen  district . .  644 

Foochow  district .  660 

Hankow  district. .  442 

Harbin  district . . .  675 

Hongkong . 457 

N anking  district . 715 

Shanghai  district . . 502 

Swatow  district . .  727 

Tientsin  district... . 534 

Tsingtao  district .  758 

Yunnan  district. .  777 

Shipping  practice,  Tsingtao.  . .  760 

Silk,  Antung  district. . 568 

C  hefoo  district . .  604 

C hungking  district . ^... .  624 

Hankow  district .  435 

industry  and  trade . .  226 

pongee . .  259 

Shanghai  district .  495 

.  Tsinan  district . 740 

Silver,  bar,  in  foreign  exchange  transactions. .  166 

Canton  district.. . 412 

exchange,  relation  to  prices .  137 

Hunan  Province .  585 

imports. . . . 216 

Kalgan  district . .  694 

position  of  in  Chinese  monetary  system..  153 

Sinkiang,  agriculture. .  14 

American  interests- .  15 

area . 14 

cities.. .  15 

industries... .  15 

population . .  14 

See  also  Hankow  district. 

Sino-American  postal  arrangements .  329 

Social  customs . . 392 

Soda,  exports .  216 

Manchuria .  473,671 

Soochow .  492 


Page 

Soochow  Creek . 498 

South  ManchuriaHtailway _ _ 572,642 

mileages _ 476 

passenger  fares .  477 

storage  charges  at  Mukden. .  481 

Sporting  arms,  import  trade .  124 

Stationery,  import  trade . . . 127 

Steamship  service,  Hankow  and  Shanghai...  450 

Shanghai . . 502 

Stock  raising,  Harbin  district _ _ 670 

Storage  charges,  Mukden . 478,481 

Storage  facilities .  See  W arehousing  facilities . 

Straw  braid . 259 

Sugar,  Chungking  district... . . .  622,624 

refining,  Mukden... .  474 

Suiyuan.  See  Kalgan  district. 

Sulphur . . 216 

Sung  dynasty. . 20 

Sungari  River . 672 

Sunning  Railway . .  416 

Swatow  district,  advertising . .  731 

agriculture . .  724 

banks . 730 

cable  service . .  726 

cities. . 724 

climate . . , . .  724 

credits. .  731 

currency . .  730 

hotels  . .  732 

industries . .  725 

labor  conditions  . .  725 

living  costs.. .  732 

location  and  area . . . 724 

manufacturing . .  725 

minerals. . 725 

population. . .  724 

postal  facilities . . 726 

property  values .  732 

railways .  726 

recreations .  732 

rents.. .  732 

roads .  726 

schools .  732 

shipping,  1923  .  727 

shipping  facilities .  727 

taxes .  732 

telegraph  service .  726 

telephone  service . .  726 

trade . 728 

trade  organizations .  732 

transportation. . .  726 

travel  facilities .  732 

wages . .  725 

warehousing  facilities .  727 

waterways. .  726 

waterworks . 727 

wireless  service .  726 

See  also  Kwangtung  Province. 

Sweet  potatoes,  Chungking  district .  622 

Hankow  district .  435 

Szechwan  Province,  agriculture .  12 

American  interests .  12 

area .  11 

climate .  11 

communications .  12 

industries .  12 


814 


INDEX 


Page 

Szechwan  Province,  language. .  12 

manufacturing. . 1 . .  623 

minerals . . 12,622 

mining  methods .  623 

petroleum. .  623 

population . 11,  620 

railway  projects .  627 

topography .  11 

treaty  ports .  12 

waterways . .  12 

See  also  Chungking  district. 

Szechwan-Hankow  Railway .  440 

Taheiho _ 670 

Taian . .  734 

Taiyuanfu— . 624 

Talc . 215 

Manchuria . .  473 

Talifu . . 773 

Tang  dynasty . . 20 

Tanneries,  Canton  district .  410 

Shanghai  district .  496 

Tariffs... . . .  331 

ad  valorem,  ascertaining  values .  335 

bonded  cargo. . . . 338 

Chinese  goods . . 337 

Chinese  Maritime  Customs .  333 

customs  administration. _ _  332 

customs  practice,  Tsingtao .  760 

customs  procedure  in  China . .  334 

customs  valuations _ _ _ 333 

duty-free  articles . 336 

exemption  of  Chinese  factory  products...  338 

export  schedule  of  long  standing .  334 

filing  protests... . 335 

foreign  administrative  assistance .  332 

foreign  goods  imported  from  Chinese 

ports . .  336 

invoices . . . 336 

Kalgan  district.. .  701,702 

privileges  granted  Tientsin  trade  with 

Manchuria _  339 

prohibited  articles .  336 

provisions  of  treaty  of  1844 . 353 

rebate  on  overland  or  frontier  trade . .  334 

revisions  proposed... . 334 

units  used  in  making  levies . 334 

Y unnan  district _  778,  779 

See  also  Taxes. 

Tatsienlu. . . . — . .  621 

Tatungkow . .  567 

Taxes,  Canton  consular  district... .  429 

Foochow  district .  667 

Dairen  district . .  653 

Hankow  district .  451 

Harbin  district . 683 

Hongkong .  466 

internal . . 331,339 

commodities  carried  by  railways .  341 

destination . . 340 

levies  on  boat  traffic . . . 341 

levies  on  foreign  imports. _ _  342 

levies  on  native  goods .  342 

likin . 339 

lump-sum  payment . 340 

Manchuria .  488 


Page 

Taxes,  internal,  monopoly  hong . 340 

Peking  octroi _ 341 

production  and  consumption . . .  340 

provisions  of  treaty  of  1844 . 353 

through  tax  to  replace  other  charges.  340 

transit . 339 

wine  and  tobacco . 1. .  340 

Kalgan  district.. . . 698 

Nanking  district .  722 

Swatow  district . 732 

Tientsin  district _ _ 548 

Tsinan  district . . . 749 

Tsingtao  district . . .  755,  770 

Tayeh  Iron  Mines  Railway. _ _  440 

Tea,  cultivation  and  preparation  for  market.  242 

export  trade . . 240 

Foochow  district . 656 

Hankow  district... . .  434,435 

Tehchow. . . 735 

Telegraph  service,  Amoy  district . 556 

Antung  district _ _  572 

Canton  district. _ 417 

Changsha  district _ 590 

Chungking  district _  628 

Dairen  district .. ^ . 643 

Foochow  district . 660 

Hankow  d  istrict _ _ 442 

Harbin  district _ _ 674 

Hongkong  district . 455 

Kalgan  district . 698 

Mukden  district . . .  479 

Nanking  district . 715 

Shanghai  district . 501 

Swatow  district . 726 

Tientsin  district _ _ 533 

Tsinan  district .  744 

Tsingtao  district .  757 

Yunnan  district . .  776 

See  also  Communication. 

Telephone  service,  Amoy  district _  556 

Antung  district. . 573 

Canton  district . . . 418 

Changsha  district _  590 

Chefoo  district - -  609 

Chungking  district. _ 629 

Dairen  district... - - 644 

Foochow  district . 660 

Hankow  district. - -  442 

Harbin  district . 674 

Hongkong. _ _ 456 

Kalgan  district . 699 

Mukden  district.. - - 479 

Nanking  district _ r. -  715 

Shanghai  district . 501 

Swatow  district. . 726 

Tientsin  district _  533 

Tsinan  district . 744 

Yunnan  district . - . -  777 

See  also  Communication. 

Textile  machinery,  import  trade . .  102 

Theaters . 394,515 

Three  Eastern  Provinces.  See  Manchuria. 

Three  Kingdoms,  rule  of.. . - .  20 

Tibet,  agriculture . . . 15 

American  interests . 15 

area .  15 


INDEX 


815 


Page 

Tibet,  cities .  15 

communications . 15 

industries . -  15 

language  and  people .  15 

minerals . . . - .  15 

population . -  15 

roads . -  15 

trade.. . 638 

treaty  ports . . 15 

See  also  Chungking  district. 

Tientsin.  See  Tientsin  district. 

Tientsin  district,  advertising .  545 

agriculture . 524 

banks . .  543 

cable  service... .  533 

chambers  of  commerce . . 547 

cities . . 522 

climate....- - - 522 

coalmining . . 524 

conservancy  works .  536 

credits . 543 

currency . . 545 

electric-light  plants .  535 

foreign  concessions . 522,548 

hotels . . 546 

iron  mining . . -  527 

labor  conditions . - .  528 

living  costs . . -  549 

location  and  area .  522 

manufacturing . - .  527 

mining . 524 

newspapers..... .  545 

population.. . . . 522 

postal  facilities . 534 

property  values  and  rents .  547 

railways. . 530 

roads . .  532 

schools.. .  551 

shipping,  1923. .  534 

shipping  facilities .  534 

taxes _ ; _  548 

telegraph  service  _ 533 

telephone  service . .  533 

trade _ _ 537 

changes  in  recent  years... .  551 

tramways . . 536 

transportation  costs.  . .  533 

travel  facilities . .  546 

wages . 528 

warehousing  facilities.. .  534 

waterways . .  529 

waterworks . .  536 

wireless  service. .  533 

See  also  Chihli  Province ; Honan  Province; 

Shansi  Province. 

Tientsin-Pukow  Railway. .  532,  713,  741 

Tin,  Canton  district .  413 

Hunan  Province.  . .  583 

production  and  exports . 217 

Yunnan  district . . 773 

Tobacco,  Amoy  district.  . .  554 

Antung  district . . 567 

Chungking  district . —  622 

culture  and  trade . 242 

Hankow  district . .  434,  435 

import  trade .  71 


Page 

Tobacco,  Tsinan  district . 736 

See  also  Cigarettes. 

Tonnage  dues  and  dues  certificate .  338 

Topography,  Anhwei  Province . 3 

Chefoo  district. . .  599 

Chekiang  Province .  4 

Chihli  Province . 4 

Chinese  Turkestan . 14 

Fukien  Province . 5 

Honan  Province. . 5 

Hunan  Province .  6 

Hupeh  Province . 6 

Kansu  Province . . 7 

Kiangsi  Province . .  7 

Kiangsu  Province. .  8 

Kwangsi  Province . .  8 

Kwangtung  Province. _ . 9 

Kweichow  Province . 10 

Manchuria. . . 13 

Mongolia . 14 

Shansi  Province.. .  10 

Shantung  Province.. .  10 

Shensi  Province . . 11 

Szechwan  Province. . .  11 

Tibet . . 15 

Tsinan  district . . 733 

Y unnan  Province . .  12 

Tractors,  Mukden  district.  . . 478 

Trade,  Amoy  district . .  559 

Antung  district . . 574 

by  articles,  1923  and  1924. .  36 

C anton  consular  district . .  421 

C hangsha  district . .  591 

Chefoo  district . .  602,611 

Chinwangtao.. . 542 

Chungking  district .  631 

Dairen  district.  . .  648 

development  of . .  28 

direct,  with  foreign  countries .  44 

export,  by  ports . . 47 

export,  financing  of  from  United  States  to 

Hongkong . .  463 

export,  leading  articles .  34 

Foochow  district.. .  662 

Hankow  district.  . .  445 

Harbin  district .  677 

Hongkong . .  460 

import,  1913  and  1923 .  52 

financing  of.. . 54 

leading  articles .  30 

relative  position  of  countries .  52 

tonnage  by  nationalities. .  48 

Kalgan  district.. .  701 

Mukden  district.  . . 483 

Nanking  district.  . .  718 

Shanghai  district .  508 

Swatow  district.. .  728 

Tibet . .  638 

Tientsin  district . . 537 

treaty  stipulations  regarding .  331 

Tsinan  district . 745 

Tsingtao  district . . _  762 

value  of,  1864-1894 . 26 

with  United  States... .  42 

Yunnan  district .  778 

Trade  centers  on  Yangtze  River . .  439 


816 


INDEX 


Page 


Trade  conditions,  changes  in,  Amoy  district—  565 

Antung  district. .  580 

Canton  district . .  430 

Changsha  district .  598 

Dairen  district . .  654 

Foochow  district .  667 

Hankow  district . 452 

Harbin. . 683 

Hongkong. .  461 

Nanking  district . 723 

Shanghai . .  516 

Tientsin  district .  551 

Tsinan  district . .  749 

Tsingtao.. .  771 

Yunnan  district .  781 

Trade  methods,  changes  in  recent  years _  384 

Trade  organizations.  See  Chambers  of  com¬ 
merce;  Guilds. 

Traditions,  persistence  of .  398 

Trade-marks . .  137 

importance  of . .  343 

claims  concerning  infringements .  369 

protection  in  China . 345 

protection  in  Hongkong . . .  348 

provisions  of  commercial  treaty  of  1903. .  356 

registration,  regulations  affecting. . .  345 

selection  of. . . .  344 

treaties  regarding  reciprocal  protection..  347 

Tramways,  Antung  district . .  574 

Canton.. . 420 

Dairen  district .  647 

Hankow  district . 444 

Hongkong .  459 

Mukden  district .  482 

Nanking  district .  718 

Shanghai  district . . 507 

Tientsin  district .  536 

Tsinan  district .  745 

Transportation,  Amoy  district .  556 

Antung  district .  571 

Canton  district .  414 

Changsha  district . 589 

Chefoo  district .  607 

Chungking  district . 626 

Dairen  district .  642 

Foochow  district .  659 

Hankow  district . 438 

Harbin  district. .  672 

Hongkong  district .  454 

Kalgan  district . 695 

modern  methods  needed .  272 

Mongolia .  14 

Mukden  district .  475 

Nanking  district .  712 

Shanghai  district .  498 

Swatow  district . 726 

Tientsin  district .  529 

Tsinan  district .  741 

Tsingtao  district . 754 

Y unnan  district . . . __  775 

See  also  Railways;  Roads;  Shipping; 
Steamship  service;  Tramways;  Water¬ 
ways. 

Travel  facilities,  Antung  district .  578 

Canton  district . 427 

Changsha  district _ _  597 


Page 


Travel  facilities,  Chefoo  district .  618 

Chungking  district .  637 

Dairen  district . .  652 

Foochow  district .  666 

Hankow  district .  449 

Harbin  district .  682 

Kalgan  district . 704 

N anking  district . .  721 

Shanghai  district .  513 

Swatow  district . .  732 

Tientsin  district. . . . .  546 

Yunnan  district . 781 

Treaty  of  1844,  summary . 353 

Treaty  of  1858,  important  provisions _  355 

Treaty  of  1880,  summary  of  provisions .  355 

Treaty  ports. .  45 

Anhwei  Province. . . 4 

Chekiang  Province _ _ 4 

Chihli  Province . ...'. _  5 

Fukien  Province. .  5 

Honan  Province . 6 

Hunan  Province . 6 

Hupeh  Province. . 7 

Kiangsi  Province . 8 

Kiangsu  Province . . 8 

Kwangtung  Province .  9 

Mongolia . 14 

Shantung  Province.  . . . . .  ’  11 

Szechwan  Province. .  12 

Tibet .  15 

Yunnan  Province .  13 

Tsin  dynasty .  18 

Tsangchow-Chentow  Railway .  532 

Tsinan.  See  Tsinan  district. 

Tsinan  district,  advertising .  748 

agriculture . . .  735 

banks .  747 

chambers  of  commerce. .  748 

cities .  734 

climate .  733 

credits .  748 

currency . . . • .  747 

industrial  development .  740 

labor  conditions .  741 

livestock. .  735 

living  costs . 749 

location  and  area .  733 

manufacturing. .  740 

merchandising  methods .  748 

minerals .  737 

mining _ _ 738 

motor-bus  service .  743 

population .  733 

property  values .  749 

railways .  741 

rents . . 749 

roads .  742 

sericulture .  740 

taxes. .  749 

telegraph  service . -  744 

telephone  service .  744 

topography .  733 

trade . .  745 

trade  conditions,  changes .  749 

transportation . .  741 

waterways .  741 


INDEX 


817 


Page 

Tsinan  district,  wireless  service -  744 

See  also  Shantung  Province. 

Tsingtao  district,  advertising . 768 

agriculture _ _ . _ 751 

banks . 765 

cable,  telegraph  and  wireless  service .  757 

chambers  of  commerce .  768 

cities . . .  750 

climate . . . 750 

cred  ts _  766 

currency . . . ..  765 

customs  practice. .  760 

forestry . 751 

hotels _  769 

industries . 752 

living  costs . .  770 

location  and  area .  750 

manufacturing . . .  752 

minerals _  754 

population .  750 

postal  facilities. .  757 

powers  of  attorney .  767 

property  values . 769 

railways . 754 

rents . . 770 

roads.. . 756 

schools .  771 

shipping  facilities . . 758 

shipping  practice . 760 

taxes . 755,770 

trade . . . 762 

trade  conditions,  changes .  771 

warehousing  facilities. .  759 

water  supply .  753 

waterways . 754 

Tsining . . 734 

Tsitsihar . 670 

Tsitsihar  Light  Railway .  673 

Tung  oil . . 243 

industry  in  Chungking  district .  624 

Tungsten.. .  217 

Canton  district .  412 

Hunan  Province .  584 

Tzeliutsing . . 621 

Umbrellas,  Chinese .  260 

United  States  Court  for  China .  359, 368 

Urga . . . 688 

Ussuri  River . 673 

Vaccination . . .  400 

Vegetable-oil  industry  and  trade  Shanghai 

district .  495 

Vegetable  tallow .  245 

Vermicelli . .  260,606 

Wages . 269 

Antung  district .  570 

Chefoo  district. .  607 

Chungking  district .  626 

Hankow  district .  438 

Harbin  district . .  672 

Mukden .  475 

-  Nanking  district .  712 

100020°— 26 


Page 


Wages,  Swatow  district .  725 

Tientsin  district .  528 

Yunnan  district .  775 

Walnuts.. . . 246 

Wanhsien . 621 

Warehousing  facilities,  Amoy  district . .  557 

Canton . 419 

C  hangsha  district .  591 

Chefoo  district .  610 

Chungking  district .  630 

Dairen  district .  645 

Foochow  district . . 660 

Hankow  district .  443 

Harbin  district . 675 

Hongkong. .  458 

Kalgan  district .  700 

Mukden  district .  481 

Nanking  district .  715 

Shanghai _ 505 

Swatow  district. .  727 

Tientsin  district. .  534 

Tsingtao  district . .  759 

Watches,  import  trade . 126 

Waterways,  Amoy  district .  556 

Antung  district . . . 571 

Canton  district .  414 

C  hangsha  district . .  589 

Chekiang  Province .  4 

Chihli  Province . . 5 

Chungking  district . 626 

Foochow  district .  659 

Fukien  Province _ _ 5 

Hankow  district .  438 

Harbin  district . . 672 

Hunan  Province . 6 

Hupeh  Province. .  7 

Kalgan  district .  695 

Kansu  Province .  7 

Kiangsi  Province .  8 

Kiangsu  Province. .  8 

Kwangsi  Province... .  9 

Kwangtung  Province .  9 

Kweichow  Province .  10 

Manchuria . 13 

Mukden  district .  475 

Nanking  district .  712 

Shanghai  district .  498 

Shansi  Province .  10 

Shantung  Province .  11 

Shensi  Province . . 11 

Swatow  district. .  726 

Szechwan  Province .  12 

Tientsin  district .  529 

Tsinan  district .  741 

Tsingtao  district _ _  754 

Yunnan  district. .  775 

Waterworks,  Amoy .  559 

Antung . .  573 

Canton  district _ _ 420 

Changsha  district .  591 

Chefoo  district . . 610 

Dairen. .  647 

Hankow  district . . 444 

Hongkong .  459 


53 


818 


INDEX 


Page 

Waterworks,  Mukden  district . 482 

Nanking  district . 717 

Shanghai  district _ _ 507 

Swatow . . 727 

Tientsin  district .  536 

Tsinan  district... _ _ 745 

Tsingtao  district. . . .  753,762 

Y  unnan  district . . 777 

Wearing  apparel,  import  trade . .  125 

Weights  and  measures,  Chinese . .  792 

Weihaiwei,  hotels . 618 

Weihsien . 734 

Wenchow _ 492 

Western  ideas,  influence  of _ 276 

Whangpoo  Conservancy  Board. . . .  507 

Whangpoo  River. . . . 498 

Wheat,  Chungking  district .  621 

Hankow  district... . - .  434 

import  trade . .  63 

Nanking  district . .  707 

production  and  trade . 247 

production,  Tientsin  district . .  524 

Tsinan  district _ 735 

Wine  industry,  Chefoo  district _ 606 

Wireless  service.  Canton  district . 418 

Chefoo  district . .  608 

Dairen  district _ _ 643 

Foochow  district.. . 660 

Harbin  district . . 674 

Hongkong _ 455 

Kalgan  district - 698 

Mukden  district - ^ .  479 

Nanking  district — . 715 

Shanghai  district . .  501 

Swatow  district . 726 

Tientsin  district _ 533 

Tsinan  district.. .  744 

Tsingtao  district . . 757 

Yunnan  district . 776 

Wood  oil.  See  Tung  oil. 

Wool  industry  and  trade — .  227 

Woolen  goods,  import  trade  — .  84 

Wuchow . . 408 

Wuhu . 707 

shipping  in  1924 . 716 

Yalu  River  conservancy  plan .  574 

Yangchow . . 707 

Yangtze  River.  _ _ _  438,  498,  712 

conservancy  work . . .  631 

trading  centers  on . .  439 


Page 

Yangtze  River,  traffic  a-nd  rates.. .  439,  450,  (26 

Yeast  manufacture,  Shanghai  district _  497 

Yellow  River _  687 

Yenping.  - - 656 

Yung  River _  726 

Yunnan  district,  advertising _  780 

agriculture- _ _ 773 

banks _ 780 

cable,  telegraph,  and  wireless  service _  776 

climate _ 772 

chambers  of  commerce _  781 

cities _  772 

currency . . 780 

hotels . . 781 

industries.  . . 775 

1  abor  conditions _ 775 

location  and  area _ _ _ ' _  772 

merchandising  methods _ _ 781 

minerals _ 773 

population _  772 

postal  service _ 777 

railways _ 776 

rents _  781 

roads _ 776 

shipping  facilities _ 777 

tariffs _ 778,779 

telephone  service _ 777 

trade  _ _ 778 

trade  conditions,  changes _  781 

travel  facilities _ 731 

water  suppl  y . . 777 

waterways . 775 

See  also  Yunnan  Province. 

Yunnan  Province,  agriculture . .  12 

American  interests . 13 

area — . 12 

climate . . 12 

communications _ 12 

industries _ 12 

language  and  people - - 13 

minerals _ _ 12 

population . . 12 

railways . . 12 

topography - 12 

treaty  ports.  . .  13 

See  also  Yunnan  district. 

Yunnanfu . . 772 

Zinc _ _ - .  215 

Hunan  Province . 683 

Yunnan  district - 774 


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